2018 RETAIL ASIA-PACIFIC TOP 500
OVERVIEW
disposable incomes also led to a greater degree of consumer confidence, in turn, leading to more sales.
Retailers invest in digital capabilities New Zealanders increasingly prefer to shop online. The convenience of shopping at any time of the day via the Internet further drove popularity of using this channel to purchase goods. Retailers in New Zealand increasingly understand the importance of shopping online and improve their desktop and mobile websites, introducing mobile apps and enhancing omnichannel capabilities.
Progressive Enterprises led sales in 2017 Progressive Enterprises with its supermarket brand, Countdown, continued to lead retailing overall in New Zealand. This was followed closely by another grocery player, Foodstuffs( North Island), which is also part of the bigger group Foodstuffs( NZ) Ltd. The two leading players benefited from well-received price promotions and campaigns, especially during holiday and festive seasons. Progressive Enterprises’ aimed to remain relevant by not only improving on product range and prices, but also investing in digital capabilities to fuel the consumer shift in purchasing habits and behaviour; this paid off and helped the company maintain its leadership within the retail landscape of New Zealand.
Grocery retailers record faster growth than nongrocery specialists Grocery retailers experienced faster growth than non-grocery specialists in 2017. This growth was largely explained by the success of supermarkets, which remained the preferred channel for grocery shopping. Operators of supermarket chains continued to not only improve on product ranges and prices, but also invest in their online capabilities as New Zealanders increasingly shop online.
Retailing is expected to continue to grow, albeit slowing down The New Zealand housing market experienced a slowdown over the review period as high debt levels and slow wages growth made the household area particularly susceptible to changes in economic conditions. As increasing debt levels, rising interest rates, higher borrowing cost and low wages growth continue to affect consumers’ ability to spend, this may potentially negatively affect New Zealanders’ ability to shop too over the forecast period.
— Hianyang Chan, Senior Analyst price comparisons between online and offline stores, and decide which platform to shop on, even within the retail store itself.
Omni-channel retailing to become an increasingly important strategy for all retailers Singaporean consumers are difficult to please. While being price-sensitive and tech-savvy, customers also demand exceptional customer service from brands— hence the importance of developing an omni-channel retailing experience for customers. Physical retailers have slowly begun to realise this, and while many retailers are beefing up their online presence, they have also been revamping their offline facilities in line with an omnichannel retailing strategy, such as providing click-and-collect services. For most physical retailers, the goal is for physical stores to provide the customer service and“ human touch” for consumers to associate with the brand, while the brand’ s online platforms would provide consumers with the convenience of shopping“ anywhere” and“ anytime”.
Flagship stores offer silver lining for offline retailers Major retail brands have been looking into opening flagship stores in order to turn around their retail fortunes. As Singaporean consumers increasingly demand unique shopping experiences, brands have realised that flagship stores are a good way to capture consumer interest and encourage these consumers to visit and hopefully spend at stores. Most flagship stores tend to be larger stores with unique storefronts and appealing interior designs, and tend to open with much fanfare and excitement. Flagship stores also tend to carry a wider variety of products than the brand’ s normal stores as well, in addition to offering unique facilities and services that the other brand stores do not.
Cross-border purchases make up a significant portion of Internet retailing sales Singaporeans are avid online shoppers, and cross-border purchases constitute a large proportion of these online sales. A PayPal study revealed that Singaporeans are the most confident crossborder buyers in Asia-Pacific, and it is not difficult to see why; among online shoppers, price is and still remains the biggest factor driving their choice of platform and purchase medium. In addition, being keen shoppers, Singaporeans turn to foreign websites to purchase exclusive, or hard to get, goods that are not available on local sites or stores.
SINGAPORE
Changing consumer habits have affected retail industry significantly Modern Singaporean consumers, with their eager adoption and use of technology, have developed new consumer habits which are proving detrimental to retailers. One of the most significant of these new habits is“ showrooming”, whereby customers visit retail stores to try out products, before making price comparisons online to find the cheapest prices. Adding fuel to this trend are smartphones, which have now made it easier for consumers to instantaneously make
A PayPal study revealed that Singaporeans are the most confident cross-border buyers in Asia-Pacific.
50 Retail Asia June / July 2018