The 9.9 sale in Singapore is here with its 2022 iteration. In these particularly tricky times of rising inflation and consumers cutting back on spending, e-commerce platforms and others are pulling all stops to attract consumers with tempting deals.
The end of the ‘consumer’ year used to be all about last-minute Christmas purchases and the post-Christmas sale but in recent times, it has come to mean online sales and the hype and marketing that surrounds each of them.
In 2021, despite another year of the COVID-19 pandemic, Singaporeans were not ready to let gloom and doom get in their way of a good bargain. Blackbox data revealed that nearly 4 in 5 people (79%) planned to spend either more or the same as they did in 2020 during the holiday season, with 44% saying they planned to spend more than in 2020.
Our data also showed that while about 10% of people claimed to be fanatical about end-of-year sales, 53% categorised themselves purely as bargain hunters. Just under 1 in 5 (18%) were lookers but not bookers (i.e., they rarely buy) while 11% did not bother at all about year end sales.
While traditional post-Christmas sales remain popular in Singapore, real money is now pouring into newer online sales phenomena such as Singles Day and Black Friday. Indeed, more than half of Gen Zers (51%) chose Black Friday as their preferred end-of-year sale while many Millennials basked in the days of hedonism and youthful freedom they attach to Singles Day (39% said this is their most preferred end-of-year sale).
This year, however, it is likely to be a challenge to attract consumers. In a mid-2022 Blackbox poll, when asked to what extent the impact of inflation was being felt in different areas of life, on a scale of 1 (not at all) to 5 (a lot/considerable), 7 in 10 (70%) placed online shopping/e-commerce in the 3-4 category. Other ‘consumer spending’ areas where similar sentiments were spotted include travel, major home purchases, clothing & footwear, technology products and health & beauty products. It’s worth noting that brands from all these sectors will be vying for consumers’ attention and money—come sale day and it remains to be seen if they will be able to fight the effects of inflation on people’s spending habits.
Our latest data indicates that consumers are feeling the pinch across categories, and it would be interesting to see the actual volume/dollar value of sales achieved during these 9.9, 10.10, and Singles Day (11.11) sale periods and if that is on an upward trend compared to yesteryears. The deals offered in these categories might make consumers open up their wallets liberally, or at least that is what brands will be counting on. Consumers indulging in retail therapy will help the e-commerce sector continue its growth trajectory. After all, it has been one of the few sectors to have thrived even amidst the pandemic.
To be in touch with the latest consumer attitudes and behaviours in ever-changing times, and to understand how this can help you make better, smarter business decisions, drop us a note on connect@blackbox.com.sg
Author: Blackbox Research Team
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