Baby Boomers most loyal to local businesses in Singapore: Amex survey

In a recent survey conducted by American Express (Amex), it was found that the Baby Boomer generation in Singapore emerged as the most significant cohort when it came to frequenting local establishments for shopping. This finding holds great importance as it sheds light on the preferences and behaviors of this specific demographic group.

A study carried out by credit card and payment provider American Express (AMEX) found that individuals belonging to the Baby Boomer generation (aged 58 and older) displayed the highest level of loyalty towards local establishments, in comparison to other age groups.

Based on the findings of the research, published on Monday, a vast majority of respondents (around 95%) stated that they frequently make purchases from nearby establishments, whereas around 43% revealed their tendency to shop from businesses based overseas.

The research findings also indicated that a significant portion of consumers in Singapore, amounting to 55%, recognize the utmost significance of backing local enterprises. This is noteworthy since the study revealed that more than 90% of participants acknowledged frequently purchasing from domestic businesses, surpassing the 71% who confessed to patronizing international counterparts.

The Shop Small Research for Singapore survey, which is the fourth of its kind, was carried out online among 1,005 consumers residing in Singapore who are 21 years old and above.

The poll also unveiled significant variances between different generations, as 63 percent of individuals from the Baby Boomer generation affirmed the high relevance of backing local endeavors, in contrast with 44 percent of Gen Z individuals (those aged 21 to 25), 57 percent of Millennials (aged 26 to 41), and 56 percent of Gen X individuals (aged 42 to 57).

Even though Gen Zs don't have strong emotional connections to local businesses, they are more inclined than Gen Xs and Baby Boomers to pay extra for products from local sources, with 18 percent agreeing compared to 9 percent and 11 percent, respectively. However, the survey findings suggest that Millennials are the most compassionate generation, as they are the most willing to pay a premium for local businesses at 24 percent.

In contrast to previous generations, individuals from Generation Z showed the highest inclination to increase their expenses in 2023 compared to 2022, with a rate of 40 percent. When it comes to dining expenses specifically in 2023, Gen Zs surpass the average of all generations by a substantial margin, standing at 66 percent.

Take a look at: The most appealing enterprises to consider working for in Singapore - Bytedance, SIA, and numerous others included.

Also check out: Creating wealth: More than half of Singaporeans are willing to give up indulgent expenses in order to increase their wealth.

Also check out: Survey finds that the majority, 75%, of Singapore residents desire to uphold the hawker culture due to its affordability.

The biggest proportion of individuals, specifically 81%, belonging to the Baby Boomer generation expressed a sense of pride or a comforting feeling when they come across a Singaporean brand outside of the country. On the other hand, the smallest percentage, which is 67%, of Generation Z individuals conveyed the same sentiment. Similarly, the highest percentage of Baby Boomers, 61%, expressed concern about the potential disappearance of Singapore's heritage businesses within the next ten years. In contrast, the lowest percentage of concern, accounting for 52%, was observed among Generation Z.

In relation to showing concern for sustainability, 36 percent of individuals from the Millennial generation indicated that they would be further motivated to back local enterprises if these businesses offer more environmentally-friendly goods. This percentage contrasts with the 27 percent of Generation Z members, 26 percent of Generation X individuals, and 30 percent of Baby Boomers who share the same viewpoint.

Out of the individuals who would grant local establishments another opportunity following a negative incident, 29 percent cited their intention to aid the local community's sustenance as the primary motive. Gen Xs took the lead among all age groups, with a significant 37 percent expressing the same inclination.

Benefits Of Buying Local

The main factors that influenced the survey participants' decision to support local businesses instead of international ones were ease (68%), affordability (60%), and a more tailored customer service (33%). Additionally, 21% of the respondents were motivated by their intention to sustain connections with the staff or owners of these establishments.

The survey findings also unveiled that the foremost emotion experienced while purchasing from neighborhood enterprises was a sense of tranquility and ease, tallying up to 48%. Subsequently, a feeling of togetherness (40%) and a sense of fulfillment derived from contributing to the community's well-being (40%) came in second place.

Stay connected with us on the social media platforms Facebook, Instagram, TikTok, and Twitter.