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Gen Zers are atypical in terms of spending habits and outlook: less emotionally attached to local businesses, but more willing to pay extra for them
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Millennials are the most empathetic: the most willing to pay extra for local products, the most forgiving of a poor customer experience, and the most concerned about sustainability
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Gen Xers tend to be driven by their desire to support local community livelihoods
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Baby boomers are the most loyal to supporting local businesses
SINGAPORE – Media OutReach – July 31, 2023 – Singapore: Most Singaporeans are supportive of local businesses, with each generation showing their support differently, according to the fourth
Small Research Shop for Singapore. Baby boomers have shown the greatest support and loyalty to local businesses. Meanwhile, Gen X is determined to give back to the community, and Millennials are the most willing to pay a premium to local businesses. Interestingly, Gen Z is an exception in several categories – compared to baby boomers, they tend to be less emotionally tied to local businesses, but are more likely to pay a premium for local brands.
Most Singapore consumers shop locally, but baby boomers are the most loyal
More than 90% of the 1,005 survey respondents often shop at local businesses, compared to just 71% for international businesses, showing that most support local businesses. Compared to other generations, baby boomers are particularly loyal to local businesses, with 95% of purchases often in local businesses and only 43% in international businesses. On the other hand, Gen Z also supports local and international businesses.
However, while most consumers shop locally,
only half agree that local support is very important. There are also notable generational differences, with 63% of baby boomers agreeing, compared to just 44% of Gen Z, 57% of Gen Y and 56% of Gen X.
Mr. Marlin Brown, Country Director of American Express Singapore, said: “There is more room to galvanize support for local brands, especially among younger generations who tend to place less importance on local support than compared to older generations. That’s why American Express continues to encourage everyone to support local with movements like Shop Small, now in its fourth year. To rally even more support this year, we’re hosting a Shop Small Pop-Up Market to further engage the community in celebrating local businesses.
Open from September 25 to October 1, 2023 at the Suntec City Atrium (Tower 1 and 2), the Shop Small Pop-Up Market will host 16 local businesses, including the social agency ART:DIS. Shoppers can expect limited-edition merchandise, designed by local artists Isaac Liang, who is backed by SG Enable’s i’mable Collective, and Esther Goh. Additionally, American Express cardholders will receive S$3 for every S$10 spent at over 3,500 participating businesses, up to five times, from August 1 to August 31, 2023.
Gen Z: a different generation
Compared to other generations, the habits and outlook of Generation Z are aberrant. Across generations, 35% said they would spend more in 2023 than in 2022. Gen Z is the highest, with 40% expecting to spend more in 2023 than in 2022. average across all generations (48% ).
While Gen Zs are less emotionally tied to local businesses, they are more willing to pay a premium for local products, especially compared to baby boomers. Among all respondents, 73% feel proud and at home when they see Singaporean products abroad – the largest group is Baby Boomers at 81%, while the smallest group is the Generation Z at 67%.
Similarly, 57% of all respondents fear that Singapore’s heritage businesses will disappear over the next decade – again the highest are Baby Boomers at 61% and the lowest are Gen Z at 52%.
Heritage companies like Hjh Maimunah are working hard to reach younger generations. Its second-generation owner, Ms Mastura Didih, shared: “When children are introduced to traditional food earlier in life, they are more likely to develop a taste and interest in it later – it helps to Passing on our culture and heritage to the next generation.I hope more young families will dine with us, so that future generations will learn more about our local cuisine and culture.
That said, Generation Z is one of the most generous generations; 18% are willing to pay a premium for local businesses, higher than the average of 16% across all generations and Baby Boomers at 11%.
Millennials: the empathetic generation
Another trend discovered by Shop Small Research is that millennials tend to be more empathetic than other generations. Of all generations, Millennials are the most willing to pay a premium for local businesses at 24%.
More and more millennials also care about sustainability, compared to other generations. 36% of Millennials agreed they would be more encouraged to support local businesses if they sold more sustainable products, compared to 27% of Gen Z, 26% of Gen X and 30% of Baby Boomers.
When asked how likely they were to buy from a local business after a bad experience, on average, 22% would buy from the local business again. By generations,
Millennials (32%) are the most forgivingcompared to Gen Z (19%), Gen X (20%) and Baby Boomers (16%).
Gen X: duty to the community
Of those who would give local businesses a second chance after a bad experience, 29% cited a desire to support local community livelihoods as the main reason. The highest among all generations is Gen X at 37%.
Consumers shop locally for convenience, value, experience, while feeling peace of mind and kampung spirit
Top reasons Singaporean consumers choose to shop with local businesses over international ones: convenience (68%), value for money (60%) and a more personalized customer experience (33%) . Interestingly, 21% are also motivated by their desire to maintain relationships with the staff or owners of these businesses – with Millennials (27%) and Gen Xers (24%) more likely to do so than Gen Z (16%) and baby boomers. (17%).
Local business owners also share these observations. Mr. Jacob Cheong, second-generation owner of antiques specialist, East Inspirations, said: “Singaporeans appreciate locally made products, but we are also rational shoppers. We want the best value for money. As a company, we always bring value to our customers, whether it’s sharing knowledge with our customers or adapting our business to the latest trends.
When it comes to feelings, the best feelings when buying from local businesses: peace of mind and comfort (48%), sense of community (40%), sense of purpose in supporting the community (40% ). Baby boomers (57%) particularly feel peace of mind and convenience when shopping locally.
Hjh Maimunah and East Inspirations are participating businesses in the 2023 Shop Small offer.
Hashtag: #Amex #ShopSmall
The issuer is solely responsible for the content of this announcement.
