Challenger shows the way for other Singapore retailers

A SINGAPORE mega supermarket for all things tech, Challenger Technologies, through its push to become a major e-commerce player, shows it has realised the big opportunity that selling online can bring to the local retail giant. In an environment where having a strong and credible online presence is crucial for every retailer's competitiveness and growth, Challenger has set an ambitious target to have its revamped e-commerce portal hachi.tech accounting for up to half of group revenue within five years, up from a very small percentage now.

The company has around 50-odd brick and mortar stores in Singapore and it has a run-rate annual revenue of some S$380 million. With its e-commerce push, it hopes to reap a cumulative S$500 million from online sales over the next five years, with S$100 million expected this year alone.

A look into data shows that Challenger's online ambition is quite achievable. According to research firm Statista, the business-to-consumer (B2C) e-commerce market in Singapore is expected to grow from US$4.13 billion in 2016 to US$6.42 billion in 2020; a compounded annual growth rate (CAGR) of 11.69 per cent. Research from PayPal throws up similar numbers. A 2014 PayPal survey found that online shopping in Singapore has grown 38 per cent annually since 2011. Total spending in 2015 was estimated at S$4.8 billion and this is expected to rise to S$6.9 billion by 2018.