Revitalising Singapore's Heartland Merchants

Singapore’s heartland merchants, often family-run shops and small businesses nestled within residential neighbourhoods, are the lifeblood of local communities. These enterprises, ranging from food stalls to convenience stores, have historically relied on foot traffic and word-of-mouth for their customer base. However, as consumer behaviour evolves, these merchants are increasingly looking to modernise their operations to attract a younger, more tech-savvy clientele.

Recent efforts to digitalise heartland businesses have yielded impressive results. According to the government, more than 90% of heartland shops now offer at least one e-payment solution, and about two-thirds have adopted digital tools and platforms such as Google Business Profiles, Carousell, and Shopback. This shift is not merely about keeping pace with technology, but also staying relevant in a competitive market where younger consumers demand convenience and digital engagement.

Beyond digitalisation, these enterprises should strive to evolve their products and services and explore fresh business concepts to stay agile and competitive. Such innovation efforts help businesses to adapt to changing consumer preferences and emerging trends, ensuring long-term sustainability and growth.

Understanding Younger Consumers

Younger consumers today exhibit distinctive shopping behaviors that differ from previous generations. According to research by consultancy McKinsey, these consumers demonstrate less brand loyalty, seek more value yet are willing to pay a premium for high-quality products. They also prefer omnichannel shopping experiences and prioritise sustainability.

To appeal to this demographic, heartland merchants can adopt the following strategies:

1. Enhance Value Propositions: Offer premium products that provide exceptional value can attract younger consumers who are selective about where they spend their money.
2. Omnichannel Presence: Ensure a seamless shopping experience across physical and digital platforms to meet the expectations of this tech-savvy generation.
3. Commit to Sustainability: Integrate sustainable practices and products that resonate with younger consumers who are increasingly concerned about environmental

Leveraging on support and resources for your business

For heartland merchants to enhance their value proposition, they need to be resourceful and try new things. This can sometimes involve taking risks, such as introducing new products or services, which may initially result in higher costs or lost revenue but could ultimately lead to more sustainable growth over the long term. 

Recognising the unique challenges faced by heartland merchants, DBS Bank has introduced a comprehensive Heartland Merchant Banking Package designed to support these businesses on two crucial fronts: reducing operational costs and fostering business growth.

Reducing Cost of Operations

• Multi-Currency Account: This account offers no initial deposit, no minimum balance requirements, and unlimited free local transfers, providing a cost-effective solution for managing finances.
• Select+: Heartland merchants can benefit from up to one year of free insurance coverage against public injuries and property damage, underwritten by Chubb, ensuring peace of mind without additional costs.
• NETS for Business: Special deals on NETS services allow merchants to offer their customers multiple payment options, enhancing convenience and sales opportunities.

Financing Business Growth

• Working Capital Loan: Merchants can access loans with up to 50% off processing fees and flexible repayment schemes, providing essential funding for expansion and operational needs.

Supporting Digital and Sustainability Capabilities 

To meet the growing demands of younger consumers, DBS MAX and the SME Skills Booster Programme enable heartland merchants to stay competitive in a digital-first market while advancing their sustainability goals—helping them build both an omnichannel presence and a responsible business.

• DBS MAX: This comprehensive merchant solution offers a full range of collection solutions, easy reconciliation, and transaction insights, streamlining payment processes and enhancing financial management.
• SME Skills Booster Programme: In collaboration with SkillsFuture Singapore, this programme helps SME business owners and employees develop critical skills in sustainability, digitalisation, cyber wellness, and finance.

As heartland merchants navigate the complexities of modern retail and strive to attract a younger audience, the Heartland Merchant Banking Package provides the necessary tools and support to build resilience and ensure sustainable growth. By reducing costs and supporting business growth, DBS is helping these heartland merchants to not only survive but also thrive in a rapidly changing economic landscape.

For more information, visit DBS Heartland Merchant Banking Package.