Top 3 Consumer Trends in 2023
How has your company been faring in the post-Covid landscape? Are you constantly thinking of novel ways to attract new customers—and convert them into loyal ones? To ensure the effectiveness of your business strategies, you need to understand the prevailing consumer sentiment in 2023.
Consumers in Singapore are markedly more cost-conscious this year as they prepare for a potential economic downturn. Inflationary pressures coupled with the Goods and Services Tax (GST) hike—which went up to 8% on 1 January 2023—have led to an overall cautionary attitude towards discretionary spending.
It is not all doom and gloom! Even as consumers in Singapore tighten their purse strings, demand for certain goods and services still remains resilient. The technical consumer goods market has been on an upwards trend, with a 2.4% growth in 2022. Other top performing product categories include cosmetics and personal care.
In this article we will share three key consumer insights of 2023, and how you can utilise this knowledge to gain a competitive advantage:
1. Singaporean consumers are highly price-sensitive
Singaporean consumers spend more time than before seeking worthwhile bargains. According to a report released by Adyen, 48% of shoppers surveyed search for the best deals in stores while 42% search for them online. They will constantly compare prices across different shopping channels—it is no wonder that Singaporeans rank the highest in consumer price sensitivity among the Southeast Asian markets!
The implication of such bargain hunting behaviour is that customers are less loyal to your brand than you would expect. If your direct competitors lower the prices of their goods, your customers may not hesitate in making a switch to enjoy cost savings.
Therefore, you can consider offering coupons or promotional codes to entice new customers. Don’t wait for special seasons like Christmas or the Great Singapore Sale to roll out discounts! In addition, thank your existing customers for their loyalty by giving them exclusive rewards. These loyalty bonuses should be personalised—based on big data—for maximum effect!
2. Singaporean consumers expect immersive experiences
Since the move to Dorscon green in February 2023, brick-and-mortar stores have made a comeback. However, Singaporean consumers are no longer satisfied with the old retail model; they want more! The store of the future must be enhanced, facilitated or mediated by digital technologies.
PwC’s 2023 Global Consumer Insights Pulse Survey reported that 34% of consumers are attracted by in-store entertainment while 30% of them find immersive digital experiences engaging.
In order to meet these heightened expectations, you should consider retrofitting your storefront with more technological bells and whistles. For instance, you can have booths where your customers try on featured products virtually.
3. Singaporean consumers seek environmental sustainability
As much as value is foremost in the minds of Singaporean consumers, they’re passionate about saving the planet! This gradual move towards environmental sustainability is spearheaded by younger consumers such as the millennials and Gen Zs.
With sustainability being a key driver of business survival, you cannot afford not to go green. You have to put sustainability at the centre of your brand. Make use of renewable materials, whether it be in your core products or packaging. For instance, you can substitute disposable plastic bags with biodegradable bamboo bags.
Furthermore, screen the suppliers you work with! According to a survey conducted by OpenText in Singapore, roughly half of the respondents refuse to buy from a brand connected with unethical suppliers. This means you may have to carefully examine your suppliers’ operations in order to ensure an ethical supply chain. Only then can your company claim to be truly sustainable.
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