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CNA
23 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
2 hours ago
- CNA
Duolingo raises 2025 revenue forecast as AI tools boost user engagement
Language-learning app Duolingo raised its annual revenue forecast and beat second-quarter revenue estimates on Wednesday, anticipating broader adoption of its AI-enhanced subscription tier among its global user base. The company's shares rose about 20 per cent in trading after the bell. Duolingo operates on a freemium model, offering basic language-learning features for free while providing premium capabilities through monthly or annual paid subscriptions. The company now expects revenue for 2025 to be in the range of $1.01 billion to $1.02 billion, compared to analysts' estimates of $996.6 million. It had earlier projected revenue between $987 million and $996 million for the year. Revenue in the April-June period was $252.3 million, compared with analysts' estimates of $240.7 million. Duolingo's two subscription tiers — Super, designed for frequent learners, and Max, tailored for advanced users — include AI-driven features such as video-call conversation practice with chatbots, personalized error analysis and enhanced feedback tools. Since launching an AI-powered video-call tool for Android in January, Duolingo has expanded the feature to additional languages, aiming to boost subscription growth by enabling users to practice natural conversations across a broader linguistic range. Duolingo's gross margin benefited this quarter from lower-than-expected AI costs, as the decline in margin from expanding Max and AI features was much smaller than the company had originally expected. "The cost of calling AI tools has come down a lot. Ads also did better; ads are not a big part of our business, but it turned out that it helped margin a little bit as well," CFO Matt Skaruppa told Reuters. Duolingo leverages generative AI to create and personalize bite-sized lessons across more than 100 language courses. In April, CEO Luis von Ahn said that after taking 12 years to develop the first 100 courses, the company's AI tools helped it introduce 148 new courses in roughly one year. Duolingo expects revenue for the third quarter to be in the range of $257 million to $261 million, compared to analysts' estimates of $253 million, according to data compiled by LSEG.
CNA
6 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.
