Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Impact of Technology on the Singapore Retail Market

Xian Yang Wong • 17/06/2019

The rise of e-commerce, changing shopping habits, and a tough operating environment have all led to the demise of many retailers in Singapore. As more consumers switch to shopping online, traditional retailers who have been slow to adapt are seeing falling sales and closing stores.

Landlords will also see an erosion of their tenant base and arguably find themselves in a weaker bargaining position. So, what can landlords do?

Death isn’t on the cards, but consolidation is

 It is not the death of brick-and-mortar, but the rise of e-commerce which has accentuated the trend of a two-tier market. Well-located and managed malls are able to attract the bulk of the footfalls and are thus positioned to hold and even raise rents to the detriment of poorer malls which have seen retailers leave in doves.

Due to the convenience brought about by e-commerce, the main reason to visit a mall is no longer to shop but have become a focal point of community gathering. Malls are no longer just a place to push out product offerings to the mass-market but must now be designed to pull consumers in via a strong retail consumer experience.

Being mediocre will no longer cut it, as consumers are now much more discerning and savvier about how they spend their cash and time.

From competitive to complimentary

 Landlords are collaborating with leading e-commerce players to bridge the online-offline experience. For example, Capitaland, Singapore’s largest real estate company, has tied up with leading e-commerce Lazada Group by launching an ‘online mall’, aggregating the offerings of retailers in its Singapore malls on Lazada’s website and allowing shoppers to pick up their online purchases at click-and-collect lounges at some of their malls.

The reopening of Funan Mall, set for the 28th June, is set to become a key proving ground for these online/offline collaborations. We’ve already seen popular Singaporean e-commerce player Love, Bonito announce that its third physical store will be in the retail hub, and which will feature “customer touch points such as “instagrammable” spots, an express counter for e-commerce orders, and on-demand personal stylists” according to Singapore Business Review.

Alongside cornerstone collaborations with popular online players, Funan is pivoting to embrace an online/offline approach, boasting strong logistical capabilities such as a 24 hr click and collect drive-through and in-mall robots to pick up purchases from retail stores and consolidate them for convenient collection.

Mobilising data

 Partnerships with established online players are all very well, but a longer-term solution for landlords is still required. At the heart of any long-term solution has to be data. Advances in technology has created new avenues for data collection, through smart sensors and data analytics. Besides in-mall sensors, data can be gathered from rewards programmes or collaborations with e-commerce companies or existing retailers.

Funan Mall is a great example of this data-centric approach. The new mall will be powered by an ecosystem of sensors, data analytics and facial recognition tools to better understand consumer shopping habits and preferences.

Being able to collect such data would have multiple benefits for mall operators. These include:

Longer consumer engagement: An ability to engage consumers long after they leave the mall

Personalisation services: Malls can offer shoppers relevant and timely recommendations and create opportunities for cross-selling

Increased leasing demand: Consumer data would also be highly sought after by retailers and would translate into higher leasing demand and tenant loyalty

Optimal tenant mix and predictive analysis: Make quicker informed decisions based on detailed shopper demographic data. Being able to anticipate changes in shopper preferences quickly

Stronger collaborations and valuable insights: In the digital age, data is worth its weight in gold. The combination of data collected from online and offline malls could lead to valuable insights. But the key is in being able to use and analyse data properly

Capture online sales: Capture online sales that are completed within the mall, mitigating the showrooming effect and attributing sales correctly

The winners take all

The world of retail is changing, and retail landlords must adopt a more flexible mindset. This includes exploring new opportunities to collaborate with online trailblazers, but it also means investing in solutions that can help them better understand the consumers frequenting their retail spaces.

Consumers are only going to become more savvy and more digitally active. The onus is on landlords to offer unique experiences, sought after occupiers, and data-driven engagement, and in doing so survive the changing retail landscape.


Related Insights

The Appeal of Co-Living in Singapore
Insights • Residential

The Appeal of Co-Living in Singapore

The demand for co-living has heated up in recent times, fueled by a confluence of surging residential rents and prices as well as construction delays of new homes
26/01/2023
APAC Capital Flows - Supply Chain Management webinar
Insights • Capital Markets

Cushman & Wakefield Webinar: Asia Pacific Capital Flows - Supply Chain Management

In this webinar, we have invited Kevin Lee, Head of Real Estate Solutions, APAC at DHL Supply Chain and Tim Foster, Head of Supply Chain & Logistics Advisory, APAC at Cushman & Wakefield to share their views on this burning topic.
07/03/2022
jason-zhang
Insights • Investment

2021 Mainland China Investor Intentions and Cap Rate Survey

As China benefits from being “first in and first out” of the COVID-19 pandemic, it has become increasingly attractive to investors both locally and from around the globe.
23/04/2021

Related Stories

Dexcom Philippines New Office Fit-out Project
Dexcom Philippines • Healthcare
Learn More
Cushman & Wakefield Stories
Booking.com Philippines Inc. • Travel
Learn More
Cushman & Wakefield Stories
OMD Philippines • Advertising
Learn More
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS