20-06-2013, 02:27 PM
(20-06-2013, 11:58 AM)felixleong Wrote: if you think amazon is a big threat to challenger, then amazon must be a big threat to all sorts of retailers in singapore
because amazon sells everything!
I do believe amazon's move will have an impact to smaller retailers, which lack branding and economies of scale.
Go look at NTUC, are their goods the cheapest? probably not, but how come aunties still go down to NTUC weekly to buy their stuffs? Its because they have customer loyalty and a good NTUC points rewards system.
I think challenger has done a great job building a strong and loyal customer base of over 400,000 members.
I think what Challenger is selling is totally different from NTUC. NTUC is selling FMCG, ie. groceries items. Consumers have to replace them when they have finished their groceries.
However, i do agree with you that smaller retailers which lack branding and EoS will be affected.
Let's observe Challenger coming Qs reports in order to see if she will be impacted by the entrance of Amazon.