E-commerce in Singapore

Toh Shiqi

Contents page

Why E-Commerce in Singapore? ------------------------------------------------------ 3

E-Commerce trends in Singapore ----------------------------------------------------- 6

Opportunities in E-Commerce --------------------------------------------------------- 8

Singapore, as well as the rest of the ASEAN region show high potential in
E-commerce due to current low penetration rates.
Why E-Commerce in Singapore?
2013 Global retail E-Commerce (USD billion)

ASEAN only accounts for less than

1% of the entire Global retail ECommerce industry. This is
despite the region accounting for
8% of the global population.

2014 % of retail sales made online

Singapores retail sales as a % of
online sales are low compared to
other regions, including those in
developing (China) and
developed
markets (US)

Source: AT Kearney Lifting the Barriers to E-Commerce in ASEAN

Estimated at USD1.7billion, the Singapore E-Commerce industry is the

most developed amongst the ASEAN economies.
Why E-Commerce in Singapore?
2013 Retail E-commerce market in ASEAN (USD billion)

Source: AT Kearney Lifting the Barriers to E-Commerce in ASEAN

Despite its small market, Singapore ranks 14th globally on its

attractiveness as an E-Commerce market due to its strong infrastructure
and internet-savvy consumers to support online retail.
Why E-Commerce in Singapore?
Internet penetration rates in key
Asian markets (2013)

AT Kearney: The 2015 Global Retail E-Commerce Index Top 20

Japan

86.3

South Korea

84.8

73.0

Singapore
Malaysia

67.0

Brunei

64.5

China

45.8

Vietnam

43.9
37.0

Philippines

28.9

Thailand
Indonesia

15.8

India

15.1

Lao PDR

12.5

Bangladesh

6.5

Cambodia

6.0

Myanmar

OECD: 75.4

World: 38.1

Source: AT Kearney

1.2

Singapore has
one of the
highest internet
penetrations
not just in Asia,
but Globally,
presenting a
ready target
audience/
market for the
E-commerce
industry

Source: Worldbank

Singapores online shoppers were more likely to research on their

purchases online than online shoppers in the top 5 largest E-Commerce
markets. They were also more likely to spend on travel.
E-Commerce trends in Singapore: How Singapores online shoppers shop
What Singapores online shoppers are buying:
E-Commerce Industries in Singapore

In what ways was the Internet involved in people's

recent purchases?
SG

US

UK

JP

DE

CN
69%
52%
62%
64%

Researched online
54%

Food & Other

Beverages 5%
Media 8%
Products
6%
Electronics
7%

Flights
32%

69%
37%
29%
48%
49%

Purchased online

Apparel &
Beauty
21%

Package
Holidays &
Tours
24%

35%
41%
20%
11%
Became aware of product
/ offer online

19%
18%
18%
23%
Source: The Consumer Barometer Survey 2014

Online travel is the most popular E-Commerce category in Singapore

and rose by 42% between 2011 and 2014 Travel tickets are bought
online by 56% of the Singaporeans, while the global average is 40%.
PayVision
According to PayPal, almost

of Singapores online shoppers made

travel bookings online in 2014.

Sources: PayVision Cros-Border eCommerce in Asian Markets: Singapore and Malaysia,
PayPal Insights: The Digital Future of Travel (Singapore)

While E-Commerce is definitely on the rise (13% CAGR forecasted), MCommerce is increasingly contributing to total online spend and may be
attributed to the high smart-phone penetration rate in Singapore.
E-Commerce trends in Singapore: M-commerce on the rise
Mobile penetration rates in key
Asian markets (2013)

Singapore online spend versus mobile spend estimates from 2011-2018

(USD billion)
2011-2014 CAGR

2014-2018 CAGR

Online Commerce Spend

37.5%

13.3%

M-Commerce Spend %

65.1%

14.5%

High growth in 2011-2014 was largely

driven by growth in Singapores online
shopper population
2.99
1.18

1.15
0.26
2011

2014

4.92

4.58

4.19
3.45
1.36

2015

155.9

Singapore

2.03

1.78

1.55

2016

2017

2018

Source: PayPal Insights The Digital Future of Travel - Singapore

Malaysia

144.7

Thailand

140.1

Cambodia

133.9

Vietnam

130.9

Indonesia

125.4

Brunei

112.2

South Korea

111.0

Philippines

104.5
88.7

China

Which devices did people use to make their purchase?*

Online shoppers in Singapore
were more likely to use their
smartphones to make purchases
93% 93% 87% 86%
than their counterparts in largest 79% 77%
developed E-Commerce markets,
including the US and UK
5%

Smartphone

6%

7%

DE
US

Bangladesh
India
Lao PDR
Myanmar

4%

Computer

CN
UK

4%

4%

2%

7%

7%

Tablet
Source: The Consumer Barometer Survey 2014

OECD: 109.0

3%

SG
JP

Singapore has
the highest
74.4
number of
mobile
70.8
subscriptions
68.1
per person,
providing
fertile
12.8
ground for
M-Commerce
to flourish

76.8

World: 93.1

17% 16%

Nepal

Source: Worldbank

There continued to be multiple deals within E-Commerce in Singapore in

2014, showing continued interest in the industry SoftBanks investment
into GrabTaxi was one of the most prominent deals of the year.
Opportunities in E-Commerce: Select Singapore E-Commerce deals in 2014
Company
Coin Supermarket
Indiescapes
RedMart
HipVan
TripVillas
The French Cellar
Drive.SG
Luxola
Eriin
The French Cellar
Visually Arrested Group
Anchanto
Luxola
KallFly
BitX
Dressabelle
HipVan
Zalora
bellabox
Berniaga
HipVan
Quoine
GrabTaxi

Round
Merger
Acquired
Bridge
Angel
Seed VC
Acquired
Series A
Series B
Series A
Seed
Series A
Seed VC
Series B - II
Seed
Seed
Series A
Seed VC - II
Merger
Corporate Minority
Merger
Seed VC - III
Angel
Series D

Date
Jan-10
Jan-14
Jan-14
Feb-14
Feb-14
Mar-14
Mar-14
Mar-14
Apr-14
May-14
May-14
May-14
May-14
Jun-14
Aug-14
Aug-14
Aug-14
Sep-14
Sep-14
Nov-14
Dec-14
Dec-14
Dec-14

Funding Amount
(USD millions)

$5.4
$0.5
$0.79
$10

$3
$0.02
$0.8
$0.75
$1.12
$5.5
$0.2
$2
$250

Sub-Industry
Marketplace
Travel (internet)
Food & Grocery
Home Furnishings & Improvements
Travel (internet)
Food & Grocery
Travel (internet)
Marketplace
Apparel & Accessories
Food & Grocery
Home Furnishings & Improvements
eCommerce enablement
Marketplace
Marketplace
Marketplace
Apparel & Accessories
Home Furnishings & Improvements
Apparel & Accessories
Marketplace
Auction & Classified
Home Furnishings & Improvements
Marketplace
Travel
Sources: CB Insights, BBC News

Various other local industries are also expected to benefit from this
boom in E-commerce in Singapore, including infrastructure and logistics
providers such as Singtel and SingPost respectively.
Opportunities in E-Commerce

Find & Compare

Infrastructure

Providing infrastructure
to support E-commerce

Online Retailers /
Marketplaces

Completing the sale

Secure payment

Third-party service
providers offering reliable
payment methods

Online marketing
channels

Logistics and
warehousing service
providers

Sources: UBS Research