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Competition racks up in Singapore’s E-commerce scene

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6 years ago

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Singapore’s e-commerce sales are estimated to reach US$7.4 billion in 2020, according to a report done by BMI Research. They firm said e-commerce players can find growth in the “small but mighty” due to its fully urbanised populations, wealthy consumers, and highly developed logistics networks.

iPrice Group is a meta-search website where Malaysian consumers can easily compare prices, specs and discover products with hundreds of local and regional merchants. iPrice’s meta-search platform is also available in six other countries across Southeast Asia namely in; Singapore, Indonesia, Thailand, The Philippines, Vietnam and Hong Kong. Currently, iPrice compares and catalogues more than 150 million products and receives more than 11 million monthly visits across the region. 

iPrice currently operates three business lines: price comparison for electronics and health & beauty; product discovery for fashion and home & living; and coupons across all verticals. On a regular basis, iPrice Group releases key insights on topics pertaining eCommerce, startups and others. 

A report from Maybank Kim Eng Research Pte released on February estimated Singapore’s online share of total retail sales at 5.4 percent, the highest among Southeast Asia’s five top economies. Malaysia was second, at 2.7 percent. The report signified Singapore’s position as a highly potential market for online shopping.

Being the country with the largest basket size and huge lead in GDP among SEA countries, as reported from State of E-commerce, the attractive market of the small island had lured many of the biggest e-commerce players and SMEs in the region to invest in the local scene. The Map of E-commerce by iPrice released their Q2 results for year 2018 and the updated report showed several interesting insights of the current e-commerce market in Singapore.

Shopee moves up to 3rd place in term of average monthly web visits  

According to the report, Shopee has seen an increase in their ranking and is now at the 3rd place for average monthly web visits. Shopee accumulated an average of 1.8 million visitors during Q2, as taken from SimilarWeb, a digital market intelligence platform.

In Q1 2018, Shopee ranked number 6 in the list, behind eBay, EZBuy and Zalora. However, they managed to climb up the list to number 3, surpassing the previous 3 merchants. Shopee is now behind Qoo10 and Lazada which both ranking at number 1 and 2 respectively on the list.

Adding on to that, Shopee is the only merchant that saw an increase of 3 positions in term of ranking for average monthly web visits in just one quarter, ever since the Map of E-commerce is launched for Singapore in Q3 2017.

In March 2018, just one month before the start of Q2, Shopee launched its new marketplace named China Marketplace aimed to ease cross-border barriers often cited by online shoppers in Singapore. This came after a survey done by the company found that more than 60% of Singaporeans bought products from China at least once a month. “We believe Shopee’s China Marketplace is the perfect solution”, cited Zhou Junjie, Shopee’s chief commercial officer and the country head of Singapore.

Sea, the Singapore technology firm which owns Shopee, has also raised new funds with a total amount of US$575 million during mid Q2 this year. Forrest Li, Sea chairman and group CEO, said that the the additional capital will help Sea to continue to capture the significant growth opportunity ahead of them, particularly in the highly promising e-commerce sector where Shopee is already a regional leader.

Both significant events might be the main drive to such a rapid growth in the ranking on the list. Named as one of Asia’s most effective workspaces by HRMAsia, Shopee also see the highest growth in term of employment rate, with 14% increase in the number of employees as obtained by data 

from Linkedin. The number of employees grew from 391 people in Q1 to 447 people in Q2. “A huge part of our strong growth has been due to the magic that happens when you bring highly motivated, smart people together and give them the space to create.”, quoted Lim Teck Yong, Head of People Team, Shopee.

Amazon Enters the List, Positioning Among Top 15 for Most Visited Sites

Featured on Map of E-commerce for the first time this quarter, one of the world’s biggest retailers, Amazon is positioned among the top 15 for highest average monthly web visits. Amazon ranked at number 13 with a total of 205000 visits for Q2 2018.

Based on data collected from App Annie, Amazon ranked at number 6 for both AppStore and PlayStore. It is also the youngest player in the top 6. The top 5 players are dominated by merchants which entered the market for more than 3 years, as opposed to Amazon which has only been in the market for 1 year.

Last July 2017, Amazon entered with much anticipation into Singapore’s e-commerce scene. The e-commerce giant launched its two-hour delivery service Prime Now in Singapore. “ The country’s density works really well for us,” said Henry Low, Asia Pacific director of Amazon Prime Now. “For the first time, we can launch [Prime Now] and have it open to the entire country at the same time,” Low said.

During mid Q2 this year, Singapore participate for the first time ever for Amazon’s largest sales event, Prime Day. The customers ordered “more items than ever before” during Prime Day – surpassing Cyber Monday, Black Friday and the launch of Prime Now in July 2017 when comparing the same 36-hour period, Amazon said.

The event also welcomed more members in Singapore joined Prime on 17 July than on any other single day since its launch.

Qoo10 and Lazada maintain their lead in web visits and app ranking respectively

Qoo10 is still leading the average monthly web visits, positioning at number 1 with 9.9 million visits this quarter. Cited as one of the earliest e-commerce players in Singapore, Qoo10 has been leading the web visits since Q3 2017 based on the Map of E-commerce. According to CGS-CIMB research, Qoo10 captured the largest market share of Singapore’s online retail sales (value) in 2017 at 32.6%.

Chayadi Karim, research analyst from Euromonitor International said much credit could be given to Qoo10 for establishing itself before the internet shopping “revolution” is taking hold in Singapore as the main reason of its large share in the market. “Qoo10 was in a prime position to take full advantage of the boom in internet retailing”, as told by him in the interview.

On the other hand, Lazada, the Alibaba-backed company, has also been maintaining their position of number 1 for both AppStore and PlayStore ranks. Shopee and Qoo10 are consistently ranking at 2nd and 3rd place respectively.

Anticipation raised for second half of the year in Singapore’s e-commerce scene

The e-commerce competition in Singapore is getting stiffer as players try to increase their market share in the lion city. The rest of the year will see many changes from the players to further sustain and improve their strategy to win the market.

Qoo10, the current leading player in the list, has revealed they will be focusing a lot on Singapore market this year with more cash ready in hand from the recent acquisition. Earlier this year, eBay paid US$573 million to acquire Qoo10 Japan, as revealed by the filing. After the sale, Qoo10 will spend 80% of its total budget on the Singapore market, said Cho Hyun Wook, the country manager of Qoo10 Singapore. “In Singapore, they see meaningful growth. It might be the only country they can see the ROIs (return on investments) in South-east Asia.”, cited him in an interview.

The e-commerce player with the most improvement in ranking for Map of E-commerce Q2, Shopee began charging transaction fees from August onwards. The 1% transaction fee is for processing and handling payments, and that Shopee remains a zero-commission platform, said Shopee when asked regarding the implementation. It will only be applicable to sellers based in Singapore.

On the other hand, Lazada has removed the commission charge for Singapore sellers. It was charging between 1% to 7% per sale based on the category previously. It will help lower the cost of doing business on the platform and create new opportunities for local merchants to venture into the e-commerce space, said Lazada in the press release. With additional US$2 billion investment and appointment of Lucy Peng as the new CEO, Lazada can be seen levelling up their game in the region. “We aren’t too concerned about what the competition is doing, because we are going to crush them,” said Mr Alexis Lanternier, CEO of Lazada Singapore.

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Income Insurance respects government’s decision to halt Allianz deal, reviews next steps

Income Insurance Limited has acknowledged the Singapore government’s concerns and decision to halt its proposed partnership with Allianz Europe B.V. The company expressed respect for the government’s direction and emphasised its commitment to reviewing next steps while considering upcoming amendments to the Insurance Act.

Published

3 days ago

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15 October 2024

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Income Insurance Limited has responded to the Singapore government’s decision to halt its proposed transaction with Allianz Europe B.V., a deal that would have seen Allianz acquire a 51% stake in the insurer for S$2.2 billion (approximately US$1.6 billion).

On 14 October 2024, the company stated it “respects the Government’s direction” and appreciates the recognition of its strategic efforts, noting that it will work closely with stakeholders to evaluate its next steps in light of forthcoming changes to the Insurance Act.

In its statement, Income Insurance said, “Income Insurance notes and respects the Government’s direction. Income Insurance appreciates the Government’s understanding of the strategic purpose behind Income Insurance’s corporatisation exercise in 2022 and acknowledgement that the partnership with Allianz was to strengthen Income Insurance’s position for the long run.”

The company acknowledged the government’s concerns about the structure of the transaction and the need for legislative amendments to provide a clear statutory basis for reviewing similar applications in the future.

The company further recognised the conditional nature of Allianz’s voluntary cash offer, noting that it is “pre-conditional and subject to regulatory approval.”

Following the latest developments, Income Insurance committed to reviewing the proposed amendments to the Insurance Act and stated, “Income Insurance will review and take into consideration the forthcoming amendments to the Insurance Act and work closely with relevant stakeholders to study and decide on the next course of action.”

Government’s Concerns

The government’s decision to block the deal was relayed by Edwin Tong, Singapore’s Minister for Culture, Community, and Youth, who cited concerns over how the transaction might affect Income Insurance’s ability to fulfil its social mission.

While the government acknowledged the strategic importance of Income’s corporatisation in 2022, it expressed concerns about the proposed capital extraction that would follow Allianz’s acquisition.

This capital reduction could significantly reduce Income Insurance’s capacity to continue providing affordable insurance to low-income Singaporeans.

Mr Tong highlighted that Income’s corporatisation in 2022 was enabled by an exemption from Section 88 of the Co-operative Societies Act, which allowed the company to retain an S$2 billion surplus for financial strengthening.

However, the proposed Allianz deal’s capital reduction seemed to contradict this intention. Without a clear, legally binding plan to safeguard this surplus for Income’s social mission, the government was unwilling to approve the deal.

Despite blocking the current transaction, the Singapore government has left the door open for future partnerships involving Income Insurance and potential external investors. Mr Tong clarified that the government’s objection was not to Allianz itself but to the terms and structure of the proposed deal, particularly its impact on Income’s ability to fulfil its social mission.

“The government’s view is not that NTUC Income should not seek partnerships or external capital; rather, we must ensure that any deal preserves NTUC Income’s ability to fulfil its social mission and does not undermine the cooperative movement as a whole,” Mr Tong stated.

Public Response and Opposition

The public and several prominent figures had voiced concerns following the announcement of the deal in July 2024. The proposal for Allianz to acquire a majority stake in Income Insurance raised fears that the insurer’s social objectives could be undermined by profit-driven motives typical of large multinational corporations.

The public outcry centred on concerns that Allianz, as a global insurer, might not share the same commitment to affordable insurance as Income Insurance, which had been serving Singapore’s working-class population for decades.

Critics were particularly worried that Allianz’s ownership could lead to increased insurance premiums, which might put essential services out of reach for Income’s lower-income clients.

Former NTUC Income CEO Tan Kin Lian expressed concerns about the potential shift in NTUC Income’s priorities, stating that the proposed deal could undermine its original purpose.

Similarly, ambassador-at-large Tommy Koh and former Group CEO of NTUC Enterprise Tan Suee Chieh voiced their opposition.

Mr Tan Suee Chieh went as far as to call the deal a “breach of good faith” and urged government regulators to intervene.

NTUC Income, Singapore’s one and only insurance co-operative, was corporatised in 2022 into Income Insurance Limited “to achieve operational flexibility and gain access to strategic growth options to compete on an equal footing with other insurers locally and regionally”.

Shareholders were assured at the 2022 annual general meeting that NTUC Enterprise will continue to be the majority shareholder of the new company post-corporatisation.

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OrangeTee, JustCo partner to empower agents and clients with coworking solutions

OrangeTee & Tie has partnered with JustCo to provide property advisers with enhanced access to flexible workspaces. The collaboration, formalised on 27 September 2024, aims to equip advisers with industry insights and access to JustCo’s network of coworking centres, enabling them to better serve commercial clients.

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3 days ago

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14 October 2024

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Singapore’s leading proptech agency OrangeTee & Tie (OrangeTee) has signed a Memorandum of Understanding (MOU) with JustCo, Asia’s leading flexible workspace provider.

The partnership between both parties was inked on 27 September 2024 at the BMW Eurokars Experience Centre.

The collaboration between OrangeTee and JustCo further opens doors to creating more opportunities for OrangeTee’s property advisers, enabling them to “thrive and deliver greater value to their clients”, said a media release issued on 8 October.

As part of the partnership, there will be a series of seminars hosted by JustCo, focusing on the latest trends within the coworking space industry.

These seminars would equip OrangeTee agents with valuable insights to better serve their clients who are interested in flexible office solutions.

This partnership between both parties aims to benefit the property advisers focusing on the commercial client sector as they delve deeper into the industry insights of the office leasing sector in Singapore.

Beyond knowledge sharing, the property advisers will also have access to JustCo’s network of coworking centres across the Asia Pacific to get first-hand experience of the benefits of coworking spaces such as networking opportunities, greater flexibility, and access to a wide range of amenities.

Justin Quek, CEO of OrangeTee said, “This partnership goes beyond business.

“It empowers our property advisers to provide more comprehensive and flexible solutions to their clients, aligning with the evolving needs of modern workspaces.

“By offering JustCo’s vibrant and collaborative environments, our agents can help clients find the ideal spaces for their different business requirements.”

OrangeTee’s property advisers can enjoy a range of perks as part of the partnership.

This includes preferential rates for JustCo’s membership plans which will give them access to over 40 JustCo centres in Singapore and APAC.

With the flexibility to work from anywhere, JustCo’s membership is a dynamic alternative to support their business needs and provides them with opportunities to network and collaborate within the larger commercial community.

Kong Wan Long, Co-founder and Chief Commercial Officer of JustCo said, “Partnering with OrangeTee expands our agency network, allowing us to work with experts who thoroughly understand the property market in Singapore.

“This will allow us to tap into a wider base of potential clients, providing them with greater access to premium coworking spaces that foster productivity and collaboration.

“This collaboration reinforces our commitment to making workspaces more accessible and empowering businesses of all sizes to thrive in an environment tailored to their needs.”

JustCo has the largest footprint in Singapore with 20 coworking spaces in the Central Business District, East and West regions, including the prestigious Marina One office development and Changi Airport Terminal 3.

From January to September 2024, JustCo experienced a 20% increase in enquiries compared to the same period in 2023, highlighting a growing demand for coworking spaces in Singapore. Earlier this year, JustCo also opened a new centre at Hong Leong Building and 108 Robinson Road.

Chipson Ma, one of the long-service property advisers with OrangeTee since 2000, said, “Founded in 2000, OrangeTee has empowered property advisers with cutting-edge technology for over two decades.

“Tools like our online agent portal (Work@Home) and AgentApp allow agents to work seamlessly from anywhere. Our partnership with JustCo further enhances flexibility, providing agents access to coworking spaces they can also market to clients.

“This added convenience elevates the value of our services.”

The partnership with JustCo is the latest to be announced by the proptech leader.

Only recently, OrangeTee also partnered with automotive technology solutions, Motorist, which allowed OrangeTee clients to gain more leverage on their personal vehicle via Motorist while allowing agents and their clients to have access to various perks from the Motorist Premium membership.

This includes car refinancing options to reduce their clients’ total debt servicing ratio and improve their property loan eligibility.

In mid-September, OrangeTee was also the presenting sponsor for The Home Expo 2024 which brought together more than 12,000 property agents, homeowners, industry experts, and exhibitors to the Suntec City Singapore Exhibition and Convention Centre.

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