The Singapore Retailers Association recently confirmed that April’s sales figures have not been favourable, with most retailers reporting negative performance compared to the same period in 2023. Just last week, The Straits Times reported a 1.2 per cent drop in Singapore’s retail sales, performing worse than expected.

With retail spending at a low, the pressing question is: How can Singapore boost retail spending by appealing to Gen Z? Given Gen Z’s global spending power of US$450 billion, tapping into this demographic’s potential through unified commerce could be the solution for enterprising retailers.

Unified commerce and its benefits

Meeting evolving consumer expectations, particularly those of a digitally native Gen Z, requires unified commerce – which leverages technology to let retailers track all data from a single source of customer interaction across multiple channels and stages of shopping.

According to a Salesforce report, 71 per cent of Gen Z shoppers are willing to pay more for excellent customer experiences. A McKinsey report also highlights that customers engage with 3 to 5 channels on average before making a purchase.

Also Read: A paradigm shift on the Z axis: How Gen Z is shaping the new work culture

While the business case for unified commerce is well-established, many retailers are still in the early stages of adoption.

Unified commerce offers several key benefits:

Seamless shopping: It connects all sales channels (online, mobile, physical stores), providing customers with a consistent and flexible experience.
Simplified operations: By consolidating backend and frontend systems, unified commerce streamlines operations and reduces complexity for retailers.
Centralised data: It allows retailers to track all data from a single source, providing real-time visibility into customer interactions, inventory, sales, and other metrics.
Real-time insights: This data enables retailers to monitor performance, identify trends, and react quickly to opportunities.
Personalised experience: Unified commerce helps retailers gain a 360-degree view of customers across all channels, allowing for tailored marketing, product recommendations, and services.

In short, unified commerce empowers retailers to deliver a seamless, personalised, and connected shopping experience that meets the demands of today’s consumers.

The tech and retail situation in Singapore

Singapore presents a compelling case for unified commerce adoption. The city-state’s robust digital infrastructure and strategic regional hub status provide the foundation for seamless online experiences.

Additionally, supportive government policies, exemplified by the Smart Nation Initiative and the recently refreshed Retail Industry Digital Plan (IDP) launched by Enterprise Singapore and IMDA in September 2023, foster a business environment conducive to innovation.

This commitment translates into concrete resources for retailers, including tools and training to enhance customer experience, optimise operational efficiency, and drive business growth. Compared to more mature markets like the US and UK where digital disruption is forcing adaptation, Singapore offers a unique advantage: a fertile ground for experimentation and accelerated growth in the realm of unified commerce.

Also Read: 5 lucrative strategies Gen Z investors use to empower themselves financially

This strategic positioning equips Singaporean retailers to capitalise on the global shift towards digital commerce and seize emerging opportunities.

Challenges and solutions

Unfortunately, the promise of unified commerce comes with several challenges:

Outdated systems: Conventional brick-and-mortar retailers often depend on outdated systems that were not originally designed to handle the complexities of digital commerce. Modernisation efforts require strategic investment and phased implementation plans to minimise disruption and optimise cost-effectiveness.
Data consolidation challenges: Both offline and online channels generate extensive data in disparate formats and standards. Effective data governance strategies are crucial to ensure data integrity and facilitate seamless data consolidation.
Resistance to cultural change: Internal resistance to change can impede integration efforts within organisations. Overcoming these cultural barriers necessitates buy-in from leadership, comprehensive employee training, and an effective communication strategy.
Organisational fragmentation: Many companies manage offline and online channels through separate teams, resulting in fragmented customer experiences and disjointed strategies. Breaking down these silos requires a focus on cross-departmental collaboration and establishing clear lines of communication to ensure alignment across the organisation.

Singapore’s retail sector stands at a crossroads. With Gen Z representing a significant portion of global spending power, there is a tremendous opportunity to revitalise the industry by adopting unified commerce.

By leveraging Singapore’s robust digital infrastructure, supportive government policies and innovative spirit, retailers can overcome current challenges and set new standards in customer experience and operational efficiency.

The time to act is now, and the path forward is clear: embrace unified commerce to capture the attention and spending power of Gen Z, ensuring a vibrant and thriving retail landscape for the future.

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