SingPost sells its online luxury goods store to Reebonz

SingPost sells its online luxury goods store to Reebonz

March 4, 2014

by Terence Lee

SingPost is bidding sayonara to Clout Shoppe, an online luxury goods store it started in 2011. It has sold the business to Reebonz, a company that also sells branded goods on the internet. Terms of the sale were not disclosed.

The deal makes sense for SingPost, Singapore’s national postage mail delivery company. After a decade of dabbling in e-commerce, it has finally found a formula that takes advantage of its regional logistics network – by becoming an end-to-end e-commerce services provider to retailers with no expertise in selling online.

But having Clout Shoppe around could be awkward for SingPost due to the conflict of interest in running a company that’s a direct competitor to potential clients.

“The main thing for us is to be an e-commerce enabler. We don’t want to compete with our clients,” Marcelo Wesseler, senior vice-president of e-commerce at SingPost, told Tech in Asia.

While selling the company could increase the likelihood of attracting customers, it apparently has no trouble attracting an initial set: over 300 brands, including Adidas, Canon, Philips, and Toshiba, have relied on SingPost to create online stores that carry their brand names.

For merchants that don’t want to commit to a ‘monobrand’ store, SingPost has Omigo, an online multi-brand website that’s like Rakuten and Lazada Marketplace but with the added feature of handling packing and shipping. Omigo also serves as a test bed for merchants who are considering the adoption of SingPost’s full suite of e-commerce services.

Clout Shoppe and Reebonz are a good fit together: the latter has been selling luxury goods online through flash sales since 2009, making Clout Shoppe an additional channel to increase Reebonz’s sales.

Reebonz already has offices in at least nine markets in Asia-Pacific, and has raised US$40 million in funding in 2013. Samuel Lim, CEO and co-founder of Reebonz, said that his company is seeking out more ways to collaborate with SingPost. It is currently exploring “areas of strategic partnerships in areas of e-fulfilment and logistics.”

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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