Date
File No.
Our ref.
Case No.
18-05-2015
4
Trade council
Lifestyle
Sources .................................................................................................................................. 3
1. Keywords ..................................................................................................................... 3
2. Abstract ........................................................................................................................ 3
3. Market size indication ................................................................................................. 3
4. designer furniture ........................................................................................................ 3
5. Fashion and accessories ............................................................................................. 3
6. Market Trends ............................................................................................................. 4
7. Conclusion and Recommendations .......................................................................... 5
Embassy of Denmark, Singapore
The Trade Council
Page 2 of 6
https://www.edb.gov.sg/content/edb/en/industries/emergingbusinesses/emerging-businesses.html#lifestyle
https://www.edb.gov.sg/content/edb/en/industries/industries/consumerbusiness.html
http://www.designsingapore.org/
http://www.taff.org.sg/
Trade Council Singapore: retail, shopping, brands, design, furniture, fashion,
apparel, fashion accessories, lifestyle.
Singapore is the trendsetter in South East Asia and is considered a “shopper’s
paradise”. The lifestyle sector is experiencing significant growth driven by the
rising living standard in Singapore and growing interaction with the neighbouring
countries. A population of 5.47 million including 1.6 million expatriates and 15.1
million foreign visitors (2014) makes Singapore an interesting market for
companies within the lifestyle sector.
With a GDP per capita at $56,319 in 2014, Singapore has the second highest GDP
per capita in Asia after Qatar. This makes Singapore an ideal market for lifestyle
products such as designer furniture, clothes, accessories and the like. The relatively
low personal taxation level and the falling birth rates are some of the factors that
contribute to a high disposable income among the young generation. Most
products are imported to Singapore free of any import duty and goods and services
are taxed at only 7%.
Over the years, consumers in Singapore have become more fashion oriented and
have developed a taste for European fashion and designer goods. Thus, there has
been an increasing demand for furniture and interior from especially Italy,
Germany, and Denmark. The strength of Singapore’s furniture industry lies in the
ability and agility of industry players to anticipate and adapt to rapidly changing
trends and market conditions.
Shopping is a national pastime in Singapore. With malls open from 10am to 10pm
every day of the week, shopping is possible whenever you feel like it. The fashion
and accessories market in Singapore continues to register strong growth and this is
mainly due to the influx of tourists. With its reputation as a shopper’s paradise
where a variety of international brands are available, Singapore is becoming
increasingly attractive to a rising number of tourists for its shopping, especially
tourists from other Asian countries. As Asian consumers are becoming more
Embassy of Denmark, Singapore
The Trade Council
Page 3 of 6
affluent, they are also becoming more willing to spend money on fashion and
accessories.
Singapore is a shopping nation. Shopping is not just about buying something, it is
about socializing and experiencing. Singaporeans prefer to buy in-store rather than
online. Consumers also spend more in shops than online, and this trend is likely to
continue.
More mega malls are being built in Singapore, in the city as well as in the suburbs,
to serve the affluent population and foreign visitors. One example is the Vivo City
mall, located just outside the city by the harbour front, which was opened in 2006.
The mall boasts of 100,000 sq. meters of retail space, and is one of the largest in
South East Asia. Singapore has around a 100 shopping malls in total.
The famous shopping street Orchard Road has undergone renovation to make the
area even more attractive to shoppers. Two casino resorts costing $3.6 billion have
been built. They attract high-spending visitors. 15.1 million foreign visitors visited
Singapore in 2014 and 11.7 million of these guests arrived by air. Duty free
shopping is thriving in Singapore’s Changi Airport. With the opening of Terminal
3, the airport can handle up to 70 million passengers a year. Changi Airport
handled more than 53.7 million passengers in 2013.
International visitor spending in Singapore has increased strongly and steadily over
the last five years. International visitors spending reached $14.3 billion in 2014
compared to $9.3 billion in 2010.
Singaporeans are in tune with the latest trends from both East and West and they
are becoming more brand-conscious. They appreciate quality and are willing to pay
for it. Younger Singaporeans of today are willing to spend more on high-end
products and services for themselves and in their homes. Singapore has 25
departmental stores and a wide selection of specialty stores.
As Singapore hosts the Asia Pacific headquarters of many multinationals and
financial institutions a large number of senior foreign executives and their families
are living in the city-state. Furthermore, Singapore is a major exhibition and
convention venue. A large number of the visitors to Singapore are high-spending
convention or incentive travellers.
Many high net-worth families from the Southeast Asian region have second homes
in Singapore. Singapore is a safe haven for them. There is good personal security,
world class medical care and an excellent educational system where English is the
medium of instruction. These high net-worth individuals and their families are
another substantial source of high spenders.
An area with growth and large potential that should be emphasized is the jewelry
and accessory market, as an increasing number of luxury brands are opening retail
stores due to rising consumer demand. Currently, the Singaporean jewelry market
is worth approximately $3.5 billion, with 26% of jewelry sold containing diamonds.
Embassy of Denmark, Singapore
The Trade Council
Page 4 of 6
Recognizing the importance of Singapore as a market for high quality products and
its trend-setting leadership in Southeast Asia has resulted in numerous branded
consumer producers launching their new offerings in Singapore. Singapore has few
entry-barriers and is an ideal location to establish brand awareness.
Scandinavian and Nordic designs are well received in this market. Their elegance,
timelessness, quality, performance and durability are recognized. Swedish brands
are already experiencing great success in Singapore. The first H&M store opened in
November 2011 - since then 7 more stores have opened. This trend is expected to
continue.
Danish fashion brands in Singapore are either sold directly by a local distributer or
in department stores. Fashion design brands already established in Singapore
include Beck-Sondergaard, Skagen, Lindberg, Pandora, Malene Birger, Day Birger
et Mikkelsen, Ole Lynggaard, Trollbeads and shoe designer Camilla Skovgaard, to
name a few.
Other Danish designer brands, which can be found in Singapore, include B&O,
Louis Poulsen, Fritz Hansen, Georg Jensen, Montana, Stelton, Erik Joergensen,
Skagerak-Denmark, Muuto, PP Mobler, Bodum Lightyears, Rosendahl, Menu and
Holmris Office among many others.
Danish brands can often enjoy a price premium in Singapore compared to the
price setting in Denmark due to the perception of Scandinavian/Nordic quality.
The future prospects for the lifestyle product market in Singapore are expected to
be excellent and will continue to see good growth.
Art, collectibles, performing arts and the sport industry are examples of lifestyle
businesses that are growing in Singapore.
Singapore is one of the leading cities in Asia for fashion and design. A shopper can
get everything from modern and affordable high-street clothing brands like Zara
and Mango to luxury brands like Christian Dior and Armani. In home products
there are Arne Jacobsen, Casamilano and Floss as well as more basic products
from IKEA.
Well-known Danish companies have long grasped the opportunities that the
Singaporean market provides.
Singapore is a market with a growing demand for lifestyle goods and services.
Many opportunities exist for Danish companies in Singapore. By starting up in
Singapore you will provide your company with an ideal test market as well as a
foothold in the growing Asian markets.
Embassy of Denmark, Singapore
The Trade Council
Page 5 of 6
The Trade Council is a part of the Ministry of Foreign Affairs and is the official export and investment
promotion agency of Denmark. The Trade Council benefits from around ninety Danish Embassies,
Consulates General and Trade Commissions abroad. The Trade Council advises and assists Danish
companies in their export activities and internationalisation process according to the vision: Creating
Value All the Way.
The work in the Trade Council follows specific procedures and quality guidelines. In this way our
customers are secured the best possible quality under the varying working and market conditions at any
given point of time.
Ministry of Foreign Affairs of Denmark
Embassy of Denmark, Singapore
101, Thomson Road #13-01
United Square
Singapore 307591
Tel: + 65 6355 5010
Fax: + 65 6253 3764
E-mail: sinamb@um.dk
www.ambsingapore.um.dk