Challenger Technologies

(22-06-2014, 04:33 AM)theasiareport Wrote:

(16-06-2014, 11:08 AM)kopitescouser Wrote: With challenger everywhere in Singapore and over 500k members and a profitable business with no debt. What are the chances of a takeover by a foreign company or whatsoever. Haha

This is actually an amazing statistic. Singapore has about 5+ million people... so that's slightly under one in ten. Huge network effect.

The only other company I know with an equally impressive customer base is Popular.

No doubt Challenger has a huge membership. However, I doubt whether this members are frequent shoppers. Many ppl sign and renew the membership because of the yearly promo free gifts when you renew for just $30 for 2 years.

Note some of my friends in the past have obtained free $40 e vouchers which we use to buy thumb drives or mouse because they did not spend much over 2 years to enjoy the member's price discount.

This year's promo is not very good because it is 5 x $20 Valore vouchers and for each voucher, you have to buy $40 worth of Valore products each time. Its very hard to buy $200 worth of Valore products with one month's validity

(22-06-2014, 10:30 AM)CY09 Wrote:

(22-06-2014, 04:33 AM)theasiareport Wrote:

(16-06-2014, 11:08 AM)kopitescouser Wrote: With challenger everywhere in Singapore and over 500k members and a profitable business with no debt. What are the chances of a takeover by a foreign company or whatsoever. Haha

This is actually an amazing statistic. Singapore has about 5+ million people... so that's slightly under one in ten. Huge network effect.

The only other company I know with an equally impressive customer base is Popular.

No doubt Challenger has a huge membership. However, I doubt whether this members are frequent shoppers. Many ppl sign and renew the membership because of the yearly promo free gifts when you renew for just $30 for 2 years.

Note some of my friends in the past have obtained free $40 e vouchers which we use to buy thumb drives or mouse because they did not spend much over 2 years to enjoy the member's price discount.

This year's promo is not very good because it is 5 x $20 Valore vouchers and for each voucher, you have to buy $40 worth of Valore products each time. Its very hard to buy $200 worth of Valore products with one month's validity

That's a very valid point. It would be great to see a breakdown of how the average customer spend per member. Will try to ask it at the AGM next FY.

I would argue that that's what would form its competitive advantage (idea of reliability) over a random store.

Challenger is probably trying to promote its own brand... lets wait till the next FY to see the results of that.

Cheers,
theasiareport

I recently noticed that Valore seemed to be opening their own retail shop (Still under renovation at Tampines Mall), is this under Challenger as well? What's the relationship between Valore and Challenger?
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(23-06-2014, 02:53 PM)muns Wrote: I recently noticed that Valore seemed to be opening their own retail shop (Still under renovation at Tampines Mall), is this under Challenger as well? What's the relationship between Valore and Challenger?
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Finding the Value in a Speculative World
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Valore is challenger home brand. Wholly owned subsidiary. The staffs are the same, interchangeable. So valore is challenger, challenger is valore. It's almost like that. Valore at tampines mall will be fun. Opened just outside courts. Hahaha. But honestly challenger stuff cheaper than courts. They got economies of scale


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I passed by Valore store at NorthPoint on busy Sunday afternoon, and I saw only 1 staff and no other peoples. I visit NorthPoint almost every week, if consider buying computers/electronics, I would go for Harvey Norman rather than the newly opened Valore. The mindset is simple, Harvey Norman has been a well established name versus Valore, some more you get more choices and wider product range in HN. I hilariously told my wife that I drop the idea of buying their shares after seeing the response of Valore. Seriously what do you guys think of Valore in terms of its products review as well as financial impact to the company as a whole?

Just a thought. Mr Loo Leong Thye has over 30 years of experience leading Challenger... and he has a solid track record. I doubt that he's going to drain all the resources of Challenger of Valore if it doesn't work out. At the same time, as a businessman, he needs to take certain risks to expand the business.

If it doesn't work out, he can eventually close it down (like Prologue and Borders). What's important in my view is the core brand of Challenger. If Valore pans out, that's great. If it doesnt, Challenger will probably continue to hum along in the future.

Cheers,
theasiareport

(23-06-2014, 04:27 PM)valuebuddies Wrote: I passed by Valore store at NorthPoint on busy Sunday afternoon, and I saw only 1 staff and no other peoples. I visit NorthPoint almost every week, if consider buying computers/electronics, I would go for Harvey Norman rather than the newly opened Valore. The mindset is simple, Harvey Norman has been a well established name versus Valore, some more you get more choices and wider product range in HN. I hilariously told my wife that I drop the idea of buying their shares after seeing the response of Valore. Seriously what do you guys think of Valore in terms of its products review as well as financial impact to the company as a whole?

I guess you didn't drop by to have a look on their products.

Valore and Harvey Norman selling different products, and hardly comparable.

(vested)

(23-06-2014, 04:59 PM)CityFarmer Wrote:

(23-06-2014, 04:27 PM)valuebuddies Wrote: I passed by Valore store at NorthPoint on busy Sunday afternoon, and I saw only 1 staff and no other peoples. I visit NorthPoint almost every week, if consider buying computers/electronics, I would go for Harvey Norman rather than the newly opened Valore. The mindset is simple, Harvey Norman has been a well established name versus Valore, some more you get more choices and wider product range in HN. I hilariously told my wife that I drop the idea of buying their shares after seeing the response of Valore. Seriously what do you guys think of Valore in terms of its products review as well as financial impact to the company as a whole?

I guess you didn't drop by to have a look on their products.

Valore and Harvey Norman selling different products, and hardly comparable.

(vested)

Absolutely YES! It don't even draw my attention at all. I like to shop quietly when no one following my steps, that the reasons why I only visit the crowded shops

Hmm. Maybe can visit more stores before setting a judgement on the brand selling influence on the masses? There is also risk of misconception that if I don't like a brand / product most ppl wouldn't either.

😇天堂与地狱😈就在当下

(23-06-2014, 03:15 PM)kopitescouser Wrote:

(23-06-2014, 02:53 PM)muns Wrote: I recently noticed that Valore seemed to be opening their own retail shop (Still under renovation at Tampines Mall), is this under Challenger as well? What's the relationship between Valore and Challenger?
________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

Valore is challenger home brand. Wholly owned subsidiary. The staffs are the same, interchangeable. So valore is challenger, challenger is valore. It's almost like that. Valore at tampines mall will be fun. Opened just outside courts. Hahaha. But honestly challenger stuff cheaper than courts. They got economies of scale


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Thanks for clarifying! Appreciate it

Will check them out when they are open!
________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com