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CONSUMER BUSINESSES IN SINGAPORE

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Vibrant, culturally diverse and dynamic

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• Second level

– Third level

Cosmopolitan 5.5 million population, 1.25 million foreigners, high standards of living, renowned international schools

Diverse Ethnicity: Chinese, Malays, Indians, Eurasians & others

Religion: Buddhism, Christianity, Islam, Hinduism

Connected World’s #1 port

131% mobile phone usage,

79% homes with computers

70% adult Internet users

Vibrant Nearly 7,500 art performances a year, at 56 venues

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Area: 710 sq km

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Vibrant, culturally diverse and dynamic Ranked 2nd in Asia for Cultural Interaction

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

Best Quality of Life

Rank City

1 Singapore

2 Auckland

3 Ulsan

4 Sydney

5 Tokyo

Top Asian City of the Future

Most preferred location for managers to work in Asia

Rank Preferred

location

1 New York

2 London

3 Singapore

4 Hong Kong

5 Tokyo

Rank Cultural Interaction

1 London

2 Paris

3 New York

4 Tokyo

5 Singapore

Source: Global Power City Index 2010, Mori Memorial Foundation

Source: Global Power City Index 2010, Mori Memorial Foundation

Based on trendsetting potential, visitor attraction resources, vibrancy of shopping and dinning scene etc

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

Based on indicators such as life expectancy, health expenditure, income per capita, number of International Baccalaureate schools etc

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Popularity of Korean Culture in Singapore

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Singapore is in the heart of Asia Pacific

India:

1.20 bil pop

GDP(2008p):

US$1,430 B

China:

1.34 bil pop

GDP(2010):

US$5,870 B

Half the world’s population in 7 hours

Australasia:

25 mil pop

GDP(2010):

US$1,220 B

SE Asia:

601 mil pop

GDP(2010):

US$1,800 B

For the past 25 years, ASEAN

Combined GDP grew at an

average rate of 7 % a year

ASEAN Aggregate GDP

1990: US$350 bill

2010: US$1.8 trill (IMF)

SNAPSHOT: ASEAN (601 mill pop)

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Home for Consumer-Centric Companies

Lifestyle, Fashion, Hospitality

7,000 MNCs in Singapore,

60% with HQ operations

Electronics & Infocomms Media Financial Services

Sports Products & Sports Rights

Fast Moving Consumer Goods

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Delivering value through being a location for

Singapore The leading hub in Asia for consumer businesses and innovations

Business

Innovation

Talent

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2009 opening ceremony of flagship outlet in Singapore’s main shopping stretch, Orchard Road First presence outside of China

Singapore: First Point of Entry to Global Markets

Baum Kuchen confectionery First outlet in Asia outside Japan

Opened first outlet in 2009 Expanded to 5 outlets

JV to support globalisation efforts of Japanese apparel firms

Harajuku Street Style

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Distribution Partners and Channels

Over US$8b/yr of global

procurement of strategic

components

Global HQ for parts of Dell’s

manufacturing and supply

chain operations

•Asia’s Best Education Course

Provider (6 consecutive years)

•Cargonews Asia’s Asian

Freight & Supply Chain Awards

•USD4 mil training centre

•Train 3,000 - 5,000

professionals / yr, two-thirds

from outside S’pore

Companies have strong in-house SCM

capabilities in Singapore

21 of the top 25 3PLs have significant

operations in Singapore

Base of personal product distributors in

Singapore, that have a regional reach

L’Oréal

Paris, Max

Factor

La Prairie,

Stila,

Lancaster

Citré Shine

(haircare), T-

Zone (tea tree

skincare)

Lavera,

Organic Surge,

Swiss Nature

Hershey’s,

Lotte, Energizer

DHC (Japanese

skincare)

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Innovating from Singapore

TWG Tea

Local tea, internationally recognized

Cadbury

Chocfuls Eclairs

Kikkoman

Ginseng & Honeysuckle Soy Sauce

Nestlé + Eu Yan Sang

养生乐 concentrated herbal soups Responsibility global business outside

of Japan

Full range of activities from HQ,

manufacturing to R&D to support this.

ASEAN consumers preference for

sweetened drinks led to development

of sweetened green tea in Singapore

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Designing for the Asian consumer

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

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

iF Award 2009 X-Halo Breath Thermometer by Philips Design

Braun Prize 2007 “Leapfrog” Walking Aid by Donn Koh, NUS

Red Dot Award 2008 Best of CES Innovations Award 2008 Dell Crystal Monitor

Design awards

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

Electrolux E: Motion Trivet

Allows for traditional Asian wok cooking on flat induction cook tops

Philips Garment Steamer GC520

Graphical-user interfaces for touch-screen printer

Products designed in Singapore

Raoul:

Local brand gone international

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Training of Retail Talent

• ~ 40,000 people trained since 1985

• Offers short courses in retail supervision, customer service, visual merchandising

• Focused on developing leaders at middle and senior levels of the retail organisation

• Offers executive programmes in the area of retail management,

leadership skills, buying and visual merchandising etc.

• Pervious participants include: Unilever Singapore Pte Ltd, Muji (S) Pte Ltd

Institutions offering retail courses

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Possible Cycle of Presence in Singapore

First

investment

- Headquarters

- Manufacturing

- Research &

Development

- IP Management

- Brand

Development

Home @

Singapore

growth

Exploratory

presence

-Representative

office

- Distribution

partnerships

- Franchising

partnerships

- Storefront

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Case Studies – Sports Products

“[The Singapore operations] laid a solid foundation

for the group's expansion into the overseas

market”

- CFO Nicholas Chong

Li-Ning’s First Presence Outside China China’s largest sports company No.2 by sales after Nike in China

Case Study: Li-Ning

Business Units:

• Southeast Asia Regional Headquarters

• Badminton Flagship Retail Store

• Market development through

regional badminton academy

management

Southeast Asia Regional Headquarters • Internationalisation office

for future group expansion

Global First-to-Launch Badminton

Flagship Retail Store • Store for regional distributors

• Regional consumer insights platform

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Case study: Crocs Asia using Singapore as its nerve centre

Crocs Asia – 80-man Asian HQ in Singapore

• Holding company for a no. of regional entities

• Profit centre responsibilities for regions not covered by subsidiaries, e.g. Middle East

• Global manufacturing and logistics oversight

• Global Order Entry Handling

• Regional planning

• Sourcing, procurement, and distribution

• Oversees new product development

Fast-growing designer, manufacturer & marketer of footwear made from proprietary closed-cell resin material

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

CONVERSE REGIONAL HQ & GLOBAL TRADING HUB

LOGISTICS & SUPPLY CHAIN Coordinates manufacturers

& end-markets

SUPPORTING FUNCTIONS HR, finance

GLOBAL ACCOUNT SALES Manage licensees

GLOBAL PLANNING Sourcing & Procurement

Singapore, a supply-chain link centre for brand and international licensees

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

ASIA PACIFIC CONTROL TOWER 140 staff in Singapore managing ops for 50 markets

RETAIL MANAGEMENT Manage store operations and testbed new concepts

GLOBAL SOURCING Buy-sell activities

LEGAL Trademark protection

BRAND STRATEGY Insights & branding

Store customized for Asian consumer

Case Study: Converse & Levi’s Regional HQ & Trading Hub

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Case Study: Nestlé Innovating in Asia for Asia

Integrated activities in Singapore

R&D Open

innovation

Consumer

insights HQ

CoE for Milo,

Maggi, Nescafe,

Nutritionals and

Packaging

Hub for external

collaboration

management with

RIs/IHLs & industry

Branding &

marketing

Strength of Nestlé's full integrated facility in Singapore

From concept ideation, new product development, targeted customization to brand development & launch

In-house sensory test

panel

Born in 1971, Maggi has since evolved tremendously through the strong

capabilities in consumer testing and packaging development. Today, it is a

strong household brand in Singapore and many parts of Asia A Nestle brand of instant

soups, stocks, bouillon cubs,

ketchups, sauces,

seasonings and instant

noodles

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Case study: P&G Leveraging Singapore to access, manage and develop for Asia and beyond

•Business: 1,600 employees in APAC regional headquarters Global HQ for SK-II, controlling branding/design/merchandising Regional supply chain control tower

•Innovation: Multiple Singapore-based P&G teams work together Regional consumer insights team Upcoming 500-man, S$ 250 million end-to-end innovation centre for beauty, grooming, home care, personal healthcare; augmented by a Master Collaboration Agreement covering all 14 A*STAR institutes Regional design team has key role in brand design, product design, counter design, and packaging design for Pantene, SK-II, Tide, etc

•Talent control tower: Training 500 leaders annually and developing programmes / strategies

Details

“P&G has invested significantly in Singapore, in both infrastructure and people. It’s a strategic base for operations across Asia and provides a stable operating environment, excellent infrastructure and skilled talent.”

- Bob McDonald, Chairman, President & CEO, P&G

Why Singapore?

Other activities in Singapore •First and only perfumes plant; upcoming PUR plant

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Genesis BBQ Chicken

No.1 F&B franchise brand in Korea

Singapore as a base for Asia Pacific expansion

Franchise

Management and

Shared Services for

Asia Pacific +

Middle East*

* Excludes Japan, China and Korea

Why Singapore?

• “Strong IP protection, network of DTAs

for tax efficiency of royalty income, base

of food innovation partners”

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incompleteness or lack of suitability for purpose of any information in the

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