Singapore market
Republic of Singapore
Fig. 1 National flag of Republic of Singapore
Singapore, officially the Republic of Singapore, is a sovereign island city-state in Southeast Asia. The country is situated one degree (137 kilometres or 85 miles) north of the equator, at the southern tip of the Malay Peninsula, with Indonesia's Riau Islands to the south and Peninsular Malaysia to the north. Singapore's territory consists of one main island along with 62 other islets. Since independence, extensive land reclamation has increased its total size by 23%. Singapore is a unitary parliamentary republic with a Westminster system of unicameral parliamentary government. According to the Democracy Index in 2018, the country is described as a "flawed democracy". As one of the five founding members of ASEAN, Singapore is the host of the Asia-Pacific Economic Cooperation (APEC) Secretariat and Pacific Economic Cooperation Council (PECC) Secretariat, as well as many international conferences and events. It is also a member of the East Asia Summit, Non-Aligned Movement and the Commonwealth of Nations.
Fig. 2 Map of Republic of Singapore
Singapore is the second-largest foreign investor in India. It is the 14th largest exporter and the 15th largest importer in the world. The currency of Singapore is the Singapore dollar (SGD or S$), issued by the Monetary Authority of Singapore (MAS). It is interchangeable with the Brunei dollar at par value since 1967, owing to their historically close relations. MAS manages its monetary policy by allowing the Singapore dollar exchange rate to rise or fall within an undisclosed trading band. This is different from most central banks, which use interest rates to manage policy. Singapore has the world's highest percentage of millionaires, with one out of every six households having at least one million US dollars in disposable wealth. This excludes property, businesses, and luxury goods, which if included would increase the number of millionaires, especially as property in Singapore is among the world's most expensive. Singapore does not have a minimum wage, believing that it would lower its competitiveness. It also has one of the highest income inequalities among developed countries. Singapore's largest companies are in the telecoms, banking, transportation and manufacturing sectors, many of which started as state-run enterprises, and has since been listed on the Singapore Exchange, including Singapore Telecommunications (Singtel), Singapore Technologies Engineering, Keppel Corporation, Oversea-Chinese Banking Corporation (OCBC), Development Bank of Singapore (DBS), United Overseas Bank (UOB). In 2011, amidst the global financial crisis, OCBC, DBS and UOB were ranked as the world's 1st, 5th, 6th "strongest banks in the world" respectively by Bloomberg surveys.
1. Introduction to Singapore
The Singaporean household products market has seen strong growth overall in recent years. The industry is predicted to continue growing at a similar, slightly deceleration ratio for the forecast period. Table 1 shows the market value of household products market in Singapore, it had total revenues of $0.5bn in 2014, representing a compound annual growth rate (CAGR) of 4.9% between 2010 and 2014. In comparison, the Chinese and South Korean markets grew with CAGRs of 6.3% and 4% respectively, over the same period, to reach respective values of $26.1bn and $2.9bn in 2014. The fast-paced economy and rapid urbanization of Singapore has spurred the growth of an increasingly prosperous urban middle class, which has raised the standard of living and fueled consumption ratios across consumer sectors including the household products market. The paper products segment was the market most lucrative in 2014, with total revenues of $0.19bn, equivalent to 35.5% of the market's overall value. The textile washing products segment contributed revenues of $0.17bn in 2014, equating to 32.3% of the market's aggregate value. The performance of the market is forecast to deceleration, with an anticipated CAGR of 4.1% for the five-year period 2014 - 2019, which is expected to drive the market to a value of $0.6bn by the end of 2019. Comparatively, the Chinese and South Korean markets will grow with CAGRs of 5.8% and 4.8% respectively, over the same period, to reach respective values of $34.5bn and $3.7bn in 2019. The Singaporean household products market grew by 4.7% in 2014 to reach a value of $522.3 million. The compound annual growth rate of the market in the period 2010–14 was 4.9%
Table 1 Singapore household products market value (2010-19)
2. WDIRC selling
The forecast of WDIRC selling can be shown in Table 2 during the first ten years since product launched. Here the assumptions of households, occupancy ratio, initial sale, selling price, and manufacture cost are 1,200,000, 0.0040%, 48, 350 and 200, respectively. The first year is set as the baseline for comparison with the following years, the sale volume, year penetration, revenue, cost and profit are 48 (sets), 40 (ppm), 16,800 (USD), 9,600 (USD) and 7,200 (USD), respectively. As we think, the growth rate with years will be 1, 2.73, 7.85, 13.80, 16.21, 17.32, 19.03, 20.57, 20.72 and 22 times over the first year. The year penetration of WDIRC will be from 40 ppm to 880 ppm at the end of tenth year, the totally ownership (penetration) is close to 0.564%, it still is a low penetration ratio in Singapore even WDIRC listed in market for ten years. However the revenue, manufacture cost and profit these three also present an ascending trend, the profit earned from Singapore is about $ 0.158 million at the tenth year in an exclusive market, it owns a huge market and profit in this market. Totally according to our prediction and assumption, the selling in Singapore will be up to 6,776 sets, even this; the penetration ratio is still lower than other consumption electric products such as TV, Refrigerator, Air conditioner, and Wash machine.
Table 2 To estimate the selling of WDIRC in Singapore
How about the annual growth rate for selling WDIRC in Singapore market? Fig. 3 shows the result. Here the calculation of revenue can use this equation as “WDIRC’s Revenue = Annual growth rate * Year + Baseline”, the formula can be written in a mathematic equation in Figure. According to this regression by data simulation, the annual growth rate it take about 40.248k per year (r2 =0.8983), in other words, by averaged the annual revenue is $40.248k in Singapore market for selling WDIRC products during the first decade.
Fig. 3 To estimation the revenue of WDIRC selling in Singapore market
3. Rice selling
A ten-years forecast to WFR sale, after WDIRC launched in Singapore market, is presented in Table 3. The first year since the marketing of WDIRC, online/offline deals for WFR sale are 30,761 kg, here the assumptions of population, rice consumption, sharing of WFR, online buying rate and market sharing are 5,696,506, 108.0, 0.10%, 10.00%, and 50%, respectively. How to calculate the WFR volume by online/offline sale, Eq. 1 is the equation for calculating the WFR sale volume.
Eq. 1 SaleVolume=Population x RiceConsumption x WFRratio x On/OffBuyingRatio x MSharingRatio
(eg. 30,761 = 5,696,506 x 108.0 x 0.001 x 0.1 x 0.5)
The use rate of WFR is set as 0.00540 kg/person-year. Based on this, we can get the annual revenue is $ 61,522 (WFR priced as $2), and the profitability is set to 10%, so the profit that will earn $ 6,152. Changing with the time, the ratio of WDIRC in kitchens will increase and cause the use of WFR increasing. We assumed the series of growth rate (G.R.) by years is 1, 5.21, 16.85, 26.69, 33.31, 42.06, 47.63, 54.44, 61.56 and 64.95. G.R. it is based on the prediction of WDIRC’s growth. By this series of G.R., both revenue and profit, they will also be presented like these serials when the dealing cost of WFR through online/offline transaction is keeping constant. Whatever the cost of online/offline transactions depends on the volume of WFR’s selling, so if the volume with time is scaling up, the dealing cost will be significantly lowered, in other words, the profitability with time will increase more than our prediction. If all hypotheses are true, the profit in tenth year will approach to $ 399,558. Eq. 2 calculates the penetration of WFR which to be used in this country by people. From this indicator (URate of WFR), we can see the level of penetration of WFR, even at the tenth year, the level of WFR use rate in Japan is still underestimation, that’s meaningful for us to optimistically think, the use rate of WFR can be easy completed and it will be grew up more than our prediction.
Eq. 2 URate of WFR = SaleVolume of WFR / Population
(eg. 0.00540 = 30,761 / 5,696,506)
Table 3 To estimate the selling of WFR in Singapore
Regarding the revenue of WFR selling in Singapore, Fig. 4 shows the result. This is a prediction by data simulation according to our assumption, the regression could be calculated as “WFR’s revenue = Annual growth rate * Year + Baseline”. The result shows the annual growth rate is 458.427k per year (r2=0.9887), in other words, the increasing of revenue of WFR selling in Singapore is $458.427k dollar per year. This growth can help the company to maintain its team in the local market for servicing customers.
Fig. 4 To estimation the revenue of WFR selling in Singapore market
4. To summarize the revenue and profit
Here according to the estimations above, we summarize the incomes from sales of WDIRC and WFR in Singapore. Both revenues and profits are presented in Table 4. In the first year, the products of WDIRC and WFR are unfamiliar with Singapore people; namely the recognition and acceptance aren’t well to local consumers, so on the beginning (1st year) sales would be not good and the totally revenues and profits will be $ 78,322 and $ 13,352, respectively. Both of them will increase with years when selling with good experiences and promotions. Through our forecast, at the end of tenth year, the profits of WDIRC and WFR will be up to $ 158,400 and $ 399,558, and the totally profit will be $ 557,958, this is a huge profit which be created in Singapore market by our novel products and services.
Table 4 To estimate both revenues included WDIRC and WFR selling in Singapore
Totally the revenue of WDIRC and WFR (2W) selling in Singapore market can be shown in Figure 5. The 2W revenue in first year is $78.322k dollars, after that the growth rate of revenue is $498.675k per year, this is a simple regression by mathematic model to predict the revenue on product selling. In practice, there are other factors that need to be considered much more, it could be higher than this or lower. Whatever by this calculation let us to trust that the market it always be there.
Fig. 5 To estimation the revenue of WDIRC and WFR selling in Singapore market