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Personal observation: Singapore is a unique market due to its geography and history. Due to how our housing is structured, there is a supermarket in the vicinity of 5km (except for landed residence). This makes grocery shopping an accessible activity unlike most other countries.
Effectively, this makes it difficult for the local online grocery to be thriving with a multitude of players. If NTUC/ShengShiong venture into this space, it becomes crowded and these two have the added advantage of possessing the distribution ad logistics network. So unless Sheng Shiong/NTUC decide to drop out, Honestbee and Remart will continue to make losses. The same applies to Sheng Shiong and NTUC as well; with this online retailers still being in the market, the online commerce sector will not be a new growth area for them
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My personal experience. My wife is a regular customer of redmart. The nearest NTUC is 10min walk away from us. Not only that, we have to wrestle with the huge crowds of pp to get our stuff. After that still have to endure the long queue to pay for our stuff. Even self help payment queues are very long. Unless I retire and have the time to waste, I will still agree with my wife decision to use redmart. The good thing about redmart is the min spend requirement is much lesser compared to other online grocery retailer.
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Online makes sense if is not easy to access to buy groceries and which then they could achieve critical mass to support the business. I think is very hard for it to work in Singapore considering there are already different tiers of supermarkets available to the population matching to location affordability. And their locations are pretty well thought out with just enough overlap to promote some competitions.
In situation where it makes sense to go online, reputation is very important as we can't feel the product. After a few bad experiences or issues, i would probably not try again for a long time.
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Redmart did $27 million in sales in last FY, registering a 181% sales growth rate.
Assuming they maintain the same 181% sales growth rate, they'd do about $76 million in sales in current FY.
If they maintain the same 181% sales growth rate for the next FY, they'd do about $214 million in sales for the next FY, which is 28% of Sheng Siong's FY2015 sales.
If we assume that sales growth rate downshifted towards a more reasonable 100% for Redmart's next FY, they'd be doing about $152 million in sales, which is about 20% of Sheng Siong's FY2015 sales.
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(17-09-2016, 10:42 AM)getrich Wrote: Redmart did $27 million in sales in last FY, registering a 181% sales growth rate.
Assuming they maintain the same 181% sales growth rate, they'd do about $76 million in sales in current FY.
If they maintain the same 181% sales growth rate for the next FY, they'd do about $214 million in sales for the next FY, which is 28% of Sheng Siong's FY2015 sales.
If we assume that sales growth rate downshifted towards a more reasonable 100% for Redmart's next FY, they'd be doing about $152 million in sales, which is about 20% of Sheng Siong's FY2015 sales.
Redmart maintained its operating loss margin of 78% for FY14 and FY15. Assuming they maintain the same 78% operating loss margin, they'd lose about 59mil in current FY.
If they maintain the same 78% operating loss margin for the next FY, they lose about $166 million for the next FY, which seems like they will never catch up to Sheng Siong's profitability.
If we assume that operating loss margin downshifted towards a more reasonable 50% for Redmart's next FY, they'd be losing $118 million, which will still put them fat from Sheng Siong's profitability.
I reckon this sounds pretty simplistic, but i can't help it 
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I was about to ask who is the key backers for redmart and then did a google. They do have large sum of money to burn quarterly. Interestingly I saw big names.
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(17-09-2016, 07:29 PM)corydorus Wrote: I was about to ask who is the key backers for redmart and then did a google. They do have large sum of money to burn quarterly. Interestingly I saw big names.
I love RedMart as a "user" not as an investor. I think they are burning money now to gain market share.
Some of their stuff I'm like wondering how can they make money... selling cheaper than Sheng Siong 
I use them quite often. But i only buy the stuff that I hate carrying from the supermarket... stuff that can't go wrong. Like tissue papers, diapers, shampoo, etc. If you really want to save like 10- 30 bucks each time you shop with them, create a new email address each time. hahaha I hope this is not why they are bleeding...
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i think that's a hole they have to plug, register new account each time to enjoy their 1st time discount voucher! 
same time Redmart will claim they have 10 millions users, (abeit with 1 time purchase only)
no wonder they are burning money!! 
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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RedMart's team, is calling a quit, or the early investors are calling a quit?
Online grocer backed by Facebook billionaire said to seek buyer
SINGAPORE (Sept 20): RedMart, the Singapore online grocer backed by billionaire Facebook Inc. co-founder Eduardo Saverin, is seeking a buyer as competition intensifies in the city-state, people with knowledge of the matter said.
RedMart is working with an investment bank on options including a possible sale of the grocer, which delivers products ranging from fresh dragonfruit to frozen dumplings, according to the people. The company has reached out to potential buyers including Singapore supermarket chain NTUC Fairprice Co-operative Ltd. to gauge their interest, the people said, asking not to be identified as the talks are private.
...
http://www.theedgemarkets.com.sg/sg/arti...seek-buyer
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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20-09-2016, 09:51 PM
(This post was last modified: 20-09-2016, 09:51 PM by newborn1000.)
Not to mention NTUC etc has loyalty discounts.......Its hard to compete in FCMG section
All the cashiers gives me a strange look when I produce a member card =(
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