SingPost said today that luxury online goods retailer Reebonz will take over its e-commerce retail business Clout Shoppe, to allow it to focus efforts more on the fulfillment and logistics business.
The national post of Singapore launched Clout Shoppe back in the summer of 2011 as an Internet shopping mall for luxury goods, with the intent that it would help develop the local e-commerce industry and SingPost’s role providing logistics for online merchants.
Today the postal company said it now wanted to focus its resources on driving service quality and enabling the growth of e-commerce in Singapore and South-East Asia.
While taking SingPost’s role out of the front-end of the Clout Shoppe retail business, the move also opens the door for SingPost to secure more e-fulfillment and logistics business from Reebonz, which specializes in the online retail of designer brands, but also has five physical stores in Singapore, Kuala Lumpur, Bangkok and Sydney.
Dr Wolfgang Baier, the SingPost CEO, said that by collaborating with Reebonz, his company could continue to drive e-commerce growth and demand for SingPost’s e-commerce logistics services.
“Working with Singapore’s market leader in online luxury goods, Reebonz, allows us to focus on helping businesses grow online both in Singapore and in the region, tapping on our full suite of e-commerce logistics solutions covering the four key areas of transportation, warehousing, delivery and returns and web solutions,” he explained.
“More than 300 customers have come on board including global names such as adidas, Canon, Philips and Toshiba via our monobrand sites like shop.adidas.com.sg. We will continue to offer ‘concierge’ services through vPOST as well as our Omigo.com marketplace.”
Reebonz was started in March 2009 by three entrepreneurs with the idea of selling luxury goods through invite-only flash sales — sales events that typically last two to three days. The company now has 250 employees and offices across the Asia Pacific region, including in Malaysia, Indonesia, China, Taiwan, Hong Kong, Thailand, Australia and South Korea. Since 2012 the company also runs an online marketplace for buyers and sellers to trade secondhand designer goods, Reebonz Vintage.
Samuel Lim, the Reebonz chief executive and co-founder, said adding the CloutShoppe.com website would provide another channel for his company’s online offerings.
He said: “We look forward to strengthening our market leadership with strategic consolidation opportunities. We also look forward to working with SingPost who will not only continue to support Clout Shoppe but also explore areas of strategic partnerships in areas of e-fulfilment and logistics.”
SingPost is seeing a significant shift in its business towards e-commerce logistics at the moment, with domestic mail volumes declining in the last eight consecutive quarters.
Under its current CEO the company has been investing in acquisitions and organic growth to position itself as an e-commerce logistics specialist for the South-East Asia region. International services now account for more than 27% of revenue.
Dr Baier said his company was continuing to focus on its commitment to providing customers in Singapore with quality services, but at the same time looking to the opportunities in e-commerce and regional logistics.
“We are intensifying our efforts to meet our customers’ current and evolving needs and are investing more than S$100 million to upgrade postal infrastructure, introduce new delivery channels, modernise touch-points and improve operations,” he said.
“At the same time, we will contribute to the growth of the e-commerce eco-system in Singapore and the region by leveraging our strength in delivery and end-to-end logistics solutions via our role as an e-commerce enabler.”