LFS earning bulk of income from export

[ml708]

From what I heard, some LFS such as CF and Iwarna earn up to 90% of their income through exports.

This sounds strange to me as where are they going to export to? Many of the richest buyers live in Japan, Taiwan and HK, and they all have a huge amount of exotic imports that they source on their own.

Unless our LFS actually export to them?

[solasido]

Iwarna rears their own designer clowns. Probably that is one source of export revenue.

Looks like Iwarna tried to source revenue from wide range of products and services, Including being distributor for certain products. Just like AM that has their own skimz products and the salt.

As for live stocks, I think only high value shipments really make a lot of money.

For low value, it will only make money when the volume is high. What I observe is that Ah Beng is playing on the high volume low value market. We can see how pack the shop is with livestocks on Thu/Fri and Sat morning but on Sun afternoon, many livestocks are gone. Looks like the turnover is high, hence the profit.

As for CF, since Singapore does not produce the lives stocks, I recon that CF provides staging/quarantine services for the fish to be consolidated, before sending to foreign countries. Else it does not make sense for the consumer to buy at higher price from CF than directly from Bali or the Philippines.

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[solasido]

Some more, in SG the market is so small. How many people are active reefers here.

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[solasido]

Some more, in SG the market is so small. How many people are active reefers here.

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Btw, I think one way to identify if an LFS is an exporter is by seeing if it participate in Regional or international trade events like Aquarama, Interzoo, MACNA. that is when they have chance to introduce their offerings and to link up/cooperate with other service/product providers (as a seller and/or as the distributor).

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[FuEl]

Lol..most of the main players are just operating the marine trade as their hobby, they can afford not to continue if they choose to. If it's their sole business close down long ago already. Can't even secure land lease, how to plan business expansion?

[ml708]

Iwarna rears their own designer clowns. Probably that is one source of export revenue.

Looks like Iwarna tried to source revenue from wide range of products and services, Including being distributor for certain products. Just like AM that has their own skimz products and the salt.

As for live stocks, I think only high value shipments really make a lot of money.

For low value, it will only make money when the volume is high. What I observe is that Ah Beng is playing on the high volume low value market. We can see how pack the shop is with livestocks on Thu/Fri and Sat morning but on Sun afternoon, many livestocks are gone. Looks like the turnover is high, hence the profit.

As for CF, since Singapore does not produce the lives stocks, I recon that CF provides staging/quarantine services for the fish to be consolidated, before sending to foreign countries. Else it does not make sense for the consumer to buy at higher price from CF than directly from Bali or the Philippines.

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Very good analysis bro. I guess CF might be able to do so due to its extensive stocklist and act as a one stop shop like you mentioned.

What I really wonder though, is what happens to the stocks that have low turnover. For example they bring in x fish and it isn't sold in a month. How do they get rid of it?

[ml708]

Lol..most of the main players are just operating the marine trade as their hobby, they can afford not to continue if they choose to. If it's their sole business close down long ago already. Can't even secure land lease, how to plan business expansion?

Is that really true? I heard CF stopped their construction business because marine was getting more profitable for them.

Their revenue easily exceeds 1mil per annum.

[thomas_lim]

Is that really true? I heard CF stopped their construction business because marine was getting more profitable for them.

Their revenue easily exceeds 1mil per annum.

Only if you are the only designated re-exporter to Europe, etc from this region. Like CF.

If you look at other LFS, then they had to look at other opportunities to survive.

Like what Fuel say, you can't even secure a long term land lease. What is the purposes of planning a long term business.

[ml708]

Only if you are the only designated re-exporter to Europe, etc from this region. Like CF.

If you look at other LFS, then they had to look at other opportunities to survive.

Like what Fuel say, you can't even secure a long term land lease. What is the purposes of planning a long term business.

I wonder if de jong gets from them.

That is true, I believe most will be forced into shophouses

[ReDDeviLs]

Is that really true? I heard CF stopped their construction business because marine was getting more profitable for them. Their revenue easily exceeds 1mil per annum.

Bro you heard of many things, but usually theres more to it. So dont set your judgement base on some "i heard".

[ml708]

Bro you heard of many things, but usually theres more to it. So dont set your judgement base on some "i heard".

it wasn't a judgement bro, it was a question

[ReDDeviLs]

it wasn't a judgement bro, it was a question

Sorry bro, misunderstood you. Paiseh.

[ml708]

Sorry bro, misunderstood you. Paiseh.

haha no worries!

[thomas_lim]

I wonder if de jong gets from them.

That is true, I believe most will be forced into shophouses

Not sure too. Maybe... Customer lists are their trade secret.

Yes. Once they are forced into that. We might see a decrease of variety we are getting now.. Live stock + hardware due to space restriction and high rental.

Things will get more expensive as they need profit to survive in this high cost environment of ours.

The worst part is some people do not appreciate what our LFS are doing now and trying to squeeze them dry which had lead some out of business.

Maybe when really all are forced closed. Everybody will be happy coz no need to spend any more. Be it cheap or expensive.

[ml708]

Not sure too. Maybe... Customer lists are their trade secret.

Yes. Once they are forced into that. We might see a decrease of variety we are getting now.. Live stock + hardware due to space restriction and high rental.

Things will get more expensive as they need profit to survive in this high cost environment of ours.

The worst part is some people do not appreciate what our LFS are doing now and trying to squeeze them dry which had lead some out of business.

Maybe when really all are forced closed. Everybody will be happy coz no need to spend any more. Be it cheap or expensive.

perhaps the lfs of the future here will be like live aquaria, where the fish is sent to the customer and ordering is done online due to lack of space. not sure if this has been done before locally

[thomas_lim]

perhaps the lfs of the future here will be like live aquaria, where the fish is sent to the customer and ordering is done online due to lack of space. not sure if this has been done before locally

If this old brain of mine still working properly. I recalled there was an LFS who does it some time back.

But it had folded due to lack mainly manpower and think to an extend the high cost of quarantine.

[ml708]

If this old brain of mine still working properly. I recalled there was an LFS who does it some time back.

But it had folded due to lack mainly manpower and think to an extend the high cost of quarantine.

yeah. from what I understand he could not maintain it as he had a full time job as well.

[yikai]

perhaps the lfs of the future here will be like live aquaria, where the fish is sent to the customer and ordering is done online due to lack of space. not sure if this has been done before locally

as someone who has been to live aquaria and have met kevin kohen many times,

i can assure you live aquaria is not lacking in space.

[ml708]

as someone who has been to live aquaria and have met kevin kohen many times,

i can assure you live aquaria is not lacking in space.

yes, I know they aren't. what I meant to say was that the fish can be sent to the customer in the SG context due to lack of space.

[illumnae]

If they can't get farm space, where do they store their live stocks? Malaysia?

Whether online or not, they still need a holding area for the live stock. Going online doesn't solve the problem