Singapore is one of the best places to live and do business. 5.6% of all the luxury goods store and 4.9% affordable luxury goods store openings were in the country. The Singaporean market will continue to be an attractive marketplace for investors and businesses looking to capitalize on the latest trends of consumer and lifestyle, especially covering the high-end segment, where peoples spending power is high. In 2018, the revenue of the Luxury Goods market amounts to US$ 4,338 million (S$ 5964 million) and the market is expected to grow annually by 1.1% (CAGR 2018-2022). Luxury good markets largest segment is the segment Luxury Watches & Jewellery which amounts to US$ 2,793 million (S$ 3840 million) market volume in 2018. The United States is the major revenue generator in the global comparison in 2018 with US$ 71,202 million.
Changing Trend and Development of Singapore Luxury Goods Market:
In Singapore, the trend for luxury products is relatively high from most of the country. It is a great place for shopping and also it ranks at 5th in the 5 largest destination countries, such as after France, Italy, UK, and Germany, in tax-free shopping value. A significant rise has been seen in the ‘affordable luxury’ segment but ‘ultra-luxury’ segment continued to dominate. But ‘affordable luxury’ brands succeeded in opening store account to 44.9% of all luxury store openings this year up from 38.1% in 2016.
In Singapore, the consumers of the luxury goods product are relatively more flexible and open to squander a little more than their estimated budget to purchase popular and exclusive items. Europe and the United States based luxury stores are the major importers of the luxury goods industry in Singapore directly. The popular luxury goods brand sold in Singapore luxury goods market are Chanel, Louis Vuitton, Ralph Lauren, Prada, Burberry, Jimmy Choo, Salvatore Ferragamo, Estee Lauder, Clinique, Lanc’me, Rolex, Cartier, Omega, Panerai, TAG Heuer and others.
Singaporean Consumers are Resilient and Brand Conscious:
In Singapore, luxury goods have become the most important integral part of the lifestyles as compared to other countries, such as India, China, Taiwan, etc. The luxury goods market of Singapore covers various types of product categories consist of premium footwear, luxury watches, high-end cosmetics, designer apparel and fragrances, etc. In 2018, designer apparel is the highest contributor with US$ 524 million (S$ 720.40 million) and premium cosmetics and fragrances stood at the second highest category in terms of revenue contribution. The designer apparel market is expected to grow annually by 3.6% (CAGR 2018-2022).
Despite the slowdown of the economy of the city-state, Singaporean consumer’s purchasing power remains very healthy among clients of luxury products. Other than, the tend of the Singaporean consumers is observed that they are more likely to go with the better quality assurance as well as prestige and exclusivity. Singaporean consumers are more brand conscious and more likely to go with the brands only. More and more luxury malls are set to open under the Singaporean government’s decentralisation strategy to transforms suburbs into regional centres for better market penetration.
The Fifth Collection:
Singapore-based leading luxury e-commerce retailer platform founded in 2014. It is a leading online provider of world-class vintage fashion with uncompromising quality and outstanding customer service. The Fifth Collection product range includes clothing, shoes, bags, jewellery, scarves, belts, sunglasses, wallets, and hair care products, etc. Also, users are able to sell vintage fashion to others through the portal. The company sources their best pieces from the worldwide best professional resellers, even from those also who do not have their online presence and also invite their collectors to selectively submit items on consignment to sell on their platform. They also authenticate, quality-control and guarantee every item, and deliver everything at the customer’s doorstep.
Challenges in the Singaporean Luxury Goods Market:
In the past 20 years, the luxury goods industry has seen disruptive changes in Singapore. Traditional strategies are not well enough to maintain healthy growth and profitability in this changing new competitive landscape of economic trends, digital transformation and evolved consumer habits. The digital media sector is the fastest evolving sector for the success of a brand. Various brands are targeting to enter the Singaporean market with the presence of the brick and mortar store and whereas some brands are concentrating on their social media presence.
More and more luxury brands are trying to reach Generation Z through their online presence. Winning brands are making strategies for specific categories of Gen Y and Gen Z. Shoes, jewellery and bags ranked as the fastest-growing categories in 2017, but apparel, beauty and watches still dominating for the bulk of the market. Nowadays consumers are spending a lot more time on their smartphones and tablets. Ecommerce is the fastest growing channel but still, there are some luxury brands who are unwilling to sell their products online and are rely exclusively on their brick-and-mortar stores. Ecommerce is the best option for making accessible to consumers for those independent brands that do not have the resources to open stores at different places.
Opportunities for Luxury Goods Market in Singapore:
Singaporean is the biggest spender among the world after Qatar and Luxembourg, the third highest spender on luxury goods. The country has the high-net-worth individual value in the world and it is holding a strong position in accessing the rest of the APAC market. Singapore is the country which attracts many foreign tourists and attracts many visitors and weekenders from neighbouring countries, such as Indonesia, Malaysia and from China and they are also the highest contributors in duty-free shopping at Changi Airport.
The luxury goods market segment is expected to witness positive growth over the forecast period, as the situation is set to improve and the Singaporean consumers are willing more likely to splurge on luxury goods. Startups can intensify the luxury goods market platform for the consumers of the country better and make the goods convenient reach at their fingertips to them. Targeting consumers online is the easiest and beneficial way to the luxury goods companies. The tourism sector of Singapore is one of the sectors which is driving most of the sale of premium goods, such as apparels, jewellery, watches, wines and cigars, etc. in the country.
For customised market research reports for any kind of startups and business in any industry, you can contact Craft Driven Market Research team here directly.Tags: APAC, Craft Driven, ecommerce, Luxury Goods, Luxury Goods Market Singapore, Luxury Products, Luxury Watches & Jewellery, market research, Singapore Market Research, The Fifth Collection