Singapore company launches social networking website to tap overseas marketBy Ryan Huang Posted: 06 April 2010
SINGAPORE: Amid China's ban on Facebook and Twitter, one Singapore company is launching its own social networking website to tap that market.
Fashion label NewUrbanMale.com is banking on its portal, http://www.numcollege.com/, to raise brand awareness overseas and pave the way for future expansion.
Experts expect to see more companies embark on similar online initiatives due to cost-effectiveness.
NewUrbanMale.com hopes to cash in on its strong overseas following as it has seen a growing number of tourists at its Singapore shops.
And according to data, 40 per cent of its 35,000 members are based abroad with about 10 per cent from China.
To reach them, the company launched its own social networking website to raise brand awareness in new markets.
It believes this will help pave the way for a more successful physical expansion as existing customers introduce their friends to the brand.
NewUrbanMale.com is hoping to break into markets such as China, Taiwan and Malaysia by year end.
It is currently in talks with potential partners to secure funding.
Shenzi Chua, director, NewUrbanMale.com, said: “We realised that a lot of our shoppers came from overseas. They cannot shop in NewUrbanMale.com so we bring NewUrbanMale.com to them in a different way.
So hopefully before we actually open a store in their country, we bring the brand to them in this manner.
“It's another idea that we want to reach out to a market where we can't reach out now for many reasons but I think the fastest way to go out is through online.
“Once they know the brand, it will be more established when we reach there in whatever way. We're not going to start from day zero but instead at least they're aware of the brand."
According to the company, another advantage is that amid China's ban on Facebook, it believes its dual-language social networking portal will be able to attract some of the Chinese consumers.
NewUrbanMale expects the new portal to more than double the number of visitors to its existing online store.
This is currently found on its existing corporate website but the function may eventually be integrated into the new portal.
And costing some S$200,000 to set up, it appears to be a cost-effective move as a typical brick and mortar store costs nearly double that amount.
Some market watchers expect this to be one reason why similar online initiatives will be popular.
However, they said companies must manage comments made online.
Esther Ho, manager, Retail Studies, Nanyang Polytechnic, said: “It's definitely a double-edged sword. Customers can be your brand champions. At the same time, they can also be your harshest critics. Companies really have to weigh what is being shared on an open platform."
Experts said for such initiatives to be successful, there must also be investment in media monitoring and adequate online engagement with members. - CNA/vm
