Singapore is the most mature ecommerce market in Southeast Asia where 60% of respondents report shopping online. Singaporeans also spend the most online in the region – on average a shopper purchased online goods worth $1,022 in 2016.
Statista data shows that Singapore’s ecommerce market is expected to increase from $3.3 abyillion this year to $5.1 billion in 2021 growing annually by 11.2%. And the number of online shoppers is forecasted to rise from 64.8% of the population in 2017 to 80.9% in 2021.
Which categories present good opportunities in Singapore’s ecommerce market in the near future?
Singaporeans mostly shop online for electronics & media
Electronics & media is currently the leading ecommerce vertical in Singapore, similar as in Thailand. It’s predicted to remain as such in the near future, Statista data shows.
- Electronics & media ecommerce market in 2017: $918 million or 27.6% of total ecommerce revenue
- Electronics & media ecommerce market in 2021: $1.345 million of 26.5% of total ecommerce revenue
- Annual growth rate (CAGR): +10%
- Market’s largest segment: Consumer electronics with a market volume of $679 million in 2017
Currently, there aren’t many players in Singapore who sell online physical media (e.g. books, DVDs, games), consumer electronics (e.g. TVs, stereo systems) and/or communication devices (e.g. computers, smartphones, tablets).
The annual growth rate of online sales in this category is not the fastest, but ensures that in five years time, more than one fourth of all projected online sales in Singapore will come from selling TVs, computers, books and other devices and media.
Furniture & homeware to grow the fastest
This vertical is expected to grow by nearly 15% annually within the next five years from 2017.
- Furniture & appliances ecommerce market in 2017: $452 million or 13.6% of total ecommerce revenue
- Furniture & appliances ecommerce market in 2021: $782 million or 15.4% of total ecommerce revenue
- Annual growth rate (CAGR): +14.7%
- Market’s largest segment: Furniture and Homeware with a market volume of $317 million in 2017
Selling online furniture and household goods such as kitchen and bathroom accessories, textile furnishings will account for nearly half of the market volume in this vertical.
Below is a few examples of companies currently selling products in this vertical.
Some local players like Horme and Star Living are already seizing this opportunity whereas global giants like Ikea have not yet taken advantage but will most likely move online.
Fashion to become the second largest vertical
Fashion ecommerce in Singapore is expected to have the second highest annual growth rate following furniture. This will make fashion the second largest vertical by sales by 2021, up from the third largest vertical in 2017.
- Fashion ecommerce market in 2017: $769 million or 23.2% of total ecommerce revenue
- Fashion ecommerce market in 2021: $1.243 billion or 24.5% of total ecommerce revenue
- Annual growth rate (CAGR): +12.7%
- Market’s largest segment: Clothing with a market volume of $584 million in 2017
The fashion ecommerce vertical is unsurprisingly quite crowded in the Lion City. From local marketplaces such as Reebonz and Megafash to local brands like Charles & Keith and global brands like Uniqlo, many have already added online to their sales channel to be where their customers are – in the digital environment.
Hobby and stationery products are big in Singapore ecommerce
Selling toys, baby items, sports and outdoor products, and stationery online is also a big market in Singapore. It is projected to be the third largest vertical in sales by 2021 making up 23% of Singapore’s total ecommerce.
- Toys, hobby & DIY ecommerce market in 2017: $844 million or 25.4% of total ecommerce revenue
- Toys, hobby & DIY ecommerce market in 2021: $1.178 billion or 23.2% of total ecommerce revenue
- Annual growth rate (CAGR): +8.7%
- Market’s largest segment: Hobby & stationery (e.g. musical instruments and office supplies) with a market volume of $529 million in 2017
Food & personal care to grow 55%
This category is expected to grow to $528 million within the next five years. Although it is the smallest of all verticals in terms of sales, it is still projected to produce a steady annual growth rate of nearly 12% in the period from 2017 to 2021.
Singapore’s online grocery segment is quite advanced compared to other Southeast Asian countries, while there are limited numbers of beauty online sellers.
- Food & personal care ecommerce market in 2017: $339 million or 10.2% of total ecommerce revenue
- Food & personal care ecommerce market in 2021: $528 million or 10.4% of total ecommerce revenue
- Annual growth rate (CAGR): +11.7%
- Market’s largest segment: Personal care with a market volume of $231 million in 2017
Although the country’s ecommerce growth is not the fastest projected in the region, an online shopper in Singapore is expected to spend on average $1,234 in 2021, according to Statista. This stands to be three to four times more than annual online shopping spending in Indonesia and Thailand, nearly 10 times more than in Malaysia, 13 times more than in Vietnam and 26 times more than in the Philippines.