Struggling retailers must woo millennials to stay afloat in Singapore: report

Yuppies are prime targets.

As population growth slows and spending power increases, retailers who wish to succeed in Singapore’s ultra-competitive shopping scene need to direct their best marketing efforts in attracting the loyalty of fickle millennials.

According to a report by BMI Research, retailers need to build up long-term brand loyalty amongst younger and affluent consumers, particularly those aged 20-30.

These consumers have already entered full-time employment and will have ample money to spend on non-discretionary goods, BMI Research said.

“We forecast the size of this age bracket to increase slightly over the next five years, reaching 1.58mn by 2019. However, this age group will see its share in the total population declining from 28.0% in 2015 to 26.7% in 2019,” said the report.

“Over the long-term, however, this age bracket will begin to show a moderate decline, as our forecasts show a declining birth rate towards the end of our review period. In fact, all age categories relating to those younger than 19 show either minimal growth or decline over the next five years, according to our forecasts. As such, over the next 10 to 20 years, the retailer's key target market will be somewhat smaller in size and this may hinder the overall growth potential of the retail market,” BMI Research noted.