Market Trends of Singapore E-Commerce Industry
Internet Plays a Significant Role in Market Growth
- According to data from Ookla, internet users in Singapore might have expected the following connection speeds at the start of the previous year, 63.41 Mbps is the average mobile internet connection speed via cellular networks. 184.65 Mbps is the average fixed internet connection speed. According to Ookla's data, Singapore's median mobile internet connection speed rose by 8.38 Mbps (+15.2%) in the year leading up to the start of the previous year.
- Singapore's e-commerce industry is powered by several ASEAN unicorns who have decided to build their regional headquarters there, in addition to its strategic position, advanced digital economic ecology, and highly developed Internet market. Singapore has the most unicorns, with 15 on its credit. Grab, Carousell, Lazada, Ninja Van, and Shoppee are well-known, each with a more than USD 1 billion valuation.
- Singapore must alter its digital infrastructure to "recover better" from the pandemic and acquire long-term resilience. This idea is mirrored in recent government measures to strengthen Singapore's post-pandemic resilience. This includes driving digital transformation and innovation by expanding the adoption of technology-enabled alternatives and increasing R&D. The Singapore Green Plan 2030 intends to leverage technology-driven solutions to "ensure a green, liveable, and sustainable home for generations " Singaporeans" and emphasizes sustainability.
- Telecom operators are expanding the offering of their 5G connection for several countries. For instance, previous early year, Philippines-based Globe Telecom announced that it would accelerate its 5G Roaming rollout to other countries in the Middle East and Asia. Globe is set to open its 5G connection to visiting customers of Singtel of Singapore. Such 5g expansions will drive the market.
- The region is witnessing the growth in usage of the internet with the increase in broadband speeds and online payments; further, the developments in 5g. 5 G's use of higher spectrum waves (mmWaves) enables higher capacity in densely populated areas, greater scalability, higher user mobility for services in moving vehicles, and enhanced connectivity everywhere. 5G enhanced mobile broadband provides the benefits of 5G to the broader public, as it can deliver high-quality service internet access in previously challenging or prohibitive conditions.
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Food and Beverage Industry is One of the Factors Driving the Market
- According to the Singapore Department of Statistics, Singapore's food and beverage services' gross domestic product (GDP) was around SGD 5.26 billion, up slightly from the past years. The reduction is attributable to the food service sector's unfavorable impact of the COVID-19 pandemic. The pandemic has compelled some businesses to adjust, and everyone looks forward to a new normal.
- While customer preferences for dining in have stayed unchanged, the response to constant adjustments in safe management limits appears to have moved this year, according to data from the Customer Satisfaction Index of Singapore (CSISG) study. Surprisingly, the fall in dine-in numbers was met with a considerable increase in takeout, while delivery proportions remained steady.
- According to the Singapore Department of Statistics, food and beverage service sales increased by 4.7% year over year in March, reversing a 0.7% dip in February. Over the previous month, food and beverage service sales climbed 8.0%, seasonally adjusted in March previous year. In March, the total sales value of food and beverage services was anticipated to reach USD 806 million. Online food and beverage sales accounted for an expected 30.4%, similar to the percentage recorded in February previous year.
- According to Value Champion, GrabFood has the highest delivery fee ratio to the total order cost, at 21%, according to a review of leading meal delivery apps in Singapore. With a fee ratio of 9%, Foodpanda has the lowest average fee ratio. The fee ratio was obtained by dividing the average delivery fee total by the average total cost of the delivery order.
- The increase in the number of coffee and snack outlets is one of the main drivers of the growth of the fast food and coffee business. Specialty coffees have emerged due to the diversity of tastes and preferences for various varieties of premium coffee, which is driving the market's growth. According to the US Department of Agriculture, Singapore consumed 100,000 60kg bags of coffee in June before the previous year. In recent years, the increase in cafes, chain coffee shops, and specialty coffee houses have contributed to rising coffee consumption.
