A new segmentation on Singaporean’s mindsets, behaviour and spending powers
The rise of Revenge Spenders and Rewarders in Singapore
We live in a world that’s ever-changing. A higher percentage of countries are forecast to go into recession than at any other time since 1871, the last time a global recession was triggered purely by a pandemic.
From Asian Financial Crisis to the Global Financial Crisis to bird flu to SARS to Covid… we live in a world that’s constantly changing and we can’t be complacent about our environment. You never know what you might expect.
However, Singapore has always found a way to “rebound” with amazing resilience.
Now is a good time to take a deep dive into how this rebound will be any different from the past. What are the new behaviours and attitudes that businesses can leverage to effectively grow in the face of today’s challenges?
VCCP Singapore has carried out proprietary research on Singaporean’s mindsets, behaviours, and spending powers to segment the nation into 5 distinct groups. Our research unearths what makes these new audiences tick and how best to tap into them.
As the Challenger Agency for Challenger Brands, we decided to embark on this study as we believe that challenging times require a challenger mindset. Whether you're a multinational corporation or a local small to medium-sized enterprise, in order to win you need to identify and exploit opportunities before your competition.
‘Winning in the Rebound’ is a living study from VCCP that tracks how people navigate in fluid times.
History has shown that Singapore has a pretty consistent way it responds to major disruptions. Our independence, ingenuity, resilience and can-do attitude, uncertainty avoidance - are all part of our unique set of values that have guided our response to crises in the past.
Our research unearthed 5 distinct segments - plotted against their psychological attitude to spending, as well as against their financial ability to spend.
Let’s meet the segments:
Revenge Spenders - they have a lot of spare money and are chomping at the bit to make up for lost time. They are doubling down now that markets are opening up. They make up 28% percent of the Singaporean population having grown by 12% since 2021.
Rewarders - they are life’s optimists who may not have much money to spend but they want to make the most of post-lockdown life and enjoy it as much as possible. They make up 12% of the population in Singapore and grew 2% since 2021.
Rationers - they have the spending power but are taking a much more “steady as we go” approach. They are the largest segment in Singapore, they make up 36% of the Singaporean population but have shrunk by 6% since 2021.
Recoverers - this segment doesn’t know what tomorrow brings and is struggling to restore stability in the everyday. Bearing the brunt of Covid suffering - physically and mentally, within their families and communities. They make up 16% of the population and have shrunk by 4% since 2021.
Reliables - this is the smallest and youngest of all the segments where the mindset is about choosing well. They are more considered and purposeful, sustainability plays a key role. They have some spending power, looking at purchasing quality products from authentic and transparent brands. They make up 8% of the Singaporean population and have shrunk 4% since 2021.
In summary, Singaporeans’ traditionally cautious and pragmatic perspective on recovering from economic disruption has moved to a more carefree and flexible approach post-pandemic. We’re a nation known for our pragmatism - and it will always be part of who we are - but we’re also seeing a new optimistic face emerging.
Here are a few key take-aways:
Still cautious but more carefree - from a more guarded, reserved form of prudence and uncertainty avoidance, to one that leans into a slightly more “you only have one life” mindset and behaviour.
Still responsible but more thoughtful - taking responsibility for their own wellbeing and living a more meaningful life, small wins to improve the every day, eating better, buying better.
Breaking away from a less linear, structured way of living to one that is more fluid and spontaneous - think of it as a multistage life with a variety of careers, breaks, and transitions as people make sense of their lives.
If you’d like to know more about the detailed research and findings then please contact joshua.robertson@vccp.com
