Market Trends of Singapore Retail Industry
Upgrading Technology is Helping the Market to Record More Revenues
The improving technology is helping the retail market expand to new dimensions and touch more niche end-user segments with their product offerings. The adoption of Augmented Reality (AR) and Virtual Reality (VR) is attracting millennials who account for more of the total retail spending. The manufacturers who started using AR and VR are also expanding their strategies to engage millennial shoppers to enhance in-store experiences. According to a survey conducted during the third quarter of 2019, more than 45% of retailers cited their plans to deploy AR - VR solutions by 2020 and were in the process of improving their customer services in the retail sector.
Constant Growth Rate of the Apparel, Footwear, and Accessories Segment is Helping the Market Record More Revenues
Singapore customers have been spending consciously on certain product segments, including electronics and household products, apparel, footwear, accessories, and furniture, owing to the slowing economic growth of the country. The retail sales index of Apparel, Footwear, and Accessories increased by 5.6% y-o-y in November 2019, while Furniture and Household Goods declined by 8.6% y-o-y. Demand for furniture and household goods eased due to fewer residential transactions. Business expectations for the retail sector from October 2019 to March 2020 were less optimistic compared to 2019. Although sales in food and beverage are envisaged to pick up during the year-end due to festivities, consumers remained cautious amid the uncertain times fuelled by the COVID-19 pandemic.
