CONSUMER BUSINESSES IN SINGAPORE14 November 2012

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Economic Development Board (EDB)Economic Development Board (EDB)OUR MISSION WHAT WE DO

We create for Singapore, sustainable economic growthwith vibrant business and good job opportunities.

Industry Development and Business Facilitation

Attract Foreign Investments

Attract Foreign Investments

Grow Industry Verticals

Grow Industry Verticals

Enhance Business Enhance Business EnvironmentEnvironment

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50 Years of Economic Development50 Years of Economic DevelopmentSingapore: A Vibrant Business Hub

Ease of Doing Business Strong IP Protection Best Labour Force

Rank Country

1 Singapore

2 Hong Kong

Rank Country

1 Sweden

2 Finland

g

75

75

76

89

Switzerland

Taiwan

United States

Singapore

Best Labour Force

3 New Zealand

4 United States

5 Denmark

3 Singapore

4 Luxembourg

5 Austria65

66

66

73

73

75

Netherlands

Sweden

Ireland

Japan

Belgium

Switzerland

Source: World Bank’s “Ease of Doing Business” Index 2011

Source: The Global Competitiveness Report

(2010,2011), World Economic Forum Source: BERI’s 2010 Labour

Force Evaluation

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65

Australia

Netherlands

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Overview of Singapore’s EconomyOverview of Singapore s Economy2011 (p) Total output inManufacturing Sector:

S$285 billion (US$227 billion)

2011GDP:S$327 billion (US$260 billion) S$285 billion (US$227 billion)

Transport Engineering

General Manufacturing

Industries8%

Electronics 30%Precision

Engineering 10%

9%8%

Manufacturing 21%

FinancialConstruction

4%

Others 20%

Biomedical Manufacturing

10%

Transport & Communication

12%

Financial Services

12%

Business Chemicals 34%

Manufacturing9%

Wholesale & Retail Trade

17%

12% Business Services

14%

2011 GDP growth: 4.9%2012 GDP growth forecast: 1.5% to 2.5%

S A 2012 Mi i t f T d & I d t

US$1.00 = S$1.2579 (2011 av.)(p) = preliminarySource: EDB RSU Census & Surveys

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Source: Aug 2012, Ministry of Trade & Industry

Vibrant, culturally diverse and dynamic

Click to edit Master text styles

Cosmopolitan5.5 million population, 1.25 million foreigners, high standards of living, renowned international

DiverseEthnicity: Chinese, Malays, Indians, Eurasians & othersReligion: Buddhism Christianity

DiverseEthnicity: Chinese, Malays, Indians, Eurasians & othersReligion: Buddhism Christianity

DiverseEthnicity: Chinese, Malays, Indians, Eurasians & othersReligion: Buddhism Christianity

ConnectedWorld’s #1 port131% mobile phone usage, 79% homes with computers

VibrantNearly 7,500 art performances a year, at 56 venues

Click to edit Master text styles• Second level

Third level

of living, renowned international schools

Religion: Buddhism, Christianity, Islam, HinduismReligion: Buddhism, Christianity, Islam, HinduismReligion: Buddhism, Christianity, Islam, Hinduism

79% homes with computers70% adult Internet users

– Third level

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Area: 710 sq km

Vibrant culturally diverse and dynamicVibrant, culturally diverse and dynamicRanked 2nd in Asia for Cultural InteractionTop Asian City of the FutureBased on trendsetting potential, visitor attraction resources, vibrancy of 

Rank Cultural Interaction

1 London

2 P i

shopping and dinning scene etc

Best Quality of Life

2 Paris

3 New York

4 Tokyo

5 Singapore

Rank City

1 Singapore

Most preferred location for managers to work in Asia

Source: Global Power City Index 2010, Mori Memorial FoundationBased on indicators such as life expectancy, health expenditure, income per capita, number of International Baccalaureate schools etc

2 Auckland

3 Ulsan

4 Sydney

5 Tokyo

managers to work in Asia 

Rank Preferred

Based on vibrancy of business environment , availability of human resources and supporting industries, favourable location for employees’ families etc

Rank Preferred location

1 New York

2 London

3 Singapore

6 6Source: “Asian Cities of the Future 2009/2010”, fDi Magazine

4 Hong Kong

5 Tokyo

Source: Global Power City Index 2010, Mori Memorial Foundation

Growth of Korean Culture and BusinessesGrowth of Korean Culture and Businesses Music Events Flagship / First ASEAN Outlets

Experience Stores

Samsung Experience Centre

Paris Baguette Wisma Atria

Genesis BBQ Chicken

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Genesis – BBQ Chicken More than 15 outlets

Singapore is in the heart of Asia PacificSingapore is in the heart of Asia Pacific

Half the world’s population in 7 hours SNAPSHOT: ASEANChina:

1.34 bil popGDP(2011):

p p SNAPSHOT: ASEAN (601 mill pop)

GDP(2011): US$7,298 B

SE Asia: 601 mil pop

For the past 25 years, ASEAN Combined GDP grew at an

India: 1.22 bil popGDP(2011): US$1 826 B

601 mil popGDP(2011): US$2,180 B

average rate of 7 % a yearASEAN Aggregate GDP1990: US$350 billUS$1,826 B 1990: US$350 bill2011: US$2.18 trill (IMF)

Australasia: 25 mil pop

GDP(2011): US$1,645 B

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GDP Source: IMF World Economic Outlook Database Oct 2012

Home for Consumer‐Centric CompaniespSports Products & Sports Rights

7,000 MNCs in Singapore, 7,000 MNCs in Singapore,

60% with HQ operations Fast Moving Consumer Goods

Lifestyle, Fashion, HospitalityElectronics & Infocomms MediaFinancial Services

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Singapore: First Point of Entry to Global Markets

Opened first outlet in 2009E panded to 5 o tlets

1st SEA Outlet in Singapore opened in September 2012

Expanded to 5 outlets

First outlet in Singapore in Raffles CityStrong growth of CJ Foodville brands in SEAB K h f ti

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Strong growth of CJ Foodville brands in SEABaum Kuchen confectioneryFirst outlet in Asia outside Japan

Distribution Partners and ChannelsDistribution Partners and ChannelsCompanies have strong in-house SCM Base of personal product distributors in

•Asia’s Best Education Course

capabilities in SingaporeBase of personal product distributors in Singapore, that have a regional reach

L’Oréal Paris, Max FactorProvider (6 consecutive years)•Cargonews Asia’s Asian Freight & Supply Chain Awards La Prairie, Stila, Lancaster

•USD4 mil training centre•Train 3,000 - 5,000 professionals / yr, two-thirds from outside S’pore

Citré Shine (haircare), T-Zone (tea tree skincare)

21 of the top 25 3PLs have significant operations in Singapore

Lavera, Organic Surge, Swiss Nature

Hershey’s, Lotte, Energizer

DHC (Japanese skincare)

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Innovation for Asia from SingaporeInnovation for Asia from Singapore

Base of Marketing & Communications firms andVibrant Design Scene

Base of Market Research firms and flagship institution Institute of Asian Consumer Insight

Ecosystem drives ysynergy and 

collaboration for innovative concepts 

d d t

Base of MNCs undertaking consumer insight, branding and marketing, design activities from Singapore

Consumer

and products; strengthens 

capabilities  in Singapore 

Businesses companies

g p

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Understanding the Asian consumerUnderstanding the Asian consumer

A d i i tit ti d t hT op 6 market research firms ha e regional Academic institutions conduct research ; build industry‐relevant capabilities 

T op 6 market research firms have regional centres and practice leaders in Singapore 80% of work are multi‐country research projects 

Living Analytics Research Centre Largest full service firm Asia Pacific, Middle East and Africa HQ, ex China and India

R i l i l d f l il d

Living Analytics Research CentreR&D and industry collaboration in real‐time consumer and social analytics

MS of IT in Business (Service Sector Analytics)

d l h

Regional practice leaders for telecom, retail and consumer research based in Singapore

( y )Training in analytics for service sectors such as retail

Interdisciplinary ResearchPan‐Asian consumer behavior (e.g. similarities and differences) and methodologies (e.g. neuroscience and qualitative) research

Largest custom research firm

Asia Pacific HQ Regional practice leaders for 

Only office outside India and Sri Lanka

Education MSc, and Executive Education programmes in Asian consumer research

consumer, technology, financial services, retail and qualitative based in Singapore

Pan‐Asian qualitative research, specialising in ethnography

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Designing for the Asian consumerDesigning for the Asian consumerDesign awards Products designed in SingaporeDesign awards

SK‐II Packaging  and Design(P&G + NICE)

Products designed in Singapore

Raoul: iF Award 2010HP Officejet Pro 8000HP, Orcadesign & BMW DesignworksUSA

Red Dot Award 2008Best of CES Innovations Award 2008D ll C t l M it

Local brand gone international

iF Award 2009X‐Halo Breath Thermometer

Dell Crystal MonitorElectrolux E: Motion Trivet Allows for traditional Asian wok cooking on flat induction cook tops

by Philips Design

Braun Prize 2007“Leapfrog” Walking Aid

Philips Garment  Graphical‐user interfaces for touch screen printer

iF Product Design Award 2009Red dot Award 2009Urband Origami by Nanyang Optical

Leapfrog  Walking Aid by Donn Koh, NUS Steamer GC520 for touch‐screen printer

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by Nanyang Optical

Innovating for Asia from SingaporeInnovating for Asia from Singapore

Nestlé + Eu Yan Sang养生乐 concentrated herbal soupsResponsibility global business outside

of Japan

KikkomanGinseng & Honeysuckle 

Full range of activities from HQ,manufacturing to R&D to support this.

ASEAN consumers preference forSoy Saucesweetened drinks led to development

of sweetened green tea in Singapore

TWG TeaLocal tea, internationally recognizedrecognized

CadburyChocfuls Eclairs

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Enhancing shopping experiencesEnhancing shopping experiences

Citibank 

Burger King ‐ Designs and tests‐bed new restaurant concepts from 

f

8 Inc‐ Projects for Apple, Nokia and Citibank etc

S

‐ Develop and test‐bed new retail and interaction designs from Singapore, for Asia

Singapore for Asia Citibank…etc‐ Expertise extends into experience and interaction design

D S

D

DAsylum‐ Projects for The Johnny Walker House in Shanghai, Escentials Concept Store in Singapore…etc

S

Fitch

Estee Lauder Pacific Design Centre E Y S

D D

‐ Projects with Dell, Jimmy Choo and The Body Shop

‐ Expertise extends to brand and packaging

E.g. of companies with global/regional retail design functions in Singapore

E.g. of agencies with regional retail design specialisations in Singapore

Estee Lauder Pacific Design Centre‐ Design visual merchandising for the region

Eu Yan Sang ‐ Design and test bed retail concepts from Singapore for Asia

brand and packaging design

D

S

Design users 

Design suppliers

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design functions in Singapore design specialisations in Singapore

Possible Cycle of Presence in Singapore

First investment

Home @ Singapore

Exploratory presence

- Headquarters- Manufacturing- Research & Development

growth-Representative office- Distribution partnerships p

- IP Management- Brand Development & management

- Franchising partnerships- Storefront

g

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Case Study: C & L i’ RHQ & T di H b

LEVI’S STRAUS & CO ASIA PACIFIC HQ & SOURCING HUB

CONVERSE REGIONAL HQ & GLOBAL TRADING HUB

Converse & Levi’s RHQ & Trading Hub ASIA PACIFIC HQ & SOURCING HUB   REGIONAL HQ & GLOBAL TRADING HUB

Singapore, a supply chain

ASIA PACIFICCONTROL TOWER

GLOBAL PLANNING

supply‐chain link centre for brand and international 

140 staff in Singapore managing ops for 50 markets

GLOBAL ACCOUNT SALES

GLOBAL PLANNING Sourcing & Procurement licensees

50 markets 

RETAIL MANAGEMENTM i

GLOBAL SOURCINGBuy‐sell activities 

LOGISTICS & SUPPLY CHAIN Coordinates manufacturers 

& d k t

Manage licensees  Manage store operations and testbed new concepts

BRAND STRATEGY

Store customized for Asian consumer 

& end‐markets 

SUPPORTING FUNCTIONSHR, finance 

• Global supply chain• Market intelligence• Profit Consolidation• Brand Protection

LEGALTrademark protection 

Insights & branding 

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G i BBQ Chi kGenesis BBQ Chicken

No.1 F&B franchise brand in KoreaSingapore as a base for Asia Pacific expansion

Franchise Management and

Shared Services forWhy Singapore?

• “Strong IP protection, network of DTAs Shared Services for Asia Pacific + Middle East*

* E l d J Chi d K

St o g p otect o , et o o sfor tax efficiency of royalty income, base

of food innovation partners”

* Excludes Japan, China and Korea

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Korean Companies In Singaporep g p

•Research & Innovation Centre to leverage Singapore’s R&D

• Regional hub and manufacturing facility in Singapore leverage Singapore s R&D

ecosystem and testbed

•Flagship store for premium brand S l h

y g p

•Global Innovation Centre

•Development of “Flat-Pack” Sulwhasoo

ppackaging

M th 1 000 K i i t d i Si

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More than 1,000 Korean companies registered in Singapore

Regional Hub for Korean Companiesg p

•Asia Regional HQ for SEA, Oceania & South West Asia•Regional HQ for Southeast Asia Oceania & South West Asia

•Supply chain, procurement, brand management, regional distribution,

k i f i

•Hub to develop new products & technologies, enhance brand & strengthen business partnerships marketing functionsstrengthen business partnerships

•Liaison office & de-facto hub for SEA & India region•Regional trading of agricultural & sugar productsGlobal HQ for 3PL/logistics business outside Korea•Global HQ for 3PL/logistics business outside Korea

•Launch pad for food/restaurant brands, e.g. “Bibigo”

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Thank YouThank YouEDB provides this presentation (including oral statements) gratuitously forinformation only and not for any other purpose. EDB does not warrant theaccuracy, completeness nor suitability for purpose of any information in thispresentation. EDB excludes all liability including but not limited to inaccuracies,i l t l k f it bilit f f i f ti i thincompleteness or lack of suitability for purpose of any information in thepresentation.

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