,Singapore

Conscious consumerism, experiential selling are the top retail trends in Singapore for 2020

Singaporeans are willing to pay premium prices for products that are more sustainable.

Conscious consumerism and experiential selling are the two trends that will shape retail strategies in Singapore for 2020, with issues of sustainability and growing online competition at the forefront of the industry, reports Knight Frank.

A study by Nielsen found that nearly 80% of Singaporeans are willing to pay premium prices for products that contain environmentally friendly or sustainable materials. More recently, the Climate Change Public Perception Survey 2019 found that nearly four in five of those polled were prepared to play a role towards a low-carbon Singapore, even if they have to bear some additional costs and inconvenience as consumers.

“The younger affluent generations are more conscious of the social and environmental impacts of their purchase decisions, leading to the rise of sustainable fashion,” said Angela Hoe, head of retail at Knight Frank. “The increasing awareness will further weigh on the real estate decisions of apparel brands as well.”

Also read: Singapore's prime retail rents stay flat in Q4 2019

As a result, rental subscription providers are rising in popularity as apparel shoppers seek value-for-money propositions whilst minimising wastage. Subscribers pay a fixed amount per month to access thousands of designer and fashionable items. The subscribers can select what they wish, wear them, and return to swap for something new, minimising the need to ‘buy-and-throw’.

Apart from appealing to environmentally and cost-conscious shoppers, the digital system employed can collect critical data on shopper preferences, allowing the retailer to better control their inventory.

In Singapore, such services are also gaining traction in recent years through online brands such as Style Theory, Madthread, and Covetta.

Style Theory opened its first physical store in 313@Somerset in October 2019, offering over 300 pieces of apparel and accessories. The physical store also allows customers to try on the designer pieces. The trained image consultants also provide new subscribers with personalised styling advice and recommendations based on shoppers’ body types and preferences.

More apparel brands also want their products to be made with sustainable materials. According to a McKinsey study, half of the sourcing executives surveyed wanted 50% of their products to be made with sustainable materials by 2025, and more than 80% of the executives expect physical clothing design samples to be used far less often by 2025.

Also read: How malls are reinventing themselves as e-commerce bites

Landlords and retailers are also expected to take a more collective and holistic approach to experiential retail, melding lifestyle components and technology together to offer shoppers personalised shopping experience.

However, whilst this may attract higher footfall, it remains to be seen whether the higher footfall can be converted to higher sales, the report adds. 

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

PARKnSHOP and Uni-China Group’s supermarket brands partnered to open this concept store.
Domestic beauty experts ordered industry innovation measures post-pandemic.
Giz Yatai will specialise in selling gadgets.
As physical stores reopen, online spending may drop to 13.
PopBox features products that reflect the influencers' "world-view".
Instant payment is made as soon as the customer leaves based on camera data.
Its subscribers can now watch shows for free on the video platform.
It allows users to test new products from merchants.
It will issue virtual advertising coupons worth over $150,000 to small businesses.
Logistics provider J&T Express and e-commerce platform Mdada.
Firms can submit their entries until 29 October 2021.
This will drive the push towards more personal shopping experiences in Southeast Asia.
The report by Vesta surveyed respondents from the Philippines, Singapore, and Indonesia.