Date File No. 4 Our ref. Trade council Lifestyle Case No.

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1 Date File No. 4 Our ref. Trade council Lifestyle Case No.

2 Sources Keywords Abstract Market size indication designer furniture Fashion and accessories Market Trends Conclusion and Recommendations... 5 Embassy of Denmark, Singapore Page 2 of 6

3 Trade Council Singapore: retail, shopping, brands, design, furniture, fashion, apparel, fashion accessories, lifestyle. Singapore is the trendsetter in South East Asia and is considered a shopper s paradise. The lifestyle sector is experiencing significant growth driven by the rising living standard in Singapore and growing interaction with the neighbouring countries. A population of 5.47 million including 1.6 million expatriates and 15.1 million foreign visitors (2014) makes Singapore an interesting market for companies within the lifestyle sector. With a GDP per capita at $56,319 in 2014, Singapore has the second highest GDP per capita in Asia after Qatar. This makes Singapore an ideal market for lifestyle products such as designer furniture, clothes, accessories and the like. The relatively low personal taxation level and the falling birth rates are some of the factors that contribute to a high disposable income among the young generation. Most products are imported to Singapore free of any import duty and goods and services are taxed at only 7%. Over the years, consumers in Singapore have become more fashion oriented and have developed a taste for European fashion and designer goods. Thus, there has been an increasing demand for furniture and interior from especially Italy, Germany, and Denmark. The strength of Singapore s furniture industry lies in the ability and agility of industry players to anticipate and adapt to rapidly changing trends and market conditions. Shopping is a national pastime in Singapore. With malls open from 10am to 10pm every day of the week, shopping is possible whenever you feel like it. The fashion and accessories market in Singapore continues to register strong growth and this is mainly due to the influx of tourists. With its reputation as a shopper s paradise where a variety of international brands are available, Singapore is becoming increasingly attractive to a rising number of tourists for its shopping, especially tourists from other Asian countries. As Asian consumers are becoming more Embassy of Denmark, Singapore Page 3 of 6

4 affluent, they are also becoming more willing to spend money on fashion and accessories. Singapore is a shopping nation. Shopping is not just about buying something, it is about socializing and experiencing. Singaporeans prefer to buy in-store rather than online. Consumers also spend more in shops than online, and this trend is likely to continue. More mega malls are being built in Singapore, in the city as well as in the suburbs, to serve the affluent population and foreign visitors. One example is the Vivo City mall, located just outside the city by the harbour front, which was opened in The mall boasts of 100,000 sq. meters of retail space, and is one of the largest in South East Asia. Singapore has around a 100 shopping malls in total. The famous shopping street Orchard Road has undergone renovation to make the area even more attractive to shoppers. Two casino resorts costing $3.6 billion have been built. They attract high-spending visitors million foreign visitors visited Singapore in 2014 and 11.7 million of these guests arrived by air. Duty free shopping is thriving in Singapore s Changi Airport. With the opening of Terminal 3, the airport can handle up to 70 million passengers a year. Changi Airport handled more than 53.7 million passengers in International visitor spending in Singapore has increased strongly and steadily over the last five years. International visitors spending reached $14.3 billion in 2014 compared to $9.3 billion in Singaporeans are in tune with the latest trends from both East and West and they are becoming more brand-conscious. They appreciate quality and are willing to pay for it. Younger Singaporeans of today are willing to spend more on high-end products and services for themselves and in their homes. Singapore has 25 departmental stores and a wide selection of specialty stores. As Singapore hosts the Asia Pacific headquarters of many multinationals and financial institutions a large number of senior foreign executives and their families are living in the city-state. Furthermore, Singapore is a major exhibition and convention venue. A large number of the visitors to Singapore are high-spending convention or incentive travellers. Many high net-worth families from the Southeast Asian region have second homes in Singapore. Singapore is a safe haven for them. There is good personal security, world class medical care and an excellent educational system where English is the medium of instruction. These high net-worth individuals and their families are another substantial source of high spenders. An area with growth and large potential that should be emphasized is the jewelry and accessory market, as an increasing number of luxury brands are opening retail stores due to rising consumer demand. Currently, the Singaporean jewelry market is worth approximately $3.5 billion, with 26% of jewelry sold containing diamonds. Embassy of Denmark, Singapore Page 4 of 6

5 Recognizing the importance of Singapore as a market for high quality products and its trend-setting leadership in Southeast Asia has resulted in numerous branded consumer producers launching their new offerings in Singapore. Singapore has few entry-barriers and is an ideal location to establish brand awareness. Scandinavian and Nordic designs are well received in this market. Their elegance, timelessness, quality, performance and durability are recognized. Swedish brands are already experiencing great success in Singapore. The first H&M store opened in November since then 7 more stores have opened. This trend is expected to continue. Danish fashion brands in Singapore are either sold directly by a local distributer or in department stores. Fashion design brands already established in Singapore include Beck-Sondergaard, Skagen, Lindberg, Pandora, Malene Birger, Day Birger et Mikkelsen, Ole Lynggaard, Trollbeads and shoe designer Camilla Skovgaard, to name a few. Other Danish designer brands, which can be found in Singapore, include B&O, Louis Poulsen, Fritz Hansen, Georg Jensen, Montana, Stelton, Erik Joergensen, Skagerak-Denmark, Muuto, PP Mobler, Bodum Lightyears, Rosendahl, Menu and Holmris Office among many others. Danish brands can often enjoy a price premium in Singapore compared to the price setting in Denmark due to the perception of Scandinavian/Nordic quality. The future prospects for the lifestyle product market in Singapore are expected to be excellent and will continue to see good growth. Art, collectibles, performing arts and the sport industry are examples of lifestyle businesses that are growing in Singapore. Singapore is one of the leading cities in Asia for fashion and design. A shopper can get everything from modern and affordable high-street clothing brands like Zara and Mango to luxury brands like Christian Dior and Armani. In home products there are Arne Jacobsen, Casamilano and Floss as well as more basic products from IKEA. Well-known Danish companies have long grasped the opportunities that the Singaporean market provides. Singapore is a market with a growing demand for lifestyle goods and services. Many opportunities exist for Danish companies in Singapore. By starting up in Singapore you will provide your company with an ideal test market as well as a foothold in the growing Asian markets. Embassy of Denmark, Singapore Page 5 of 6

6 is a part of the Ministry of Foreign Affairs and is the official export and investment promotion agency of Denmark. benefits from around ninety Danish Embassies, Consulates General and Trade Commissions abroad. advises and assists Danish companies in their export activities and internationalisation process according to the vision: Creating Value All the Way. The work in the Trade Council follows specific procedures and quality guidelines. In this way our customers are secured the best possible quality under the varying working and market conditions at any given point of time. Ministry of Foreign Affairs of Denmark Embassy of Denmark, Singapore 101, Thomson Road #13-01 United Square Singapore Tel: Fax: sinamb@um.dk