Electronics and Appliance Specialist Retailers in Singapore

2020 IMPACT

Closure of electronics and appliance specialist retail stores due to circuit breaker sees demand shift online

The circuit breaker mandated the closure of all non-essential retail stores throughout Singapore in a bid to stop the spread of COVID-19 spread, this included electronics and appliances stores. Consumer demand for such products has shifted purchases online during that period as there was no alternative.

Consumers tighten purse strings and cut back on discretionary big ticket spending

A recurring theme of COVID-19 has been its impact on the economy, and the unemployment and permanent or temporary reduction in salaries of consumers affected by the pandemic. Consumers are expected to be more cost-conscious in the near to mid-term; the muted economic climate has discouraged consumer spending and consumers are also more likely to cut back on the purchase of discretionary and non-essential bigger ticket items, especially electronics and appliances.

Working from home arrangements see a sharp rise in demand for office electronics

As workplaces increasingly closed in the earlier half of 2020 and employees were encouraged to work from home to minimise the spread of COVID-19, there has been a rise in demand for office electronics to help make the working from home experience significantly more comfortable.

RECOVERY AND OPPORTUNITIES

Electronics retail players increase digitalisation efforts to support customer engagement

Electronics retailers have attempted to innovate in response to COVID-19 to continue to meet the needs of consumers despite the mandate to close their physical stores. For example, the electronics retailer Audio House has recognised the importance of engaging with its customers via online and social media platforms, conducting Facebook Livestreaming of its products to demonstrate features, and using WhatsApp to reach out and provide a personalised service and recommendations to encourage purchases.

Challenger remains market leader with conveniently located outlets and strong focus on encouraging consumer loyalty

Challenger remains the market leader for electronics and appliance specialist retailers in Singapore in 2020 despite having not performed well in recent years. This is in no small part due to its large number of outlets conveniently distributed island wide in accessible locations such as suburban malls.