The Growth of Online Shopping in Singapore - Start Today
by DS Now
Table of Contents
The Growth of Online Shopping in Singapore
Expenditure (in million US$) |
|||||
Year |
Fashion |
Electronics and media |
Toys, Hobby and DIY |
Furniture & Appliances |
Food & Personal Care |
2017 |
859.4 |
951.1 |
543.4 |
618.2 |
520 |
2018 |
994.6 |
1054.9 |
652.7 |
720.4 |
645.9 |
2019 |
1188.8 |
1216 |
805.9 |
866.6 |
828.3 |
2020 |
1445.6 |
1441.8 |
1005.4 |
1059.7 |
1071.1 |
The revenue in online business industry of Singapore is continuously increasing from 2017 to 2020.
- In 2017, total revenue was 859.4, 951.1, 543.4, 618.2 and 520 million US dollars in the sector of fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care respectively.
- In 2018, the revenue has increased and reached 994.6, 1054.9, 652.7, 720.4 and 645.9 in the fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care sector respectively.
- Total revenue in the eCommerce market amounts to US$4,906m in 2019. Among them 9 in the fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care sector are1188.8, 1216, 805.9, 866.6 and 828.3 respectively.
- The forecasted revenue of 2020 in the sector of fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care is 1445.6, 1441.8, 1005.4, 1059.7 and 1071.1 million US $ respectively.
Revenue growth trends in Singapore (in percentage from 2018 to 2020)
Year |
Fashion |
Electronics and media |
Toys, Hobby and DIY |
Furniture & Appliances |
Food & Personal Care |
2018 |
16% |
11% |
20% |
17% |
24% |
2019 |
20% |
15% |
23% |
20% |
28% |
2020 |
22% |
19% |
25% |
22% |
29% |
The rate of revenue growth is continuously increasing in each year from 2018 to 2020.
- In 2018, the revenue growth in the segment of fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care was 16%, 11%, 20%, 17%and 24% respectively.
- In 2019, the revenue growth in the segment of fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care is 20%, 15%, 23%, 20%, and 28% respectively.
- It is forecasted that in 2020, the revenue growth the fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care will be 22%, 19%, 25%, 22%, and 29% respectively.
Current market trends and forecasted revenue in online shopping
Year |
Fashion |
Electronics and media |
Toys, Hobby and DIY |
Furniture & Appliances |
Food & Personal Care |
2019 |
1188.8 |
1216 |
805.9 |
866.6 |
828.3 |
2020 |
1445.6 |
1441.8 |
1005.4 |
1059.7 |
1071.1 |
2021 |
1713.6 |
1652.5 |
1216.2 |
1258.4 |
1323.2 |
2022 |
1912.5 |
1808.9 |
1376 |
1400.5 |
1502.7 |
2023 |
2038.2 |
1933.4 |
1476.6 |
1490.2 |
1610.3 |
Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 14.9%, resulting in a market volume of US$8,549m by 2023. The market’s largest segment is Electronics & Media with a market volume of US$1,216m in 2019.
- User penetration is 69.3% in 2019 and is expected to hit 73.2% by 2023.
- The average revenue per user (ARPU) currently amounts to US$1,219.34.
- It is forecasted that in 2021, the volume of revenue in the segment of fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care will increase to 1713.6, 1652.5, 1216.2, 1258.4 and 1323.2 million US dollar.
- In 2022, it will be 1912.5, 1808.9, 1376, 1400.5 and 1502.7 million respectively. And in 2023, the expected volume of revenue will be 2038.2, 1933.4, 1476.6, 1490.2 and 1610.3 in the segment of fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care.
E-commerce activities in Singapore-2019
Percentage of internet users who report performing each activity in the past month [survey based]
- Seared online for product or service to buy: 89%
- Visited an online retail store on the web (any device): 87%
- Purchased product or service online (any device): 73%
- Make an online purchase via a laptop or desktop computer: 47%
- Make an online purchase via a mobile device: 54% (The Global State of Digital in 2019 Report).
So, the majority of respondents in a survey searched online for a product or service to buy (89%) according to We Are Social, visited an online retail store (87%), and purchased a product or service online (73%). Mobile is a slightly more popular platform for online purchases in Singapore (54%) compared with desktop and laptops (47%).
Top Google Shopping Queries in 2019 (based on searches)
- Adidas: 100 index
- Lazada: 80 index
- Amazon: 60 index
- Ikea: 48 index
- Qoo10: 45 index
- Google: 31 index
- YouTube: 26 index
The above rank shows that top Google shopping queries by the people of Singapore in 2019 on the basis of their searches.
- It is observed that most of the people of Singapore search Adidas and its index is 100 among 100 indexes.
- Lazada remains in the second position and its index is 80 from 100.
- The position of Amazon is third and its index is 60 index
- Ikea is in the fourth position and according to the result, its index is 48 indexes.
- Qoo10 is in the fifth position and its index is 45.
- According to the same survey result, the position of Google in Singapore is sixth and its index is 31 index.
- Finally, the position of YouTube is sixth and its index is 26.
Domestic e-Commerce (B2C) in Singapore
A favorite pastime of Singaporeans is shopping. Online shopping is especially popular with young adults and higher-income households. A study by Visa showed that 26% of Singaporeans shop online at least once a week – the highest percentage per capita in Southeast Asia. Those in the 25 to 44 age group most frequently shop online in Singapore. 51% are male online shoppers in Singapore in 2019 and remaining 49% are female online shoppers in Singapore in 2019.
Cross-Border e-Commerce
According to Forrester Research, 60% of Singapore’s e-commerce sales come from cross-border orders, a significant percentage compared to countries such as Malaysia (40%), Japan (18%) and South Korea (25%). The Financial Study Association of Amsterdam also highlighted Singapore’s suitability as an e-Commerce test-bed, given the fact that a high share of cross-border trade offers businesses unique insights into Asia Pacific’s online shopping behavior.
The number of users in the e-Commerce market (from 2017 to 2023)
In the above figure, it is shown the number of users in the E-commerce market from 2017 to 2023.
- The total number of users in 2017, 2018, and 2019 is 3.9, 3.9 and 4 million.
- It is expected that the number of users will be 4.1, 4.2, and 4.3 in 2020, 2021, and 2022.
- In the E-commerce market, the number of users is expected to amount to 4.4m by 2023.
So, in terms of the number of users, it is shown an upward trending bar diagram. That means, from 2017 to 2023 the number of e-commerce customer will continuously increase, which is good news for the business who run in the e-commerce industry.
The penetration rate in percentage
- The penetration rate in 2017, 2018, and 2019 are 67.7, 68.4 and 69.3 percent.
- It is expected that this rate will be 70.4, 71.6, 72.5 and 73.2 in 2020, 2021, 2022 and 2023 respectively.
So, the penetration rate is continuously increased from 2017 to 2019 and it is also expected that the rate will further increase in the near future.
Users of online shopping-2019
In this section, it is shown the age of online shoppers/users, their gender and their income level.
Age of online shoppers
Age |
Users in percentage |
18-24 |
23.3 |
25-34 |
34.3 |
35-44 |
23.9 |
45-54 |
14 |
55-64 |
4.4 |
- Age from 18 to 24 years: 23.3%
- Age from 25 to 34 years: 34.3%
- Age from 35 to 44 years: 23.9%
- Age from 45 to 54 years: 14%
- Age from 55-64 years: 4.4%
This indicates that the age of the most online shoppers in Singapore is between 25 to 34 years. That means young adults are mainly purchased their desired goods and services online.
And it is seen that the least customer of online shopping is the people whose age is between 55-64 years. This segment of people only buys 4.4% of total online purchases in Singapore 2019.
So, online businesses should target the age group of 25-34 to increase their volume of sales.
Users by gender
Gender |
Percentage |
Male |
51.4 |
Female |
48.6 |
In 2019, the percentage of male online shoppers in Singapore is 51%
And in 2019, the percentage of female online shoppers in Singapore is 49%
This indicates that in Singapore both males and females are equally habituated with online shopping.
Users by income
Income |
Percentage |
Low income |
32.2 |
Medium income |
31.4 |
High income |
36.4 |
- Most of the e-commerce users are from high-income group which is accounted for 36.4%
- Medium income group is 31.4%
- Low-income group customer of e-commerce is 32.2%
Although it seems that a higher income group of people is mostly habituated with online shopping in Singapore, the above fact shows that higher-income people, medium-income people, and even low-income people all equally prefer online shopping.
Payment methods and types-2019
Payment methods
Payment methods in percentage-2019 |
|
Bank transfer |
9.2 |
Cards |
65.2 |
Cash on delivery |
3.5 |
E-wallet |
20.4 |
Others |
1.6 |
Most e-commerce users prefer to use Cards in transaction which is 65.2% of total transactions.
- After that 20.4% prefer to use E-wallet
- 2% prefer bank transfer
- 5% prefer Cash on delivery
- And remaining 1.6% use other methods
From the above statistics, it is found some important insights:
- Firstly, most of the people of Singapore are adopted themselves with using various types of debit and credit card.
- Secondly, only very few people from Singapore prefer cash on delivery.
Payment types
- Use money banking: 64%
- Make mobile payments: 36%
- Purchase Items online using a mobile phone: 54%
- Own some Form of Crypto currency: 6.4%
From the above figure, it is observed as an important point which is that a good percentage of people (6.4%) are starting to use Crypto currency. And the interesting fact is that several well-reputed online business companies in Singapore have started to accept Crypto currency.
Main reasons of rising online trend in Singapore-2019
It is identified as the two most important reasons for the rising e-commerce trend in Singapore.
- Among them, the first one is the increased internet access via mobile.
- And the second one is that e-commerce businesses basically charge low prices and even customers get access to greater selection.
The browser Singaporeans mostly use to Shop Online-2019
Browsers |
Percentage of users use to shop online |
Chrome |
58.19% |
Safari |
22.89% |
Samsung Internet |
4.71% |
Firefox |
3.30% |
Puffin |
3.15% |
Edge |
1.89% |
- 19% of users prefer to use Chrome
- 89% of users use Safari
- 71% use Samsung Internet
- 3% use Firefox
- 15% use Puffin
- 89% use Edge
E-commerce shopping spend by category-2019
The total annual amount spends on consumer e-commerce categories, in US. Dollar
- Fashion and beauty: $999.0 million
- Electronics and physical media: $1. 080 billion
- Food and Personal care: $647.0 million
- Furniture and appliances: $726.0million
- Toy, Diy & Hobbies: $658.0 million
- Travel (Including accommodation): $3.641 billion
- Digital music: 26.0 million
- Video games: $85 million
73% of online shoppers here bought items from overseas in the past year, with 14% shopping exclusively on foreign websites.
E-commerce shopping growth by category-2019
Annual Change in the total amount spends on consumer e-commerce categories. Traditional retailers have advantages of well-established brands and product inventories. Contributing 1.4% to Singapore’s GDP with S$33 billion (US$24 billion) in operating receipts, Singapore’s retail sector can also benefit from the government’s initiatives such as the 2020 vision of the Retail Industry Transformation Map (ITM).
- Fashion & beauty: +30%
- Electronics and physical media: +31%
- Food and Personal care: +47%
- Furniture and appliances: +35%
- Toy, Diy & Hobbies: +40%
- Travel (Including accommodation): +7.9%
- Digital music: +11%
- Video games: +16%
Based on the forecasted value of We Are Social-2019, it is predicted that in 2020, the growth of fashion, electronics and media, toys, hobby and DIY, furniture & appliances and food & Personal Care will be 22%, 19%, 25%, 22%, and 29% respectively. Total Singaporean E-commerce revenue across all product categories is 3.3 billion USD and is expected to grow to 5 billion USD by 2021. Electronics and Media is currently the leading product category in Singapore, accounting for 918.1 million USD market share, followed by Toys, Hobby & DIY, which generates 843.7 million USD in sales.
Ecommerce detail: Consumer goods-2019
- Total number of people purchasing consumer goods via E-commerce: 4 million within +5.3% year on year change
- Penetration of consumer goods E-commerce (total population): 69%
- Value of the consumer goods e-commerce market (total annual sales revenue): $4.110 billion with +35% year on year change.
- Average annual revenue per user of consumer goods E-commerce (Arpu): $1,037 with +31% year on year change. (The Global State of Digital in 2019 Report).
The annual sales value of Singapore’s consumer e-commerce market totals $4.11 billion with a growth rate of 35% YoY. The average annual e-commerce revenue per person is $1,037, up 31%. E-wallet only accounts for 10% of total e-commerce spend in Singapore.
Online shopping spending-2019
Comparing e-commerce spend to point of sale spends, with e-wallet detail
- E-commerce spend per capital: $889 US dollar
- Point of sale spend per capita in US dollars: $21,481
- E-commerce spend as a share of retail spend: 4%
- E-wallets’ share of e-commerce spend: 10%
- E-wallets’ share of point of sale spend: 4%
According to We Are Social-2019, the people of Singapore spend $889 US dollar in the year 2019 to purchase goods and services online. And the point of sale spend per capital $21,481US dollar. The percentage of e-commerce sales share is about only 4% of total domestic sales.
The places where Singaporeans find the information to buy
- Google: 69% of online shoppers in Singapore have said about the use of Google
- Websites: Almost a third of shoppers mostly depend on brand websites for information
- YouTube: Another 14 percent prefer using video platforms such as YouTube and Vimeo to search for more information concerning a brand, product, or service.
- Social media: 12% of the Singaporeans visit social media for information
- Market price: 12% who’s decision to buy will, for the most part, be skewed towards who has the best price on the market
The best online fashion shopping sites in singapore-2019
The best online fashion shopping sites in Singapore are
- Qoo10
Qoo10 is a favorite with Singaporean shoppers for great bargains at incredibly low prices. As many merchants export directly from Warehouses on Qoo10, electronics and food, health supplies or furniture and fashion are priced very competitively. Fashion sourced from Korea, China, Taiwan, Malaysia sell briskly. Food supplies from Malaysia, Indonesia, Korea are priced low and sell briskly.
- Lazada
Lazada is an ecommerce pioneer in South East Asia and its incorporation of the Redmart label has made it a necessity for Singaporean households. It also sells electronics, software from Sim Lim and Funan at great prices, making it an alternative to travelling to these IT hotspots. Clothes, toys, sports gear, fashion, accessories, games, food are also highly sought-after shopping items, priced reasonably.
- Shopee
Shopee is expanding meteorically as a South East Asian ecommerce platform. Through interactive shopping features like Shopee live chat and coins redemption as well as Shopee guarantee for reimbursement for faulty/undelivered goods, its popularity rises exponentially. All products from electronics, food, clothing, toys, fashion, gaming, sports, are available on Shopee at warehouse prices.
- Zalora
Zalora is esteemed widely for fashion retail in the ecommerce arena locally. It is Asia’s top fashion ecommerce retailer with its expansive array of fashion stocks from many destinations, and stocking a dazzling array of brands, covering high fashion and more modest, down to earth apparel.
- Carousell
Carousell’s growth arose from its informal, impromptu, improvisational nature which makes bargaining and negotiation as well as arranging meetups a breeze for buyers. It is an Asian, more informal version of the eBay online selling model.
- Redmart
Redmart is the biggest online grocer after NTUC in Singapore. The dizzying array of food supplies from Europe, China, India, Thailand, Malaysia, Indonesia, Taiwan, Korea, and highly competitive prices as well as convenient delivery slots and consistent logistics execution make it highly sought after.
Top most companies searched by the Singaporean-2019
- Qoo10 Singapore
- Lazada Singapore
- StrawberryNet
- EzBuy
- Zalora
- Reebonz
- Forty Two
- HipVan
- SgShop
- Singsle
The statistic shows the most popular B2C e-commerce sites in Singapore as of first quarter 2019. During the period examined, The Qoo10 Singapore was the most visited B2C e-commerce website approximately eight million monthly web visits.
Global comparison with Singapore in terms of online shopping revenue-2019
Top 5
Country |
Revenue |
China |
US$723,131m |
United States |
US$365,207m |
United Kingdom |
US$78,903m |
Germany |
US$74,228m |
Japan |
US$89,234m |
Singapore |
US$4,906m |
With a market volume of US$723,131m in 2019, most revenue is generated in China. The position of Singapore is 5 with the market volume of US$4,906m.