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This is part of our Southeast Asia Ramadan series, where we explore eCommerce insights for Indonesia, Malaysia, and Singapore as well as looking into how to overcome logistics issues associated with last mile during Ramadan in countries like Singapore too. For all of these in one convenient package, check out our SEA Ramadan Guide 2020!
The Ramadan month is a sacred time for Muslims. During this period, Muslims adjust their schedules to include more time for prayers, fasting and doing charitable deeds. Additionally, many Singaporean Muslims start preparing their homes and families for the upcoming Hari Raya Aidilfitri celebrations by shopping for a variety of goods, such as food, new clothes, and gifts for their relatives.
With a mature digital infrastructure and a tech-savvy population, it comes as no surprise that Singapore’s eCommerce economy has been thriving and is expected to expand by 48% to $9.98b (US$7.4b) by 20221. In 2017, a Visa study2 found that 78 per cent of Singaporeans shop online at least once a month -- in part fueled by an impressive GDP per capita of USD 63,9903, the highest among Southeast Asian countries.
14%4 of Singapore’s citizen population are Muslims, which translates to roughly 600,000 people. Thus, there exists a sizable market for eCommerce retailers to tap into this consumer segment in the country.
In 2018, it was reported that there was a surge in online retail sales and traffic which began 10 days into Ramadan, and lasted through the 10 days before Hari Raya Aidilfitri5. While sales cooled off during the week before Hari Raya Aidilfitri, there was a reinvigorated interest and activity in the one to two weeks following that. Hari Raya is one of the major online shopping events in SG. In fact, HIJENTITY, a Muslim lifestyle and fashion company that owns the brands Tudung People SG and Homies in Jannah, mentions that the increases in sales during Ramadan can be substantial.
According to Filzah Zainal, HIJENTITY’s Head of Marketing and Operations, “In Singapore, our sales during Ramadan can be around three times our revenue for a normal month.”
Some of the most popular websites for Ramadan shopping include FashionValet and Zalora for fashion, where discounts and promotions are plentiful to attract customers. Common promotions during this period are themed around packages and bundling, such as 'buy 2 to get a free gift’, or ‘buy 1 to get 50% off the next purchase’.
In addition, during Ramadan, Criteo6 has reported higher surges and lower declines in mobile web sales. Hence, if you’re a brand or retailer, it would help to optimise your mobile presence, such as through easy-to-navigate pages and a seamless checkout experience. To find out Singapore’s other top shopping periods, check out our recently updated Singapore eCommerce guide.
Singapore’s government recently announced circuit breaker measures7 to stem the spread of COVID-19. These measures take place on the 7th of April 2020 which will last for the month of April as of the time of this writing. During this period, many will be working and studying from home as schools, offices and business premises that do not provide essential products and services will be closed. Social gatherings are discouraged with even places of worship being closed.
Similar to what can be expected in Indonesia and Malaysia, Singaporeans will be adjusting to their new home-based lifestyles, complete with changes to what they’re likely to buy online during this period.
The circuit breaker extends into Ramadan, but if it isn’t extended should not bleed into the Hari Raya Aidlifitri celebration periods. Many in Singapore hope that the situation will improve sufficiently for celebrations to go on as normal in time for Raya.
Regardless of COVID’s influence, popular eCommerce platforms in Southeast Asia like Lazada8 tend to ramp up their promotions on special occasions such as Ramadan, it would be good to find out what sort of products consumers are looking for. This is so that you can make the most out of these promotions and cater to the demand of consumers.
Now that we know the key facts and figures about the Singaporean eCommerce market, let’s find out which products are expected to be in high demand this Ramadan.
14%4 of Singapore’s citizen population are Muslims, which translates to roughly 600,000 people. Thus, there exists a sizable market for eCommerce retailers to tap into this consumer segment in the country.
In 2018, it was reported that there was a surge in online retail sales and traffic which began 10 days into Ramadan, and lasted through the 10 days before Hari Raya Aidilfitri5. While sales cooled off during the week before Hari Raya Aidilfitri, there was a reinvigorated interest and activity in the one to two weeks following that. Hari Raya is one of the major online shopping events in SG. In fact, HIJENTITY, a Muslim lifestyle and fashion company that owns the brands Tudung People SG and Homies in Jannah, mentions that the increases in sales during Ramadan can be substantial.
According to Filzah Zainal, HIJENTITY’s Head of Marketing and Operations, “In Singapore, our sales during Ramadan can be around three times our revenue for a normal month.”
Some of the most popular websites for Ramadan shopping include FashionValet and Zalora for fashion, where discounts and promotions are plentiful to attract customers. Common promotions during this period are themed around packages and bundling, such as 'buy 2 to get a free gift’, or ‘buy 1 to get 50% off the next purchase’.
In addition, during Ramadan, Criteo6 has reported higher surges and lower declines in mobile web sales. Hence, if you’re a brand or retailer, it would help to optimise your mobile presence, such as through easy-to-navigate pages and a seamless checkout experience. To find out Singapore’s other top shopping periods, check out our recently updated Singapore eCommerce guide.
Singapore’s government recently announced circuit breaker measures7 to stem the spread of COVID-19. These measures take place on the 7th of April 2020 which will last for the month of April as of the time of this writing. During this period, many will be working and studying from home as schools, offices and business premises that do not provide essential products and services will be closed. Social gatherings are discouraged with even places of worship being closed.
Similar to what can be expected in Indonesia and Malaysia, Singaporeans will be adjusting to their new home-based lifestyles, complete with changes to what they’re likely to buy online during this period.
The circuit breaker extends into Ramadan, but if it isn’t extended should not bleed into the Hari Raya Aidlifitri celebration periods. Many in Singapore hope that the situation will improve sufficiently for celebrations to go on as normal in time for Raya.
Regardless of COVID’s influence, popular eCommerce platforms in Southeast Asia like Lazada8 tend to ramp up their promotions on special occasions such as Ramadan, it would be good to find out what sort of products consumers are looking for. This is so that you can make the most out of these promotions and cater to the demand of consumers.
Now that we know the key facts and figures about the Singaporean eCommerce market, let’s find out which products are expected to be in high demand this Ramadan.
During the celebrations of Hari Raya Aidilfitri, households would be decorated lavishly and stocked with an abundance of food and snacks to welcome their guests. For many Malays in Singapore, the first week of Hari Raya is typically focused on visiting family elders, with later weeks for hosting their own open houses.
According to Criteo, the second best performing category during Ramadan is Home & Living15 -- which includes things such as household supplies and furniture. Closer to Hari Raya, demand for express shipping options increases with more last minute purchases of these items.
Typically in Singapore, Muslim families tend to buy household supplies or new furniture to decorate their house for Hari Raya Aidilfitri. Green is a popular colour for these products, signifying peace and tranquillity.
They may also have to stock up on things like tissue paper, paper cups and even packet drinks and snacks to serve guests when they arrive. Dates, prawn crackers, potato chips, butter cookies, and kuih lapis are some common food that Muslims enjoy during the festivities.
With the proliferation of eCommerce platforms, Singaporeans are increasingly purchasing these items online. The COVID-19 outbreak in Singapore also contributes to increased online purchases. While many are hoping that the situation stablises before Raya, celebrations may be scaled down this year.
According to OCBC Bank head of treasury research and strategy Selena Ling, eCommerce will likely perform better this year as more consumers choose to stay home16. This falls in line with how RedMart is currently seeing unprecedented demand in Singapore due to COVID-19, with people purchasing up to five times more paper products, and up to six times more personal care and household supplies17.
Other, home and living products such as furnishings and even DIY hardware may see potentially increased sales. With the circuit breaker lasting a month, Singaporeans will need to spend a lot of time at home. To improve their living experience, they may spend on creature comforts like additional cushions, or even do DIY home improvement projects like giving a room a new coat of paint.
Hence, to tap into the growing demand for eCommerce shopping in Singapore this Ramadan, it might be helpful to look into the Home & Living category. New curtains, cushion covers, tissue box covers, rugs or dining sets are just a few things that Muslim families usually purchase each Ramadan, alongside bedsheets and air fresheners.
The Ramadan period is a good time to try different promotion and discount strategies to earn more sales for your eCommerce or omni-channel store. Even though there are several product verticals you can enter to tap on Ramadan sales ranging from fashion to toys, it would be good for you to constantly be updated with the latest trends in the market regardless of the vertical.
As the Mango example had shown, it’s vital to understand the cultural nuances when serving the Singaporean market as their beliefs may differ from that of other parts of the world. Hence, having local expertise on your team can certainly help you provide consumers with the products they’ll love.
Delivery is still an important part of the eCommerce experience. If you’re selling your products cross-border to Singapore, it’ll be helpful to find a shipping partner with customs expertise and local experience to help you with keeping your eCommerce shipments on time and on target for your Singaporean customers.
Popular eCommerce platforms and experienced logistics service providers who are well-acquainted with Singapore’s shipping rules and regulations can also simplify much of your cross-border shipping process, making it much easier for you to start expanding your business in the country. You'll also want to look out for and make plans to deal with upcoming challenges to eCommerce logistics and last-mile challenges in Singapore, which you can check out in our recent article.
Ramadan aside, there are many other major eCommerce shopping events in Singapore. To find out more about promotions and discounts you can run and more, have a look at our Singapore eCommerce Guide 2020.
As a whole, if you’re looking to better understand the consumer trends behind the Ramadan market, it’ll be good to look at what young consumers and influencers are talking about on social media. By also looking at what other fashion, home and living, or toys brands who have succeeded in this market have done, you might find it easier to gain your potential customers’ support by replicating similar methods.
If you'd like to find out more about how we can solve your SEA eCommerce cross-border delivery needs, come and have a conversation with us.
Want to learn more about Southeast Asia's Ramadan opportunities? Check out our series below:
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