Singapore consumers are prepared to spend the most in Q4

Survey found a cumulative sum of S$313,710 spent on four particular day

When 800 Singapore consumers were asked when they spend the most, the results unanimously pointed to the last quarter of the year (October — December). More than half (53.1%) of the consumers spend more money online than in-store during this period. Close to 30.0% split their expenditures evenly for both online and in-store purchases.

Apart from the usual year-end festivals like Christmas and New Year, retail events in Q4 are also fuelling consumers’ year-end shopping spend. In fact, the survey respondents spent a cumulative sum of S$313,710 over four particular days last year — Singles’ Day, Black Friday, Cyber Monday and 12.12. All four days are known for dealing out a slew of deals to encourage online shopping.

Despite the rising global popularity and awareness of Singles’ Day, it did not garner the highest participation or top monetary commitment from the surveyed population. Black Friday topped both categories.

Using Google AdWords Keyword Planner, ShopBack found that laptops and iPads were the top products that Singaporeans searched for during the lead-up to Black Friday in November 2016. The correlation of Black Friday with these higher priced products could explain the higher average expenditure.

Giving up brand familiarity and personal privacy for a good deal: Will you do it?

According to the survey, it seems like a resounding “yes” to the above question. Price points do have strong influence over consumer behaviour. In fact, almost 90% of Singaporeans are ready to give up brand familiarity to purchase items at the lowest prices.

71.4% indicated that they are willing to buy from a physical store that they have never bought from in order to get an item at the lowest price. However, when it comes to online stores, almost 20% less indicated that they are willing to do so.

In other words, consumers are more willing to sacrifice brand familiarity for the lowest price when it comes to in-store purchases. The reverse is true for online purchases. For online stores, brand familiarity appears to be a more important factor than price point. Hence, it is critical for online stores to build brand awareness and credibility among consumers as well as implement attractive loyalty programmes to keep customers returning for more.

When asked if they are willing to provide personal information for exclusive deals and discounts, only 35.5% indicated that they are not willing to do so. There is an opportunity here for retailers to build better long-term relationships with consumers. The simple tactic will not only encourage sales but also provide retailers with an additional channel to cultivate customer retention, which is pertinent to building trust and top-of-mind recall.

Background of the 800 surveyed:

Age: 31.1% in 21–30, 37.0% in 31–40, 21.0% in 41–50, 10.9% in others
Gender: 67% Female, 33% Male
Income: 33.0% less than S$3,000, 37.9% S$3,000 — S$5,000, 29.1% more than S$5,000
Nationality: 87.0% Singaporeans, 13.0% PR and others