A survey by Shop Small Research for Singapore has shown that Singaporeans are supportive of local businesses, with over 90% of 1,005 study respondents proudly shopping at local establishments. Singaporeans can pat themselves on the back - the number stands proudly over 71% of shoppers who prefer international businesses, showing a clear inclination to shop local.
Surprisingly, only half the respondents agree on the importance of supporting homegrown businesses, despite their supposed enthusiasm.
Diving into a breakdown of the different generational attitudes and behaviours however, reveals a couple of interesting insights.
Gen Zs, the youngest of the group with an age range of 21 to 25, appear to be the biggest spendthrifts, with 40% indicating a willingness to spend more in 2023 compared to the average of 35% across all generations.
The pattern doesn't end there, with the youngest Singaporeans surveyed further expressing their zealousness in spending at dinner at a whopping 66%, a figure significantly higher than the total generational mean of 48%.
Meanwhile, coupled with the seemingly lax-spending habits of Gen Zs is an impartial support for both local and international business.
When asked to what extent a sense of pride and home is felt upon seeing Singapore products overseas, Gen Zs posted the smallest numbers at 67%.
A related question about their concern over the threat of fading local establishments over the next decade garnered a similar sentiment, again with the lowest numbers at 52%.
Heritage businesses like Hjh Maimunah has not been inattentive to this observation, working hard to reach out to younger generations.
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Its second generation owner, Ms Mastura Didih shared: “When children are introduced to traditional food earlier in their lives, they are more likely to develop a taste and interest for it later – this helps to pass on our culture and heritage to the next generation. I hope more young families will dine with us, so future generations learn more about our local food and culture.”
Despite the lower interest in supporting or preserving Singapore-born businesses, Gen Zs are a generous lot; 18% are willing to pay a premium for local businesses, which is higher than the average of 16% across all generations.
Another trend the Shop Small Research found comes about with millennials, who range in age from 26 to 41.
Beyond a willingness to pay a premium for local businesses at 24%, sustainability has also been observed to be a core interest of theirs, compared to other generations.
About 36% of millennials agreed they would be more encouraged to support local business if more sustainable products were sold- versus 27% of Gen Zs, 26% of Gen Xs (people aged 42 to 57) and 30% of baby boomers, or people aged 58 and up.
Empathy is another area millennials feel greatly for when compared to other generations. When asked how likely they were to shop again at a local business after a bad experience, on average, 22% of millennials would.
By generations, millennials are quite simply, the most forgiving at 32%, when compared to Gen Zs at 19%, Gen Xs at 20% and baby boomers at 16%.
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Another forgiving group from the surveyees comes from Gen Xs, who rank second in terms of compassion.
Gen Xs listed the desire to support the livelihoods of the local community as their top reason for forgiveness, at 37%, compared to the total average of 29%.
When it comes to explaining the top reasons Singapore consumers choose to shop with local businesses over international ones: convenience comes in at 68%, value for money at 60% and a more personalised customer experience at 33%.
Interestingly, 21% of surveyees were also driven by their desire to maintain relationships with the staff or owners of these businesses – with millennials (27%) and Gen Xs (24%) more likely to do so than Gen Zs (16%) and baby boomers (17%).
The top reasons Singapore consumers choose to shop with local businesses over international ones are because of convenience at 68%, value for money at 60% and a more personalised customer experience at 33%.
Local business owners also share these observations.
Jacob Cheong, second-generation owner of an antique specialist, East Inspirations, said: “Singaporeans appreciate locally made products, but we are also rational shoppers. We want the best bang for our buck. As a business, we always provide value to our customers- whether it’s sharing knowledge with our customers or adapting our business to the latest trends.”
Sentiment-wise, the top feelings when shopping at local businesses were broken down into: peace of mind and comfort at 48%, a sense of community at 40% and a sense of purpose by supporting the community at 40%.
Baby boomers (57%) especially feel a peace of mind and comfort when shopping local.
They are particularly loyal to local businesses, with 95% shopping often at local businesses and only 43% at international ones.
Marlin Brown, country manager for American Express Singapore said: “There is more room to galvanise support for local brands, especially among the younger generations who tend to see less importance in supporting local compared to the older generations. This is why American Express continues to encourage everyone to support local with movements like Shop Small, which is in its fourth year. To rally even more support this year, we are organising a Shop Small Pop-Up Market to further engage the community to celebrate local businesses.”
