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I supposed challenger's strategy of developing the Valore brand is not wrong, maybe just 1 of their strategic path which they have taken for singapore market, just that the ACTUAL quality of the VALOUR brand product has to be of a "fair" quality/safety standard.

Now, let's see this particular singapore market strategy,

1) Just by selling IT Major's products, Challenger is always at the "taking" end, ie, IT Major's sets the price and challenger takes it. Since got no "bargaining power" to negotiate anyway. (At the moment...since sg market too small...), this means D.O.G ratios of OEM/Distributor/Retailers % cut comes in. => Margins are stuck/ Or hard to increase!

"This can be very significant if you consider that brandowners can usually earn about 40-50% gross margins, distributors 10-15% and retailers 20-25%. At the net level it is about 5-10%, 2-3% and 4-6%." - D.O.G

2) Retail Cost = RENTALs and distribution cost => Increasing yr by yr.. => COST Increase!

So, to move up the value chain/create growth, identify the product segments which IT Majors are not in focusing yet, eg, accessories...etc..why? also because the OEM factories can produce these products for Challenger at low prices too!

So, the value of a Valore Product is basically, (in singapore's market context)

Total Value of Valore Product = 1) Brand/reputation of Challenger cost + 2) Convenient Factor cost (no.s of stores) + 3) cost of actual OEM's product x 4) market ability to pay factor (%)

All these 4 factors plays a critical part, and of cos, IT Majors should also frown on this Valore move by Challenger if they feel that Challenger is "eating" into their pie..

Anyone can do a basic calculation on powerbanks? take a well known proven power bank by IT Major, and compare against Valore's powerbank, side by side / size by size.

This sounds a bit like Chinese's sports shoes makers (knock-offs/copies) comparing with NIKE's shoes... which fails in terms of quality and eventually pushes consumers to buy REAL NIKE shoes eventually.

For Valore to work in this market dominated by IT Majors, Quality of the products DOES matters!

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I was thinking, maybe Challenger could have taken the other path, expand into other markets. (ie, IKEA, hyundai, kia), this way, growth through quality IT major products are maintained.
I suspect they are facing a "challenge" in expansion overseas... maybe a M&A would need to be considered, maybe M&A with Giant/Sheng Shiong for ASEAN Market, M&A with OSIM for US markets..., M&A with Capitaland for China Markets... (duhs!, oem factories are in china!!)... M&A with Singapore Airlines/Singpost for other hard-to reach places..

Makes more sense to increase worldwide outreach and growth, selling quality IT products and building up a reputable brand at the same time!!!

Challenger expanded overseas before it ipo, it failed badly in those 3 countries. I think they are only strong in sg market. Its more like starhub than like singtel.

If u want an overseas expansion play, can consider buying courts for their sg malaysia indonesia growth

Online purchase can be very cheap but also risky, now a lot of
Fake xiao mi power banks, refer to attached picture.

Bottom line is people will still get their powerbanks or what ever thing they need from valore. Since they are now everywhere and easy to exchange should your product spoil. Better than buying something from G market or whichever online alternative or branded powerbanks where you don't know who to look for or where to go should your product spoil. Or you need to travel to some ulu service center just to change it and require your receipt. Being a challenger member they have your purchase record and faulty items can be exchanged even without your receipt. Who keeps their receipt for such a small purchase anyway. And this membership thingy creates a Brand loyalty. You know they are not good but you still gonna buy them and use anyway. Just like mcdonalds are everywhere. But you just eat it although it's unhealthy because it convenient. Or you can eat at branded restaurant and still gonna Sh** it out anyway. Same type of logic. Buying an expensive branded thing and it spoils a year or buying a valore and have at least a one year warranty easily exchangeable


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For approach on Consumers Habits, which changes, from a person lifestyles, at different stages of life... etc.

Why buy a poor quality product which might or might not break down even though you can exchange for free within a year at 20% off, of a good quality product which is dependable and can last for it's design lifespan (2 yrs for IT products)? hey! they have 1 year warranty too!

Which product has got more value for consumers?

Clearly, this choice becomes increasing obvious when the product serves an "Important" function, For IT products, let me try to list a few, (non-exhaustive)

Important Functions egs -
1) Smartphone power banks (Power backup, Safety Reasons)
2) Printer Toners (Quality of print-outs)
3) In Car Cameras + SD cards (Stored Videos of accidents)
4) USB Car chargers (Don't fry your car!!)
5) DSLR cameras (For lasting memories...)
6) PC/Laptops/Ipads ... (All IT Majors's territory)

something like that...

sure! we can try to save 20% off here and there, BUT very often on not soo important stuffs... a $2 USB cable at Daiso works too!
Maybe that is why Valore Products falls within these "Not so important" Category at the moment.

If you can accept so-so quality, "Not so Important" products, there are still places to buy them at lower price.
For Challenger's membership, i see this as a way to get a decent discount, that's all,

I think Valore needs to step up on it's product quality to justify it's pricing margins. (which is why R&D might be required)

So far, for "Not so Important" products, maybe not soo critical yet.

though been a loyal shareholder, I just bought my first product from challenger -a wireless mouse from challenger, but alas I don't know wireless mouse has to be installed with a battery..

(10-05-2014, 08:16 PM)pianist Wrote: [ -> ]though been a loyal shareholder, I just bought my first product from challenger -a wireless mouse from challenger, but alas I don't know wireless mouse has to be installed with a battery..

... ...

alamak fren...

(10-05-2014, 08:16 PM)pianist Wrote: [ -> ]though been a loyal shareholder, I just bought my first product from challenger -a wireless mouse from challenger, but alas I don't know wireless mouse has to be installed with a battery..

With that level of iq, pls dun touch stocks

(10-05-2014, 08:16 PM)pianist Wrote: [ -> ]though been a loyal shareholder, I just bought my first product from challenger -a wireless mouse from challenger, but alas I don't know wireless mouse has to be installed with a battery..

First product from Challenger? Really? You Sim Lim fan?

Have to say wireless mouse is really great. The only thing left to have a complete wireless experience is wireless power!

By the way Logitech?