Is there any good consumer product stock in SGX

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#21
(27-07-2016, 09:29 AM)CityFarmer Wrote: Retailing is more of an art than science, IMO. Go against text book practice, isn't always a bad thing. I am still learning on success story on retailing. I would like to highlight a case study of Zara, It has gone against few basic text book practices, and achieved outstanding success.

- Zara logistic cost per unit is expansive, but it focuses on speed.
- Stock-out, isn't a cost to be minimized, but a conscious strategy
- Retailers are normally asset-light, but Zara owns most of its manufacturing  and supply chain facilities.

https://www.tradegecko.com/blog/zara-sup...il-success

BTW, "customer management" means keeping in touch on customers' needs. Pricing is always an important part in retail biz. Both are standard retailing text book practices, aren't there?  Big Grin

From a textbook study, Zara's improvement is "process based" and this same model can be copied by other competitors to erode their advantage. I believe there are more fast fashion companies like H&M, Uniqlo, TopShop etc that is up and coming?

My "textbook" reference was actually referring to the strict definition of competitive moats. Having a "process based" or great HR/Mgt aren't really competitive moats, because it can be copied by competitors or the barrier isn't exactly too large to overcome.

The "pure" definition of competitive moat from the textbook is something like:
(1) Will you change your auditor if he decides to raise your price by 10mil next year? Hell no! if it can cost a 5% drop in stock price on my 100bil company when I announce it.
(2) Will you switch to drink Pepsi if the eatery doesn't have coke? (I would, but I realized my American colleagues don't)
(3) There are 7 VICOM/2 STA vehicular inspection centers in Singapore. Both have high ROICs but would anyone want to setup another service center to grab a piece of the pie in this island with a stagnating/slow growing car population?
(4) Both TSMC and UMC (semiconductor foundries) spend roughly the same % of revenue on R&D. But been much bigger, TSMC is most probably always going to 1 step ahead of UMC.
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#22
Actually process and coherence is much more difficult in reality than in theory, mostly because humans are not machines, and it's the humans that make decisions.

Copying the "outcome" ie product is easier. Yet in the longer term the difference is apparent. So it depends on the market dynamics or segmentation whether price or quality is more important.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#23
In the beginning, there was Giodarno. GAP and Fast Retailing (Uniqlo) learned from Jimmy Lai of Giodarno.
As claimed by Jimmy Lai in his books.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#24
(27-07-2016, 02:34 PM)weijian Wrote: From a textbook study, Zara's improvement is "process based" and this same model can be copied by other competitors to erode their advantage. I believe there are more fast fashion companies like H&M, Uniqlo, TopShop etc that is up and coming?

My "textbook" reference was actually referring to the strict definition of competitive moats. Having a "process based" or great HR/Mgt aren't really competitive moats, because it can be copied by competitors or the barrier isn't exactly too large to overcome.

The "pure" definition of competitive moat from the textbook is something like:
(1) Will you change your auditor if he decides to raise your price by 10mil next year? Hell no! if it can cost a 5% drop in stock price on my 100bil company when I announce it.
(2) Will you switch to drink Pepsi if the eatery doesn't have coke? (I would, but I realized my American colleagues don't)
(3) There are 7 VICOM/2 STA vehicular inspection centers in Singapore. Both have high ROICs but would anyone want to setup another service center to grab a piece of the pie in this island with a stagnating/slow growing car population?
(4) Both TSMC and UMC (semiconductor foundries) spend roughly the same % of revenue on R&D. But been much bigger, TSMC is most probably always going to 1 step ahead of UMC.

Bigger R&D budget is a competitive edge, but comes with a prerequisite i.e. alignment with customers' needs. Nokia spent more on R&D than Apple during the good old years, but we know the result now.

http://www.zerohedge.com/news/2014-01-23...g-rd-chart

So what is the most important? One of them, is a sustaining process to listen, analyze, and validate customers' needs and expectation. Cisco is a good case study on tech sector. I didn't know TSMC well, but IC designers are happy with its processes, libs, and tools. So, TSMC should be doing well on that.

Pepsi and Coke are heading to produce healthier products now, which is the global consumer trend.

In short, one of the importance, is the alignment with customers. The moment it is done, "moat" will be widen over time in scale, brand, and cost. The moment it is not done well, existing "moat", will be eroded over time.

(sharing a thought)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#25
(21-07-2016, 02:06 PM)yccheok Wrote: Hi,

I'm Malaysian and I'm new in SGX.

I have strong preference in consumer product stocks. For example, I do invest in Nestle (Malaysia) , Carlsberg (Malaysia), Coco-cola (US) , Mc-donald (US).

The only stock I had invested so far in SGX is UOB. It is banking stock.

I was wondering, is there any good consumer product stock in SGX, with strong branding?

So far, the one under my radar is Y92.SI (Thai Beverage Pub). But, when I discover it, its price had been sky rocket high since April.


Do you have any recommendation on which consumer product stock worth looking into?

Thank you very much.

Can you share your thoughts, investment thesis, greatest risks of Carlsberg (MK) and Nestle (MK). Am a big fan of brand franchises too. But few strong brands in SG.
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#26
(31-07-2016, 06:58 PM)Choon Wrote:
(21-07-2016, 02:06 PM)yccheok Wrote: Hi,

I'm Malaysian and I'm new in SGX.

I have strong preference in consumer product stocks. For example, I do invest in Nestle (Malaysia) , Carlsberg (Malaysia), Coco-cola (US) , Mc-donald (US).

The only stock I had invested so far in SGX is UOB. It is banking stock.

I was wondering, is there any good consumer product stock in SGX, with strong branding?

So far, the one under my radar is Y92.SI (Thai Beverage Pub). But, when I discover it, its price had been sky rocket high since April.


Do you have any recommendation on which consumer product stock worth looking into?

Thank you very much.

Can you share your thoughts, investment thesis, greatest risks of Carlsberg (MK) and Nestle (MK). Am a big fan of brand franchises too. But few strong brands in SG.

Operating beer business in Malaysia has the following risk
  • Malaysia is one of the highest beer tax country. Half of Carlsberg revenue goes to tax. You come Malaysia you know, Malaysia beer is not cheap!
  • Beer smuggling. Consumer will try to look for smuggled beer, as they are much cheaper.
  • Non drinking beer population growth rate is higher than drinking beer population Big Grin
Nestle I don't really see any risk. Everyone here just like to drink milo, eat maggie, kit-kat, ... Can buy and forget one.
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#27
(22-07-2016, 01:53 PM)opmi Wrote: yccheok, what about KAREX and Spritzer on your home turf, Bursa?

KAREX is pretty popular among retailed investors. Most ppl hope it will become next top glove (Top glove is a kind of glove stock which if you bought during early day, you are millionaire now).

But, I didn't invest in either KAREX or Spritzer, can't comment much on them.
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#28
UIC is Singapore's Clorox but it is private, owned by same shareholder of Food Empire and Indofood - Salim Group. Nowadays the supermarkets like Sheng Siong and Dairy Farm also own house brands.


Sent from my iPhone using Tapatalk
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