01  | WHY Singapore

For Chinese companies, this unique island nation is not only a gateway into Southeast Asian markets, but also a preferred choice for global expansion. This is thanks to Singapore's many advantages: well-developed urban infrastructure, a top-tier talent pool, and a business-friendly policy environment. Add to that its strategic geographic location and advanced economic structure, and it's not hard to see why Singapore has become the ideal destination for international marketing efforts, despite its relatively small land area.

Singapore has achieved something of an economic miracle, rising over the decades to become a vital hub for the global economy and international trade. Against the backdrop of increasing globalisation and intensifying market competition, many businesses have set their sights on the Singaporean market. However, establishing a strong brand reputation in this highly competitive, international market is far from easy.

02  | Positioning Determines Success

Though small in size, Singapore is wealthy, highly international, and home to a diverse consumer base. With a population that is well-educated and has strong purchasing power, consumers in Singapore have high expectations of brands in terms of quality and service. Furthermore, the market places great importance on trust, favouring brands with strong reputations and guaranteed quality. This underscores the importance of cultivating a positive brand image when planning a market strategy for Singapore. It also indicates that brands must invest resources in building their image, increasing awareness, and establishing credibility in order to secure a foothold in this competitive market.

In light of these conditions, it is wide to adopt effective marketing strategies that emphasise localisation.

Once a brand enters the Singaporean market, it needs to develop a series of marketing plans to increase its visibility and attract customers. During this process, aligning with Singapore's culture and values is essential in order to shape a favourable brand image. Brands need to ensure that their messaging resonates with local sensibilities by closely integrating with the local culture. At the same time, given the country's diverse cultural background, it is crucial for brands to avoid offending cultural sensitivities when crafting marketing content.

Therefore, a deep understanding of the target market and its cultural context is vital for brands. By aligning with Singapore's unique characteristics and values, brands can win consumer trust and recognition. Additionally, leveraging important local festivals and celebrations as marketing opportunities should not be overlooked during the promotional process.

03  | Digital Marketing Insights

Singapore is a highly digitalised market, with an internet penetration rate of 96% and smartphone penetration nearing 98%. This makes it extremely convenient for brands to increase their exposure through digital channels such as social media, search engines, content marketing, targeted advertising, and influencer marketing.

In today's digital era, social media platforms have become essential channels for business promotion and brand building. As of January 2024, Singapore had 5.13 million social media users, accounting for 85.0% of the total population. WhatsApp, Facebook, and Instagram are the most popular platforms among internet users, with penetration rates ranging from 60% to 74.7%.

TikTok, in particular, is emerging as a rising star in the Singaporean market, thanks to its unique short video content and growing user base. The platform is especially popular among the 15-to-35 age group, offering companies a direct channel through which to engage creatively and vividly with their target audience. Additionally, private traffic platforms such as Instagram are widely used for brand promotion and interactive marketing, helping brands connect closely with their audiences. Similarly, Chinese platforms like WeChat and Xiaohongshu (RedNote) also hold considerable influence in Singapore.

Notably, young consumers in Singapore aged 18 to 35 not only possess strong purchasing power, but also readily embrace emerging trends. They often rely on social media to make purchasing decisions. This internet-driven consumption model allows brands to quickly reach their target audience through live streaming and social media, driving sales conversions. This dynamic also makes Singapore's live-streaming e-commerce market highly attractive.

04  | Case Studies

Haidilao's Localisation Strategy in Singapore

Since entering the Singapore market in 2012, Haidilao Hot Pot has successfully opened 19 outlets in the country, quickly becoming a leading brand for Chinese cuisine in Singapore. Its success can be attributed to its comprehensive localisation strategy.

1.Operations: To better integrate into the Singaporean market, Haidilao set up a central kitchen specialising in the processing and production of meat and vegetable ingredients. For other ingredients, it has adopted a procurement model that collaborates with local supply chains.

2.Product Range and Services: Haidilao has embraced Singapore's diverse culinary culture by introducing dishes with Malaysian and Indian flavours, catering to the varied tastes of local consumers.

3.Marketing Strategies: Haidilao demonstrated an impressive localised marketing approach. It launched a TikTok campaign featuring 3D-effect stickers, including a customised “Little Haidilao” (“小捞捞”) Peking opera mask sticker for Singapore, allowing consumers to experience the charm of traditional Chinese culture up close. This initiative successfully blended Chinese aesthetics with local elements. Additionally, Haidilao often leverages festive trends on its Facebook page (HaidilaoSingapore) to run creative campaigns that engage fans, offering generous rewards and perks. These efforts not only boost brand recognition, but also strengthen customer engagement and loyalty.

Through a robust localisation strategy, Haidilao has firmly established itself in the Singaporean market. Its premium service approach has not only resonated with local consumers, but also elevated the overall image of Chinese cuisine, significantly increasing Singapore's acceptance and enthusiasm for Chinese dining.

Luckin Coffee's Singapore Playbook

In March 2023, Luckin Coffee entered the Singapore market by opening nine stores in prime business districts, landmark buildings, and shopping centres, including Changi Airport. Singapore's strong coffee culture, especially among the younger demographic, has made Luckin Coffee widely popular, attracting locals, Chinese tourists, and global travellers alike.

Luckin's strategy in Singapore can be summarised as “premium positioning and high impact”:

1.Marketing Strategy: Before opening its stores, Luckin created buzz on influential Southeast Asian platforms like Xiaohongshu (RedNote) by running countdown campaigns, reinforcing its brand image as a company that had “sold 300 million cups in two years.” After launching, Luckin attracted consumers by offering perks such as a first cup for new users priced at just 0.99 SGD, as well as discount vouchers, sparking significant local interest.

2.Product Range: The store menu replicates the “classic coffee + signature products” combination found in its domestic stores. This includes Master Coffee, SOE (Single Origin Espresso) Black Cup, Luckin Ice, and signature drinks like Coconut Latte, Velvet Latte, and Thick Milk Latte. Thanks to similar taste preferences and cultural atmosphere, these high-quality drinks, which are popular in China, have been equally well received in Singapore. This has enabled Luckin to confidently set an average drink price of over 7 SGD (approximately 36 RMB).

Overall, Luckin Coffee has broken the traditional chain model by leveraging mobile internet and big data to build a new retail approach that offers consumers high-quality, convenient, and cost-effective coffee. The enthusiastic response to its new stores in Singapore further proves the effectiveness of this competitive system in overseas markets as well.

05  | Opportunities and Challenges Coexist

While the Singaporean market undoubtedly holds immense potential, it also comes with its fair share of challenges.

Firstly, as a hub for international brands, the market is highly competitive. For brands to stand out, they must have precise positioning and offer products or services that are different from those of their competitors. Additionally, costs in Singapore, including rent, labour, and marketing expenses, are generally high, which can put considerable pressure on new entrants.

Secondly, Singapore is a market with a well-established legal system and rigorous regulatory framework. Brands entering the market must strictly comply with local laws and commercial guidelines, and gain a thorough understanding of trade policies, intellectual property protection, and other market rules in order to ensure compliance.

Looking ahead, the Singaporean market will continue to develop, and consumer demands will evolve. To maintain a competitive edge and stay relevant, brands must keep pace with market trends, embrace innovation, and adapt their strategies with agility.