Is there any good consumer product stock in SGX

Super Group and... Challenger (can be classified as consumer product?)...

(22-07-2016, 08:54 AM)lkw175 Wrote: Super Group and... Challenger (can be classified as consumer product?)...

You got right on super group. Especially their owl brand. Challenger is not i think.

(22-07-2016, 08:58 AM)corydorus Wrote:

(22-07-2016, 08:54 AM)lkw175 Wrote: Super Group and... Challenger (can be classified as consumer product?)...

You got right on super group. Especially their owl brand. Challenger is not i think.

Although I mention Super... but I m not vested in it.... patiently waiting for a lower entry...

I think their management is putting in efforts to grow the owl brand..

You can take a look at QAF as its bakery business is a strong cash cow contributing to 80% of its operating profit in 2015. QAF has been consistently generating positive free cash flow for the past few years. You may wish to read more at my blog, http://thatlosthorse.blogspot.sg/

Not vested but in my shortlist

yccheok, what about KAREX and Spritzer on your home turf, Bursa?

imo among the best best fmcg products in the world are alcohol and cigarettes.

These are the only things in the world that costs dirt cheap to grow in the ground, process with very little modification and sell at high prices all of it legally to boot, people have been drinking since forever, tobacco been around since 16th century very little has changed.

Bursa BAT been around since my grandfather time, it will pay dividend prices go up split, go up again split, just put money there and forget it. I think long after we gone they still be around. Pity BAT delisted from singapore in the 90's.

Side OT a bit.

Did you know it was reported the company Apple made 100 billion profit some time ago from world wide sales.

But in 2012 china tobacco made 170 billion just selling cigarettes locally in china and that's after a whopping 47% tax so actually they made close to usd300 billion before tax

and all the big china tobbaco companies are in privately hands, they generate so much profit dunno what to do with it, so use it to buy hotels golf courses etc ...

https://www.fool.sg/2016/01/20/the-bigge...ck-market/

I have been vested in Dairy Farm since 2003.  Unfortunately, the share price has been disappointing in the last few years.

The business model at first glance is quite recession proof. Supermarkets (Cold Storage, Giant, Market Place), convenience stores (7-11), health and beauty (Guardian).  Of note, in HK/Taiwan they run the Wellcome chain and also Ikea franchise, both very popular consumer businesses.

Locally, scuttle butt seems to indicate that competition is stiffening with "dollar shops" in the heartlands (eroding convenience stores and low end supermarkets like Giant), while the other segments of the supermarket industry is facing competition from NTUC (hypermart like Giant face-off with NTUC Extra; high-end groceries like Cold Storage facing off with NTUC Finest; and low-end groceries like Giant facing off with Sheng Siong). Guardian is also facing stiff competition from Watsons and Unity.

However, being a big player, there are economies of scale in their procurement and distribution network, that is an advantage they have over smaller players. NTUC remains the biggest player and the most formiddable rival.

A brief comment on Dairy Farm.

Economic of scale, isn't the ONLY moat of grocery retailers. The management needs high skill on customer management, and able to set fair prices. Tesco, is the U.K largest retailer, and was facing "issues", and on a recovery path now with a new CEO Dave Lewis.

http://www.bbc.com/news/business-30886632

Dairy Farm's share price performance, might due to the similar Tesco's issues i.e. high debt, and losing touch with their customers, with an slowly eroding operating margin.

(not vested, but monitoring as competitor of vested Sheng Siong)

(26-07-2016, 04:35 PM)CityFarmer Wrote: A brief comment on Dairy Farm.

Economic of scale, isn't the ONLY moat of grocery retailers. The management needs high skill on customer management, and able to set fair prices. Tesco, is the U.K largest retailer, and was facing "issues", and on a recovery path now with a new CEO Dave Lewis.

http://www.bbc.com/news/business-30886632

Dairy Farm's share price performance, might due to the similar Tesco's issues i.e. high debt, and losing touch with their customers, with an slowly eroding operating margin.

(not vested, but monitoring as competitor of vested Sheng Siong)

Strictly speaking, customer mgt and ability to set fair prices aren't really economic moats as per textbook (theory) definition.
But heck, it is the practice that we care about!

(26-07-2016, 08:25 PM)weijian Wrote:

(26-07-2016, 04:35 PM)CityFarmer Wrote: A brief comment on Dairy Farm.

Economic of scale, isn't the ONLY moat of grocery retailers. The management needs high skill on customer management, and able to set fair prices. Tesco, is the U.K largest retailer, and was facing "issues", and on a recovery path now with a new CEO Dave Lewis.

http://www.bbc.com/news/business-30886632

Dairy Farm's share price performance, might due to the similar Tesco's issues i.e. high debt, and losing touch with their customers, with an slowly eroding operating margin.

(not vested, but monitoring as competitor of vested Sheng Siong)

Strictly speaking, customer mgt and ability to set fair prices aren't really economic moats as per textbook (theory) definition.
But heck, it is the practice that we care about!

Retailing is more of an art than science, IMO. Go against text book practice, isn't always a bad thing. I am still learning on success story on retailing. I would like to highlight a case study of Zara, It has gone against few basic text book practices, and achieved outstanding success.

- Zara logistic cost per unit is expansive, but it focuses on speed.
- Stock-out, isn't a cost to be minimized, but a conscious strategy
- Retailers are normally asset-light, but Zara owns most of its manufacturing  and supply chain facilities.

https://www.tradegecko.com/blog/zara-sup...il-success

BTW, "customer management" means keeping in touch on customers' needs. Pricing is always an important part in retail biz. Both are standard retailing text book practices, aren't there?