Singapore, a tiny red dot, has the biggest online spenders in Southeast Asia. Therefore, Singapore is a lucrative has the biggest online spenders in Southeast Asia (SEA). The average annual online retail expenditure per Singaporean buyer is USD 731, compared to Malaysia’s USD 191. Thus, Singapore e-commerce platforms are having a tight race.
Lazada and Shopee have dominated the e-commerce landscape in other SEA countries. However, Qoo10 once had a tight grip on Singapore’s e-commerce crown. Yet, it only wins the website traffic. Since the third quarter of 2017, it has consistently nabbed the top spot. According to a report from Iprice, Lazada dethroned it at the end of June 2019.
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Expected Tight Race
Experts expect Lazada and Qoo100 to continue overtaking and trailing one another. In the second quarter of 2019, Lazada clocked a monthly average of 7.55 million Singapore desktop and mobile visitors. Comparatively, Qoo10’s gets 7.16 million visitors monthly.
Qoo10 has lost part of its price advantage versus Lazada and Shopee. An example would be the price of a Doughnut Pastel Series backpack on these three platforms. It is SGD 89 on Qoo10 and Shopee, while it is SGD 99 on Lazada. Lazada has also managed to capitalize successfully on its 11.11 (Singles’ Day) and 12.12 sales.
Lazada’s collaboration with leading global companies was able to gain an edge over its competitors. For instance, earlier in March, Lazada formalized cooperation agreements with 12 leading global lifestyle technology and fashion companies. Thus, it enables brands to tap Lazada’s tech and logistics infrastructure, innovation, and e-commerce expertise. The companies include Shenzhen-based smartphone manufacturer Realme as well as smart TV brand Coocaa. Coocaa is owned by China’s Skyworth RGB and Huawei.
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However, as the oldest e-commerce platforms in Singapore, Qoo10 still can win the race. It began operating in 2010. Thus, the company had almost a three-year head start before its first major competitor entered the market. The first competitor, Zalora entered the city-state in 2013. Meanwhile, Lazada and Rakuten followed the next year, then Shopee in 2015, and finally Amazon in 2017. Thus, Qoo10 sat comfortably in the top spot in both desktop and mobile traffic between the third quarter of 2017 and 2019.
E-commerce companies in Singapore will need to step up their game to attract consumers as the race for the e-commerce crown will be close.
