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In this digital era, consumers are not only able to shop round the clock at their own pace and convenience, but also compare prices and reviews to determine the best offers, hence the downturn of physical retail. An online article on the Groupon Merchant Blog stated that e-commerce sales in the United States accounted for approximately 9 percent of total retail sales in 2017, and growth is expected over the next few years with an estimated worth of $735 billion in the total retail market in 2023 (Stasik). With the rising power of media, brands are devising alternative ways of reaching their consumers and social media is the most effective means of communication to date and has provided an avenue for facilitating daily information and communication needs, bringing ease to human life. 

The Rising Power of Media 

(E-commerce & Social Media)

 

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Identified Issue:

 

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(We admit we can't too).

According to STATISTA

https://www.statista.com/outlook/243/124/ecommerce/singapore

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E-Commerce in Singapore

•  Revenue in the Fashion segment amounts to US$326m in 2020.
•  Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 6.9%,

   resulting in a market volume of US$426m by 2024.
•  The market's largest segment is Apparel with a market volume of US$184m in 2020.
• 
 In global comparison, most revenue is generated in China (US$348,700m in 2020).

Users (2020)          +2.4% yoy 

4.1m

Revenue (2020)          +19.9% yoy 

US$2,784m

Fashion in Singapore

Global Revenue Ranking (2020)

#60

Revenue (2020)          +9.9% yoy 

US$326m

•  Revenue in the eCommerce market amounts to US$2,784m in 2020.
•  Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 9.1%,

    resulting in a market volume of US$3,939m by 2024.
•  The market's largest segment is Electronics & Media with a market volume of US$1,996m in 2020.
  User penetration is 70.4% in 2020 and is expected to hit 73.7% by 2024.
•  The average revenue per user (ARPU) currently amounts to US$675.71.

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Social Media Influencers in Singapore 

Millennials are indisputably a potent societal force and play a major role in determining popular culture and trends. As the first generation to go digital, millennials have shifted their activities from real life to online. This includes connecting with friends, gathering information, receiving news, voicing their opinion and shopping. These hyper-connected and tech-savvy individuals are dominant users of social media and can aid in endorsing customer-oriented businesses by creating user-generated content (UGC), such as reviews and ratings, about a product or service. Even in the digital age, word-of-mouth marketing is one of the most powerful and effective strategies “based largely upon testimonials or social proof from authentic users and real customers regarding their personal experiences” (Carlson). It can be otherwise known as social influencer marketing in modern times where products, brand message or marketing campaigns are promoted to the general public by ways of leveraging social influencers and their digital follower base (“What is Influencer Marketing?”).

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As shown above, Singaporean social media influencers such as Mae Tan, Yoyo Cao and Andrea Chong who have garnered a large following on Instagram, are setting trends and the pace of social influence has quickened. Consumers today are more receptive to third-party perspectives that they believe have added transparency and objectivity; this free form of advertisement, when influencers share about their shopping and dining experiences online, ergo triumphs a brand’s ability to speak to consumers with a greater form of credibility.

References

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Carlson, Katie. “The Psychology of Brand Trust & Influencer Marketing.” ExpertVoice. ExpertVoice, Inc. 2 Feb. 2016. Web. 18 Nov. 2019. https://www.expertvoice.com/the-psychology-of-brand-trust-influencer-marketing/ 

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“What is Influencer Marketing?” Expert Voice. ExpertVoice, Inc. Web. 16 Feb. 2020. https://www.expertvoice.com/what-is-influencer-marketing/ 

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