Advantages Of Umbrellas In Singapore

Problem and The Solution

People need an umbrella to beat the sun or the rain, especially in Singapore. Because of Singapore only have rain season and dry season.

The basis of this concept is to install vending machines at key sites around Singapore which supply umbrellas which patrons can purchase to either beat the sun or the rain.

One variant on this theme could be refunding a deposit on umbrellas returned in good condition.

The initial focus will be on installing machines in public transport areas.

Concept Overview – The Business Idea of UVM (Umbrella Vending/ Leasing Machine)

Singapore 2011 government report shows that Singapore has 166 days of rainfall. It is about 167 days with thunder a year and 186 days with lighting. (Liz Osborn,

There are currently more than 550 7-Eleven stores in Singapore. Not all 7-Eleven stores sell umbrella. And for those stores that have the services to sell umbrellas, they sell 7-Eleven branded umbrella. Price around $12-$20.
• Cheers: It is an overnice store retailer and same as 7-eleven. But its coverage is far below than 7-Eleven. Now in Singapore around 150 stores be opened.
• Diaso Japan: Daiso a retail start from Japan. Its sell all products with a uniform price. Now totally have 15 stores in Singapore. Umbrella in Diaso only sell S$2, but not all store sell it and it quality is not very good.

UVM in Singapore is a new product and market is huge. But it is easy to copy. So after this machines been launched, there will be many similar machines or service come out soon. So in order to protect our product and avoid more competitors into market. We will try to cooperation with the government. At least first two years only allow us put machine in MRT station or bus station. What was more, we will register trademark of our products.

Add-on service

So import this technological to Singapore is a quick start-up solution, technology is proven.
Umbrellas can be sourced at very low cost from China.

The Deal

UVM is the Umbrella Vending/Leasing Machine.
People spend SDG $10 to buy a new umbrella form UVM. For rent one umbrella need cost SDG$5. Regarding on the estimated set up cost and sales forecast, the total capital of $100,000 is required. SDG$20,000 will come from founders. The left fund will loaded from local banks. And Singapore Government put very much effort to encourage young entrepreneurs and small and medium enterprises (SMEs); a department called ‘SPRING’ set up a grand up to 50,000 SGD, which will be given to qualified enterprises as a subsidy.

From the website of Alibaba.com, one available umbrella vending machine need US$200 per set. US$10,000 will cost for buying and delivery machines. $30, 000 will be used for infrastructures, such as computers, furniture and vehicles. The left money will be used as capital for the first 6 months including rental and salaries. (Alibaba.com, 2015)

Singapore government has one grant called the Capability Development Grant (CDG). It will help SMEs to cover up to 70% of qualifying project costs. UVM will apply for it. (Spring Singapore,