Insights into the growth of Singaporean eCommerce with payment methods, target audiences, marketing, social media, economy and logistics all profiled

Economy

Singapore is home to 5.6 million people with a total GDP of 296.97 billion USD and is ranked as the 39th richest country, according to the World Bank GDP per capita rankings. Singapore’s GDP per capita is currently 54,053 USD and expected to reach 59,870 USD by 2021.

Digital User Insights

There are currently 3.12 million eCommerce users in Singapore, with an additional 998,000 users expected to be shopping online by 2021. Four years from now, these 4.11 million eCommerce users will spend an average of 1234 USD online.

Dividing internet usage into age groups gives a better picture of the Singaporean eCommerce market – 95% of 16-24 year-olds, 98% of 25-34 year-olds, and 92% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing a 86% and 78% daily penetration rate, respectively.

Product Categories

Total Singaporean eCommerce 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.

By 2021, Electronics and Media will still be the most purchased online category, with a value of 1.34 billion USD, and Fashion will become the second most popular category with an expected worth of 1.24 billion USD.

Logistics

In 2016, Singapore was ranked 5th in the World Bank Logistics ranking, beating the UK, US, Japan and Australia.

Preferred Online Payments

74% of Singaporean shoppers use credit cards when shopping online, and bank transfer, cash-on-delivery, direct debit and eNETS are also popular.

Where does Singapore buy from?

China supplies Singapore with 46.8 billion USD in imports – ranging from integrated circuits to petroleum. Singapore’s other key import partners are Malaysia (32.1 billion USD), the US (31.4 billion USD), greater Asia (23.2 billion USD) and Japan (19.8 billion USD). 

Internet and Device Usage

Internet penetration in Singapore is currently 79%, and should reach 84.8% by 2021. Smartphone penetration is a little less (74.9%), but is projected to grow to 79.3% in the next four years.

74% of online shoppers in Singapore buy via desktop, a stark contrast to the amount of smartphone (18%) and tablet (5%) shoppers.

Marketing

Total marketing spend in Singapore has risen in recent years, as advertisers steadily invest more in digital advertising. In 2017, total ad spend in Singapore reached 1.9 billion USD.

Social Media

Singapore currently has 3.54 million social network users, a figure expected to increase to 3.93 million by 2021, thanks to YouTube, Facebook, Whatsapp and Instagram, which are the leading social networks.

For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets.