Singapore Post

[la papillion]

W, you're right. I didn't mention that although it looks like singpost won the local tussle, it might lose the bigger global war over which it has no monopoly.

[kennynah]

recall that DHL, a subsidiary of Deutsche Post, has reported recently that their business is suffering from lower courier volume.. i suppose we can also deduce that this phenomenon is no stranger to singpost as well ??

[Poles]

if you step in sing post @ paya lebar....u see probably 80% of none postal related business...

[Poles]

mistake...non-postal related

[kennynah]

so then...what do they do?

[kanglc]

if you step in sing post @ paya lebar....u see probably 80% of none postal related business...

The postal related-business are within the other 90% of the premises, which are out of bound to the general public.
Maybe we can count the lorries/trucks going in and out through the back door?

[iam802]

While we can safely says that SingPost is a 'monopoly' within Singapore, the truth is most of the key lucrative revenue associated with this kind of business is when it gets outside of Singapore.

And think in terms of bulk or volume business. Eg. Church sending weekly or monthy newsletter to members all over the world. The further, and the greater the geographical coverage, the more lucrative it is.

So, perhaps a good way to dig further is to find out this portion of the revenue. Are they growing or are they shrinking and losing out to competitors like DHL, UPS etc.

I will also not rule out that competitors are also partners when it comes to such areas.

Others, of course, which Winston and other members may have highlighted. Is SingPost key revenue from postal services going to increase? What is the driver? More pple sending Christmas cards?

If that is not going to happen, and they are diversifying into other businesses just to sustain the revenue, then I would see them as 'just hopping along'.

So, which one of their new initiative is going to be generating lots of revenue and have good growth and pricing power? GE Money? Down for the near future.

[kennynah]

i hear you 802....and mostly, i agree with the methodical approach to try determining if singpost can make it...

using a very common sensical approach, i just cant think of how singpost's postal services can be lucrative...

firstly, we spend 22 cts on postages for local delivery and when was the last you and i did that? hardly...with emails as a common used transmission, i dont even need to send hard copy mails. sure, in my course of work, my customers send POs and we, invoices in hard copies...but again, the postage is so minimal, it would really be a truck load of businesses that i must do to generate any significant postage fees for singpost

secondly, unlike DHL of UPSes, singpost has no ability to send packages internationally to "your doorstep". it relies on other couriers with that infrastructure. this makes singpost a non-preferred choice, if i intended to send any presents to my foreign friends, preferring to engage UPS or Fedex instead of singpost..

thirdly, even if it started expanding into other BUs, such as becoming a pawn shop or a distributor of financial services; ie. becoming outlets to GE Money, these are in competition to existing and more established organisations already in such businesses.

fourthly, i have yet to see any creative initiatives coming out of singpost, to transform herself to provide any viable and major revenue generating businesses...

to me...singpost is not going to be my choice of investment...much like any other locally focused businesses listed in sgx...

[Poles]

so then...what do they do?

GE money, insurance, pentax digicam, binoculars & etc....haha....

[kennynah]

i think better they get a licence to become debt collectors... afterall, their postmen have to deliver mails all over the island daily...might as well just go knock on doors...deliver the message ..."O$P$" ....