Criteo Study Highlights Evolving Shopper Behaviour in Singapore, Local Retailers Must Adapt Now to Stay Relevant and Competitive

Criteo Study
Highlights Evolving Shopper Behaviour in Singapore, Local Retailers Must Adapt
Now to Stay Relevant and Competitive

·         Consumers using
multiple devices from product discovery to purchase, reinforcing Singapore as a
truly cross-device market

·         Brick-and-mortar
retailers must respond to the local showrooming phenomenon and invest in
multi-channel integration

·         Improving last-mile
fulfilment will help local retailers compete more effectively with
international eCommerce players

Singapore – 16
November 2016 – Criteo (NASDAQ: CRTO),
the performance marketing technology company, today unveiled findings
from their latest research, conducted by Edelman
Intelligence,
which highlights
evolving shopping patterns among consumers in Singapore. Singaporeans – frogm
millennials and gen X to baby boomers – now own or have access to an average of 4.72 devices.
With three-quarters using these devices to purchase online at
least once a month, cross-device usage, ‘showrooming’ and last-mile fulfilment
are three areas retailers must critically address.

Habitual Mobile Buying
is Taking Place Everywhere: Retailers who can successfully integrate
the mobile web, apps and in-app targeting into their business operations and
engagement strategies will set the stage for the seamless adoption of newer
mobile technologies or add-ons, when required.

·         6 in 10 Singaporeans consider mobile
devices to be their favourite shopping companion, with 95 percent having
used their smartphones or tablets to browse online catalogues in the past
month.

·         54 percent of consumers indicated that
having the option to shop on their mobile devices has caused them to spend more
than ever before, with 4 in 5 admitting to purchasing online
on impulse. 

·         Travel-related products and apparel
are the most popular online purchases, with each shopper purchasing across an
average of 5.43 product categories.

·         With nearly
half of Singaporeans shopping on branded mobile apps at least once a
week, and mobile shoppers likely to be heavy social media users in general,
retailers must also become familiar with application-based advertising and
messaging.

“Singapore is a truly cross-device
market, where most consumers – especially millennials – are using a combination of devices to shop.
While a number still rely on PCs to make payments, mobile devices are always by
our side as the one consistent factor in all elements of online and offline
shopping,” said Alban Villani, Commercial Director, Southeast Asia, Criteo.
“This reinforces what we’ve been telling retailers for some time – they can no
longer target individuals on just one device. Rather, they will need to embrace
technologies that deliver contextual creative experiences and messaging, to
respond to individuals’ needs and desires in the moment, wherever they are and
however they’re feeling.”

Brick-and-Mortar Must
Evolve into ‘Click-and-Mortar’: In Singapore, the high incidence of
showrooming reinforces the importance of multi-channel integration.

·         To avoid crowds and
queues, almost two-thirds of Singaporeans prefer to shop
online during periods like the Great Singapore Sale.

·         Half of local
consumers also believe online deals during the Great Singapore Sale are better
than in-store promotions.

·         Even when visiting a
physical store, 6 in 10 local shoppers are browsing similar
products online and comparing prices to ensure they get the best deals.

·         69 percent of consumers end
up purchasing the same product or service online rather than offline.

·         Physical stores still
have an edge in engaging consumers who desire to touch or trial a product prior
to purchase. However, this advantage is eroding as 7 in 10 Singaporeans
agree that augmented reality also allows them to ‘try’ an item and online
players respond by adopting the technology to simulate real-world experiences.

“A few
established online players are already using physical pop-up stores with
exclusive collections and discounts to create a seamless online-to-offline
customer experience. Conversely, physical retailers looking to retain and
convert customers must start integrating online channels, especially mobile
optimised sites or branded apps, and consider Customer Relationship
Management (CRM) data optimisation, to better engage customers before,
during and after store visits,” said Villani.

Invest in Efficient
Delivery Services for Effective Last-Mile Fulfilment: To compete more
effectively against international retailers, same-day or next-day order
fulfilment should be a big focus for local retailers, who can work with
specialised local last-mile delivery service providers.

·         Singaporeans shop on
both local and international sites. 78 percent buy from local
sites because of delivery considerations – faster or cheaper domestic shipping
and easier pick-up of a locally-purchased product.

·         6 in 10 would rather
have their purchases delivered than collect them from a physical store. 

“The
research findings are pointing us to a future where offline and online shopping
are no longer two separate business models. There will just be ‘shopping’ and
it will be an integrated experience. If retailers turn to mobile as the chief
enabler and successfully deliver such experiences, they will inevitably demand
smaller stores as
fulfilment gets facilitated directly from warehouses. Be it by offering
better connectivity or relooking how retail space is allocated, local malls
must also adjust to this new wave of change,” said Villani.

To access the full
Criteo-commissioned Edelman Intelligence 2H 2016 research findings and
analysis, download the full report here.