There’s never been a better time for online sellers to enter the market with the boom in the eCommerce economy expected to triple in value to US$7 billion (S$9.7 billion) by 2025.
For individuals and companies who are keen to enter the market, the first thought in their mind is: what kind of eCommerce business ideas would be the most profitable in Singapore? If this question has ever crossed your mind then read ahead as we’ll be showcasing the most popular E-Commerce product categories in Singapore.
Singaporeans take their electronics very seriously with a market valuation of US$1.9 billion in 2020 and this number is set to grow even higher with every year. In 2018, the most popular consumer electronic products sold online were wireless/Bluetooth speakers, smart wearables, smartwatches, and Organic Light-Emitting Diode (OLED) TVs.
Fashion is another popular and lucrative category with the revenue for this sector amounting to US$326 million in 2020. Aside from big brands such as Zalora and ASOS which are hugely popular in Singapore, there are also smaller omnichannel fashion companies that are doing well in the market such as LoveBonito and The Editor’s Market. For fashion, the omnichannel retail strategy works best as there are customers who need to physically see and feel the items but also love the convenience of buying from their favourite clothes brand online.
COVID-19 has no doubt played an important part in the rise of interest in this category among Singaporeans. While brick-and-mortar stores selling such items are struggling, online demand for the toys, DIY and hobbies category has been growing faster than ever as people are looking for ways to keep themselves occupied during these times.
Singaporeans are known to be least price-sensitive customers in the Southeast Asian region which makes it no surprise that they are willing to pay big money for reputable international brands especially for those that do not have local sellers.
Brands are also starting to realise the increasing demand for beauty and personal care products by men with a study stating that such growth will bring the market an estimated S$141 million by 2021. Hence, brands are taking the steps towards catering to male customers in this industry, no doubt thanks to the rise in K-pop and K-dramas that have helped to normalise the need for men to look their best.
While working from home (WFH) has been established as the norm and safety distancing measures are still in place, home cooking has been gaining tremendous popularity as seen from the increase in demand for essential food items such as flour and pasta.
Additionally, the latest craze in instant mala noodles from China also showcases the importance of eCommerce sellers to be nimble in responding to the latest food trends and changes in consumer demands.
On a related note, with the rise in the popularity of home cooking, it is no wonder that people are also willing to invest in kitchenware and food-related appliances to help them pursue their culinary passions.
WFH has also caused people to realise that they do not have the ideal workspace to allow them to be productive from home. As a result, many of them had to invest in furniture such as computer chairs and work tables to create a more conducive environment to complete their everyday tasks.
Many Singaporeans are also choosing to invest in sports equipment and other sport-related products such as home-installed bars, yoga mats, and dumbbells due to limited capacity and social distancing measures in gyms. The pandemic has also increased the importance for people to stay healthy so it is no wonder that fitness-related products have seen considerable growth this year.
The steady increase in the workforce participation rate among women in Singapore has led to parents preferring to buy baby-related products online due to its convenience and easy price comparison. ECommerce platforms such as Lazada often feature baby product listings as their top sale items which include diapers, milk powders, baby clothes and toys for young children.
The pet care industry is one of the fastest-growing industries worldwide with Singaporeans being more educated and willing to spend more for the welfare of their beloved pets. There has also been a rise in overall pet ownership with a study highlighting that Singapore's pet dog and cat figures have grown nearly 19 per cent in five years to reach 196,600 in 2019. Both factors have contributed immensely to the increased demand in pet food, pet toys and pet health-related products.
While it is key to be aware of what products are trending so that you can increase your sales, remember that trends tend to come and go and that the popularity for such products cannot sustain forever. It is equally important for you to invest in your branding and marketing efforts so that you can retain customer loyalty and achieve sustained growth for your business.
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