Asia’s retail industry has been consistently evolving to meet the ever-changing consumer needs and expectations. For market players, the key to success lies in how well they understand and adapt to the changing market environment. In our latest report What’s New and What’s Next in Singapore Retail, we provide you with the major retail facts and latest trends in Singapore’s retail sector.

Key highlights

The Singapore government plans to raise the goods and services tax (GST) gradually from the current 7% to 9% during 2021-2025. The GST hike, borne by consumers, is expected to depress consumer sentiment and retail sales in the short term as consumers may cut back their spending due to increased prices after the tax hike.

Tourism continues to flourish in Singapore. In 2017, tourist arrivals and spending in Singapore hit record highs, the second time in two years. Chinese tourists are currently the largest source of tourist arrivals and spending in Singapore, constituting a fifth of all visitor arrivals to the city. Considering the growing number of passengers, the government is building a new airport – Jewel Changi Airport which is slated to open in 2019.

M-commerce is grabbing a larger market share in Singapore, with smartphone-enabled purchases expected to see explosive growth over the next few years. As avid online shoppers, Singaporeans are particularly fond of cross-border shopping, which makes up more than half of the city’s e-commerce sales. Blogshops – online fashion stores using blogs to sell their fashion and lifestyle products, continue to dominate informal retailing in Singapore and remain a mainstay in many Singaporeans’ lives.

As Singaporean consumers become more tech-savvy and have higher expectations for customer service, retailers in Singapore have adopted omni-channel strategies to create seamless shopping experience, such as providing click-and-collect service to make shopping easier for consumers. To boost in-store foot traffic and sales in physical stores, some traditional retailers have also created an innovative in-store shopping experience with the use of digital tools and experiential elements – robotics, AR, VR and unmanned store accepting cashless payment.