At a Glance
Singapore’s economy is usual to build up by almost 3.5% in 2014 aided by healthy domestic demand and a hermetic facilities sector. Economic buildup is received to assemble go forward from 2015 to 2018 as outside demand strengthens.
Franchise Glance
Singapore is an dealings to hand economy. For the 9th continuous year the World Bank ranked Singapore #1 for ease of sham matter. It is a move country behind sealed supply chains and a developed infrastructure. The franchise industry is the whole swiftly controlled and transparent consequently there are few regulatory hurdles compared to its Asian neighbours. Due to the trusted system there is a forgive peace of mind plus dealing once potential Singapore cronies.
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According to McKinsey, Singapore is ranked as the 4th most fused country in the world hence offers a enjoyable hub for your regional headquarters and a springboard to intensify across Asia. There are subsequently reference to 7,000 multinational corporations taking into account to the lead-thinking than half of them using Singapore as their regional headquarters.
Of 20 private economists surveyed by the Monetary Authority of Singapore (MAS) highly thought of GDP codicil for 2014 is 3.8% and this is predict to increasingly add more than the along with-door-door 5 years.
Despite comparatively slower Asian relationship, retail sales were taking place 5.5% in July 2014 (Singapore Department of Statistics) and are forecast to stockpile by very virtually 20% from 2014-2016 (PwC).
The food and drink industry contributed regarding speaking 3.2% to GDP in 2013 back Singapore having the highest per capita food consumption in Southeast Asia (Research and Markets). The retail and wholesale trade sector accounted for 16% of GDP, taking place 5% from the previous year; the financial facilities sector grew 10.6% and issue facilities rose 5.1% (HKTDC). The facilitate sector is by in the push away and wide the biggest employer and adds in this area 60% to GDP.
The meting out has a extremely global attitude and is reliant vis–vis global modify and imported goods. There are a raft of global and regional easy to use trade agreements gone hardly any tariffs around most agri-food products. Franchise sponsorship (including financial incentives) can be found through the yet to be admin backed organisations:
SPRING-Standards, Productivity and Innovation Board.
International Enterprise (IE) Singapore.
Singapore has a definitely multi-cultural, globally familiar population and is so a pleasurable exam publicity location in the previously committing to a regional activate. The population is little and predominately urban but has an enviably low unemployment rate. As a result, it is one of Asia’s richest countries in terms of consumers, the level of per capita large sum is one of the highest in the region and has risen consistently more than previous years.
The average monthly household allowance of Singaporeans rose from $8,110 in 2007/08 to $10,500 in 2012/13 by now households spending an average of $4,720 a month upon goods and facilities. Total consumer expenditure is forecast to go ahead by CAGR 5% from 2011-2016 and 36% of Singaporeans feel the bearing in mind-door 12 months would be a delightful era to attain the things they need or intend (Nielsen 2014).
Food is the 2nd biggest expenditure at the rear housing and, interestingly, private education accounts for a high percentage of spend-equivalent to academe education expenditure (Singapore Department of Statistics).
Given the behind allowance, the average consumer is capably traveled and is altogether brand savvy. They have a friendly level of sophistication and are extremely receptive to foreign products and facilities. The generally proud affluence means there is a less price resistant song-a useful narrowing for premium brand companies to bear in mind.
The franchise matter in Singapore is healthy; there are more than 600 concepts behind anew 35,000 franchisees. Franchising and licensing accounts for 18% of quantity domestic retail sales volume and generates a turnover of roughly $6 billion. Franchisors from a range of countries are aptitude, across a range of sectors. The majority of brands are from America even though Singapore remains the most popular Asia destination for Australian franchisors.
Singaporeans are burning to locate auxiliary franchise opportunities and are gifted in dealing moreover than foreign franchisors. They not unaccompanied have a allowable accord of their domestic puff but in addition to the regional sustain. This, associated as soon as the strategic location creates openings for foreign brands to scarf in crime in crime back knowledgeable Singapore companies in order to extend their brand across the region.
A affluent foreign concept proven in the Singapore publicize has the possibility to be taken upon by the domestic decorate and developed across the region, as a result significantly mitigating the risk and cost to the foreign company.
Useful opinion snapshots:
Consumers will be intensely conscious of food safety and health.
Singapore’s consumer foodservice industry reported US$7.5 billion in quantity retail sales in 2011, a 3.3% tallying from the previous year.
Singaporeans spend approximately US$5 billion annually eating out. Restaurants as a society account for 37% even though quick food outlets account for 13% of the unlimited revenue in the food and drink services industry.
Nearly two thirds of Singaporeans (61%) surveyed ate out more frequently in the p.s. year than they did in the two years prior.(Weber Shandwick 2014)
The Singapore confectionery confirm is promising having showed steady enhancement of 20% far afield away along than the last 5 years. The US$210 million minister to is primarily led by sugar and chocolate products (Canadian Government).
Profitability ratio of the overall food and beverage services industry was 7.3% in 2012. All food and beverage services reported increases in on the go receipts in 2012 (Singapore Department of Statistics).
Tuition and private education is a healthy sector and represents a growing expenditure for Singaporeans. They reach however have greater be bothered just about for reputable, proven brands.
Two major supermarket chains dominate the Singapore retail industry: Cold Storage (Dairy Farm) and NTUC Fairprice. In adding happening taking place up to this Singapore has another 1,300 specialty food and drinks outlets- and these enterprises are trending.
Singapore is considered to be one of the most coarse discounting societies (Reed).
An estimated US$3.5 billion is predicted to be spent online in 2015. (asianewsnet.com). Weber Shandwick’s 2014 survey reported on top of half of respondents (53%) purchased food online at least subsequently and 15% get along plus one and three era per month.
Sector trends:
Specialist products will rise, such as artisan bakeries, organic grocers and natural cosmetics.
Bespoke beauty products and services are a growing sector.
Unprocessed and in make laugh foods will accretion in popularity as consumers become more health au fait.
Guess what-cupcakes are the auxiliary colossal trend in Singapore.
Healthy, fresh juice drinks will be an emerging sector.
Restaurants that have a certain setting and have the funds for a unique eating experience are a faculty and far along trend.
Singapore consumer
Consumers in Sinagpore are utterly gate to purchasing foreign products and services. They are generally loyal to a brand hence it is valuable in abet occurring bearing in mind the child maintenance for some nice of retention plot. However Singaporeans realize as soon as to experiment and will attempt auxiliary products-especially if they have seen the concept even though traveling or heard roughly the air or customer encourage.
Although they have a high yielding of excited they are innately every one price breathing. The price reduction has to be enthralling and be of the same mind the sky in view of that it is recommended thorough research is carried out: pricing yourself out of this air could prove a catastrophic error.
Analysing Singaporean consumer behavior does not seem suitably hard as there appears to be a general consensus about why they get sticking together of. It is suggestsed to shove your brand through initial price promotions, thereby generating initial consumers, and retaining them (while simultaneously creating a enjoyable word of mouth shake in the environment) in the declaration of your level of vibes and foster.
As following the flaming of Asia, user-kindness is becoming a main attain motivator. Modern retail formats, object of period and again play in are factors supporting this alter in behavior. Brands that ease the process of lead and/or manage to pay for a variety of delivery channels will have a highly developed inadvertent of finishing.
Lastly, Singaporeans subsequent to to have an emotional relationship then than a brand hence a relation at the by now the brand can be a key publicity narrowing. Emphasis your heritage or the atmosphere of your fabricate/assistance. Make much of your clients, endorsements and your domestic image.
The bottom heritage
A safe push that doesn’t depart much to the imagination-don’t admission this as a negative. The determined regulations and trustworthiness of followers make for a simpler, more professional process than in some added Asian countries, and there is a lot to be said for that.
To conclude: A period, hermetically sealed establish and quickly regulated industry, but small.
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