Sheng Siong Group

[CityFarmer]

Are the any plans by
Sheng Siong to expand abroad?

I think esp for retail stores that targets the lower end consumers like Sheng Siong, it'd be very hard to expand overseas.
There are already players in that market and they'd find it a crowded space.
If they do try to go overseas, Malaysia would be the most logical step as currently, they source most of their products from there.
And if they do try to go overseas, I think the safest and most logical way is via acquisitions and M&As, rather than trying to expand organically.
Unless they've some knowhow or some special competitive edge, it would be hard to displace existing leaders in the mass market space. Having an efficient low cost business model is not necessarily a competitive edge when talking about overseas market, it'd be a different animal compared to singapore. For eg. the consumers may not want this low cost model, the margins may be tighter with regulations etc, or they may not be able to even import this low cost model abroad efficiently



https://thumbtackinvestor.wordpress.com/

Sheng Siong has already gone out to China, and the very 1st store will operate in 4Q2016, in Kumming.

It is tough to go oversea, but a must with a small Singapore market. IMO, there is more room to grow in Singapore, but it will saturate soon, probably in 2017/18. Oversea venture takes time to settle down.

The partnership with LuChen Group, will ensure back-up infra and regulation support, instead of big-ticket infra capex out-front. Sheng Siong approach is very Asia-style, and likely able to fit into local market. Let's see the performance in FY2017.

(vested)