SINGAPORE: Singaporeans are turning to TikTok Shop for international online shopping needs, as revealed by a recent report on global ecommerce trends jointly conducted by fintech companies Airwallex and Edgar, Dunn & Company.
The Edge Singapore reports that the study, conducted in the first quarter of 2024, shows the preferences of consumers across various markets, with Singapore emerging as a hotspot for social media commerce.
According to the findings, over 60% of consumers in Singapore are inclined towards purchasing from international merchants through social media platforms, marking one of the highest percentages among the surveyed markets.
Among these platforms, TikTok is the clear favourite, with 25% of Singaporeans using it for their online shopping ventures, closely followed by Instagram at 23% and Facebook at 22%.
The insights for this report come from combining a global survey of over 3,000 consumers from China, Australia, Singapore, Hong Kong, the UK, and US, along with interviews with prominent merchants and secondary research.
While the trend of social media commerce is evident globally, it’s particularly pronounced in China, Hong Kong, and Singapore, where consumers exhibit a heightened appetite for making purchases through platforms like TikTok, Instagram, and Facebook.
However, it’s noteworthy that the survey didn’t include findings from other Southeast Asian countries, which are also known hotspots for social commerce.
The motivation behind this surge in cross-border shopping is driven by several factors, with better deals and offers on social media platforms as the top global incentive for consumers to indulge in international purchases.
Personal recommendations and interactive online selling also play significant roles in influencing consumer behaviour.
Interestingly, while Facebook takes the lead as the preferred platform for international online shopping on a global average, Singaporeans buck the trend by favouring TikTok, followed closely by Instagram.
Looking ahead, the report forecasts a continued trend in international online shopping, with 54% of global consumers and 62% of Singaporeans anticipating an increase in their cross-border shopping activities over the next six to 12 months. This surge in demand is due to the improved online shopping experience, competitive pricing, and wider product choices available in the international market.
The report also identifies a diverse range of factors. While 34% of consumers cite greater product options as the primary incentive, others are drawn by the promise of better quality products and lower prices.
The significance of these factors varies across regions, with lower prices driving international shopping in the UK, the US, and Australia, while greater product availability and superior quality are key drivers in China, Singapore, and Hong Kong. /TISG
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