Singapore has a high internet penetration, a huge expatriate population and consumers with busy lifestyles that value convenience, according to IGD, an organisation that undertakes research for the public’s benefit. Singaporean consumers tend to be very receptive to innovation, which makes it an attractive market and a huge opportunity for an online retailer like Amazon.
Prime Now is a same-day delivery service that the company offers when consumers purchase stuff from its product catalogue, and the service is an exclusive benefit for its Prime customers. The service is temporarily free to use at the moment for Singaporean customers without a Prime membership.
The online retailer aims to supply more than 20,000 items to the Singapore market. A wide range of products are already available on the app, including groceries (frozen meat, seafood and chilled beverages), household and home essentials, electronics products, toys, and more.
“There’s a huge opportunity in general for online grocery in Singapore,” said Shirley Zhu, programme director at IGD Singapore. “We’re forecasting sales to more than triple to approximately S$500 million (US$350 million) by 2020.”
The online grocery segment in the grocery market only has a 1.2 percent share currently but is estimated to increase to four percent by 2020, with a compound annual growth rate of 39 percent.
“It remains to be seen how successful Amazon’s launch will be, but one thing’s for sure—in online grocery, Singapore’s shoppers are benefitting from more options, cheaper prices and faster deliveries than they ever have before,” Ms Zhu concluded.