Singaporeans Are Splurging Despite a Global Luxury Slump
Despite slow demand for luxury goods in major markets like the U.S. and China, sales on the Southeast Asian island nation are expected to increase by 7 percent to S$13.9 billion ($10.9 billion) this year compared to 2024, according to market research firm Euromonitor International, Bloomberg reported.
More from Robb Report
A Modernist Home in Montecito Designed by a Pioneering Architect Just Listed for $18 Million
Profits at the Macallan's Parent Company Dropped 26% This Year
Porsche Club of America Members Get First Dibs on This New, Ultra-Limited 911
The projected climb means Singapore will surpass the regional shopping hubs of Japan, China, and South Korea, cementing itself as a standout in Southeast Asia. The country's 2024 year-on-year growth outpaced nearly every other Asian market (besides Japan) tracked by the analytics firm. Next year, Singapore is estimated to reach its 2019, pre-Covid figure of S$14.7 billion (approximately $11.4 billion).
The city-state's booming luxury sales coincide with a blossoming commercial real estate market, too. Last year, Singapore had the third-largest share of luxury store openings among 32 Asia-Pacific cities, excluding those in China's mainland, according to data from Savills, a real estate firm.
'Singapore has proved to be a very stable place for wealthy people. That has created a very strong local base for the luxury market,' Jonathan Siboni, founder and CEO of consultancy Luxurynsight, told Bloomberg. 'Singapore is an oasis in the desert.'
Places like the Shoppes at Marina Bay Sands, where Italian label Marni opened its first store last August, are oases indeed. The locale is equipped with buggies to whisk VIP shoppers around the mall for personalized styling sessions, and it'll soon offer those same customers the opportunity to get a first look at unreleased luxe launches.
Singapore is also home to over 240,000 millionaires, according to last year's report from Henley & Partners. Over the last decade, the city-state has seen a 64 percent increase in millionaires, due to the small nation's open economy, liberal immigration policies, and lax regulations on wealth taxes. As a result, the median household employment income has risen for five straight years, according to a report from Singapore's Department of Statistics.
Brands have even started using the Singaporean market as a testing ground to gauge interest in luxury goods.
'These aren't just gimmicks,' Angelito Perez Tan, Jr., cofounder and CEO of RTG Group Asia, told Bloomberg. 'They're strategic soft launches that test how consumers engage emotionally with the brand.'
We'll have to see how those tests pan out over the next few years.
Click here to read the full article.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Skift
an hour ago
- Skift
Thailand Tourism Revenue Holds as Visitor Mix Shifts
The Daily Lodging Report – Asia Pacific will be on a very rare vacation from July 14 to 18. Krungthai Compass Research Centre issued a report saying high-spending tourists are helping support Thailand's tourism revenue, compensating for the decline in Chinese visitation. They expect the number of Chinese tourists to recover to around 50% to 65% of pre-Covid levels. Mass tourist groups from countries such as Malaysia and India and high-spending tourists from Europe, Russia and Israel are helping sustain revenue from international visitors, estimated to be in the range from 1.74 to 1.95 trillion baht. The research firm is predicting the shift will impact operators within the tourism supply chain. While everyone is blaming the concerns for safety as the reason why the Chinese are staying away, this report suggested the increase in the number of free independent travelers from China since Covid has brought in a new type of traveler, one that feels Thailand's attractions may be less novel compared to competitor destinations such as Japan, Vietnam, South Korea, Singapore and Malaysia, which have developed new destinations. At the same time the firm pointed out that China's economic slowdown has reduced the purchasing power of Chinese consumers, so some are opting for domestic travel over international tourism due to the costs of traveling abroad. The number of visitor arrivals to Macau in 2025 has officially exceeded 20 million, coming 26 days earlier than last year. The Public Security Police Force said the 20 million figure was surpassed at 11 AM on July 8, representing an average of 106,000 arrivals since the start of the year. The 20 million arrival number for the year was met in 2024 on August 3. 71.6% of the visitors this year have been from mainland China, followed by 19.1% being from Hong Kong. Foreign visitors refuse to come despite all the attention and marketing thrown at them by Macau officials, accounting for only 6.9% of the total. The Macao Government Tourism Office's prediction for this year is for 38 million to 39 million visitors. The MGTO is considering revising that Guesstimate. Skift, parent company of this publication, issued a report on Wyndham, quoting their recently appointed Managing Director for Eurasia as saying the company is sprinting towards the 100-hotel mark in India. In April-June, after Rahool Macarius rejoined the company as Managing Director, Wyndham signed eight hotels, with six signed in June alone. They could break the 100 hotel market late this year or early in 2026. Wyndham now has nine brands in India, adding Microtel and Wyndham Garden last year. The first Wyndham Grand Hotel in India is launching in September in Udaipur. The next two brands that could be brought to India are Vienna House and Super 8. The Eastin Hotel Kuala Lumpur in Petaling Jaya has changed hands for about RM200 million and will reopen as a Marriott-branded hotel, according to an article in the Edge Malaysia Weekly. The CP Group, founded by Datuk Tan Chew Piau, disposed of the 388-room Eastin KL to a private vehicle linked to former investment banker Datuk Lim Kheng Yew, founder of KYM Holdings Bhd. The hotel is nearly 30 years old, hence the low price for the hotel most likely means there is a lot of Capex needed for the rebrand. Renovation works actually were said to have started on June 10th. Marriott would not confirm that the property will have their brand on it, saying at this time they have no confirmed announcements to share. Marriott currently has 56 properties across Malaysia, offering 20 of the 30 Marriott Bonvoy brands, and they have several Marriott-branded hotels set to open in the coming years. Sheraton Johor Bahru, Marriott Executive Apartments Kuala Lumpur, and Sheraton Kota Kinabalu are scheduled to open in 4Q25. The Westin Panang and Courtyard by Marriott Subang are set to open in the coming years. The 186-room Courtyard by Marriott Darwin in Australia welcomed its first guests following an extensive renovation. The property is owned by Darwin company DCOH and is managed by Trilogy Hotels, led by Shane Dignan. The first phase of renovations included a revamped lobby and fitness center. Renovations at the property's 100-seat restaurant are expected to be completed in 2026, and then a refurbishment of the guest rooms and swimming pool is set for 2027. The hotel is located 300 meters from Darwin Entertainment Center and is a conversion of the Smith Hotel Darwin. This is Marriott's first hotel in the Northern Territory. Marriott will soon bring the AC Hotel brand to Queensland with the conversion of the existing Vibe Gold Coast. The all-new Beach Villas with Pool at Four Seasons Resort Maldives at Kuda Huraa are being reviewed, described as a night-to-day improvement of the former Beach Bungalow incarnations. The Beach Villas are 70 square meters for the interior, while exteriors extend to 285 square meters. Quang Ninh, a coastal province in northern Vietnam, is seeking investors for a large-scale tourism and casino complex valued at US$2 billion in the Van Don Economic Zone. The project is expected to complete construction within nine months. Sarovar Portico Gwalior, a 100-key hotel scheduled to open in 2029, was announced by Sarovar Hotels following a signing with owner Prime Land Estates. The new property is scheduled to open in 2026 and marks another key milestone in Sarovar Hotels' Central India expansion strategy. Sarovar Hotels continues its growth with multiple signings across India this year. The signing of Sarovar Portico Gwalior enhances the brand's presence in Madhya Pradesh. Personnel Moves Stone Wood Hotels & Resorts announced the appointment of Shishir Kumar Jena as Chief Financial Officer. Shishir has over 32 years of experience in hospitality financing, holding senior positions previously with Acron, Radisson, and Fortune Inn Exotica. David Jorden, former Chief Marketing Officer at Manila's Newport World Resorts, was named as new Executive Vice President of Gaming at Hoiana Resort & Golf in Vietnam.
Bloomberg
an hour ago
- Bloomberg
Why Buldak Ramen Is an $8 Billion Brand
When it comes to instant noodles, there's no Korean discount. Only a Korean premium. Samyang Foods Co., the manufacturer of 'Buldak' ramen, has gained 93% this year. Trading at 26 times forward earnings, it boasts $8.1 billion market cap, as much as bigger rivals Japan's Nissin Foods Holdings Co. and Korea's Nongshim Co. combined.
Yahoo
an hour ago
- Yahoo
Murdoch Paper Skewers ‘Tariff Man' Trump's New Flip-Flop
The Wall Street Journal's Editorial Board has skewered 'Tariff Man' Donald Trump's latest economic flip-flop. Leading with the mocking title 'Tariff Man' Is Back for More 'Liberation,' the Rupert Murdoch-owned publication went all in on the president's decision to announce new 25 percent levies on trade partners South Korea and Japan, to add to existing duties on certain imports from those countries. This comes after Trump walked back on his original 'Liberation Day' tariffs from early April after they caused economic turmoil. He paused the super-charged levies to give his administration the chance to complete 90 deals in 90 days, a period that expires this week. Treasury Secretary Scott Bessent has only managed to strike a deal with the U.K. and Vietnam, with a broad framework for a deal agreed with China, too. With that lack of success in mind, Trump sent letters to the leaders of more than a dozen nations on Monday, imposing an Aug. 1 deadline for renewed deals. If deals aren't struck, there could be tariff hell to pay, he suggested. The WSJ said that, in the letters, he 'huffs and puffs again about bilateral trade deficits, which he mistakenly thinks are a sign of foreign exploitation.' Japan is America's fifth biggest supplier of imports, while South Korea is also in the top 10. Trump has said that if either of the countries respond with tariffs of their own, he'll hit back even harder. 'Whatever the number you choose to raise them by, will be added onto the 25 percent that we charge,' he said. Trump appears to be going for the scorched-earth strategy once again, even though it didn't work the first time. 'What a way to treat two close American allies and fellow democracies in China's backyard,' the WSJ reacted. But why does he do it? Because negotiations through strength, or bullish threats, is all he knows, the publication adds. 'He's imposing tariffs because he likes them as an economic policy. The U.S. average effective tariff rate when Mr. Trump took office was 2.4%, according to the Yale Budget Lab. As of last month Mr. Trump had cranked that up to 15.6%. How much higher does he want to go?' the board writes. And the effect could be disastrous, it adds, saying that some 'trade might grind to a halt' as a result of the tariffs. Specialized sectors that source machinery and software from these countries can't readily find replacements, it says. This could cause chaos in those industries. More generally, given the volume of trade, the economic backlash could be vast, WSJ adds. Some 8.6 percent of all imports in the U.S. came from Japan and South Korea last year. The board added that the taxes would also limit the productive economy in the U.S. 'Mr. Trump's tariffs on present course would take $300 billion in border taxes from the productive economy this year, and he seems bent on going higher. That's an anti-growth tax increase, and an arbitrary one besides,' it said.
