More recently, British health and wellness brand Holland & Barrett announced its exit from Singapore on Mar 10 after 16 years in the country, closing all its 12 outlets.
Japanese lifestyle store Hands, formerly known as Tokyu Hands, also shut its Jewel Changi Airport outlet on the same day. Three outlets remain in Singapore, down from its original six.
Jewel Changi Airport also bid farewell to Burger & Lobster this month. The sole Singapore outlet of the famous London restaurant specialising in lobster rolls and burgers was one of the longest-running stores at the mall since its opening in 2019.
Also in February, another beloved British retailer Marks & Spencer shut its Parkway Parade store after more than two decades at the mall.
Never mind the varied products and services, locations or customer demographics, the main culprit in each scenario was invariably rent, commenters concluded. The unspoken assumption was that alleviating the burden of rent, often seen as the main operating cost, would help a business stay afloat longer.
But rent is hardly unique to businesses that have shuttered. Though it might ultimately be the catalyst behind a company’s demise, it rarely seems to be the sole cause.
After all, certain international brands seem to have found the elusive formula to succeed in Singapore – for now.
ADAPTING TO LOCAL PREFERENCES
An expert in retailers and urban economics pointed to IKEA, Don Don Donki, Haidilao and Shake Shack as standout success stories in Singapore – largely due to their adaptability.
These brands have “stayed true to their core value proposition” while embracing local preferences, Assistant Professor Li Zhonglin from the National University of Singapore Business School told CNA Lifestyle.
“International chains must maintain their global brand identity with local demands, factoring in cultural preferences, high costs, strong competition and an expanding e-commerce landscape. (But) over-localising can blur a brand’s essence, while remaining too rigid may alienate local customers.”
For example, Sweden’s Ikea retains its “budget-friendly furniture focus” and supplements it with “locally inspired menu items”, Asst Prof Li said.
China’s Haidilao, “renowned for its exceptional service”, customises its hotpot soup bases to suit Singaporean taste buds.
Similarly, American burger joint Shake Shack has “regionally inspired offerings”, which are vital to its long-term appeal.
Japan’s Don Don Donki, meanwhile, targets a “specific niche with a sizeable following” – those with a keen interest in Japanese snacks and household goods at “wallet-friendly prices”. (It doesn’t hurt either that the essence of Don Don Donki cannot be replicated online.)
And as novelty goes, there will always be a market. While we lament the lack of longevity in our retail and dining scenes, perhaps we too contribute to the churn by constantly seeking the next big brand to understand the Singaporean psyche.
“With digitalisation, analytics and accessibility, businesses can see the cause-and-effect and improve their offering, promoting rapid consumption and shorter product life cycle,” said Dr Lynda Wee, an adjunct associate professor of marketing from Nanyang Technological University.
“This cultivates restless customers who are keen to explore the next interesting thing. Hence, new and exciting offers emerge.”
