In-store games, make-up apps woo shoppers
When entrepreneur Mark Huang opened Level Up in Clarke Quay in 2017, it generated a lot of buzz as the island’s first-ever arcade bar. Huang noted the novelty of Level Up’s conceptcustomers can spend time and money in food and games all in one place.
Singapore is starting to see more mixed retail concepts like
Level Up’s that combine food, play, and shopping experiences, said Juliana Cai, analyst at RHB. “In this digitised era where food delivery apps are sprouting, we think that the ‘playing element’ at these bars gives consumers a more compelling reason to visit the physical outlets,” she said.
“With this, we are able to keep guests at Level Up for longer periods of time. Market reaction has been good and we are constantly trying to better the experience for the customer,” said Huang.
Aside from launching mixed concept stores, Cai said retailers are also updating their store visuals to woo younger customers. “Millennials are image-conscious and do not like to be seen stepping into an ‘uncool’ shop. As such, brands must constantly refresh their image to attract the younger crowd,” she said.
Watsons Singapore and Sephora Singapore have also spruced up their stores with the help of technology by incorporating interactive digital screens that allow consumers to try on makeup virtually. “Such features are fuss-free, more hygienic, and attract digital-savvy millennials to enter the stores to try on new products and have fun. This encourages customers to try more products, have fun, and hopefully buy more,” said Cai.
Another key strategy for retailers to draw in more customers is to open flagship stores. Major retail players like Uniqlo have led the trend, and this has convinced the likes of Victoria’s Secret and Apple to follow suit. Muji opened its flagship store in Plaza Singapura in 2017, whilst technology and electronics retailer Challenger opened a flagship store in Bugis Junction.
As retailers further embrace these novel approaches in their physical stores, Singapore’s retail sales index has shown a fairly positive trend, reaching 2% overall growth for the first four months of 2018, according to RHB. “The past three years of intensifying competition from e-commerce and muted consumer spending have compelled retailers to be less complacent, and they are now revamping themselves to reel in consumers to spend,” said Cai. “Many retailers have not only embraced online platforms but also reinvested in physical stores to improve the overall brand experience.”
Singapore’s retail sales index has shown a fairly positive trend, reaching 2% overall growth for the first four months of 2018.
Level-up bar’s in-store arcade
Watson’s Singapore’s virtual make-up app screens