Latest news with #vendingmachines
CNA
3 days ago
- Business
- 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.
Yahoo
7 days ago
- Business
- Yahoo
Codie Sanchez: How Much Money Can You Make With a Vending Machine Side Hustle?
Setting up vending machines might sound like an easy way to make passive income, but Codie Sanchez, founder and CEO of Contrarian Thinking, a financial advice enterprise, shows us that it's actually not as hands-off as we think. In a video on her YouTube channel, she breaks down exactly how much money you can make with vending machines, what they actually cost, how much time they take and the rookie mistakes to avoid. Discover Next: For You: Instead of doing the experiment herself, Codie had her producer, Caroline, try it from scratch. Caroline had never started a business before, so everything she ran into was super relatable for anyone curious about this side hustle. Also here are other passive income ideas, according to ChatGPT. The Startup Costs Caroline started with a $5,000 budget from Codie to buy four vending machines. She ended up spending $9,400 in total between machines, shipping, setup and inventory. That included newer smart vending machines that don't accept cash and come with card readers, but they still experienced numerous technical issues. On top of the machines, the inventory for drinks and snacks came out to around $2,700. Labor and additional expenses, such as fixing machines or ordering better antennas, added another $800 to $1,000. After factoring in everything, the initial investment was higher than expected. Read Next: How Much Can You Make? At the first location, a lawn care company, Caroline placed four machines. She was earning about $30 per day in sales across all of them. That worked out to around $900 a month, which isn't bad until you factor in the 4 to 10 hours she was spending per week driving out, restocking and troubleshooting. Later, she relocated to a 55 and older senior living community. With just one machine, she still made about $30 per day, but with only two hours of work a week. The new location was closer, the machines worked better and the customers actually wanted the service. So with one machine, she was making the same revenue with a fraction of the stress. The Profit Margins Codie estimates that, after expenses, each vending machine generates approximately $350 per month in profit if done correctly. That's with a margin of 30% to 50%, depending on what you're selling and where. She also realized that drinks like Gatorades tend to sell better than snacks. Time Commitment and Challenges The main point Codie is trying to make in this video is that the vending machine business isn't actually that passive. In this 30-day challenge, we could see Caroline spending hours fixing tech problems and trying to update pricing in glitchy software. She also had to pitch locations in person, which isn't easy for people who aren't a natural at sales. Also, location is everything. The vending machine business is essentially a real estate business. To make good money, your vending machines need to be in locations with consistent foot traffic and where customers actually want vending services. The Turnaround Strategy After seeing how much time and money Caroline was spending on four machines, Codie helped her trim things down. She had her focus on just one or two great locations and either sell off the others or find an operator to manage the day-to-day. Caroline ended up selling one of her vending routes for $200 and found ten more potential leads she could flip the same way. If even half of those convert, that's another $1,000 to $1,200 in revenue. Codie also talked about how important it is to design a 'perfect fit' business. That means being honest about how much time you want to spend, how close the location is and how involved you want to be. If you only want to work five hours a week and earn $1,000 a month, then you'll want to choose a simpler setup so you have fewer machines and fewer headaches. Should You Start a Vending Machine Business? After this 30-day challenge, Cody and Caroline came to the conclusion that if you find the right location and don't mind putting in the work, you could bring in $500 to $1,000 a month per machine. That said, it's far from passive. You'll most likely have to deal with broken machines, inventory runs and tech issues. If you don't mind dedicating time and energy to make this work, go for it. But if you're looking for something more hands-off, you might want to explore other options that better fit your lifestyle. More From GOBankingRates Warren Buffett: 10 Things Poor People Waste Money On This article originally appeared on Codie Sanchez: How Much Money Can You Make With a Vending Machine Side Hustle? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
Labubu craze to drive up profit 350%, Pop Mart says
Pop Mart, the Chinese toy firm behind the hugely popular Labubu dolls, has said its profits are set to soar for the first six months of this year. The Beijing-based company said in a preliminary statement that it expects profits for the period to jump by 350% as revenues more than tripled. Pop Mart, which has a stock market value of more than $45bn (£34bn), also said profitability had been boosted by increased recognition of the brand globally and cost controls. Collectors have been obsessed with the viral Labubu dolls - fictional elf-like creatures with a row of jagged teeth - which have flown off shelves and sparked long queues in shops worldwide. The company is best known for selling toys in "blind boxes" - a type of packaging that hides its contents until it is opened. Launched in 2019, Labubu dolls have helped the company become a major retailer, operating more than 2,000 vending machines and stores around the world. Pop Mart began selling its shares on the Hong Kong Stock Exchange in 2020. The company's stock market valuation has jumped by almost 600% in the last year. Sales from outside mainland China contributed to nearly 40% of its total revenue in 2024. Many shops around the world had to pause sales of Labubu dolls due to overwhelming demand. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
09-07-2025
- Business
- The Sun
I have the best job anyone can do – it makes thousands but I only work 10 minutes a week, it's perfect if you have kids
ARE you looking for a side hustle to make some quick cash without having to do too much? With costs soaring, millions of cash-strapped Brits are searching for ways to make money on the side - and while there are plenty of options, not all of them will suit someone with a busy lifestyle. 2 2 Others, such as taking surveys or even walking, often don't make enough to justify investing that much time. But what if you could rake in an extra few thousands - and it took you a mere ten minutes a week? According to one cash-savvy Brit, Chloe Concetta, that's possible - and it's all thanks to her brilliant vending machine side hustle. Vending machine businesses can be an incredibly profitable business if you're able to set up a vending machine in a busy, popular area. The best spots can be extremely profitable, but remember as the UK vending machine market is a competitive one, you'll have to act quick if you find a spot without a vending machine that you think could use one. ''The beauty of vending machine businesses is that they're low cost, high demand products that offer great profit margins because you can often buy the products in bulk and then sell them individually to mark up the price with ease'', explained the experts at Real Business. While vending machines themselves aren't cheap, you can find more affordable versions on Facebook Marketplace and eBay, like Chloe did. The initial budget should also factor in transportation costs for replenishing stock - often snacks and drinks - and the installation costs in the beginning. Popular locations that could see you make a fortune include airports, supermarkets, bus and train stations, hotels, universities, as well as hospitals and health centres. Once you've come up with a name for your business, it's time to register it with the UK government. I earn cash by selling 'actual rubbish' on eBay - I flogged a freebie I found on the floor by a bin for £10, it's crazy This is a legal requirement for UK businesses, which can be done both online or via the post. The next key step in setting up your business is guaranteeing your vending machine location. For this, you'll need to sign a contract with the property owner and its always best to ensure you have a good relationship with them. Before signing any contract, however, you should ensure you're fully aware of the terms and conditions you are agreeing to. Sharing her incredible success since jumping on the side hustle, Chloe recently said on TikTok: ''I spend ten minutes a week filling a vending machine that earns thousands. Do I need to pay tax on my side hustle income? MANY people feeling strapped for cash are boosting their bank balance with a side hustle. The good news is, there are plenty of simple ways to earn some additional income - but you need to know the rules. When you're employed the company you work for takes the tax from your earnings and pays HMRC so you don't have to. But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves. Stephen Moor, head of employment at law firm Ashfords, said: "Caution should be taken if you're earning an additional income, as this is likely to be taxable. "The side hustle could be treated as taxable trading income, which can include providing services or selling products." You can make a gross income of up to £1,000 a year tax-free via the trading allowance, but over this and you'll usually need to pay tax. Stephen added: "You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax. "The applicable tax bands and the amount of tax you need to pay will depend on your income." If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe - plus extra fees on top. ''I always get questions on whether vending is really passive, can you do this with children, can you do it with a full-time job. ''The answer is yes,'' the money-smart TikToker claimed in the video. ''I'm going to be someone who tells you how you can actually make this work for you, over you working for them.'' According to Chloe, who posts under the username @ chloeconcetta, she buys stock just once a month. One of her locations is just ten minutes away from her home, which makes it extra handy to pop by if needed. ''I can literally do it on the way to somewhere else. It's also an emergency response station, so it's somewhere that is open 24/7. ''Their opening hours don't affect me and I don't have to move my schedule around it. ''Not to mention that due to the nature of this location and what they do, they are reliant on this vending machine - this is more of a necessity to them over something that's just an addition to them.'' Spilling the beans to intrigued viewers, Chloe added that to kickstart your new business, or side hustle, you should be ready to invest around £2,000 to £3,000. So far, the young woman has four vending machine - and Chloe now also helps others start their business.
CNA
20-06-2025
- Business
- CNA
Why are vending machines popping up all over Singapore?
What do a fresh bouquet of flowers, a serving of durian and a pack of pimple patches have in common? In Singapore, you can get these items at any time of day – in the event of a looming anniversary, an insatiable craving or an acne breakout – courtesy of a vending machine. Once seen as nothing more than an emergency pit stop for a cool beverage on a sunny day, these machines have become a legitimate and increasingly sophisticated way of doing business across a variety of industries. Take the success of locally-founded orange juice brand iJooz for example. While growth was somewhat slow in its initial years, the business has since expanded to around 1,500 machines in Singapore alone. Its chief executive Bruce Zhang told CNA in January this year that his company was not a juice retailer but a technology company, powered by in-house software with data-crunching abilities and hardware that squeezes oranges to a perfect pulp. Likewise, Aikit Pte Ltd – a company that provides cook-to-order meals through more than 90 of its InstaChef vending machines islandwide – sees itself less as a vending machine player and more of an automated kitchen. This is because the technology within its machines allows for various methods of cooking food upon receiving an order. For instance, when making claypot rice, the machine is able to create a charred and crispy rice texture that is similar to what you would get from a traditional kitchen, said Aikit's vice-president for business and operations Sky Goh. This is opposed to the more common machine that uses an internal microwave to heat up pre-prepared dishes. But food and beverage is not the only product group where the use of vending machines is gaining traction. For instance, tastefully assembled roses and tulips have made their way out of the florist and into portable glass displays. Mr Perry Peng, the founder of White Dew Flower, told CNA TODAY that all four of his vending machines in Singapore have built-in refrigerators set at 5°C that keep the flowers fresh for a week — though he replaces them every three days to make sure they are in top condition for sale. The popularity of these vending machines as a new avenue for business is in line with changing consumer behaviour, with a stronger than ever emphasis on convenience. Statistics from data analytics firm Euromonitor International show that vending machine sales in Singapore increased for four consecutive years from 2020 to 2024. In 2019, sales stood at S$100.6 million (US$78.5 million), before the Covid-19 pandemic dipped that figure to S$85.7 million in 2020. Last year saw S$116.8 million in recorded vending machine sales – and that figure is projected to reach S$124.3 million by end-2025. What's behind the increasing ubiquity of these automated machines, and will this trend last? LOWER COSTS, HIGHER GAINS For brands like Kaki Kaki, a local durian seller that operates seven durian vending machines in Singapore, these machines offer a compelling alternative to traditional brick-and-mortar setups because the price of rent is 'significantly' more affordable. 'Singapore is quite a unique place, where even a clinic can pay S$52,000 in rent,' a spokesperson for the company told CNA TODAY. 'I can't sell S$52,000 worth of durians in a month.' He was referring to the price that a healthcare firm bid for a unit in a Tampines Housing and Development Board (HDB) estate earlier in June. In contrast, the monthly cost of renting the far smaller space needed for a vending machine can range anywhere from S$300 to S$800 in shopping centres, and between S$600 to S$1,100 at bus and train stations, according to some operators. 'At the end of the day, it's about how we lower the cost and provide the same kind of quality and convenience,' said the Kaki Kaki spokesperson. 'The more we save, the more we are able to purchase better quality durians and pass on the savings to the consumer.' Businesses that spoke to CNA TODAY declined to share specific figures, but most reported that demand for their vending machine products has been good. Ms Magdalene Lim, country head for acne-care brand Dododots Singapore, said that its vending machines that sell coloured hydrocolloid pimple patches typically turn a profit after anywhere between three and six months. 'It provides our customers a more convenient and instant way to get our products, while being able to save on costs involved like renovation, interior design and manpower,' said Ms Lim. OPENNESS OF CONSUMERS, LANDLORDS At the same time, vending machine operators note that landlords are increasingly open to leasing space to them – a trend perhaps exemplified by Kaki Kaki's durian vending machine obtaining permission to operate at Tampines MRT station. Netizens were initially intrigued, considering commuters are not allowed to bring durians into carriages. But its spokesperson said that its landlord, SMRT, was very supportive of the idea. Mr Justin Cai, an entrepreneur who tried his hand at running a fresh orange-juice vending machine back in 2018, said that setting up a vending machine operation was not that easy just a few years ago. 'As a small company, it was very difficult to get into malls and ask them for space. They felt we would be fighting (for business) against their existing fruit stalls, and end up with a lose-lose situation. 'Even the malls who agreed would offer certain rental rates that are just not viable for a vending machine business,' he added. Mr Vernon Tan, director of full service vending operator Allied Vending, said shopping malls typically have two considerations when it comes to vending machine receptivity: price and optics. 'If people are willing to pay more (for rent), I think they're more open,' he said. 'Space owners right now would also be more ready to think of where they can park machines and place them in aesthetically pleasing areas. Whereas before, it was more of an afterthought.' It also helps that customers like 25-year-old public relations executive Brenda Chan are coming around to the idea of purchasing machine-dispensed products too. 'For orange juice machines, for example, I used to be slightly apprehensive as fruits can go bad quite easily,' said Ms Chan. 'But once I witnessed the staff changing out oranges and maintaining the machines, it made me trust that the products are kept in an ideal condition.' GENERATING INTEREST FOR BRANDS AND CAUSES Sometimes, the appeal of the vending-style model goes beyond just sales or an immediate impact on the bottom line. Homegrown startup Ecoworks, for instance, has installed around 16 automated refill stations around Singapore. Instead of dispensing items in single-use packaging, its machines dispense laundry detergent or dishwashing liquid alone, allowing customers to bring used bottles to the machine to be filled up. Its founder Sean Lam said that its goal is to eliminate single-use plastic through what he termed 'reverse vending' – where each transaction saves a bottle instead of dispensing one. 'A lot of green initiatives here revolve around 'recycling', but the 'reuse' component is lacking. We are part of that solution. The bottle you have is still good enough for a second, third life,' he said. Mr Lam said demand and interest in his machines have been strong especially among the Build-to-Order estates, home to many young families. Apparel brand Ultifresh, which specialises in anti-odour and anti-bacterial sustainable clothing, also launched its first vending machine at AMK Hub two weeks ago. Touting itself as a mission-driven company, its founder Frank Yap said the vending machine model was a 'much faster' way than opening a storefront to achieve their objective of consumer education – wearing shirts more than once helps to reduce carbon dioxide emissions and save water. Over in the fintech world, the finance app and neobank Revolut launched a debit card vending machine in 2024 at the National University of Singapore (NUS), where one could collect and activate the card on the spot. Though it has recently relocated the machine to Galaxis in one-north, its novelty succeeded in drawing eyeballs from the NUS student population and ultimately downloads of their app – which aims to improve financial education in young adults. In these cases, the machine itself served as a touchpoint, not just a transaction. WILL THE TREND LAST? The Singapore government has for several years been encouraging businesses to adopt automation and other productivity-enhancing technologies. And if rent and manpower costs continue to be a major hurdle for businesses setting up shop, industry players said the vending machine boom may well continue. Euromonitor International forecasts predict total vending machine sales in Singapore to be on a consistent upwards trajectory and that they would reach S$140.1 million in 2029. But operators warn against the misconception that starting and operating a vending machine is a bed of roses. Despite the comparative amenability of landlords towards these machines today, Mr Tan of Allied Vending noted that finding a spot for them in the first place can be difficult. 'It's not always easy to secure locations. Singapore land is very scarce … As more people get into the space, location fees may start going up, and that eats into your business case.' Mr Peng of White Dew Flower said this was the main challenge he faced in growing his business – where sales performance differs from location to location. 'There is a lack of available space for flower vending machines in shopping malls. Most malls already have a flower shop, and those without one do not have designated spaces for vending machines,' he said. Ms Rohini Wahi, Asia Pacific senior strategist at consumer trend forecasting firm WGSN said vending machines had key advantages. Ultimately, as affordability remains a priority for shoppers amid socioeconomic instability, these machines will bring time-poor and cost-conscious consumers retail offerings that help them save time and money, she said. In order to counter the oversaturation that comes with the growing number of vending machines offering similar products, brands need to go beyond convenience by embracing playful, creative designs and customising their offerings to each location in order to stay relevant, she added.
