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