Do Cold Storage, NTUC FairPrice buy products through ONE main importer ?

[Khun Ying Pojaman]

Do supermarkets like Cold Storage and FairPrice import products via ONE main importer ? Or do they have a special department dedicated to importing goods ?

I understand that some supermarkets prefer to go through just ONE importer so that they don't have to sign loads of contracts with different vendors.

 

[scroobal]

NTUC Model is based on random number generation that is tagged to 12 importers. 8 are local, 3 are international and the last is a local company that went international.

The random number generation is carried out on the first thursday of every month at their headquarters where all importers are present. Under the scheme, there is a guaranteed minimum order placement for each importer each year.

 

[Unrepented]

For all items in the supermarket?

NTUC Model is based on random number generation that is tagged to 12 importers. 8 are local, 3 are international and the last is a local company that went international.

The random number generation is carried out on the first thursday of every month at their headquarters where all importers are present. Under the scheme, there is a guaranteed minimum order placement for each importer each year.

 

[Khun Ying Pojaman]

For all items in the supermarket?

Yes. We have a product that we tried to sell to some of those mini-emporiums in Taiwan. Almost all such emporiums have one major importer to take care of their goods on the shelves because they want to deal with just ONE party so that in the event product A is not selling well, the emporium can always return the product A to the main importer and exchange for product B. The other reason is of course administrative; they don't want to sign too many contracts with too many different vendors.

 

[Khun Ying Pojaman]

NTUC Model is based on random number generation that is tagged to 12 importers. 8 are local, 3 are international and the last is a local company that went international.

The random number generation is carried out on the first thursday of every month at their headquarters where all importers are present. Under the scheme, there is a guaranteed minimum order placement for each importer each year.

So if I have a product to sell to NTUC I will have to go through these importers instead of NTUC directly ?

Any clue on who these importers are ?

 

[Unrepented]

Thanks for your input. But emporiums in hong kong differ. I hope scroobal can give his input as well

Yes. We have a product that we tried to sell to some of those mini-emporiums in Taiwan. Almost all such emporiums have one major importer to take care of their goods on the shelves because they want to deal with just ONE party so that in the event product A is not selling well, the emporium can always return the product A to the main importer and exchange for product B. The other reason is of course administrative; they don't want to sign too many contracts with too many different vendors.

 

[Forvendet]

For supermarkets like NTUC or Cold Storage etc., you don't sell your products to them for retail. You "rent" shelf-space from them to retail your products. That's the business model. They won't and don't need to pay you in advance. You need their shelf-space more than they need your products. Their main cost and profit centers are both hinging on land- and shelf-space. You have to convince them to give you the shelf-space. If given a lot of shelf-space by the likes of NTUC or CS, your products suddenly become well-known recognizable brandnames. Elevating to household names takes more time and effort. But generally, that's how it works.

 

[scroobal]

Guys, I am pulling your legs including the NTUC part.

There is no such thing as a single importer. All retailers will occasionally give you the excuse that they only deal with one importer so that you go away if they do not want your product.

All retailers except for mum and pop stores have someone handling wholesalers and suppliers. In small stores, its the boss, bigger stores have buyers who specialise in various categories - food, cutlery, lines, electronics. Major stores have procurement department who controls all buyers within the company.

Returning products to the supplier or selling on consignment is part and parcel of a suppliers work.

When supplying to major stores, persistence is the answer. Be patient, be nice, have brochures, do regular visits to say high even if they do not buy anything.

There is no such thing as single importer as it does not make sense. You always have a number to protect your business. The only exception is when it is franchisee who has not option but to buy from the franchisor.

 

[scroobal]

Yes , you are right. The general rule of thumb is that rental for the store is paid for by rentals of shelfs.

For supermarkets like NTUC or Cold Storage etc., you don't sell your products to them for retail. You "rent" shelf-space from them to retail your products. That's the business model. They won't and don't need to pay you in advance. You need their shelf-space more than they need your products. Their main cost and profit centers are both hinging on land- and shelf-space. You have to convince them to give you the shelf-space. If given a lot of shelf-space by the likes of NTUC or CS, your products suddenly become well-known recognizable brandnames. Elevating to household names takes more time and effort. But generally, that's how it works.

 

[annexa]

I want to know who are the main shareholders of:

Cold Storage
Guardian
7-Eleven
Watsons

 

[Forvendet]

I only know Cold Storage owns 7-11 and Guardian, NTUC owns Cheers. Watsons is probably owned by one of Li Kashing holding companies, I'm not too sure.

 

[Narong Wongwan]

I want to know who are the main shareholders of:

Cold Storage
Guardian
7-Eleven
Watsons

First 3 own by Dairy Farm, they also own Jason's, Shop n Save and Giant supermarkets here.
Watson's own by Li Ka Shing thru Hutchinson Whampoa.

 

[Khun Ying Pojaman]

But generally, that's how it works.

Yes, I know. That's how it works, generally speaking. But there are other models as well. The out and out supermarkets in Taiwan adopt the general model that you mentioned. The mini emporiums are divided into 2 sections. The only rent out the "special counters" but not the F&B products and stationery stuff. But I don't know how it works in Cold Storage and NTUC FairPrice. It could well be that the master importer/wholesaler "bought" the right and the ikan billis vendors will have through liaise with the master importer/wholesaler instead.

What do you think of small supermarts like ESSO, Shell etc. ? I really don't think they rent out their shelves.

 

[scroobal]

There is no master wholesaler or importer and for any of them. How com you so blur. Could you tell us who has been telling you these things.

 

[HedgeTrader]

Yes, I know. That's how it works, generally speaking. But there are other models as well. The out and out supermarkets in Taiwan adopt the general model that you mentioned. The mini emporiums are divided into 2 sections. The only rent out the "special counters" but not the F&B products and stationery stuff. But I don't know how it works in Cold Storage and NTUC FairPrice. It could well be that the master importer/wholesaler "bought" the right and the ikan billis vendors will have through liaise with the master importer/wholesaler instead.

What do you think of small supermarts like ESSO, Shell etc. ? I really don't think they rent out their shelves.

There is no master wholesaler or importer and for any of them. How com you so blur. Could you tell us who has been telling you these things.

Khun Ying Pojaman sure been advised by Thaksin Shinawatra lah LOL!

Sorry just kidding for a lighter moment, no offence to anyone intended.

 

[Khun Ying Pojaman]

There is no master wholesaler or importer and for any of them. How com you so blur. Could you tell us who has been telling you these things.

Different places, different practices. For one of the emporiums, my product is already on the shelves - yes, via a master wholesaler. But for other emporiums, they do have individual departments that negotiate contracts directly with vendors. I'm in the midst of negotiation still with one of them. I'm not talking about Singapore.

But for Cold Storage and NTUC FairPrice, I don't know. That's why I'm here.

 

[scroobal]

All the retailers that were mentioned have a central buying or procurement department. Call them up and ask to speak or meet asst buyer. There maybe one or more asst buyers, so don't be dismayed if you are turned away. Go to Alibaba.com and get an idea if there are similar products as the buyers will go straight to the trade catalogue or alibaba. They like to go straight to the manufacturer if it a good product and try to take you out. Be firm, don't tell them which company manufacturers.

I think you are mixing up with master wholesaler/ importer with a cooperative buying department which is common for small stores all around the world. Typically they have a stake in the central buying dept to take take advantage of bulk buying power.

In essence there is no such thing as one importer unless the company has a stake in it and it is usually small super markets. Even then they can buy outside unless it is franchise.

If you own the business, don't go yourself, sent your rep. If you own a stake in the company say that the boss is not you. Buyers are sharks. Once they know you are the boss, they will pressurise you straight away for commission and force even the price down as you are the decision maker. Even in NTUC its quite bad.

 

[Khun Ying Pojaman]

All the retailers that were mentioned have a central buying or procurement department. Call them up and ask to speak or meet asst buyer. There maybe one or more asst buyers, so don't be dismayed if you are turned away.

This is what I have been doing all this while.

I think you are mixing up with master wholesaler/ importer with a cooperative buying department which is common for small stores all around the world. Typically they have a stake in the central buying dept to take take advantage of bulk buying power.

I'm not mixing up the two. I have dealt with Co-operatives too. But your point is very relevant; come to think of it, yes, the so-called master wholesaler may have had a stake in the company.

If you own the business, don't go yourself, sent your rep. If you own a stake in the company say that the boss is not you. Buyers are sharks. Once they know you are the boss, they will pressurise you straight away for commission and force even the price down as you are the decision maker. Even in NTUC its quite bad.

Yes, this is exactly what we have been doing. We apply the same tactic when we bought our first company car. Pretended that we were reps and had to report to company. We told Nissan we wanted to buy 6 cars just to find out what was their bottom line, and we negotiated for the price of 1 car based on that bottom line.

BTW, I'm the manufacturer.

 

[scroobal]

Look at your first post. No such thing as single importer. Pooled central buying only applies to small stores and nothing to do with supermarket chains or Emporiums. The same applies all over the world.

Give me the name of one emporium or a supermarket chain that outsources its procurement anywhere in the world. I am sure there are none. Unless your emporium and supermarket refers to mom and pop store. Your first posts asked about NTUC and Cold Storage by name. Their size will tell you that they are obviously not small stores and therefore have their own buying department.

Now you claim, you knew it all the while. Make up your mind what are you looking for.

This is what I have been doing all this while.
I'm not mixing up the two. I have dealt with Co-operatives too. But your point is very relevant; come to think of it, yes, the so-called master wholesaler may have had a stake in the company.

 

[annexa]

So basically there is a big boss in our supermarket business? By owning different brands they probably own 40-60% of Singapore consumer price control?

First 3 own by Dairy Farm, they also own Jason's, Shop n Save and Giant supermarkets here.
Watson's own by Li Ka Shing thru Hutchinson Whampoa.