Singapore has more than 100 shopping malls, despite a population of just over 6 million. It is a test for Singapore's shopping culture.
E-commerce in Singapore still at an early stage
Singapore is home to a long overdue ecommerce scene. Fewer things are done online compared to other countries such as the US and UK. The survey looked at three key indicators to measure Singapore's e-commerce advancement.
First, only 49% of Singaporeans book their flights online. That number is well behind the 80% of the UK.
Second, the proportion of hotel bookings has been examined. Compared to 73% in the US, only 40% of Singaporeans are using the internet to book their hotel rooms.
Lastly, online clothing purchases are at a frighteningly weak level of 4% of all purchases. It is a significant indicator because most of the online stores on the market are selling clothes.
Buying a huge part of Singaporean culture
According to Letty Lee, former retail director of CBRE and specialist in Singapore Real Estate"Singapore is a nation of shopping. Shopping is not just about buying something. It's about socializing and experimenting. "
Singapore has developed its own shopping culture to the point that many of its citizens prefer to spend more time in shopping malls than browsing the internet. It's not just about buying an item, it's about buying.
85% of Singaporeans shop in stores at least once a month. This is compared to 49% of consumers who buy online.
Likewise, Singapore claims twice the retail space per person compared to Australia. This is despite Singapore being 10 thousand times smaller in terms of land size.
Singapore E-Commerce can not replace crucial resources
Neither the internet nor our current level of technology can replace the social interaction and other main attractions of a mall.
Physical locations offer shoppers the opportunity to socialize with their friends and enjoy the atmosphere of a mall. This simply can not be replicated to a person browsing the Web.
Singapore's own shopping malls are aware of the fact that they are here to stay. As such, management is looking for ways to increase the strength of malls with the technology of online stores. Its goal is to create an "omnichannel" that integrates online and offline stores.
Some of the design retailers have begun to include "magic mirrors" where a buyer can practically experience items.
Click-and-mortar stores place QR codes on their merchandise so buyers can scan them, and then add them to their shopping carts online to buy, it's also a focus.
The point is: online shopping is highly detrimental to physical stores in most markets around the world. However, e-commerce in Singapore will coexist with the megamalls of the country.