Kingsmen Creatives: Raising its brand profile (DMG)

(BUY, S$0.56, TP S$0.76)

The 15th Asia-Pacific Retailers Convention & Exhibition (APRCE) 2011 was recently held in Singapore, bringing together retailers from around the world and local service providers for the retail industry. Kingsmen built the exhibition booths and participated in the event as well, presenting its capabilities in the interiors and exhibitions segment. As this is a small exhibition, revenue contribution from this event is not significant, but the ability to raise its profile amongst its peers can be significant. Participating in such events is just one of the initiatives undertaken by Kingsmen to lift its regional profile to drive more business. Maintain BUY with TP of S$0.76.

Good opportunity to raise brand awareness. The biennial APRCE exhibition travels around the region and this was its second time in Singapore after 20 years. It showcased state-of-theart technologies and initiatives, covering info-tech, design, shop fit and security offerings that could be useful in the retail industry. It also introduced new retail concepts that retailers could adopt to gain a competitive edge. Visitors to the exhibition include principals of brands, retailers, shopping mall management and supermarket chains. This was a chance for Kingsmen to showcase its experiential retail solutions.

Singapore’s retail scene is still bustling. With sluggish home markets (due to the slowdown in the US and EU), international brands are looking to expand in Asia, and fast. These brands not only set up one store, but roll out multiple stores across the region at the same time. Kingsmen recently designed and fabricated 40 stores in the Marina Bay Sands Shoppes®, H&M (opened recently) and is completing fabrication works for Abercrombie & Fitch. This is a reflection that international brands are still expanding in Asia. With its regional network, there is a possibility that these customers will engage Kingsmen to fabricate their regional outlets as well. As the expansion trend continues, Kingsmen is in a good position to continue to secure orders for its Interiors division, which makes up ~40% of its business.