This document discusses retail challenges in the digital economy and trends in online and offline retail. It notes that Asia Pacific is forecast to lead global tourism growth and highlights trends like personalization and mobile convenience among travelers. Singapore faces increasing costs like labor and land along with challenges in attracting tourists. The document outlines opportunities for using data analytics and technology to improve the customer experience and tourism sector in Singapore. It also summarizes emerging retail trends like the growth of e-commerce and how smartphones are transforming in-store shopping.

1. Confidential
Retail Challenges in the
Digital Economy
Off Line
to
On Line
O2O
22th July 2015Dr Tan Guan Hong

2. ConfidentialUpdated: 28/01/2017Pg 2
Mega Trends of On-Line and Off-Line Retail
Year on Year % growth
Global Trends

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APAC forecasted to lead in global
tourism for next couple of decades.
Source: Singapore Tourism Board
10 M visitors
growth / year
Global Trends

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Source: Singstat
JAN-DEC 2014: -3% VS JAN-DEC 2013
Relatively Flat growth in 2014 ~ 2015 !
Singapore Trends

5. Confidential
Why is A*STAR Focusing on Retail?
Updated: 28/01/2017Pg 5
• Wholesale & Retail Trade is the most significant portion of GDP
From : Singapore in brief 2015, MTI
Singapore

6. Confidential
Mega Travel Trends in Asia-Pacific
• More Personalisation - ‘Me, Me, i Effect’
– More niches, smaller groups and individualistic
unique experienced travellers
– Lesser large, organised travel “we” groups
– Willingness to self-manage/book travel via the web
• Mobile Convenience
– Business travellers and leisure travellers now
routinely use these devices for travel & travel-
related arrangements and bookings
– Use social networking sites during travel
Updated: 28/01/2017Pg 6

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Structured Tourist
Group with
planned activities
Unstructured Tourist
with Individual self plan
activities

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The population grew up from the computer generation
using eyes and fingers to interact
This is the “i” Generation of iWatch, iPhone and iPad
The self centric world of “i” or me, me, me …
Everything revolves round “i”
Knowing this, how do we grow business in future ?
Gen Y & iGeneration
i ii

9. Confidential and Copyright
9
The total fertility rate was 1.19 in 2014,
compared to 1.29 in 2013, the Dragon Year. This
is below the replacement rate of 2.1 per cent.
Manpower Shortage

10. Confidential and Copyright
10
Rental is
going to
keep
increasing ?
Rising Rentals

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Singapore’s Challenges
• Increasing costs
– Manpower
– Land
• How to increase outreach to
tourist
– First time
– Repeated
– Younger Tourist
– Individualistic iTourist
• Tourist interests
– Who: Interests, Demographics
– Pre-arrival data for Targeted pre-
arrival Marketing
– Traveling patterns (elsewhere
and in SG)
Updated: 28/01/2017Pg 11
• Insights to Develop New SG
Attractions
– Who to target
– Next generation tourists
• Budget airlines
• SG- Malaysia high speed
rail
– Relevant latest events &
promotions
– What different ways to entice
spending

12. Confidential
Trends in Retail
• Productivity – Max. Sales with Min. Cost
• Challenge of Rising Costs
• Looking for Incremental Sales
– Threats/Opportunities of On-Line eCommerce
• Emergence of Multi-Channel Shoppers
• Opens up $21.8B market at our door-step
– Social Trends – Emerging Market
Updated: 28/01/2017Pg 12

13. Confidential
Cost of Retail Business
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14. Confidential
Singapore Biz Cost Structure
Updated: 28/01/2017Pg 14
• Retail Costs in Labour is 35% & Rental 28% of Total Cost

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Opportunity
• High cost to
consumer vs. total
manufacturing cost
Reducing overhead
costs is a
Win-Win-Win
for consumers,
manufacturers and
our spin-off !
High Cost to
Consumer v.s.
Total
Manufacturing
Cost

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• Only High Margin business can afford to maintain urban footprints
• Virtual Store & Online Catalog reduce Retail Space/Inventory
• http://sbr.com.sg/retail/exclusive/singapore-retailers-turn-technology-boost-productivity
High $ item
Low $ item

17. Confidential
Emerging Trends in Retail
1. eCommerce is growing very fast
2. Smartphones are forcing retailers to come up with
new biz models
3. In-person shopping is being transformed by
technology too
Updated: 28/01/2017Pg 17

18. Confidential
Mega Trends Focus for 2015
Updated: 28/01/2017Pg 18
i and

19. Confidential
Social Media provides “She” Insights
Updated: 28/01/2017Pg 19
From : Financesonline.com
Digital “She” Shopper

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• Increased tourist spending (economic impact)
• Discovery tourism for connected generation
• Accurate regulatory statistics
• Pro-active brand monitoring
Inbound
Tourist
Big Data Analytics
• Places of tourists' interest
• Authentic experience & event
• Relevant & emotive recommendation
• Effective (data-driven & ROI-
based) marketing
• Increased sales
• Future Investments for
attractions upgrading
Other social profile
& behaviour
+
• STB Overseas offices (Pre-arrival)
– Insights
– Targeting marketing, promotions, etc.
One App
when in SG
…
• Demographics
• Travel patterns,
• Places of interests, events, promotions
Tourism Example
Higher
resolution
of tourist
pattern in
SG

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Traditional Handicrafts
•Videos:
•Images:
•DIY courses:
Chinese Calligraphy
•Basic introductory course:
•Videos:
•Images:
1950s shop house
•Architecture:
•Layout:
•Significance:
•Videos:
•Trades:
Trishaw rental tour
•Special offer:
•Book in advance:
•Language specific Guides
Kong Chow Cultural
Centre
•History:
•Famous people:
•Videos:
•Images:
Creating an authentic & cultural experience… In Singapore
In SG Tourism Example

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Online:
Thank You
Updated: 28/01/2017Pg 22