In preparation for the IGD RedMart Trade Briefing 2017 on 23 February, IGD sat down with Roger Egan, co-founder and CEO of RedMart. We asked him about the future of online grocery retailing in Asia, as well as his plans for RedMart and its suppliers.
1. What’s the outlook for the online grocery market in Southeast Asia?
Grocery represents about 60% of the US$814bn total retail market in Southeast Asia. With 1% online grocery penetration currently, and a tech-savvy consumer base, we believe that Southeast Asia will quickly catch up and leap to more than 15-20% penetration in cities. There is potential to build a US$1bn business in online grocery in Singapore alone.
2. What does the Lazada deal mean for RedMart?
This partnership will accelerate RedMart’s expansion into new product categories and the further enhancement of its service offering to customers by leveraging Lazada’s seller base, ecosystem of third-party service providers, and advanced technological resources. Furthermore, the capital flexibility provided through this deal will go towards innovation to further delight our customers.
3. Where do you see your business in five years’ time?
We expect to achieve 15% market share in the Singapore modern trade market as more customers begin shopping for groceries online. We will shorten click to deliver times, so customers can immediately receive what they need. We expect to have the largest range in Singapore at the most competitive prices with a vastly expanded fresh offering. We expect to be the first place that Singaporeans come to look for any item – and to be their most trusted grocery source.
4. How are you supporting SME suppliers in Singapore?
We have spent 2016 expanding the representation of local companies on RedMart’s marketplace. Currently we have more than 450 companies, the vast majority of which are local. In doing so, we have helped increase their customer reach and sales turnover – the average monthly growth per company on the marketplace is 16%. We have elevated their understanding of e-commerce through a constant program of group training sessions, one-on-one performance/opportunity reviews and a dedicated Seller Conference. These activities form part of a partnership signed between Spring Singapore and RedMart; both of us are dedicated to growing Singaporean small and medium-sized companies by helping them fully realise their e-commerce goals – on our marketplace and beyond.
5. Why should your suppliers and potential suppliers attend the IGD RedMart Trade Briefing 2017?
This is a rare opportunity for us to meet our supply partners to discuss our short-term and long-term goals. We have a lot of good news to share and are excited to hear what our partners think. We hope all our valued partners will join us in kicking off 2017.
Shirley Zhu, Programme Director, IGD Singapore
Based in Singapore, Shirley heads up all of IGD's research on Southeast Asia. Contact Shirley at email@example.com for further insight on the region.