CNA938 Rewind - Who could replace Jerome Powell as Fed chairman?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
40 minutes ago
- CNA
Commentary: Need a prata or a Ferrari? There are vending machines for that
SINGAPORE: Walk through any MRT station, mall, or even hospital in Singapore today and chances are, you'll see a vending machine or three. What used to be a niche fixture for drinks, potato chips and candy bars has evolved into a retail model in its own right. Banana cake from Johor Bahru's Hiap Joo, Mao Shan Wang durians from Kaki Kaki and even hot roti prata with curry from Springleaf Prata Place are now available on-demand, 24/7, while stocks last. There's no store, no staff, just a digital interface and a glass window. So, what's behind this rise? Is this temporary, or the future of retail? According to data analytics firm Euromonitor International, Singapore recorded S$117 million (US$90 million) in vending machine sales last year, up from S$100 million in 2019. The figure is projected to reach S$124 million by end-2025. Globally, consultancy firm Precedence Research forecasts that the vending machine market size could grow to US$45 billion by 2034 from an estimated US$23 billion this year. From those numbers, it is clear vending machines are becoming commercially viable and entrenched in our daily lives. WHY VENDING MACHINES ARE GAINING TRACTION Part of their appeal lies in their high efficiency and low cost. In a city known for higher rents, vending machines offer brands a cost-effective way to reach consumers without the overhead of a full retail operation. There are no staff to schedule, no point-of-sale systems to maintain and no need to lock up at the end of the day. A single machine in a busy location can generate steady revenue with minimal manpower. Vending machines are also cost-effective for testing new markets or maintaining a presence in high-traffic areas. Second, they align with Singapore's appetite for round-the-clock convenience. In a country where internet banking, online grocery shopping and QR code payments are part of daily life, Singaporeans are no strangers to the self-service model. Vending machines – which are always on, always stocked (ideally) and increasingly able to serve niche needs – now dispense everything from flowers, clothes, laundry detergent and even luxury cars. There are also vending machines that allow you to see a doctor, get a medical certificate and medication. And then, there is the fandom factor. PopMart and Labubu-style machines, for example, sell 'blind-box' items with the appeal of collectible surprise. Like Japan's gachapon machines, they play on mystery, expectation and the thrill of possibility, turning what would otherwise be a simple purchase into an entire experience. ARE WE HEADED TOWARD A VENDING-ONLY FUTURE? Still, while vending machines are clearly gaining ground, it's unlikely they will replace physical shops anytime soon. Product fit is a consideration. Some products do not lend themselves to the vending application. For example, fresh food has a limited shelf life, and delicate items like make-up can be damaged during dispensing. While vending machines work well for sealed snacks, drinks, collectibles and pre-packed meals, they fall short for things that require human interaction, education or guidance. Even with advances in artificial intelligence and personalised interfaces, some elements of the retail experience remain distinctly human and irreplaceable. Some products require customer education before purchase. For example, skincare, health supplements, tech gadgets and baby products often need guidance or clarification about ingredients, side effects or compatibility. In these cases, customers usually prefer face-to-face engagement to ask questions and clarify doubts. These are things that a vending machine cannot do - yet. Moreover, vending machines offer reach, but not depth. A brand can distribute its product but can't build a community or tell its story like a well-designed pop-up or store. For start-ups or lifestyle brands, physical touchpoints remain key to building trust and identity. POTENTIAL PITFALLS TO WATCH Although vending machines are less expensive than brick-and-mortar stores, they still require significant upfront capital. A new vending machine can cost between S$5,000 and S$10,000. For those who lease the machines instead, rental rates can cost up to S$800 a month. There are also expenses for hardware, licensing, software, maintenance and the logistics needed for regular replenishment, not to mention losses from wear and tear, technical issues or vandalism. Customer support is also an issue. When things go wrong, be it a jammed dispenser or a failed payment, there's no staff on-site to fix the issue. Without a way to resolve issues instantly, instant recourse, brand loyalty can suffer. A case in point: Amazon Dash Buttons. Designed to simplify reordering household products, they were discontinued after users found them unintuitive, lacked feedback mechanisms, and caused accidental orders. Another example is Stockwell (formerly known as Bodega). The AI vending machine, founded in 2017 by former Google employees, installed smart vending machines in offices and apartment lobbies in the United States, aiming to replace convenience stores. According to TechCrunch reports, Stockwell was unable to find a sustainable or scalable model for its vending machines, despite raising over US$45 million. They ultimately decided to shut down operations in 2020. A HYBRID FUTURE For all their efficiency, vending machines are not the future of retail. They are, instead, part of its evolution. Vending machines will become one of many tools in a brand's playbook. For instance, a bakery might use them to sell bestsellers after hours. A cosmetics brand might place machines in MRT stations to distribute limited-edition samples and drive buzz. A supermarket might offload fast-moving items to vending machines nearby, while staff focus on higher-value interactions. Healthcare providers could deploy machines in remote areas to improve medication access and continuity of care. More broadly, vending machines reflect a bigger trend: retail unbundling. Just as entertainment moved from free-to-air TV to cable to Netflix and TikTok clips, retail is being broken down into moments. Rather than competing with vending machines, stores may evolve into experience hubs where customers can explore, sample and benefit from the kind of personalised service only people can provide. You don't need a storefront to sell. But if you want to build a brand, tell a story or win loyalty, you still need more than a machine.
CNA
7 hours ago
- CNA
Minority ethnic groups keep food heritage alive via online sales
Minority ethnic groups in Singapore are keeping their food heritage alive through online businesses. Some have seen a spike in their orders, of up to 30 per cent, this SG60 season. They are also hoping to share their hard-to-find unique dishes through heritage events. Rachel Teng with more.
CNA
7 hours ago
- CNA
Singapore Retail Festival to replace Great Singapore Sale
The Great Singapore Sale will be upgraded to what is being called the Singapore Retail Festival. An association representing retailers says the original concept has lost its lustre, with cheaper options abroad. Ernie Koh, President of the Singapore Retailers Association, shares more details.
