Locals are spending more on groceries and dining out.
Half or 49% of Singaporeans believe they are financially better off than they were five years ago whilst 67% indicated that they live comfortably and are able to buy some things just because they want them, according to Nielsen’s Changing Consumer Prosperity report.
As compared to five years ago, the top category that locals are spending more on is groceries (39%), which is in line with global trends where groceries similarly take the highest place (44%). Other categories include dining out (35%) utilities (31%), healthcare (30%) and travel (29%).
Nielsen added that this sense of financial security has trickled down to consumer spending habits as the top 5 categories that Singaporeans are willing to pay a premium price for are personal electronics (36%), clothing/shoes (35%), home entertainment (26%), meat & seafood, and cosmetics & jewellery (all 23%).
In addition, 92% of Singaporeans indicated that they are willing to spend more on products that provide superior function or performance. “High quality or safety standards” ranks second (91%) as a premium attribute in Singapore. 81% and 80% of Singaporeans are also willing to pay premium prices for products that contain “organic/all natural ingredients” and “environmentally friendly/sustainable materials” respectively.
“Modern consumers are turning to brands that curate a personalized experience, an identity that they can relate to, and an offering that is enhanced and exclusive, without compromising on the quality and performance in their products,” said Garick Kea, head of consumer insights at Nielsen Singapore.
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