Singapore e-commerce market to surpass US$10bn mark in 2025, forecasts GlobalData

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Singapore continues to evolve as a significant e-commerce market and is predicted to develop at a compound annual progress fee of 16.2% from S$7.8bn (US$5.9bn) in 2021 to S$14.2bn (US$10.7bn) in 2025, forecasts GlobalData, a number one information and analytics firm.

An evaluation of GlobalData’s E-Commerce Analytics reveals that the robust progress will likely be supported by rising shopper spending, authorities help and rising desire for on-line procuring.

Nikhil Reddy, Funds Senior Analyst at GlobalData, feedback: “E-commerce gross sales in Singapore had been adversely affected by the COVID-19 pandemic with customers changing into prudent in the course of the disaster. The pandemic additionally affected excessive worth purchases reminiscent of journey and lodging additional impacting e-commerce gross sales in 2020.

Nonetheless, with the easing of COVID-19 restrictions and revival of economic system, the market rebounded in 2021. In keeping with GlobalData’s E-Commerce Analytics, e-commerce gross sales are estimated to develop by 18.3% in 2022 to achieve S$9.2bn (US$7.0bn).

Reddy provides: “Though COVID-19 impacted the e-commerce progress, the social distancing measures and lockdown restrictions pushed customers to on-line channels even for day-to-day purchases. The shift in shopper shopping for habits now continues regardless of opening of bodily shops.”

Singapore has additionally been taking numerous initiatives to drive e-commerce adoption amongst small companies by providing advantages within the type of subsidies. As part of its ‘E-Commerce Booster Package deal’, the federal government provided subsidies to retailers for opting on-line channels and promoting merchandise on-line by way of collaborating e-commerce platforms reminiscent of Lazada, Shopee and Zalora. Eligible retailers had been provided as much as 80%, capped at S$8,000 [US$6,052.89], of setup and promoting prices in subsidies.

The expansion in on-line procuring will profit digital funds progress within the nation. In keeping with GlobalData’s 2021 Monetary Providers Shopper Survey* for on-line purchases, cost playing cards accounted for 43% of all of the e-commerce gross sales in Singapore.

Moreover, various digital cost options reminiscent of PayPal, Apple Pay, Seize Pay, and Google Pay have gained prominence within the nation and collectively account for 30.6% market share, up from 27.6% in 2020. As customers proceed to embrace e-commerce amid pandemic, these cost options will likely be vastly benefited.

Reddy concludes: “Though e-commerce market progress was derailed by the pandemic primarily as a consequence of decline in shopper spending, it additionally introduced a shift in shopper shopping for habits in the direction of on-line channels. This together with the federal government’s conducive initiatives will help e-commerce progress within the nation over the subsequent few years.”

The submit Singapore e-commerce market to surpass US$10bn mark in 2025, forecasts GlobalData appeared first on GlobalData.

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