In February, Singapore’s retail sector recorded an 8.4% increase in sales compared to the previous year, attributed primarily to the Chinese New Year (CNY) festivities and a rise in tourist arrivals. Sales reached S$3.9 billion, with the Department of Statistics (SingStat) noting a continuation of the positive trend from January’s 1.6% growth.
Tourism’s Role in Retail Growth
The Chinese New Year period and the introduction of a 30-day visa-free travel policy for Chinese tourists from February 9 significantly contributed to the sales increase. This policy change helped China surpass Indonesia as the top source of tourists to Singapore, with Chinese visitors accounting for 22.7% of the total 1.44 million visitors in February.
Focused Sector Analysis: Watches & Jewellery
Within the retail sector’s performance, watches and jewellery stood out, posting a significant year-on-year growth of 16.8%. This increase is noteworthy, reflecting consumer interest in high-value items and potentially indicating a revival in luxury spending. It’s important for professional jewellers to consider this trend as part of a broader consumer return to discretionary and luxury spending, possibly influenced by the increased tourist traffic and festive spending.
Online Sales and Sector Performance
While the broader retail sector saw online sales making up 10.9% of total sales, the report does not specify the online performance of the watches and jewellery sector. However, the overall trend towards online shopping remains relevant for jewellers, suggesting the importance of maintaining a strong online presence alongside traditional retail strategies.
Implications for the Jewellery Industry
The observed increase in sales for watches and jewellery during February, amidst a general increase in retail performance, highlights the potential for jewellers to capitalise on festive periods and tourist influxes. It suggests an opportunity to align sales strategies with periods of expected high consumer engagement and to leverage Singapore’s status as a tourism hub for boosting sales.
Adapting sales and marketing strategies to these dynamics can help jewellers maximise opportunities during peak periods.
