Commentary

2024 is proving to be a challenging year for luxury across Asia. The first half of the year has seen significant sales declines for most luxury and mid-tier brands across the region. This is largely due to a slowdown in China with fewer Chinese travelling as a result of the poor economy. With residential prices falling, unemployment growing and the stock market ailing, most people in China are preferring to save their money rather than spend it. Only the super-rich have the appetite to keep spending on luxury.

As we enter the second half of 2024, many retailers – from digital natives, to multi-channel retailers that have a digital presence – will be looking to gear up for various shopping festivals and dates. These include Singles’ day, Cyber Monday and End of Year festivities, just to name a few. These festivities present a critical opportunity for merchants to showcase their offerings online to a vast consumer audience. However, competition amongst retailers is fierce, particularly in Asia with many businesses leveraging dynamic marketing tactics such as interactive campaigns, live streaming, and social media promotion to entice and engage new customers.

Women are increasingly prioritising their health and embracing holistic, long-term solutions and trends to take charge of their wellbeing.

CEOs globally have been forced to adapt to a new reality of constant disruption and uncertainty. Just as economies saw growth surges when emerging from the COVID-19 pandemic, many were plunged back into a state of slower growth, driven by geopolitical tensions, inflation and higher interest rates. In Asia-Pacific, there is consensus among CEOs that a downturn is near, if not already in effect. According to the EY CEO Outlook Pulse, 99% of CEOs are actively planning for a downturn scenario, with a majority (72%) preparing for a severe downturn in the region.  

When COVID-19 disrupted our lives a few years ago, consumers swapped their skinny jeans and trouser suits for comfy leggings and joggers and haven’t looked back since. Athleisure has taken the world by storm, and consumers in Southeast Asia love it.

With Asia’s inflation rate seen to soar to  4.5% in 2022, consumers have become more mindful of their budgets and spending priorities. While decreased discretionary spending spells bad news for retailers, the holiday season provides a window of opportunity for brands looking to recover from the sales slump in the past quarters – if they know how to connect and engage with consumers the right way. 

As Singapore tentatively eases COVID-19 restrictions, the Lunar New Year tunes and décor may signal a returning to life for in-store retail. This should be exciting news for many brick-and-mortar retailers and consumers who have been deprived of in-store shopping experience. In a recent Sensormatic Solutions study, almost one third (30%) of Singapore consumers said they missed shopping in physical stores.

As we kick off 2022, e-commerce continues to gain momentum with retailers refining their strategies and upgrading their capabilities to address the ever-evolving landscape. Chinese New Year is right around the corner and other shopping events will instigate fierce rivalry as online and in-store retailers compete to out-perform one another by providing consumers better discounts, more personalised deals, and various payment methods and fulfilment options.

As the holiday season revs up to its climax, retailers have much to celebrate even as they prepare themselves for one final last-minute Christmas shopping spree.

The COVID-19 pandemic has had a profound impact on all facets of life, the grocery and retail sector included. Consumers have increased their online interactions with retailers and brands and will continue to do so long after the pandemic is over. 

Since the first lockdown in 2020, many retailers had to pivot to e-commerce for the first time in a bid to help their businesses survive.

A Guide for Brands to Win the Mega Sale Season

The Covid-19 pandemic has driven the market and led to major shifts in consumer spending in the past 12 months. The grocery sector is one to watch, as more than half (54%) of Singaporeans spent more on groceries in the past 12 months, according to Worldpay from FIS’ 2021 Generation Pay research. The grocery boom is poised to continue, with 9 in 10 consumers expecting to spend the same or more on groceries in the upcoming year.

If it sounds like we’re going around and around in circles, we are!

To say that the retail sector in Singapore has been hard hit over the past year will be an understatement.

Across the globe, COVID-19 interrupted almost everything in the physical world with some activities and sectors saved only by digital. The technology players could bring new advantages and opportunities as business operations and client engagements all migrated successfully online. Inevitably, the retailers in mega malls and hospitality sectors faced the most significant challenges with numerous players either ceasing their operations or had to shift to a virtual alternative.