Calis

Business-savvy kids turn blogs into e-shopping outlets
Straits Times, Jan 8, 2007 Jane Ng

They find ready customers among fellow youngsters

RACHELLE Yee is 11 but she already runs two shops - online.

One is sweetified-shop.blogspot.com, where she sells clay jewellery she makes herself. The other is lolly-fantasy.blogspot.com, where she customises lollipop pendants based on customers' requests.

The Primary 5 pupil who started her business last month has already sold 19 pieces of her creations, ranging from bracelets to mobile phone charms. She has made a profit of almost $30.

She is part of a fast-growing group of youngsters - in true digital native style - who are setting up shop using their blogs and earning extra pocket money from their ventures.

The Straits Times polled 80 youth, aged 13 to 19, and found that Internet shopping is the preferred choice for half of them, because of its convenience and unusual finds.

Whereas digital immigrants might prefer the old-fashioned consumer technique of haggling face to face, natives make a beeline for the Internet. There, they trade on a wide array of items ranging from second-hand clothing or brand-new ones they bought on impulse (and now want to get rid of), to handmade accessories or art pieces.

Portals which consolidate blogshop numbers, like OneShop or Emall.sg, showed more than 200 such shopping blogs in Singapore by teenagers, with most started last year.

Rachelle hit on the idea of starting a business after seeing her cousin Cheryl Lui, 17, start hers successfully at www.treaties-.blogspot.com

She now spends six hours a day updating her blog during school holidays in addition to another few hours creating her clay jewellery - her stock.

She also sells charms or little mementos which she imports from Japan with the help of her cousin.

Said Rachelle, who studies at De La Salle School in Choa Chu Kang: 'Running a business is not easy. Sometimes I need to post something out and the nearby shop runs out of stamps. Or I may have to handle customers' complaints that the workmanship is not good enough.'

And for an entrepreneur as young as she is, collecting payment from her customers is not straightforward because she does not have an Internet banking facility.

Some of her teenage customers also have no access to online banking and so they have to post her hard cash, hidden in an envelope - a payment procedure aptly called 'concealed cash'.

Others do a fund transfer to her POSB account, but in order to check that the money is in, she has to take a free shuttle bus from her Hillview home to West Mall shopping centre where the nearest ATM is located.

Rachelle, who designed her own blogshop, learnt Web design by experimenting on her father's computer while she was in Primary 1.

She plans to continue her business even during schooldays, but will close her shops during the Primary School Leaving Examination next year.

The plucky girl said: 'If business is good, I plan to open my shop worldwide. I can send items by airmail and they can pay me using Paypal.'

Paypal, an international payment facility and currency of the Internet, calls for the use of a credit card which Rachelle does not yet qualify for.

But she and her many peers are undeterred, going by the number of blogshops in the virtual world. On most shopping blogs, there are also links to at least another 100 blogs owned by young digital natives.

Some teenagers who are more tech-savvy go a step further - they even design from scratch websites of their own.

Monica Lie, 15, from Singapore Chinese Girls School, for example, owns theglassbead.vze.com, a professional-looking site she designed herself. The self-taught graphic designer has been interested in design since she was nine.

She borrowed $50 from her mother to start her jewellery design business, and has already made a profit of $500. She even received two orders from the United States recently.

Before she started the online shop, her mother helped her apply for Internet banking.

Said Monica: 'I prefer an online business because it's cheaper to set up, I don't have to pay rent. But because I don't think it's safe to just meet someone I know online, I always post items out instead of arranging to meet up.'

To keep her designs exclusive, she makes at most five pieces of each.

While handmade jewellery remains the most popular items sold by teenagers, there are others who prefer to sell something different - for instance, hand-painted canvas Mary Jane shoes or art pieces, or whatever appeals to them. For these teens, the range is endless.

Lin Xin, 17, a first-year Singapore Polytechnic business administration student, paints Mary Jane shoes in leopard, sunflower or stripes prints.

At Button Parlour (button-parlour.blogspot.com), colourful buttons are turned into fanciful earrings by adding a stud behind the button. Prices start from $1.90 for a pair of plain coloured studs.

Another shop, Pixel Pastry (pixelpastry.com), has digital artworks and graphic designs by artist and boss Lim Si Ping.

The 19-year-old LaSalle SIA College of the Arts design student said her site is more a hobby than a career for now, even though her clientele has grown quickly to include overseas ones since she started the shop last year.

While working with the Internet has allowed her to reach clients on the other side of the globe, she said it has disadvantages because 'anyone can rip my work off from the Internet and use it illegally'.

Parents of these teenagers are still trying to get used to the idea of their child starting a business.

As Rachelle's mother, housewife Madam Joanna Qua, 40, put it: 'At first, I was worried she might be doing something illegal. She's still so young and I don't know much about IT. But now I see her putting in so much effort, I feel quite happy and proud of her.'


Piecing together the digital native

Last week, we learnt how the generation that was weaned on the tools of the digital age communicated. This week, Jane Ng looks into how they trade
TRADING THEN

A large start-up capital is needed, so mostly those with wealth could start a business.

Starting a business is viewed as a huge risk, because lots of money goes in and there is the risk of failure.

Digital immigrants weigh their choices carefully before venturing into any business.

Lots of research, planning, logistics and capital are involved.
TRADING NOW

With free Web hosting, there is no need for lots of savings or cash to open an online store.

The digital native's attitude is: If one blog shop fails, start another. If no one buys their wares, they have no large inventory to worry about - they just wear what they would have sold.

All you need is a computer, an idea and some knowledge of the Internet. Your online shop is ready in just a few key strokes. It can be a one-man operation, and the flexibility of the technology allows users to work anywhere and at any time.
BETTER IN PERSON

'I started online shopping half a year ago and I find it convenient and the things sold are creative. I like to spend time window shopping online. But if I were to compare, I still prefer real-life shopping because I can try out clothes and feel the product. In online shops, I worry about whether item is all right and if it arrives damaged, I still need to go through the hassle to find the seller and solve the problems.'
LYNN TOH, 19, Nanyang Polytechnic
EASIER TO HANDLE

'With the Internet, we don't have to pay rent to sell our stuff, don't have to get approval certificates etc. I can work from home and choose my own working hours as long as I reply to my customers' mail on time. This definitely makes the whole business easier to handle. Furthermore, most teenagers have Internet access at home so my blog shop is accessible to them. Technology itself can't open a shop or sell stuff for me, but I can make use of technology to benefit me.'
CHERYL CHIA, 14, Singapore Chinese Girls School, who owns Ministry of Style at ministry-of-style.blogspot.com, which sells mainly second-hand clothes or items she bought on impulse
CASHING IN

'I have sold close to 200 handmade clay jewellery pieces and earned more than $500. For a teen like me, this is a lot of money, much better than working part-time outside. Having this online business has inspired me to open a shop when I graduate in the future.'
CHERYL LUI, 17, awaiting polytechnic intake, at www.treaties-.blogspot.com
IT SAVES TIME

'I do a lot of window shopping online especially when I'm bored. Online I can find unique handmade stuff that not a lot of people will have. If I already have what I want from the Net, then I don't go out and do real-life shopping. It's a waste of time to go from shop to shop. Buying it online saves time.'
AMELIA LEW, 19, Tampines Junior College, who has been shopping online for almost three years

Calis

Spreading wings overseas
January 16, 2007, Business Times, SME SPOTLIGHT

Young Singapore companies are growing their overseas arms at an early stage in their business

SINGAPORE start-ups are venturing overseas early in their business cycle, with four in 10 having some form of presence overseas, a survey has found. The survey - released last week by DP Information Group and strategic partner Action Community for Entrepreneurship (Ace) and sponsored by Sirius Venture Consulting - polled 582 companies that had been in business for three years or less at the time of the survey.

It found that 43 per cent of respondents had ventured into overseas markets, and among those with an overseas presence, more than half generated up to 30 per cent of their turnover from abroad.

'This shows that the government's unswerving effort to encourage Singapore companies to internationalise may have paid off,' the survey report said.

Among the 252 start-ups who reported having an overseas presence, 73 per cent have been operating for at least two years.

'The majority of these companies spend their first 12 months stabilising their business,' said Chen Yew Nah, managing director of DP Info. 'However, 41 per cent of new businesses enter the international marketplace in their second year, while another 32 per cent do so in their third year of operation.'

Of the companies that do venture overseas, 67 per cent do so through exporting goods, while 12 per cent choose to establish a physical presence through an overseas subsidiary, branch or office. Another 11 per cent prefer to establish an overseas alliance when entering a new market, the survey found.

Early start

Inderjit Singh, deputy chairman of Ace, said it was noteworthy that a high proportion of start-up companies have expanded overseas in their attempt to foster growth.

'This shows that start-ups are internationalising faster than their earlier business counterparts as a result of rapid globalisation,' he said. 'This definitely looks promising.'

He added that International Enterprise Singapore, the agency which is spearheading Singapore's efforts to develop its external economic wing, should take note of this trend.

'There is a need also to take not only the more established companies, but also our start-ups overseas to gain market and business exposure,' Mr Singh said, adding that Ace will continue its efforts in encouraging more start-ups to embrace a 'global mindset' from inception.

Another aspect the survey looked into was the sources of business for start-ups. It found that 64.1 per cent of survey respondents regard referrals from existing customers as an important source of potential business, while 36.4 per cent rely on referrals from business partners. Another 27.8 per cent use the Internet or newspaper for advertising purposes.

'Of course, many do not have the resources to engage in advertising and promotional activities, so they prefer to adopt a networking approach, with 48 per cent stating they need government assistance in this area,' Ms Chen said.

funnysnow

My school mate of my level. Publish in newspaper AGAIN. She is always in magazine as well..

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Calis

Business Times - 17 Jan 2007

Technology, globalisation changing retail landscape

(NEW YORK) Technology and globalisation are changing the retail landscape and successful retailers will be those who can respond and adapt to those changes, attendees of the National Retail Federation's annual convention were told on Monday.

Speaking to a crowded ballroom on Monday morning in New York, National Retail Federation president and chief executive Tracy Mullin, Metro AG chief executive Hans-Joachim Koerber, and Microsoft Corp chief executive Steve Ballmer said technology and the Internet have altered how consumers shop and what they expect from retailers.

'Through blogs and consumer reviews, customers are letting the retailer know how they feel about shopping at their store or website, and whether they like the products they brought,' Ms Mullin said.

Retailers who have set up customer reviews, where shoppers can give feedback on products they have purchased, have reported more satisfied customers and fewer returns, she said, because consumers can learn from the experience of others and avoid products with bad reviews.

'The consumer is absolutely in a different position today and going forward than the consumer was in the past,' Mr Ballmer told the crowd. 'The consumers' ability to get information, to be empowered, to know what's out there, to make intelligent decisions, to stay organised, to dispassionately assess alternatives, to be in control, has never been higher.'

He pointed to the fact that Time magazine's 2006 'Person of the Year' was 'you'. Consumers expect more personalisation, tailoring and customisation than ever before, he said, and they expect to be able to search and get information or shop from their home, over the Internet or on mobile devices.

'They expect to be at the centre of everything that the businesses that serve them do,' Mr Ballmer said. 'The ability for consumers to get information and be served in a variety of ways is only going to increase.'

Metro's Mr Koerber said the increasing digitalisation of consumers' lives is something routine 'that nobody can afford to ignore'.

He also said retailers cannot ignore the growth opportunities coming from emerging markets like China, Russia, Ukraine, and India. 'In India, retailing is undergoing a crucial shift at the moment as supply moves from small mom and pops to larger outlets,' he pointed out.

Mr Ballmer said that in India and China, organised retail is taking off 'in an unbelievable way'.

Mr Ballmer said competition is becoming much more global and more focused on giving the consumer 'exactly what they want', with retailers trying to differentiate themselves through different store formats or experiences.

Mr Koerber called on retailers to adopt global standards to make running businesses globally more efficient.

'Running a business like ours without true standardisation would be like trying to play a game between a European soccer team and the Pittsburgh Steelers,' he said, referring to the US professional football team.

While he said the game would be all about football - most countries outside of North America call soccer football - it would clearly be hampered by the different understanding globally of what football means. 'We cannot afford to apply different standards in different regions of the world where we do business,' he added. - Reuters

Calis

Business Times, BT-Citibank Young Investors’ Forum - 22 Jan 2007
A survey of landbanking

Sinking money into undeveloped land overseas is gaining ground among Singaporeans. JANICE HENG looks at how this investment option works and the risks involved

INVESTING in land is nothing new; tycoons like Warren Buffett and Li Ka-shing have profited from it. Yet such investment was traditionally the preserve of the very wealthy because of the large size - and hence high cost - of the land areas involved.

But now, with the rise of landbanking companies, even small investors can enjoy a piece of the action. But be warned: there are risks involved.

Landbanking companies begin by buying tracts of undeveloped land. They keep part of each tract and divide the remainder into units, which they then sell to individual investors. The hope is that the land will appreciate in value.

To that end, landbanking companies work with planners to get development approval. Once approval is obtained, developers are expected to come in and offer high prices. The companies then sell the land on behalf of their individual investors, who reap the returns.

This form of investment seems to be gaining ground here.

Walton International, a Canadian-based company which sells land in North America, became the first landbanking company in Singapore when it opened an office here in 1996. It has since been joined by Royal Siam Trust, which markets beach-front land in Thailand, and Profitable Plots, which deals with UK land.

More Singaporeans seem interested too. Walton International reported that as of July 2006, it had some 7,000 Singapore investors, up from over 4,000 in July 2004.

Landbanking's growing popularity may be due to its 'windfall' potential. Although purchased land is expected to appreciate regardless - Royal Siam Trust, for example, says the value of Thai beach-front land has been growing at an annual rate of 20 to 25 per cent - landbanking's appeal lies in the possibility of a one-time gain when developers buy over the land.

However, the once-off nature of the returns makes it hard to develop a risk-return profile for landbanking.

NO GUARANTEES

And landbanking does come with significant risks. Firstly, landbanking is unregulated, and thus falls into a legal grey area. This could pose problems if disputes arise between companies and individual investors.

The Monetary Authority of Singapore was unable to comment on the matter as landbanking is not under its purview. Suffice to say that if an investment turns sour, all an investor may be able to show for it is the title deed to a piece of land hundreds of miles away.

Other risks include the illiquid nature of such assets, and exchange rate movements.

There are also no guarantees on how soon developers will buy over the land. Estimates by landbanking companies range from a period of three to eight years, to five to seven years.

Then there is the risk that landbanking's key assumption may not hold: in other words, the purchased land may never undergo development. This is not necessarily an unfounded fear.

In a BBC expose last September, it was revealed that UK landbanking company Commercial Land had been selling sites which had - contrary to the company's claims - very little development potential.

The district council overseeing one such site in Dorset said there was no chance of obtaining planning permission, especially since the area in question already had an oversupply of housing.

Landbanking companies may also leave investors high and dry. In November 2006, UK landbanking company Land Heritage (UK) closed down after an investigation by the Financial Services Authority. Its 700 investors were not refunded.

Perhaps because of such cases, landbanking companies are eager to reassure clients that they will not be left holding unprofitable plots. Clients are generally allowed to resell their units individually even if developers have yet to buy the area in question, although a minimum holding period may apply.

To avoid being burnt, investors should do their homework on the locations in which they plan to buy units.

LONG WAIT

Risks aside, the initial sums involved in landbanking are not modest.

Royal Siam Trust, which sells units of one-sixteenth of an acre, prices the first unit at US$17,500, and other units purchased simultaneously at US$17,000 each. Profitable Plots begins its pricing at 5,625 (S$17,067) per plot, though it is unclear how large each plot is.

In short, investors should be prepared to face high risks - and possibly a long wait - if they are focusing on the large potential gains from land development rather than the gradual appreciation of the land value. They must also be willing to stay invested for at least the medium term.

Potential investors can enquire at the websites of landbanking companies in Singapore or directly at the companies' Singapore offices. The companies' advisors will then guide them through the process of selecting and purchasing units of land.

It may not be the same as buying a plot for your future house, but it might still prove fruitful.

Source

djchris

It's always great to see youngsters getting matured and independent enough to stand on their own, being able to run their own business and all.

But wouldn't IRAS come after them for not being a registered business entity? I think if the parents wish to encourage them, they should register a business under their name and let their kids give it a shot.

Calis

Agreed on that point by djchris. That is part of the reason why the government has amended it laws to allow 18 year olds to register businesses and be directors of companies this year after the law comes into effect.

However, much more can be done, that is, educate the parents as well as the youngsters on the basic knowledge on what are businesses as well as providing more alternatives or options for youngsters to give a shot of their own. Parents certainly do play an important role in encouraging and guiding the youngsters in becoming more independent.

Calis

Business Times - 29 Jan 2007

Tapping potential of creative industries

S'poreans urged to distinguish themselves to stay ahead of the game

By VINCENT WEE

WE must not neglect the right brain - this is the crux of the message that Ministry of Information, Communications and the Arts (Mica) permanent secretary Tan Chin Nam is keen to spread when he talks about the potential of the creative industries.

'We are in a new economy where both the right and left hemispheres or in other words the whole of the brain must be put to work and it is important to distinguish ourselves to stay ahead of the game,' Dr Tan said.

Far from having hazy ethereal concepts often associated with the arts, Dr Tan has very clear ideas about the direction in which the creative industries sector is headed and how he wants to lead it. In fact, the recent Creative 2006 festival was the perfect platform to bring all these elements together through its multi-pronged approach to encouraging the creative industries cluster.

The Creative series that was inaugurated last year is essentially a promotion activity to involve the public and industry. It has various components including the Beyond forum which enables top global leaders to exchange ideas with locals and to create some buzz and excitement.

Another key component is the Asian Media Festival. This year's festival ended with a five-year record of