Consumer trends may come and go, but rising inflation makes all such predictions go awry, as the tried-and-tested behaviour of saving takes precedence over spending during uncertain times.
However, the actual data on consumer spending in Singapore suggests that it had increased in 2021 by 9.16% as compared to the previous year. In pandemic year 2020, consumer spending had witnessed a 15.58% decline from 2019.
That said, our study, “Emerging From The Pandemic: The New Mood In Singapore” highlighted some interesting insights that show how the Singaporean consumer has changed during the COVID-19 pandemic.
Balancing holistic and materialistic spending
With the tragic loss of lives all around us, the devastation that the pandemic continues to wreck has served as a wake-up call for many to invest in their health and well-being. Among those polled in our survey, 64% feel that spending more on their personal health and well-being has been a welcome change to have emerged from the pandemic.
However, it is not just limited to spending on health and wellness. Owing to lockdowns, many Singaporeans were compelled to shop for most of their necessities and comforts online, and they have been largely approving of doing so—62% consider online shopping as a welcome pandemic-induced trend. Moreover, 71% enjoy the comfort of their orders being delivered home instead of having to go out and shop for them.
The sustainable Singapore consumer
It may be hard to believe that the pandemic had an upside, but it did. Who doesn’t remember the clear skies and clean waters, and the lack of noise pollution coupled with stunning visuals of nature in all its glory—all thanks to stringent social distancing? While all that seems to be behind us now as the world bounces back to the familiar ‘normal’, there does seem to be a shift in the way consumers perceive sustainability. In fact, at Blackbox, we released a deep dive report on the Rise of the Sustainable SEA Traveller, sharing critical findings and insights about people’s sustainable travel behaviour post-pandemic.
Our recent polling shows that this enthusiasm for eco-consumerism continues to remain high, with 60% approving of this trend.
Getting one’s entertainment fix at home
Another aspect of the pandemic was that everything, from work to play, was done within the boundaries of one’s home. So, while work-from-home (WFH) became the new norm, so did staying in versus heading out for entertainment.
Over half of Singaporeans (55%) feel comfortable with the idea of watching new movie releases at home instead of at the cinema. While some may have missed the popcorn with Coke/Pepsi at the cinema hall, 37% were happy to rely on food deliveries to satiate their hunger pangs.
Interestingly though, with price rises becoming a serious concern, ’nice-to-haves’/non-critical expenses are the first to be curbed.
While 60% of Singapore’s households presently subscribe to a streaming service, a similar percentage (61%) is also looking to cut down on at least one such subscription in the next 6 months. The primary reason for this is the increase in subscription rates.
The overall enthusiasm for streaming services though remains high at 63%, so if companies can balance cost with content quality and range, they might be able to hold on to their customer base. Singaporeans are also quite keen on another kind of streaming—live streaming—with 41% expressing enthusiasm for live streaming through social media platforms and joining dedicated online communities.
Singaporeans aren’t averse to stepping out either
While many enjoy the comfort of their homes, and understandably so, stepping out into the world again is also a welcome change for a majority of Singaporeans. 80% of those polled say that they feel positive about socialising again and getting into the hustle and bustle of the city.
Also, for a lot of people, some things are best enjoyed live such as concerts, theatre, and sporting events, and 70% Singaporeans are looking forward to their resumption.
Digital ways to pay are here to stay
While traditional ways to pay such as cash or cards continue to exist, an increasing number of people are getting more comfortable with contactless payments, another trend that existed even pre-pandemic but was heightened owing to it. Among the respondents in our survey, 63% think that greater usage of digital payment methods is a good change for the future.
This perception corresponds to the data as well. In 2020, the total number of real-time transactions stood at USD 138.38 million (an increase of 48% from 2019). In the same year, the value of real-time transactions also shot up by 40% to USD 154 billion.
Additionally, the majority of Singaporeans (61%) are keen on the idea of doing most of their bookings and appointments online too.
With the ‘Big Reset’ happening around us, it can be hard sometimes to uncover and understand the ever-evolving preferences of consumers. To properly understand these shifts in attitudes, behaviours, and expectations within your country, and to be better prepared to serve the needs of your unique customer base, reach out to us on connect@blackbox.com.sg to explore how we can add value to you.
Author: Blackbox Research Team
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