Market Trends of Singapore Luxury Goods Industry
This section covers the major market trends shaping the Singapore Luxury Goods Market according to our research experts:
Increasing Tourism and Growing Cultural Iinfluence
Singapore is among the most visited countries in the world. The sustained growth of the luxury goods market can be attributed to the continuing rise in the tourism industry. The travelers visiting the countries are from high disposable income and often buy luxury goods from the outlets of various multinational brands. The country holds an economically strong market, and therefore, major multinational brands often launch their luxury products earlier in the country than many others. Travelers visiting from around the world are, attracted by the new luxury products, which they almost always purchase. Due to high disposable incomes, visitors from the neighboring countries often buy luxury products and take them back to their homes, where certain products may not be commonly available. The millennial group comprises most of the buyers. Tourists often come across things that Singapore is famous for, such as apparel, jewelry, and watch products. On the other hand, the increasing influence of culture and social pressure in the society, along with the growing wealth and super-rich population, who are willing to spend millions on luxury items, is driving the market for luxury goods in the country. Thus, the growing cultural influence and the rising tourism in the country is likely to grow at a healthy rate, posing significant opportunities for the players to introduce their products in the local market which will boost the luxury goods market.
Growing Penetration Through Online Channels
The online retail channel is emerging fast and is drawing huge attention from investors. Singapore has one of the highest internet penetration rates in the world at present. One of the main reasons behind online channel purchases is consumer comfort. The rapid growth was fueled by factors, such as improved product range, ease of buying, customer choice of the delivery date, and a smooth purchasing experience. Luxury fashion has developed itself in the digital world. Consumers now engage with most brands through their own branded online stores and multi-brand e-tailers. About half of the luxury goods buyers are now swayed by what they hear or watch on the internet. From Louis Vuitton to Chanel and Gucci, luxury fashion houses have been rushing to embrace digital, whether by partnerships with multi-brand sites, the creation of their own websites, or a combination of the two. For instance, in December 2020, Prada intensified its digital strategy by launching its new online shopping platform in Singapore. When browsing the site and e-commerce, customers can enjoy a shopping experience and an original exploration of the Prada universe. The shift to digital makes sense as online purchases are projected to fuel potential luxury goods demand growth.
