Singaporeans still prefer to head to stores for their shopping needs. 56 per cent of the 1,002 Singaporeans polled in a CBRE Consumer survey in August 2014 indicated that their most often-used method to purchase non-food items is in-store.
A large majority, or 85 per cent of those surveyed visit at a physical store at least once a month. The respondents were asked to rate the methods of shopping used most often: visiting a store, shopping online on a desktop/ laptop, going online on a mobile device and using a catalogue or mail order. Online shopping is also popular method among the respondents, with half, or 49 per cent shopping online at least once a month.
The Singapore survey is part of a larger CBRE Asia Pacific consumer survey where 11,000 consumers in 11 major cities were interviewed about their shopping habits and preferences for non-food items. They were asked about how and where they shop, and to rate the factors they value in shopping centres. Participants were aged between 18 and 64 years old.
The Singapore results indicate that consumers are more comfortable with the traditional shopping format where they can touch and feel the products before purchasing. The same survey asked respondents to project any changes in their choice of methods to purchase a product in the next two years. 66 per cent of the respondents indicated that they would not change their preference for shopping at a store in two years; 21 per cent said they would shop more often at a store. In fact, 29 per cent of respondents aged 18 – 34 years old will increase their spending in stores over the next two years. This heralds growth for physical stores in the next two years.
The results also indicate that close to half, or 49 per cent of Singaporeans will use a laptop more often to shop. This is not surprising, given that Singapore consumers are a highly connected and technologically savvy group as every respondent owns at least one device that connects them to the online world. Smartphones and laptops are the most pervasive gadgets as 9 in 10 households own at least one or both. They tap on this connectivity to research and compare prices and products online while using social media.
For example, physical stores need to bring an all-round convenience to consumers such as offering customers an option to collect, exchange, or return online purchases and allow customers to opt for delivery of an in-store purchase. This is important as convenience is one of the top reasons why Singapore consumers shop on-line, along with the wide variety, lower price and better offers that e-commerce shopping presents.
Desmond Sim, Head, CBRE Research, Singapore & South East Asia said "Stores, however, will have to evolve to complement the retailer's online strategy. In some industries, sales staff is still needed to provide the human touch that the online world lacks to bring about a wholesome shopping experience which could help gain customer loyalty and clinch sales. There are certain aspects of retailing that e-commerce cannot replace".
The combined strength of e-commerce and physical stores is expected to be a boon for the logistics sector.
The survey results also show that they value highly shopping malls which are easy to access, those which are clean and have a good tenant mix with a wide range of brands. The survey results have been published in CBRE's latest report "APAC Consumer Report 2014: Singapore". In it, CBRE makes recommendations to landlords on how to innovate and evolve to attract and retain customers. These include creating shopping malls as social destinations with "retail-tainment".