Newegg, an online retailer specializing in computer hardware and software originated in the United States, has recently announced that it has expanded its operations to Singapore. The expansion is part of the company’s plan to go global.
For those unfamiliar, Newegg was founded in 2001 by Taiwanese Fred Chang in the United States. In 2005, Newegg was named one of the Internet’s Top 10 retailers by Internet Retailer Magazine, with 2004 sales revenue of just under $1 billion.
In 2010, the company exceeded 2.5 billion in annual revenue and employed over 2,500 employees. Newegg offers hardware and software components at very attractive prices, and claims impressive numbers for its business. Portable gaming laptops have scored a 90 percent year on year growth, while PC sales have grown over 51 percent since last year.
With its launch in Singapore, customers will be able to shop for hardware products at a more affordable rate. According to CNET, the company will ship orders from the US first, and will follow up with “a physical presence to serve local demand”, hinting at a possible opening of a physical storefront in Singapore.
Of course, competition in Singapore is tough too, with the online shopping space heating up. Just last month Lazada expanded its operations in Singapore in a bid to capture the e commerce pie. Similar to Newegg, Lazada do sell hardware products to Singaporean customers.
Unlike Newegg however, which has currently pulled its operations out from Malaysia due to failure of its local partner, Lazada has a strong presence in Southeast Asia, and is definitely giving Newegg a run for its money. Available in Indonesia, Vietnam, Malaysia, Thailand and the Philippines, Lazada claims to be one of the highest trafficked online shopping site in the markets it is currently available. It has accumulated 79 million page visits in the first quarter of 2014 alone. It hopes to also be the go-to shopping site in Singapore.
Newegg is looking to sell more products in Asia in order to grow its business even further, CNET reported. The company is looking particularly in Taiwan, where its founder and former CEO is from. Similar to Lazada, Newegg has a marketplace feature and the e-retailer said that if Asian companies sell their products through Newegg, they will be able to expand into U.S. and U.K. markets easily.
Newegg certainly has a tough journey ahead if it hopes to capture much of the Singapore market. They do have a proven record in the US, and customers familiar with the United States would be very familiar with the brand name.
The company currently operates in four countries – the U.S., Canada, the U.K. and Australia. On top of expanding to Singapore, it is also expanding to India, Ireland, Netherlands, New Zealand, and Poland.
