Advancement of the Internet
Singapore boasts one of the most advanced telecommunications infrastructure in the world her government has also played a part in promoting broadband technology awareness and usage via the Intelligent Nation 2015 master plan (Point Topic, 2011). In fact, Singapore’s household broadband penetration rates stand at 102.1% and there were 2.52 million unique Internet users in February 2009 (Asia Digital Marketing Association, 2009). Singaporeans are also getting more technologically savvy and are spending increasingly more time on the Internet (Fu, 2011). According to Joines et al, the increment in Internet users signifies that online purchasing is increasing (Joines, Scherer & Scheufele, 2003). Sure enough, online shopping in Singapore has seen a yearly increase with 40% of the total expenditure, or approximately S$420 million, spent on local websites last year (Singapore Business Review, 2011).
Advancement in Computer Technology
Computers have evolved over the ages. From large, heavy bulky computers to lightweight, portable ones, computers have definitely come a long way. In the past, people could only use computers at home or at work, i.e. at a fixed location, thus restricting the Internet usage. Imagine having to carry those huge computers around! However, in recent years, with the proliferation of smartphones and tablets, one can access the Internet anytime, anywhere. Viewing this from a different perspective, this means that one can do online shopping no matter where they are. Whether they are commuting or sitting at a café, one can easily buy products online on their portable gadgets.
Convenience
Technological advancements always bring about convenience. According to an article from Dealernews.com, convenience is the key factor that motivates consumers to shop online (Dealernews.com, 2011). With the advancement of technology, and the rise of smartphones, online shopping has become much more accessible and easier than before. As the Internet is now made effortlessly accessible through smartphones and laptops, the mobile shopping industry is gaining momentum quickly. With Internet available almost everywhere these days and online stores operating 24 hours a day, 7 days a week, consumers can easily shop from the comfort of their homes or even offices! Many Singaporeans lead hectic lifestyles and we want to achieve many things using the shortest span of time and hence, a lot of Singaporeans choose to do online shopping. There are no crowds and long queues when you shop online. You do not even have to take the time to travel down to the stores when it comes to online shopping. Coupled with fast Internet speed, accessing and buying from online stores can be done in a twinkling of an eye. Everything is just so convenient!
Competitive Prices
Technological advancements have brought about another change in shopping. You do not need a physical storefront to actually peddle your wares. Instead of that, one can now buy a domain name and web space and set up shops on the Internet. The capital cost of setting up a virtual shop online is lower as compared to the cost of setting up a physical store front (Lee 2011). This is especially so in Singapore where land is scarce and rental prices are exorbitant. Without a physical store front, retailers have a much lower operating cost as they do not have to pay for shop rent, electricity bills or sales promoters. Online retailers do not have to list high prices for their products in order to break even due to lower operating costs. In addition, online retailers are able to ship their products directly from the manufacturer or the wholesaler, cutting down on their middlemen cost. This will in turn allow them to offer products to consumers at an even lower price.
On the other hand, online shoppers will definitely be delighted by this fact. In an online survey done by a price comparison site, Shopping.com, 80% of the 1,360 people surveyed felt that the prices offered online are the cheapest (Rigby, 2011). Singaporeans love a bargain and hence, it is not difficult to draw a link between advancement in technology and increase in online shopping here.
Step-up in Internet Security
Online security has certainly come a long way. In the past, when online shopping was still at its early stages, online shopping was perceived to be risky (Monsuwé, Dellaert & Ruyter, 2004). People were suspicious about making payment online for fear that their credit card information might get misused. In recent years, technological advancement has allowed measures to be been taken to assure online shoppers that their transactions are secure. One such example is the protection by security protocol, Secure Sockets Layer. Online shoppers can ensure that their online transactions are safe by looking out for the lock icon in the security status bar in their Internet browser (Visa).
Those who are afraid of using their credit card directly can go through reputable mediums like Paypal. Even more recently, credit card companies in Singapore have adopted two-factor authentication for online purchases (Citibank Singapore). After a purchase is made online, a message will be sent to the shopper’s mobile phone and he or she has to key in the PIN number before the transaction will go through.
All these efforts to make online shopping safer have definitely allowed shoppers to shop safely and this has influenced the increase in online shopping. Imagine if such advancements in technology had not taken place, would Singaporeans still be as willing to shop online as they do now?
As shown above, technological advancements have undoubtedly encouraged more Singaporeans participate in online shopping. However, our group does acknowledge the fact that there might be other factors that play a part in the rising trend of online shopping in Singapore. Please click here for the next section, where we will look at such factors.
