Commentary: Retail festivals like the Great Singapore Sale have lost their relevance – it was a long time coming
Shopping has undergone a profound transformation driven by emerging technologies and new ways of consumption. It’s not difficult to see why retail festivals have lost much of their glow, says Accenture Song’s Simone Morandi.
SINGAPORE: Did you know that there was a Great Singapore Sale this year? According to the Singapore Retailers Association (SRA), the 30-year-old annual sale extravaganza did indeed take place from June to September, although it seems not many people knew about it. Publicity was limited and it wasn’t listed on the SRA’s calendar of events for this year. Some retailers in Singapore too did not know that it was going on.
From next year, SRA - which launched the Great Singapore Sale in 1994 - will no longer organise or invest in marketing campaigns for the event. Instead, it will act only as a “coordinating partner”, said SRA president Ernie Koh on Sep 18.
Once a hotly anticipated affair from the late 1990s to the early 2000s and a main draw for tourists to Singapore, the Great Singapore Sale has faded from the centre of attention.
Likewise, one-day-only major shopping festivals such as 11.11 and Black Friday were once the talk of the town, with bargain-hunting shoppers queuing overnight outside malls in anticipation of scoring discounts as high as 90 per cent for some products.
But similar sales sprees have since drowned out the novelty and hype. Access to flash deals online, at any time of the day and year, has desensitised shoppers.
Cue “discount fatigue", the weariness that consumers experience when they are constantly bombarded with discounts, promotions, and sale offers from retailers.
Who would have thought that discounts would be a tiresome thing? But this does seem to be the case.
What's behind the decline of such once-thriving retail extravaganzas, and what do shoppers truly seek in today's market? And if price is no longer the critical determinant for shoppers, then what is?
TODAY’S SHOPPERS ARE PARADOXICAL
These days, be it a food retailer, supermarket, furniture seller or household equipment provider, businesses must add value and meet shopper demands such as eco-consciousness and personalisation.
In Singapore, 80 per cent of online shoppers are willing to pay a higher price to ensure authenticity, according to a recent survey by Amazon Singapore and YouGov.
One in three (31 per cent) are also willing to pay more for sustainably sourced goods and services, while 36 per cent have been replacing their purchases with more sustainable alternatives, according to a separate survey by UOB.
Clearly, attracting shoppers’ wallets requires knowing what engages their minds. It’s a no-brainer that businesses must refresh their approach and focus on the shopping experience, shopper engagement and enrichment.
But today’s shoppers are also paradoxical.
They want to be more sustainable, but the rising cost of living is a roadblock. They want to directly support small food and beverage businesses, but ordering food delivery may be the most convenient meal option on a packed workday. These needs may seem contradictory, but it’s the reality businesses are faced with.
Shopping has undergone a profound transformation driven by emerging technologies and new ways of consumption, such as group buys, and hyper-competitiveness from multiple digital channels. It’s not difficult to see why retail festivals have lost much of their glow.
TO BRING BACK THE SHOPPERS, BRING BACK THE FUN AND PURPOSE
The good news is that 93 per cent of APAC consumers still plan to treat themselves to at-home and out-of-home experiences, products and services across general categories including clothing and apparel, wellness and leisure in the next year - a clear indication of strong demand for commerce, according to research from professional services company Accenture. With the year-end shopping season upon us soon, it’s time for businesses to refresh their shopper engagement strategy for the long term.
First, maintaining relevance for today’s consumers means aligning offerings with their purpose in ways that are authentic to the brand. Look beyond a purely transactional relationship and engage and understand customers differently. Brands must shift from a linear concept of the customer journey to a life-centric one.
The beauty category is especially successful in this regard. The digital-native beauty brands have great design, purpose, creativity and personalised experience. Every point of the consumer journey is curated and planned. From in-store experience beauty tutorials to live streaming events, it is as if they are selling to a specific individual.
Kim Cattrall’s Netflix comedy-drama Glamorous aptly captures what brands need to realistically consider. Cattrall, known for her portrayal of Samantha Jones in Sex And The City, plays a beauty mogul trying to transform her legacy beauty brand in Glamorous. The show has admittedly gotten mixed reviews, but the themes it expounds on - mobilising multiple channels such as social media, offline activations, live streaming and influencer engagements - provide some lessons for retailers.
Second, use technology and creativity to bring back the fun in shopping.
Shiseido tapped shoppertainment, live streaming and product innovation to better engage consumers to strengthen brand experience while at the same time engaging in promotions such as China’s 618 shopping event. At a store opening in Hong Kong, Shiseido used mini-games to deepen engagement with consumers, allowing them to diagnose their skincare conditions and learn about its new serum.
The company also partnered with well-known department stores such as Isetan Japan to reach consumers shopping from their homes via live streaming.
GIVE CUSTOMERS WHAT THEY WANT
Third, incorporate the use of data and analytics (including artificial intelligence). They are a foundational element in virtually every aspect of a commerce strategy refresh in this digital age for brands looking to power continuous improvement and create winning offerings.
Take Nike for example. To overcome challenges posed by COVID-19, the sports giant implemented new technology platforms, automation and process improvements in its operations, deploying AI and machine learning technologies to predict trends, order products and make its delivery systems faster and more accurate.
Its app strategy is also phenomenal, with a massive 500 million users, allowing it to collect valuable data from users to create personalised experiences.
People expect businesses to meet them regardless of where they are - digital world, physical world or a blend of the two - and deliver products across channels and whenever required.
There is a greater need for companies to be attuned to the needs of their customers and provide options to help them make easy decisions, rather than segmenting them into broad stereotypical groups and expecting them to shop in the same manner.
The lights may have dimmed slightly on one-off retail festivals, but it can be recovered if businesses take a robust approach to customer experience that meets the needs of a multi-dimensional consumer seeking real value and purpose in their purchases and brand interactions.
Simone Morandi is Accenture Song’s Growth Markets commerce lead.