Three in four consumers shop more frequently online: Visa
By Digital News Asia March 15, 2021
- 52% of Singaporean consumers shopped less frequently in physical stores
- New shopping preferences might turn into post-pandemic habits, study finds
Based on the recently released Visa's Consumer Payment Attitudes Study, 74% of Singaporean consumers are shopping more frequently online while 52% of those surveyed shopped less frequently in physical stores. Meanwhile, home delivery saw a significant rise – 71% of respondents were using home delivery more frequently, while 25% began using home delivery for the first time.
In tandem with this, about one-third of Singaporeans (31%) shopped online for the first time during the pandemic, making purchases via websites or mobile applications.
The study was conducted in September 2020 with 1,000 Singaporeans aged between 18 and 65, as part of a regional research projected conducted in Southeast Asia on over 7,500 consumers across eight markets.
The survey showed a wider shift towards digital-first experiences in light of new habits formed during nationwide lockdowns, safe-distancing measures, and personal safety concerns, the study posits, Visa said in a statement.
The study found that almost half of the surveyed consumers are more inclined to shop from large online marketplaces, while nearly a third shopping more frequently from local businesses (31%) and home-based businesses (31%).
The study also suggested that these new shopping preferences might even turn into longer-lasting habits.
About a fifth of Singaporean consumers expect to continue shopping at large online marketplaces after the pandemic ends, while 14% and 10% said they expect shopping from home-based businesses and local businesses to become post-pandemic habits, respectively.
“We have observed the increased demand for digital-first experiences, as many Singaporeans turn to safer, more convenient and intuitive shopping experiences, powered by innovation and technology,” said Kunal Chatterjee, Visa country manager for Singapore & Brunei
“Since the onset of Covid-19, people have changed the way they shop and pay and these changes are unlikely to reverse, even as vaccines becomes more widely available,”
The study also revealed a rise in the use of other digital shopping channels in Singapore. Nearly half (49%) shop more frequently via proximity stores – direct delivery to their homes after ordering by phone – with 25% doing so for the first time during the pandemic.
Meanwhile, 41% of Singaporeans shop more frequently via social media channels, and one in five of them are first time social media shoppers.
Based on the study, many consumers have postponed or reduced spending on international travel (67%), out-of-home entertainment (63%) and luxury items (59%) and fine-dining (57%).
The study noted that despite being the most affected segment, spending on international travel is likely to have the quickest recovery after the pandemic – 59% of consumers indicating they will be spending on international travel once borders are reopened.
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