Singapore, the Asian hub of innovative retail

The city-state of Singapore has 170 shopping malls. True places of life, they are very busy for one obvious reason: the weather conditions. These “malls” are air-conditioned places where passers-by can take refuge when the heat becomes overwhelming. As a result, they are designed to accommodate any activity. “They are mini-cities”comments Frank Rosenthal, a retail expert. In these spaces, customers can find shops, restaurants and retailtainment. “It also exists in Europe, but here everything is mixed. There is not a floor entirely dedicated to food courts for example”he explains.

In April, the city-state inaugurated the Clark Bay shopping mall. It connects the center with a residential area and the Singapore River. Thus, many activities can be discovered on the waterway that passes through the heart of the shopping center, such as tourist boats, bars, restaurants, concerts, etc. Still to cultivate this dimension of spectacular retailtainment, the Funan shopping center is organized on several floors around gigantic climbing walls going from floor to ceiling.

In addition to the entertainment offered by shopping centers, their design is particularly sophisticated. They are in fact designed to accommodate families for entire days. Comfort is therefore essential. The Marina Sands, which is dedicated to luxury and where the NRF APAC took place, is a good example according to Frank Rosenthal: “It’s beautiful, it’s airy, everything is bathed in natural light. In addition, there are different entry points that overlook the city, as if this mall were an extension of it.” Within the stores themselves, the mass retail expert notes a more attractive way of presenting products: “Twinings stores, in particular, offer an exceptional presentation of tea, with a sense of design focused on very successful merchandising.”

Payment, a central issue in the Asian experience

If trade shows like the NRF are essential for retail players, it is because retailers and service providers must know the context of the market they are seeking to conquer. For Ryf Quail, general director of the show: “Our role is to provide a platform that helps facilitate understanding of the specificities of Asia-Pacific. When we started organizing this first edition, we immediately took into account the diversity of retail trends in the region.” That is why the Director General met with 25 Asian trade representatives from India to Japan to New Zealand in preparation for the key topics of the NRF APAC.

The example of payment methods demonstrates the divergences in habits from one country to another. While cash is still king in Malaysia, it is impossible to pay for purchases without a wallet in China, and Japan and Australia operate almost exclusively by credit card.

In Singapore, the bank card, whether physical or dematerialized on mobile, is still the most widespread means of payment. Be careful, however, not all cards are equal. Indeed, taxes on payments vary and rates can even increase in the case of payment by Visa, in certain taxis for example. As in the United States, card payments are almost always made in contactless mode, regardless of the amount.

For Frank Rosenthal, beyond the generalization of contactless, it is the quantity of cash register points that allows for a very fluid experience in Singaporean points of sale. “I didn’t queue at the checkout once”he jokes. In addition to these numerous automatic checkouts, a highly sophisticated service is available to assist customers to make their lives easier and smooth out their purchasing journey.

CSR is still a work in progress

While retailers present at the NRF such as Uniqlo, Nike and Decathlon demonstrate their CSR ambitions, some reflexes that seem common to us in our latitudes have not yet been adopted in Singapore. For example, single-use plastic still reigns over the world of retail and takeaway catering.

According to Stéphane Coum, CEO of Thai food retailer Central Food Group, CSR is not yet a priority for the country’s retailers, who, when they seek to reduce waste, do so out of concern for improving their profitability and financial results. “As far as ecological and social awareness is concerned, I think we are pioneers”explains the Frenchman. The group recently entered into a partnership with Smartway to deploy the French start-up’s solution in a test phase in five of its stores. Its ambition is to reduce their food “breakage”. “However, after five years working here, I observe the emergence of an awareness of the climate and social emergency in the country, mainly among the younger generations”he says. While Thailand and Southeast Asia are still far behind Europe, the health crisis – which has plunged many people into poverty and difficulty feeding themselves – has accelerated government action and behavioral changes. However, the country is currently the world’s sixth largest plastic polluter, “There is still some way to go”he comments.

Stéphane Coum intends to bring his vision and experience to CSR issues: “On August 26 and 27, I participated in an event here in Singapore that brought together several retailers from all over Southeast Asia (Philippines, Korea, Vietnam, Malaysia, etc.). This meeting allowed us to discuss various topics, including sustainability, and to take stock with my colleagues of the progress of this project.”

As the retail market in Europe experiences ups and downs, with some sectors such as clothing struggling to recover, Frank Rosenthal invites French brands and retailers to draw inspiration from innovations in the Asia-Pacific market: “Whether it’s design, customer experience, offering or retailtainment… let them come and take a trip to Singapore. In three days, they will have new ideas.”