SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT DM ASIA 2006, THURSDAY, 22 JUNE 2006, 9.20 AM, SUNTEC SINGAPORE
Mr Dominic Powers, Chairman, DM Asia 2006
Ms Lisa Watson, Chairman, Direct Marketing Association of Singapore
Mr Frankie Chia, President, Gifts Association Singapore
Ladies and Gentlemen
Introduction
I am delighted to be here this morning at the opening of DM Asia 2006, the largest annual gathering for the direct marketing industry in Asia.I understand that this event is now in its 9th year.We are happy that an event of this stature was founded, nurtured and has now achieved its current status right here in Singapore.
This is of particular significance because this is a good time to be a direct marketer in Singapore.Some may say that it’s getting harder to satisfy the increasingly demanding customers of today, but I believe there are many opportunities for the direct marketing industry for three reasons.
Singapore’s thriving business environment
First, we are enjoying a thriving business environment.The Singapore economy is doing well with the latest projection being GDP growth of between 5 to 7%.In addition, the inflation rate of 0.5% last year is lower than anywhere else in Asia outside of Japan.
We also have exciting new projects in the pipeline, including the Integrated Resorts in Marina and Sentosa. The Marina Bay Sands will bring in more than $5 billion in total investment and generate 30,000 jobs throughout the economy by 2015.
Diverse Channels of Communication
Second, the direct marketing industry has been able to grow stronger by tapping a variety of communication channels.We have seen the development and growth of both new as well as existing marketing channels.
One important new marketing channel is the Internet.Given the high Internet penetration rate of 75%[1] in Singapore, marketers are leveraging on the Internet as both a core customer communications medium, as well as a supporting one.Indeed, it is rare today to see a print ad without a URL to direct customers to the web for more information.E-commerce is also becoming increasingly popular, with 27% of internet users shopping online today.According to IDA, each Internet shopper spent an average of $1,068 online in 2005.
Existing marketing channels such as the telephone has also grown in importance.The use of telemarketing, together with SMS or mobile marketing has also entered the Singapore marketing landscape more recently, and this could be another highly effective marketing tool if proper business practices are upheld.
Perhaps most surprisingly in today’s digital world is that Direct Mail, the traditional core of direct marketing disciplines, is more alive and kicking than ever.In fact, SingPost reported revenue growth of 7.6% in FY05/06 over FY04/05 in the mail sector. Bulk mail volumes are also up almost 7% year on year.
Each of these different channels, coupled with the various combinations, present tremendous opportunities for marketers in reaching, servicing, and retaining their customers.
High Levels of Consumer Trust
The third cue marketers in Singapore should take advantage of is that consumers here remain remarkably receptive to marketing efforts. Indeed, direct marketing plays an important role in our economy. Other than making the marketplace vibrant, it also helps consumers choose the products and services that are best for them. Therefore, it is crucial to appreciate and safeguard the high level of trust customers have in the direct marketing industry
Maintaining Consumer Trust
The foundation of direct marketing is based on consumer data, such as the consumer’s preferences, profile, purchasing habits, and most importantly who the consumer is, so that relevant commercial information and opportunities can be customized and directed to each individual.As a result, the best direct marketers are actively collecting, storing and using consumer data on a large scale to ensure the best possible customer experience.
However, recent incidents involving the misuse of personal data have raised apprehensions amongst Singaporeans.To address these concerns, the Government has appointed an inter-ministerial committee to review the matter of privacy, and we expect to see their recommendations before the end of the year.I believe the industry also has an important role in this.For example, the industry should be responsible in maintaining the delicate balance between the consumer’s desire for personalised and customised services viz-a-viz their concerns on abuse of personal details.
Therefore, I call upon the DMAS to step up its efforts to match the proliferation of media with more media-specific guidelines, and also extend its code of practice to define best practices in the area of the collection, storage and use of consumer data to maintain the trust that consumers place on the industry.
Conclusion
To conclude, conditions are good for our direct marketing industry.Our economy is thriving, technology is driving new means of reaching out to customers, and trust among consumers is high.I urge all of you to harness and safeguard these resources as you drive your businesses forward.
I wish you all a very successful conference.Thank you.
Ms Lisa Watson, Chairman, Direct Marketing Association of Singapore
Mr Frankie Chia, President, Gifts Association Singapore
Ladies and Gentlemen
Introduction
I am delighted to be here this morning at the opening of DM Asia 2006, the largest annual gathering for the direct marketing industry in Asia.I understand that this event is now in its 9th year.We are happy that an event of this stature was founded, nurtured and has now achieved its current status right here in Singapore.
This is of particular significance because this is a good time to be a direct marketer in Singapore.Some may say that it’s getting harder to satisfy the increasingly demanding customers of today, but I believe there are many opportunities for the direct marketing industry for three reasons.
Singapore’s thriving business environment
First, we are enjoying a thriving business environment.The Singapore economy is doing well with the latest projection being GDP growth of between 5 to 7%.In addition, the inflation rate of 0.5% last year is lower than anywhere else in Asia outside of Japan.
We also have exciting new projects in the pipeline, including the Integrated Resorts in Marina and Sentosa. The Marina Bay Sands will bring in more than $5 billion in total investment and generate 30,000 jobs throughout the economy by 2015.
Diverse Channels of Communication
Second, the direct marketing industry has been able to grow stronger by tapping a variety of communication channels.We have seen the development and growth of both new as well as existing marketing channels.
One important new marketing channel is the Internet.Given the high Internet penetration rate of 75%[1] in Singapore, marketers are leveraging on the Internet as both a core customer communications medium, as well as a supporting one.Indeed, it is rare today to see a print ad without a URL to direct customers to the web for more information.E-commerce is also becoming increasingly popular, with 27% of internet users shopping online today.According to IDA, each Internet shopper spent an average of $1,068 online in 2005.
Existing marketing channels such as the telephone has also grown in importance.The use of telemarketing, together with SMS or mobile marketing has also entered the Singapore marketing landscape more recently, and this could be another highly effective marketing tool if proper business practices are upheld.
Perhaps most surprisingly in today’s digital world is that Direct Mail, the traditional core of direct marketing disciplines, is more alive and kicking than ever.In fact, SingPost reported revenue growth of 7.6% in FY05/06 over FY04/05 in the mail sector. Bulk mail volumes are also up almost 7% year on year.
Each of these different channels, coupled with the various combinations, present tremendous opportunities for marketers in reaching, servicing, and retaining their customers.
High Levels of Consumer Trust
The third cue marketers in Singapore should take advantage of is that consumers here remain remarkably receptive to marketing efforts. Indeed, direct marketing plays an important role in our economy. Other than making the marketplace vibrant, it also helps consumers choose the products and services that are best for them. Therefore, it is crucial to appreciate and safeguard the high level of trust customers have in the direct marketing industry
Maintaining Consumer Trust
The foundation of direct marketing is based on consumer data, such as the consumer’s preferences, profile, purchasing habits, and most importantly who the consumer is, so that relevant commercial information and opportunities can be customized and directed to each individual.As a result, the best direct marketers are actively collecting, storing and using consumer data on a large scale to ensure the best possible customer experience.
However, recent incidents involving the misuse of personal data have raised apprehensions amongst Singaporeans.To address these concerns, the Government has appointed an inter-ministerial committee to review the matter of privacy, and we expect to see their recommendations before the end of the year.I believe the industry also has an important role in this.For example, the industry should be responsible in maintaining the delicate balance between the consumer’s desire for personalised and customised services viz-a-viz their concerns on abuse of personal details.
Therefore, I call upon the DMAS to step up its efforts to match the proliferation of media with more media-specific guidelines, and also extend its code of practice to define best practices in the area of the collection, storage and use of consumer data to maintain the trust that consumers place on the industry.
Conclusion
To conclude, conditions are good for our direct marketing industry.Our economy is thriving, technology is driving new means of reaching out to customers, and trust among consumers is high.I urge all of you to harness and safeguard these resources as you drive your businesses forward.
I wish you all a very successful conference.Thank you.
[1] Total residential Internet dial-up and broadband subscribers per resident population aged 15 years and above.