Singapore lags China, US in online retail sales

The city state’s e-commerce penetration is at 3.4%.

While new approaches in reaching and understanding consumers especially via online space has already come to play, most of the Southeast Asian countries, including Singapore, still has not been penetrated strongly by e-commerce.

According to an RHB report, e-commerce sales in ASEAN countries have been low despite strong economic growth in the last few years.

"Online retail is estimated by Bain & Co to be worth about USD6bn in 2016, implying a penetration rate of only 3%. Furthermore, only 100m out of the region’s total 620m population has ever made a purchase online," the report noted.

In Singapore, online retail sales were at a rate of 3.4%.

RHB stated that this pales significantly behind countries like China and United States, where online penetration has already reached an estimated 14%.

However, RHB pointed out that there is potential growth still out there, as companies could start eyeing for the young and tech-savvy population that uses social media voraciously, and high smartphone penetration levels and internet connectivity.

"Especially in categories such as wellness, clothing and other discretionary products, it is imperative for companies to gear up for this trend to continue," the report underscored.