Shoppers spent more last Xmas than in 2014
In this article (5)
Economic growth in Singapore may have slowed to about 2 per cent last year, but that did not dampen the spirit of shoppers last Christmas.
Overall Christmas spending has grown from a year ago, say credit card companies.
There was a 16 per cent increase in overall spending last December from the same month in 2014, said Mr Vincent Tan, head of cards at OCBC Bank. Visa also saw a 10 per cent growth in the volume of overall transactions.
At the same time, the rise in spending on online platforms outpaced that at brick-and-mortar shops. In-store transactions grew by 8 per cent, said MasterCard, while e-commerce transactions grew last month by 25 per cent from the previous year. It did not give absolute figures.
Online spending over the festive period also grew by 36 per cent last year at OCBC, compared with a 13 per cent gain at physical shops.
At Visa, there was a 20 per cent year-on-year growth in online transactions in November and December last year. The number of Visa cardholders shopping online has also grown by the same proportion.
Spending patterns over the festive period mirror wider trends.
According to a study commissioned by PayPal in partnership with market research firm Ipsos, online shopping growth in Singapore is expected to hit 16 per cent next year, the third fastest in the Asia Pacific after India and China.
“At Visa, there was a 20 per cent year-on-year growth in online transactions in November and December last year.”
Consumers are attracted to the convenience of shopping online, as well as the competitive prices offered by online retailers, according to a survey of 500 people by Visa.
These trends have brought good news for local online retailers, which have seen a huge growth in profits from festive sales last year.
Local e-commerce platform Shopback, which has 200,000 customers and sells a wide range of goods, enjoyed a tenfold growth in profits last month, as compared with December 2014. It declined to give absolute figures.
Sales performance in early to middle of last month was also better than the days right before Christmas, said a spokesman. This could be due to the buffer period required for shipping, he added.
Online fashion retailer Zalora, which has its headquarters here, also saw a growth of 73 per cent for a four-day online shopping extravaganza held last month, compared with the same event a year earlier, said a spokesman.
Teacher Lye Pin Quan, 28, spent about $1,000 online on gifts for friends and family, as well as on Christmas decorations. He shopped on local e-commerce sites like Qoo10 and Lazada, as well as overseas ones like Taobao, purchasing mainly electronic products.
“The long queues at retail stores are quite off-putting during the festive period, and I also find that there are better sales and discounts on items online. Sometimes, you can save as much as 50 per cent or more,” he said.
Questions & Answers
Q.Which specific payment methods saw an increase in overall spending last Christmas?
Which specific payment methods saw an increase in overall spending last Christmas?
Credit card companies reported an increase in overall Christmas spending. OCBC Bank saw a 16% rise in overall spending, and Visa saw a 10% growth in transaction volume.
Q.Was the growth in online shopping platforms more significant than physical shops last Christmas?
Was the growth in online shopping platforms more significant than physical shops last Christmas?
Yes, online platform spending outpaced brick-and-mortar shops. MasterCard reported a 25% growth for e-commerce transactions, compared to 8% for in-store transactions.
Q.Why are consumers increasingly choosing to shop online, according to the article?
Why are consumers increasingly choosing to shop online, according to the article?
Consumers are attracted to the convenience of shopping online and the competitive prices offered by online retailers. Long queues at physical stores during festive periods are also off-putting.
Q.Did online retailers in Singapore see a significant increase in profits from the festive sales last year?
Did online retailers in Singapore see a significant increase in profits from the festive sales last year?
Yes, local online retailers saw a huge growth in profits from festive sales. For example, Shopback enjoyed a tenfold growth in profits last December compared to the previous year.
Reader pulse
Will online retail growth continue at this pace?
20,629 votes so far