Funeral Providers
Industry Report: Singapore's Funeral Industry
KW Tech Solutions has conducted extensive research into the funeral industry in Singapore, and is proud to publish the compiled results for the benefit of both consumers and the funeral industry at large.
The funeral industry in Singapore has long been a hyper-competitive industry, requiring significant efforts to stand out from the crowd. However, due to societal stigmatization, it has resulted in little professional support from reliable consultants, facilitating the provision of significantly differentiated services.
KW Tech Solutions believe that with the right expert partners, the funeral industry in Singapore can be significantly transformed, allowing for increased value-add provided to the consumers. Some of the opinions and thought leadership provided by KW Tech Solutions has been previously disseminated to the relevant stakeholders of various funeral service providers in Singapore.
Examples of which would include
- Livestreaming to allow for virtual funerals, bridging geographical distances
- Living funerals with video editing, transforming grief to remembrance
- Online obituaries to allow for easier memorial services and sharing
- Online condolence flowers purchasing to facilitate convenience for end users
- Digital systems to allow for automated, proactive customer memorial reminders
- Eco-Friendly funeral offerings to help the sustainability drive in Singapore
- Trauma cleaning to help provide a comprehensive solution for unexpected home deaths
- Professional grief coaching integration to help customers deal with trauma
- Subscriptions to grave cleaning services with video proof, ensuring ease of mind
Key Takeaway
Funeral Service Provider
| Group | % of Residents in Singapore - 2020 | Minimum number of independent (or groups of affiliated) funeral service providers, identified as being able to provide funeral products |
|---|---|---|
|
Buddhist and Taoist |
39.9% |
21 |
|
Free Thinkers |
20.0% |
10 |
|
Christian and Catholic |
18.9% |
21 |
|
Islam |
15.6% |
15 |
|
Hinduism |
5.0% |
13 |
- 3 biggest players combined has over 25% of the market share
– The biggest point of consideration (surveyed) for consumers is cost
– Without perceived differentiation, profits will erode over time - High Competition
– Over 300 companies competing for approximately 60 to 80 deaths a day
– Only 82% engages funeral service providers.
– There are effectively 6 players competing for each customer - Low Barriers To Entry
– There are only 26 registered funeral parlours in Singapore
– Over 300 service providers, many without an office or shopfront - Limited Differentiation
– Most players do not invest significantly into differentiating their products
– Governmental authorities call the service offering “homogenous” - Post or close to death sales prioritised
– Lesser considerations and research
– Lesser comparison between providers
– Easier to upsell products and services
– Prioritises professionalism over requirements
– Training is key to ensure sales closure
Consumers Of Funeral Services
Final Price Paid By Consumers For At-Need Funeral Arrangements (2018 to 2020)
| Below $1,000 | $1,000 to $4,999 | $5,000 to $8,999 | More than $9,000 |
|---|---|---|---|
|
1% |
45% |
22% |
32% |
Main Considerations (Ranked out of ~500 responses)
- Price
- Reputation
- Expertise
- Comprehensiveness
- Customization
- Integrity
Main Complaints, affecting word-of-mouth potential
- Being upsold items without being told the price
- Having to coordinate with vendors directly
- Not being serviced properly as a “one-stop-shop”
- Omission or unclear presentation of billable items
- Bypassing appointed point of contact, to upsell items
Trends For The Funeral Industry
- Increasingly “self-sourced” (digital)
Growing proportion of the population rely on searching for providers as opposed to relying on traditional recommendations. This is especially prevalent among the younger generation. - Pre-Death Planning
There has been a growing trend towards being increasingly comfortable talking about death and funeral planning. This trend has been further pushed through community events and education materials. - Digitalisation
“My Legacy” under “LifeSG” are among the tools released by the government targetting this space. Furthermore, there are further governmental conversations regarding expanding the services to include pre-planning funeral arrangements and educational materials. - Transparent Pricing
There has been a strong push towards net pricing, without hidden price. A strong emphasis has been placed on removing practises such as red packets and drip pricing to ensure price transparency. - “Green Funerals”
Sustainability and eco-friendliness is an emerging trend, which also happens to be a key point pushed for by the government. This has translated to an up tick in demand for means of promoting “greenness”, even in the funeral industry. - Increasingly Homogenous Offerings
Product and service offerings has been noted to be increasingly similar, resulting in an inability to compete on factors other than price, depressing profits across the industry.
Detailed Research
Should you require a detailed research for your business or industry, feel free to contact us. You may also view the above information as a PowerPoint, in the link below.
Verified As Of May 2024
