Singapore retailers fight harder to keep consumer spending

Chinese e-commerce platforms, cross-border shopping, and experience-led retail are forcing local players to compete beyond price.

Singapore retailers face growing pressure to defend consumer spending as Chinese platforms expand across ASEAN, cross-border mobility increases, and shoppers place greater value on convenience and experience.

David Zhang, Regional Market Insight Manager for Services, Channels, Consumers and Economies at Euromonitor International, said local retailers are most exposed in e-commerce and price-led competition.

He pointed to TikTok Shop, which rose from outside Asia’s top 10 retail e-commerce players in 2021 to second place in 2025, alongside Temu’s expansion in the region.

Zhang said local players are unlikely to compete sustainably on price or e-commerce scale alone. Instead, they need to combine local relevance with selected partnerships, faster fulfilment and convenience, and stronger customer loyalty.

The Johor Bahru-Singapore Rapid Transit System Link could intensify that pressure. Zhang cited estimates that Singapore-to-Johor trips could rise by more than 50%, whilst journeys from Johor to Singapore could increase by around 30%.

That creates both spending leakage risk and an opportunity to attract more Malaysian consumers. Zhang said Singapore retailers should focus on differentiated products, loyalty rewards, and services that are harder to substitute through cross-border shopping.

Experience-led retail is another area of competition. Euromonitor’s consumer survey found 56% of Singapore consumers choose stores that offer engaging experiences.

Zhang cautioned that those investments need to produce measurable commercial results. Retailers should track whether experiences lift transaction volumes, customer spending and revenue growth rather than treating them as standalone attractions.

He cited FairPrice’s smart-store initiatives as an example of technology improving convenience whilst also increasing basket sizes.

For Singapore retailers, the challenge is therefore to compete on more than price by combining digital reach, local differentiation and experiences that deliver measurable returns.

Zhang will speak at the Retail Asia Summit in Singapore on 29 September 2026 at the Grand Copthorne Waterfront Hotel Singapore.