Singapore’s online grocery market set to triple by 2020
Singapore’s online grocery market is set to triple in growth over the next three years, from S$130 million (US$91 million) to S$0.5 billion (US$0.35 billion) by 2020, according to brand-new forecasts unveiled today by international grocery research organisation IGD.
At the end of 2016, IGD valued online grocery to have a 1.2 percent share of the Singaporean grocery market. Reflecting rapidly changing shopper habits in the region and increased investment in the online channel from retailers and suppliers, IGD is further forecasting online to take a 4 percent share of Singapore’s grocery market by 2020, with a compound annual growth rate of 39 percent.
Revealing the figures at the IGD RedMart Trade Briefing, held today (23rd February) in Singapore, Nick Miles, IGD’s Head of Asia-Pacific, said: “Singapore is hailing a new era of digital grocery retailing, driven by the entry of RedMart in 2011, Giant and Sheng Siong launching online grocery in 2013 and plenty of smaller start-up businesses also looking to grab a slice of the action.
“Shopper habits are changing rapidly in South East Asia and in a compact city such as Singapore, with its relatively affluent population, big expat community and high penetration of internet and smartphone usage, there are huge opportunities for online grocery to meet these evolving needs.
“To make the most of this opportunity, retailers and suppliers must work together to ensure they really understand online shoppers and can tailor experiences and products to suit their personal preferences.
“First, retailers are looking to improve the overall online experience, by getting the basics of search functions, favourites, images and information right for shoppers. At the same time, they’ll be aiming to make delivery options as convenient as possible, whether that’s through shorter timespan delivery slots or greater choice of click and collect points throughout the region.
“Our UK data shows that 80 percent of shoppers cite convenience as their number-one reason for shopping online, and we would anticipate Singaporean shoppers to have a very similar mindset when heading online for their groceries.
“We also expect online grocery retailers in the region to encourage shopper loyalty through personalised offers and products, plus subscription models and delivery saver passes. On top of that, shoppers in the region are increasingly connected via mobile, so ensuring a seamless shopping experience no matter what device they are using will be critical.
“Coupled with an increased focus on using innovations such as voice-activated technology, virtual reality and robotics, we predict huge opportunities for those retailers and suppliers who really invest in making the online grocery channel work for them in Singapore.”