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Why is there no Costco, Tesco etc. in Singapore?

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Brah
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Why is there no Costco, Tesco etc. in Singapore?

Postby Brah » Mon, 22 Aug 2011 4:12 pm

Seems like there should be one here, with 7 in Korea, a few in Thailand, Malaysia, etc.

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ScoobyDoes
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Postby ScoobyDoes » Mon, 22 Aug 2011 4:33 pm

Tesco is not in Singapore.

This is very much a closed market, as it were, given NTUC (government) operations on one side and Dairy Farm on the other (Giant, Cold Storage, Shop'n'Save, Guardian, 7-11 etc.). Dairy Farm being part of Jardine Matheson out of HK the relationship goes back a loooooong way.
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Postby JR8 » Mon, 22 Aug 2011 5:01 pm

ScoobyDoes wrote:Tesco is not in Singapore.

This is very much a closed market, as it were, given NTUC (government) operations on one side and Dairy Farm on the other (Giant, Cold Storage, Shop'n'Save, Guardian, 7-11 etc.). Dairy Farm being part of Jardine Matheson out of HK the relationship goes back a loooooong way.


This reminds me of Walmart in Germany. They opened some stores a few years ago. A trade organisation representing existing retailers took court action on the grounds that Walmart are anti-competitive (i.e. too competitive), and won. Walmart sold up to Metro-group and shpped out. Bye bye!

p.s. Same cosy arrangement appplies to buying medicine here. You can only get them from apothecaries. So there is no concept of Guardian or Watsons in SG, or Boots and Superdrug in the UK. There is no price competition of own brands, or 'generics'. You have to go to your neighborhood one branch apothocary. You want a pack of 12 aspirin?.... sure here, Bayer.... that'll be euro8, thanks.

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x9200
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Postby x9200 » Mon, 22 Aug 2011 5:20 pm

So what's Carrefour doing here?

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Postby technoviking » Mon, 22 Aug 2011 5:49 pm

x9200 wrote:So what's Carrefour doing here?


losing money.

also, first post hi!

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aster
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Postby aster » Mon, 22 Aug 2011 10:51 pm

JR8 wrote:This reminds me of Walmart in Germany. They opened some stores a few years ago. A trade organisation representing existing retailers took court action on the grounds that Walmart are anti-competitive (i.e. too competitive), and won. Walmart sold up to Metro-group and shpped out. Bye bye!

p.s. Same cosy arrangement appplies to buying medicine here. You can only get them from apothecaries. So there is no concept of Guardian or Watsons in SG, or Boots and Superdrug in the UK. There is no price competition of own brands, or 'generics'. You have to go to your neighborhood one branch apothocary. You want a pack of 12 aspirin?.... sure here, Bayer.... that'll be euro8, thanks.


And I though communism in Europe was only restricted to Scandinavia. :)

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Postby nakatago » Sun, 18 Sep 2011 1:31 am

technoviking wrote:
x9200 wrote:So what's Carrefour doing here?


losing money.

also, first post hi!


Image

:roll:

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JR8
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Postby JR8 » Sun, 18 Sep 2011 1:57 am

^^^^^^ Not sure what the connection to the topic is :)

p.s. I've seen it before, isn't he some nutso German called 'Techno-viking' or something who does this routinely at Love Parade and other street festivals?

Oh hang on, I get it!! :lol:

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Postby Calmday » Sun, 18 Sep 2011 7:51 am

Singapore prides its self in being the most business friendly place on earth LOL. Just don’t dare get in to competition with the gov or anyone who is well connected.
Last edited by Calmday on Sun, 18 Sep 2011 8:15 am, edited 1 time in total.

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JR8
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Postby JR8 » Sun, 18 Sep 2011 7:58 am

Calmday wrote:Singapore prides its self in being the most business friendly place on earth LOL. Just don’t dear get in to competition with the gov or anyone who is well connected.


Shhh.... that's the secret squirrel bit you're not meant to mention.

p.s. You'll be on about 'the myth' of world record political salaries next :wink:

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aster
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Postby aster » Mon, 19 Sep 2011 6:33 am

If you want to look at lack of competition just look at the telecoms sector. :)

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Postby Strong Eagle » Mon, 19 Sep 2011 10:34 am

I think it has more to do with the gahmen not wanting to upset the 'mom and pop' operations here... and it has some merit.

With lots of small stores, if a recession occurs, the income is less for each shop owner but they don't necessarily close their doors... they just make do with less.

But when you put in a big box store, the first thing that happens in a downturn is layoffs... and I don't think Singapore wants to see that.

I understand it was quite an uphill battle to put in the Carrefours, and even more of a battle to open a second Ikea store.

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Postby sundaymorningstaple » Mon, 19 Sep 2011 10:58 am

And K-Mart only lasted around 3 years from 1994 to 1997 if I remember correctly.

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x9200
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Postby x9200 » Mon, 19 Sep 2011 12:44 pm

Also, such chains in offering competitive prices rely vastly on the local market and you need a critical mass of local manufacturers for this.

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Postby movingtospore » Wed, 21 Sep 2011 7:31 pm

I don't think it's local manufacturers that result in competitive prices, it's demand, local tax structures, etc. Most manufacturing is in Asia ... and yet prices in SP are vastly higher than just about anywhere - in the region and beyond. Maybe a few places in Europe are this bad...also very controlled markets.

Somebody is getting rich on that and it sure isn't me. Does the government really care about the mom and pops? I kind of doubt it. More likely they make it too difficult for big american retailers to move in.

Perhaps one day Malaysia will wake up and realize they have a golden opportunity just across the bridge.


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