My name is Andrew Tan, a popular E-commerce Speaker/Coach/Entrepreneur in Singapore.
If you have been following the news lately, you would have come across various articles sounding the death knell of retail in Singapore. Articles proclaiming the end of Singapore’s status as a ‘Shoppers Paradise’ have been shared all over social media the past few months.
Let me share with you my personal observations…
I travel around Singapore quite extensively and have noticed many retail outlets opening up, but closing down again within half a year.
At first, I thought it was just me; maybe my memory is not as good as it used to be, or maybe I am mixing up the shops that are opening and closing. But, many of my friends noticed the same trends and agreed with my observation.
According to statistics, Singapore’s retail market has been on a constant downtrend for the past few quarters.
More people are also losing employment during this period.
Some of these newly retrenched or unemployed with a decent nest egg have decided to switch from being employees to entrepreneurs.
Many of them chose to enter the retail market.
With the retail landscape in the shape it is in, is it really a good idea to blow your severance package or your lifetime savings on such a venture?
While retail rental has been slipping for 6 consecutive quarters, we still boast some of the highest rental rates in the world. Add to that, the high manpower costs and other overheads involved in running a retail business, it is not hard to realize that it takes a large sum of capital just to enter the market.
Some might argue that there are lower cost options out there like short term micro retail space rental or shared spaces.
Let me share my experience of experimenting with cube space rental with one of the ‘Box Shops’ that was all the rage a short while ago.
The rental for a 45cm x 45cm x 40cm space in a premier eye-level location within the shop can come up to around $200. On top of that, the shop charges an 8% commission on every sale I made.
I shut down my operations in 4 months. Rental and commissions paid outstrips revenue every single month I was in business. It was an unmitigated disaster. Many other operators did not even last more than 2 months.
Now, think about it.
What kind of merchandise can you put in a 45cm x 45cm x 40cm space?
Also, what is the likely customer profile of the shoppers that visit Box Shops?
You are seriously limited in the choices of products you can sell in those spaces.
Big ticket items would have very small chances of selling, and the effort you need to put in to move enough volume of low priced items to make a profit is simply not worth it.
If you are thinking of taking a stab at retail entrepreneurship, make sure you do your research and work out the figures. The last thing I want to see happening, is you burning through your hard earned cash for nothing.
If your capital is limited and have a small appetite for risk, I would highly suggest starting an E-Commerce business selling online. You can start with less than a thousand dollars and there are ways to source for products that people are rushing to buy, thereby lowering your risk of stuck inventory.
In fact, for the past 10 years, I have been conducting a free 3 hours, info-packed e-commerce seminar where I will share many of my secrets of running a low risk, profitable E-Commerce businesses with you.
I will also share with you on how you can start your own E-Commerce businesses on Qoo10, Lazada and eBay platform.
You will learn about what are some of the hot selling products that are flying off the shelves to sell on Qoo10, plus some tips and tricks to dominate any niche that you choose to go into.
I will be revealing these information for free at the seminar.
All you need to do is quickly click on the link below to sign up for a free seat and turn up punctually on the day of the training itself.
It’s THAT simple… and get ready to learn what works today!
I look forward to seeing you there!!
Creator of E-commerce Freedom Maker System
PS: My free training is always full-house, so please register now as I do not wish to disappoint you if my staff had to say sorry and turn you away at the door. People are literally standing throughout my entire 3 hours presentation just to listen in as they are unable to grab a seat. You have been warned! 🙂