Expansion And Diversification Of E-Commerce In Singapore

by jialezheng   ·  5 months ago   ·  
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Over the years, businesses have gotten more and more multi-dimensional. However, it is fair that we have not seen anything quite like what we are witnessing now with the e-commerce boom in Singapore. Never before has it been the case that the platform buying you your gaming console is also answering your query on how to check singtel prepaid balance that you have got remaining. This is exactly what the leading global online marketplace Lazada is aiming for and succeeding at, in Singapore.

E-commerce in Singapore: An overview

The growth E-commerce has experienced in Singapore, in the past few years has been exponential. Some reports go as far as to indicate that by 2025, the e-commerce industry is likely to be valued at S$7.5 billion. For context, this is five times what the industry was valued at in 2016. Looking at the current numbers, it sure looks like an attainable projection.

What this more than 11% rate of exponential growth indicates is that the industry is likely to attract investments, approximating up to a whopping US$50 billion over the next 5 year period. This is happening at a time where Singapore is already experiencing a substantial rise in online start-ups. These entrepreneurship endeavors are taking place in sectors ranging from retail and fashion to digital and home utilities, and even tourism and leisure.

A fantastic past few months

In November 2020, Lazada was the e-commerce enterprise that succeeded at milking the most out of the Singles Day shopping spree. They were solving queries like how to check singtel’s prepaid balance by allowing people to recharge their prepaid balance on their site. They were also making sure that everything from electronic appliances to apparel is available on the platform for customers to buy.

The e-commerce giant was riding the same wave that has been lifting all e-commerce enterprises across Southeast Asia in recent months. According to co-president and regional head of commerce at Lazada Group, Jessica Liu, orders during the second quarter of 2020 on Lazada’s B2C shopping platform Laz-mall tripled in comparison to last year. What this indicates is that in the past few months, e-commerce has been growing exponentially in Singapore.

Luxury e-commerce is leading the way

As the digital economy is expanding at an unprecedented rate, the luxury e-commerce sector is also coming into its own. Tourism has been sweeping the landscape in Southeast Asia. Whether it is booking hotel reservations or flight tickets, everything is being done online by customers. It is safe to say that online bookings are becoming more and more intrinsic consumer behavior.

Even though B2C and B2B2C businesses have been growing, they still lag behind the travel industry in terms of e-commerce growth.

The adoption of robust payment methods has been incremental

In order to obtain consistently good performance from any e-commerce activity, platforms need to integrate easy, quick, but reliable payment gateways, along with flexible payment options. This is an aspect that platforms like Lazada have especially worked upon. Apart from answering queries such as how to check singtel prepaid balance, it has made sure that consumers are getting access to payment options such as Buy Now Pay Later(BNPL).

Payment habits, as well as in-trend payment services, are different in Singapore, as compared to other markets in ASEAN. The difference largely lies in terms of credit-card dependence among population members. On one hand in Singapore, the most used payment method is a credit card. However, in other regions, people are wary of depending on credit cards for making purchases.

Why diversification efforts have been a game changer?

Industry leaders are realizing that it is incremental for retailers to grab this opportunity and start diversifying their sources of generating revenue. There is an awareness that by utilizing the various e-commerce platforms, retailers can showcase their products and services to consumers. Therefore, they should make full use of this opportunity, especially when consumers are coming in droves to these platforms.

Enterprise Singapore(ESG) is one such player that has recognized the potential e-commerce in Singapore can reach if only businesses can be guided on and helped with diversification. The result is the Singapore E-commerce Programme.

Singapore E-commerce Programme, essentially, will work to provide knowledge, skill-set, guidance, and assistance to retailers, so that they can utilize the online platforms to optimal advantage. Lazada has collaborated with other e-commerce mammoths to provide retailers with resources that would allow them to sustain growth in the long run. Hence, retailers that are just starting or have very little experience, will be able to majorly benefit from the experience that these large-scale e-commerce platforms have garnered over the years.

Takeaway

Leading e-commerce platforms in Singapore like Lazada are doing a lot more than letting you know how to check singtel prepaid balances. They are becoming the center of economic activity and more importantly, they are shaping what the e-commerce industry might look like in the future. The efforts towards enabling retailers to diversify their business are likely to prove game-changing as its potential is far from anyone’s guess.

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