The Real Retail Story: Evolving Shopper Behaviour in Singapore
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The Real Retail Story: Evolving shopper behaviour in Singapore June 2019 #RealRetail In collaboration with Contents 1 Foreword by Richard Andrew, Managing Director, Asia, Blis 2 Key takeaways • Singapore loves to shop • Where digital and real world collide • Influence and the psyche of the impulse buyer • Sealing the deal 3 Local market nuances 4 Conclusion 5 Research methodology 6 About Sapio Research 7 References 3 #RealRetail blis.com Foreword by Richard Andrew, Managing Director, Asia, Blis For some time now, headlines have proclaimed that we’re suffering through a “retail apocalypse,” a period of great difficulty for retail brands. 2019 has seen the highest number of store closures in a decade across much of the globe as retailers struggle to keep up with shifting consumer expectations. However, the data uncovered in this report reinforces that any talk about a “retail apocalypse” and physical retailers being rendered obsolete by ecommerce is premature. While it is true that retail is changing, the market in Singapore demonstrates to us that retail isn’t facing its imminent demise, it is simply evolving to keep up with rapidly shifting consumer preferences and behaviours. Where customers were once content to shop in local stores exclusively, they now seek more diverse and personalized shopping experiences. Physical stores are still part of the shopper’s journey, but they no longer comprise the entire journey. That journey now includes touch points on multiple devices, including desktops, tablets and mobile phones. Consumers in Singapore are enjoying the journey: Nearly half of shoppers surveyed derive a sense of happiness from shopping. In other words, emotions influence behaviour and retail therapy is real. Retailers must therefore design experiences across physical and digital touchpoints that surprise and delight, engineer serendipity, as well as negate common frustrations and points of friction. Creating this is easier said than done, and it underscores the need for retailers to discover and leverage location data technology to understand real-world behaviour, and deliver the visceral shopping experiences that people crave. 4 #RealRetail blis.com Shoppers still visit local stores but their attention and discretionary spending is now being pulled in multiple directions. Therefore, retailers who can master using location-based data and technology to connect with shoppers and deliver value at the right place and time will win their hearts, minds and wallets. To shed some light on the retail era, Blis and Sapio Research reached out to 5,935 consumers globally (including 453 in Singapore) in a global study to uncover the motivations, preferences, and behaviours of shoppers. The report will look at 4 key trends: Singapore loves to shop Where digital and real 1 2 world collide While many retailers are struggling globally, In this section we explore how digital trends Singapore is seeing new stores open and shoppers have shifted demands in user experience. are enjoying the myriad retail opportunities before them. For retailers here, this is where understanding the profile and motivations of your consumer really comes into play; by using mobile location data you can identify who your target audience should really be and how they prefer to shop. Influence and the psyche of 3 the impulse buyer 4 Sealing the deal Where providing the right message to the Coming to grips with the consumer behaviours right consumer at the right time can make when it comes to paying for products. the difference in driving them in-store. We’ll also look at the retail events that have the greatest impact on shoppers in Singapore: The Great Singapore Sale and Singles Day. The headlines have got it wrong. The unfolding transformation of retail doesn’t exclude the presence of physical stores. To thrive, retailers must focus on shopper behaviour to keep their love of shopping alive. The goal of marketing should be to bring consumers into the store. It’s not only what shoppers in Singapore prefer, it is the cornerstone of bricks and mortars. And in this new phase of retail, accurate location marketing is going to play a vital role in driving this very important consumer touch point. Ultimately, the right combination of insights will offer a recipe for success as brands adapt to - and attempt to stay ahead of - rapidly-shifting shopper behaviours. 5 #RealRetail blis.com Key 2 Takeaways Singapore loves to shop One of the most exciting findings from our research is that Singaporeans love to shop. 45% of respondents said they shop because it makes them happy, and nearly half – 49% – consider shopping a hobby. Those who consider shopping a favourite pastime are 55% women, and they fall across a broad set of age groups, between 25 and 65. That’s good news for retailers. Although 79% say they shop when they need a specific item, 45% say they do so because it makes them feel happy I shop when I need a specific item 79% Shopping makes me feel happy 45% I’m trend-conscious and like to keep 38% men vs. track of and purchase the latest items 32% 26% women People I follow on social media influence my shopping decisions 23% Other 1% Q10. What motivates you to shop online or in a physical store? 6 #RealRetail blis.com 49% cite shopping as one of their favourite hobbies, more so than any others listed including dining out / trying new restaurants (39%), and playing video games (37%) Male Female Shopping 49% 44% 55% Dining out/trying new restaurants 39% 18-24 25-34 35-44 45-54 55-64 66+ Playing video games 37% 36% 53% 50% 59% 55% 14% Going to the cinema/theatre 36% Keeping fit 32% Reading 31% Playing or watching sports 22% Arts/crafts 11% Visiting museums 8% Other 4% Q26. What are your favourite hobbies? The common theme among shoppers in the study is that they prioritise finding value above all else. 32% of respondents self-identified as “Researchers” who conduct extensive in-store and online research to get the best value for their money. “Bargain Hunters” represent another 28% of shoppers, and these value-seekers are less inclined to be loyal to any particular brand. They’re also less likely to make purchases impulsively. 7 #RealRetail blis.com Shoppers are most likely to perceive themselves as Researchers (32%) and Bargain Hunters (28%) Researcher - You do thorough in-store and online research to get the best value for money 32% Bargain Hunter - You are always on the hunt 33% women for value for money deals 28% vs. 24% men The one on a mission - You have one goal in mind when shopping and once that’s done, 12% you’re out of the store Loyalist - You are loyal to specific brands and 20% 18-24 more selective 12% year olds Impulse Buyer - You may not be in the market for an item but if it catches your eye, you must 9% buy it there and then Negotiator - You keep bargaining and comparing across online and in-store, until you 7% find the lowest price Q9. What kind of shopper are you? Not everyone shops the same way - even with the common goal of finding value – and we discovered remarkably different behaviours among the shoppers in our study. 67% of shoppers begin their journeys on shopping websites, but then visit a physical store to complete their purchase, a behaviour commonly referred to as “webrooming.” When asked why they shopped in this manner, 56% answered that they prefer to buy in-store so they can see the quality of the product before they buy, while 45% say they actually want to test the product first. On top of this, 43% believe they’re likely to find better deals online. On the flipside, 63% of respondents admit that they’ve spent time looking for items in-store prior to purchasing online. This behaviour – the opposite of webrooming – is known as “showrooming.” Of shoppers who engage in showrooming, 54% do so because they believe they’ll find a better deal, at least some of the time. 40% simply find it more convenient to complete their purchase online. 8 #RealRetail blis.com 80% use their mobile phone when shopping in a physical store. The most popular reason for doing so is to ‘compare prices for the same item to ensure I am getting the best deal’ (72%) 80% 20% Yes No I like to compare prices online for the same item to ensure I am getting the best deal 72% I like to read other customer reviews of products 51% I like to see if there are discount vouchers online that I can use in-store or online 43% I like to ask my family and friends for their opinion before making my final purchase in a 40% specific physical store I like to check for messages and emails or take calls - this is unrelated to my shopping purchase 40% If I’m buying food, I like to check the nutritional label information and compare with the 16% information available I like keeping my followers and friends updated on my day and use my phone to post pictures 14% and updates Other 7% Q31. Do you use your mobile phone when you are shopping in a physical store? Q32. Why do you use your mobile phone when you are shopping at a physical store? 9 #RealRetail blis.com 63% say they have spent time looking for items in store before purchasing them online. The biggest for reason for doing so is that they can ‘sometimes get better deals’ (54%) 63% Yes No 37% I can sometimes get better deals 54% I find it more convenient 40% I like to see the quality of the product before buying 37% I like to test / try the product before buying 36% I find it easier to see all options available 33% It is a higher value item so I want to see it in person first 28% I want to avoid crowds 28% I can find things more easily 26% I don’t have to carry around shopping bags with me 25% I would not purchase online if they had a bad returns policy or process 19% I need an item urgently 15% Other 1% Q35.