Singaporeans buying more food online, says Nielsen report

Online purchasing of packaged and fresh groceries among Singaporeans has grown by 10 per cent in the past year, according to a new Nielsen report.

The global measurement company has also determined an increase in consumer confidence within the online buying ecosystem, leading to purchasing in a broader range of categories.

The 2018 Nielsen Connected Commerce Report, which looked at consumers’ online purchasing habits, showed that durable and service-oriented categories led the way in self-reported online purchasing in Singapore. Stalwart e-commerce categories travel, fashion and event ticketing continued to account for the largest proportion of online transactions. The categories posting the most significant growth in e-commerce activity include packaged groceries, fashion and restaurant deliveries.

Nielsen Singapore MD Johan Vrancken said: “The trajectory of e-commerce categories in Singapore has followed similar evolutionary paths in markets around the world. Categories such as travel, entertainment and durable goods are the forerunners for exploratory consumers to delve into the online retail sphere. As confidence in online purchasing grows, consumers are also looking towards an increasing range of categories to fulfil their immediate needs for convenience and ease, evident by the increased uptake of online grocery and food delivery purchases over the recent years.”

Singaporeans were also more open to purchase packaged and fresh groceries online when they were offered certain purchasing options and quality assurances, according to the Nielsen report. Close to three in five (59 per cent) of respondents highlighted that a money back guarantee for products not matching what was ordered would encourage them to buy online. A further 49 per cent of locals were enticed by same-day product replacement service for products not available, while 45 per cent were looking for free delivery services for purchases above a minimum spend.

Head of retailer vertical, Nielsen Singapore Raymond Cheung said that with the blurring lines between offline and online retail channels, it is no longer sufficient to think in terms of merely bricks versus clicks: bricks-and-clicks have become the current and future retail reality.

“The shopper journey has become more complex, with winning brands and retailers being the ones that are constantly engaging their consumers effectively along the various touchpoints, both online and offline.”

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