Kiasu, a Hokkien term referring to the “fear of missing out,” perfectly describes a special class of Singaporean shoppers.

While the average Singaporean is even more picky than usual this holiday season, adjusting their spending to combat the rising cost of living, high inflation, and a looming recession, under these economic challenges, the kiasu shopper is more deal-hungry than ever. And this Christmas, luring these thrifties who will go to any length to avoid missing out on a deal will be harder than ever for retailers.

Great deals are certainly out there already. The abundance of second-hand trading platforms, ultra-low margin e-commerce sites, and increasingly competitive loyalty programmes available to Singaporeans mean that the island’s retailers need to do a whole lot more than just lower prices or launch sales. They need to use their data to make kiasu shoppers an offer they can’t refuse.

Traditional retail tactics, like promotions, price markdowns, and interactive customer experiences, can create value for customers. However, without understanding customer behaviour and sales trends, these tactics are a gamble.

Retailers in Singapore need to push themselves to create more value for kiasu shoppers during the festive period and beyond by gaining an extremely intimate understanding of their customers’ behaviours. Data collected across the retail workflow can answer the who, what, where, when, why, and how kiasu customers shop.

Timing is key

While data intelligence can boost seasonal sales – guiding the duration, timing, and best-fit products for price discounts – well-timed sales are crucial to acquiring the kiasu shopper. A recent study showed that 36 per cent of Singaporeans are waiting for big-ticket sales like the year-end holiday shopping season to start spending.

Also Read: How can businesses best capitalise on the holiday season?

Australian grocer Woolworths offers a case study of how well-timed sales strategies can create impact. Woolworths used insights gathered from segmented customer data, sales patterns, trading hours, and expiry data to schedule time-precise markdowns for individual stores. This improved its perishable goods sales, generating AU$55 (US$40) million in savings annually.

Local retail businesses can find inspiration in Woolworth’s data-driven approach. A well-timed price markdown, powered by customer and sales data, can help larger retailers in Singapore clear their large inventory of goods, spanning toys, clothes, and more while delivering great value to the kiasu shopper.

Staying well stocked

Data can also help businesses pre-empt the needs of the kiasu shoppers who want to purchase specific products at reasonable prices and receive them on time. Sports retailer Al-Ihksan Sports, which has more than 125 stores across Malaysia, highlights the need for a well-curated and stocked inventory to meet the needs of its customers.

“Consumers are willing to buy an MYR 400 pair of Adidas shoes but not for another brand… so, we need to bring the right products, right sizes, and colours at the right price points,” said Vach Pillutla, CEO of Malaysian sports retailer Al-Ikhsan Sports in a separate interview.

Retail businesses can turn to data for answers instead of second-guessing what customers want. Data like month-on-hand inventory can uncover hot selling items through easy-to-use analytics software and communicate these insights clearly through intuitive dashboards. Al-Ihksan Sports did exactly that, ensuring it brings in the right products at the right time.

A smarter way to sell

Understanding sales patterns or creating better experiences could become even easier in the next few years, with retailers already infusing technologies like artificial intelligence (AI) into their practices.

For example, today, companies use AI models to analyse supply chains and distribution channels and store machine sensor data to prevent out-of-stock scenarios. However, ironically, retailers could find themselves in a kiasu situation, with the real threat of losing out on sales if they don’t join the AI scramble now.

Meanwhile, generative AI is poised to revolutionise the retail industry by enabling personalised product recommendations and creative content generation, enhancing customer engagement and satisfaction. In the future, retailers will harness the power of generative AI to streamline operations, anticipate consumer preferences, and deliver more immersive shopping experiences.

Cosmetic retailer Sephora, for example, has adopted generative AI to create interactive “in-store” shopping experiences for Singaporean customers, providing a virtual assistant that provides personalised consultations and query responses that are comparable to their onsite beauty advisors.

Also Read: Holiday cybersecurity: Safeguarding businesses amidst increased cyber threats

Data is the fuel for these retail innovations, and it is crucial that businesses engage with the best technology partners to use their data efficiently and safely with the right protocols and systems.

A win-win scenario

Kiasu shoppers are the canary in the coal mine for retail businesses in Singapore. In a challenging and rapidly evolving socio-economic climate, retail businesses on the island need agility to “not miss out” themselves.

Data delivers this agility, not only making retail businesses intelligent, but far more alluring to the kiasu shopper. This Christmas will prove that data can help both businesses and customers make the right decisions – creating a “win-win” situation for retailers and kiasu shoppers.

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