Micro-Purchasing

Can you read the teenagers’ mind? Five Below is certainly making big bucks doing so. Five Below is a chain of five-and-dime-type stores for teens where the glittery and right-now-cool items sell for $5 or less. The “micro-purchasing” opportunity – a new concept of making frequent, small purchases – offers thousands of trendy products for teens, as well as pre-teens and other value-minded consumers to buy, all of which are priced between $1.00 and $5.00. This is exactly what teens are looking out for!

By combining exceptional value with trend-right, quality merchandise in a vibrant shopping environment, USA-based Five Below has reinvented the traditional five-and-dime for today’s younger generation, and has launched a new retail category within the specialty discount market. At Five Below, “whatever you got will buy a lot.” (Source: Fivebelow.com)
Cash-strapped teens with high spending desires these days are enticed by the mix of fresh, hot, and trendy stuffs that come cheap. There is no hesitation to purchase merchandise like sporting goods, games, and jewellery, to hobbies and collectibles, novelty and “gag” items, and seasonal items when each item consists of only a small proportion of their budget.

So is this trend of “micro-purchasing” viable in Singapore then?
Young Singaporeans are value-conscious shoppers, but at the same time they are materialistic and would not hesitate to spend large sums of money on branded goods and products. This is especially true for teenagers! Teens today are image conscious and love to shop for clothes, shoes, purses and accessories. CoolBusinessIdeas.com thinks that “micro-purchasing” is a workable concept because it is in congruence with two traits of the typical Singaporean: the ‘Kiasu’ mentality that often drives many Singaporeans to hunt for bargains and the urge to splurge on the ‘In’ things that make one looks cool and fashionable.

So… by supplying really cool and trendy merchandise at really low prices, you’re empowering shoppers to be able afford and purchase anything that is sold in your store! Now you know why the One.99 Shop, U-neek and Bubble Bags concept stores opened by Nanz Chong-Komo (Woman Entrepreneur of the Year 2000) was wildly successful. In her own words: “The crowd is young and their spending power is quite high. And if you want a trendy bag, for instance, you don’t want to spend a bomb because fashion changes so quickly. You’ll just want to buy something nice but affordable.” (Source: newasiawoman.com.sg)
Let’s Get Down To Business…
In the ‘Kiasu‘ and yet trend-conscious society of Singapore, there is strong demand for cheap yet branded goods. Bargain versions of aspirational brands and products are particularly appealing to cash-strapped teens who would love to get them for a “steal”. Taking advantage of this ‘micro-purchasing‘ trend of budget-conscious consumers can definitely increase your revenue dramatically. It’s not just a teens trend; adult shoppers with high purchasing powers these days are also a boon for retailers who sell fresh, trendy and value-for-money items. Cheap yet trendy is the way to go!
Related Ideas & Trends
http://www.fivebelow.com/
http://www.newasiawoman.com.sg/nawbiz/nabw_001109.shtml
http://washingtontimes.com/business/20040511-120531-2583r.htm