Founding Story- Pchub.com
With just S$5,000 and no experience in computer field, being a bankrupt and working as an employee, Mr. Chong Kin Siong the founder of Pchub.com created the business from zero ground into the first e-retailer and the only one actively today in Asia selling laptop spare parts to the world secondary market. It has shipped orders placed online by more than 15,000 customers to 131 counties worldwide.
There was a boy running on the streets selling newspaper at China Town every evening on Saturday and Sunday in 1960s earning pocket money. Dropped out from Secondary 2. Year 1980, at the age of 25, helped his friends' business by working as a rubbish remover. After two years, he was left alone carrying on the business, from rubbish removal, handyman service, building upgrading and waterproofing finally into construction field.
In the year 1998 amidst the Asian financial crisis, due to the inability to pay creditors, he wounded up his fast growing construction business that employed 350 workers. He was declared bankrupt. He felt relaxed and released as all hardship were over and stood a chance to start afresh. It was until one days he poked into his pocket and found 10 dollars left, he struggled whether to take a bus or walk to the destination. He began to find life miserable.
Motivation to strive again.
After a year in search for his new carrier, at the age of 44, he decided to be a free lance computer serviceman. He asked his wife if she prepared to be a bankrupt as she was still liable to the S$250,000 bank loan due the terrace house they both own which was force sold then. The answer was no, This answer together with the desire to make good for the almost 700 creditors including all workers he previously employed became the driving force.
Creation of Pchub.com.
After 3 month of self study and getting advice from his ex-creditor who serviced his ex-company’s computers for years and was given S$5,000 by his wife, he started to worked for his wife as free lance on-site computer serviceman and trading of used desktop computer in January 2000.
May 2001 His wife set up a shop and a company Usedpchub.com. He began providing laptop repair service and trading. The company was the first in Singapore importing used laptops from US selling locally, and was the first selling laptop spare parts in Singapore for the secondary market.
Mr. Shrinivas an India origin and today a Singapore permanent citizen, working in Singapore as web site engineer, was a customer buying laptop, talked about selling online. After two discussions, partnership was founded to develop the online business. Usedpchub.com was launched with photos of 300 spare parts for the feasibility study of retailing online in December 2001.
Beginning of the year 2003, the company local retailing business was growing fast. Competition aroused as the company’s suppliers of laptops and customers turned into competitors.
The response from the company web site was positive and tempted then. The questions raised in his mind.
Could the business survived until the breakeven if the company concentrates all its resources into developing the online business? There was no successful model existed and all local e-retailer popularly known were failed. Facing the unknown and all the negative perspective, November 2003 Usedpchub.com was ecommerce enabled with a stock of 8,000 type of laptop spare parts being the first in Asia selling spare parts online.
The domain name Pchub.com was acquired in year 2004.
Today, the Pchub.com website cataloged with 25,000 and ready-to-ship stock of 20,000 different type of laptop spare parts.
The inspiration to the creation of the online business.
The dotcom boom and burst was fascinating in the year 2000, with a firm believing that dotcom would boom again in 5 years time, a wish to breakthrough one’s capability and the spotting of the great opportunity that the ongoing Internet evolution has been offering. The advantage of first market mover in local retailing of used laptop was forgone for the creation of the online business.
The inspiration to the market.
Its model of business has inspired many individual and companies to follow its steps. There were only one or two in the year 2001 but today more than 50 shops have been set up in Simlim Square and elsewhere locally, providing the same services and competing each other in the saturated market. There were few companies in China and Hong Kong had copied Pchub.com website content and idea launched dotcom selling laptop spare parts.
The innovation
The integration the sale of spare parts into e-retailing, need to establish with the in-depth know-how and experience of management, technical specification, inter-changeability, coding and storage system, and more importantly the business sense.
The company has created the business technology in applying the new use and adds high value on the existing available resources, and the Internet technology by building the industrial standard ecommerce platform with the scalability and feasibility in the near future to lead the trend of the industry.
It stands a chance and has been in the process to develop Pchub.com to be a world known “Global Hub for laptop spare” the first choice for all the laptop repairers in the world to refer and source for laptop spares.
A newly launched “Reseller Locater” attracted registration of more than 600 laptop repairers over 40 countries. This is a planed and in preparation to create a ready base of 10,000 worldwide resellers for its future launch of new line of products and services.
The profitability of the business.
The initial S$5,000 in year 2,000 was all it has taken to reach what it is today. The cost for development of its eCommerce business was funded as trade expenses and yet, it has accumulated profit before tax of S$1,000,000 for the 3 financial years ended March 2006. The growth for its online orders, revenue and profit were doubling at every 9 to 12 month interval as recorded. All profit was turned into stocking.
The market potential for business and market threshold
The world secondary market for used laptop and laptop spare part is approximately US 2 billion (Base on his estimation as no statistic figure available).
The threshold of entering this market is high as:
1. Value of individual spare parts and the demand of the spare part in individual market is low.
2. The laptop and its spares are almost proprietary in design.
3. The Trade involves specialty on and extensive knowledge of every brand, models and connected spares. Collection of Notebooks of all brands and models is very costly and time consuming.
4. Huge investment in the complexity of the trade and inventory maintenance.
5. Human resources in dealing with the trade are not readily available.
The biggest challenge faced in the coming year
To make the company grows even faster. At appropriate time, sell 20% of the company share, not for funding the business but for rewarding its shareholders and its staff and to make the business worth recognized.
Demand for fund to grow and the threat to the business.
The failure of his construction business resulted to his bankruptcy, was due to the fast expansion and growth of the business funded heavily by bank borrowing and creditors. This time round, he has gone the other way that the business remains creditor and debtor free until today. Stretch every dollar to grow the business, at stages delaying in paying staff salary was repeatedly experienced. Sense of crisis constantly in his mind as the business has no crisis restoration plan and has no reserve fund in all aspect. Millions dollar of stock could not be easily turned into cash if in a crisis.
Given the nature of e-retailing, the condition of the business and the investment atmosphere locally, fund raising was viewed as a waste of energy. He strongly believed with a million dollars additional working fund mainly to strengthen the stocking, with the profit generated to fund further business expansion, the business stand a greater chance to evolve to be a new business model in time that would have not existed today.
A bankrupt in business.
He was the founder but has been until today employed to work as a manger playing a key role in developing the business. Year 2003 his wife sold the entire business to Mr, Henry Wong Young Won, the ex-managing director of ex-public listed Amcol Holdings Limited for a sum that fully paid up her bank debt. With Mr. Henry Wong assistance by contributing a sum of payment to his bankruptcy estate maangaed by his official assignee, he was discharged from bankruptcy in May 2006. He insisted the injection of additional working fund by Mr. Henry Wong is not a necessity.
The unusual formation of the management team.
Mr. Henry Wong the CEO today, acquisition of the business and Mr, Shrinivas the key person for the creation of the Internet eCommerce platform, being the co-founder of Pchub.com placed the bet on the business capability of a bankrupt. The three spread over 3 generations today aged 72, 29 and 50 respectively.
The confidence and trust between the three and the inspiration of business growth to the existing 10 working staff, the business being a e-retailer has reach a level that all include the staffs begin to see the possiblity to be awarded the way that may have not ever happened in Singapore within the next five year.
The single most signaficant experience gained.
Time, temptation and adversity of life could be disastrous to many thing but the beauty of one soul could only be risen to a new high if one know how to face, when to accept and left them behind and to feel and look forward what life is bringing
Startup experience to share.
On the path of growing your business, you would face great frustration, risks threatening survival. Without the needed support and appreciation, you find thing happening unfair and feel lonely.
Peace in mind or the capability to keep away the ill feeling is the source of will power and attitude of dealing is the foundation on which to build. Cares no people think otherwise, accept what they are, and do whatever you could today and everyday, for you are not one of them.
There was a boy running on the streets selling newspaper at China Town every evening on Saturday and Sunday in 1960s earning pocket money. Dropped out from Secondary 2. Year 1980, at the age of 25, helped his friends' business by working as a rubbish remover. After two years, he was left alone carrying on the business, from rubbish removal, handyman service, building upgrading and waterproofing finally into construction field.
In the year 1998 amidst the Asian financial crisis, due to the inability to pay creditors, he wounded up his fast growing construction business that employed 350 workers. He was declared bankrupt. He felt relaxed and released as all hardship were over and stood a chance to start afresh. It was until one days he poked into his pocket and found 10 dollars left, he struggled whether to take a bus or walk to the destination. He began to find life miserable.
Motivation to strive again.
After a year in search for his new carrier, at the age of 44, he decided to be a free lance computer serviceman. He asked his wife if she prepared to be a bankrupt as she was still liable to the S$250,000 bank loan due the terrace house they both own which was force sold then. The answer was no, This answer together with the desire to make good for the almost 700 creditors including all workers he previously employed became the driving force.
Creation of Pchub.com.
After 3 month of self study and getting advice from his ex-creditor who serviced his ex-company’s computers for years and was given S$5,000 by his wife, he started to worked for his wife as free lance on-site computer serviceman and trading of used desktop computer in January 2000.
May 2001 His wife set up a shop and a company Usedpchub.com. He began providing laptop repair service and trading. The company was the first in Singapore importing used laptops from US selling locally, and was the first selling laptop spare parts in Singapore for the secondary market.
Mr. Shrinivas an India origin and today a Singapore permanent citizen, working in Singapore as web site engineer, was a customer buying laptop, talked about selling online. After two discussions, partnership was founded to develop the online business. Usedpchub.com was launched with photos of 300 spare parts for the feasibility study of retailing online in December 2001.
Beginning of the year 2003, the company local retailing business was growing fast. Competition aroused as the company’s suppliers of laptops and customers turned into competitors.
The response from the company web site was positive and tempted then. The questions raised in his mind.
Could the business survived until the breakeven if the company concentrates all its resources into developing the online business? There was no successful model existed and all local e-retailer popularly known were failed. Facing the unknown and all the negative perspective, November 2003 Usedpchub.com was ecommerce enabled with a stock of 8,000 type of laptop spare parts being the first in Asia selling spare parts online.
The domain name Pchub.com was acquired in year 2004.
Today, the Pchub.com website cataloged with 25,000 and ready-to-ship stock of 20,000 different type of laptop spare parts.
The inspiration to the creation of the online business.
The dotcom boom and burst was fascinating in the year 2000, with a firm believing that dotcom would boom again in 5 years time, a wish to breakthrough one’s capability and the spotting of the great opportunity that the ongoing Internet evolution has been offering. The advantage of first market mover in local retailing of used laptop was forgone for the creation of the online business.
The inspiration to the market.
Its model of business has inspired many individual and companies to follow its steps. There were only one or two in the year 2001 but today more than 50 shops have been set up in Simlim Square and elsewhere locally, providing the same services and competing each other in the saturated market. There were few companies in China and Hong Kong had copied Pchub.com website content and idea launched dotcom selling laptop spare parts.
The innovation
The integration the sale of spare parts into e-retailing, need to establish with the in-depth know-how and experience of management, technical specification, inter-changeability, coding and storage system, and more importantly the business sense.
The company has created the business technology in applying the new use and adds high value on the existing available resources, and the Internet technology by building the industrial standard ecommerce platform with the scalability and feasibility in the near future to lead the trend of the industry.
It stands a chance and has been in the process to develop Pchub.com to be a world known “Global Hub for laptop spare” the first choice for all the laptop repairers in the world to refer and source for laptop spares.
A newly launched “Reseller Locater” attracted registration of more than 600 laptop repairers over 40 countries. This is a planed and in preparation to create a ready base of 10,000 worldwide resellers for its future launch of new line of products and services.
The profitability of the business.
The initial S$5,000 in year 2,000 was all it has taken to reach what it is today. The cost for development of its eCommerce business was funded as trade expenses and yet, it has accumulated profit before tax of S$1,000,000 for the 3 financial years ended March 2006. The growth for its online orders, revenue and profit were doubling at every 9 to 12 month interval as recorded. All profit was turned into stocking.
The market potential for business and market threshold
The world secondary market for used laptop and laptop spare part is approximately US 2 billion (Base on his estimation as no statistic figure available).
The threshold of entering this market is high as:
1. Value of individual spare parts and the demand of the spare part in individual market is low.
2. The laptop and its spares are almost proprietary in design.
3. The Trade involves specialty on and extensive knowledge of every brand, models and connected spares. Collection of Notebooks of all brands and models is very costly and time consuming.
4. Huge investment in the complexity of the trade and inventory maintenance.
5. Human resources in dealing with the trade are not readily available.
The biggest challenge faced in the coming year
To make the company grows even faster. At appropriate time, sell 20% of the company share, not for funding the business but for rewarding its shareholders and its staff and to make the business worth recognized.
Demand for fund to grow and the threat to the business.
The failure of his construction business resulted to his bankruptcy, was due to the fast expansion and growth of the business funded heavily by bank borrowing and creditors. This time round, he has gone the other way that the business remains creditor and debtor free until today. Stretch every dollar to grow the business, at stages delaying in paying staff salary was repeatedly experienced. Sense of crisis constantly in his mind as the business has no crisis restoration plan and has no reserve fund in all aspect. Millions dollar of stock could not be easily turned into cash if in a crisis.
Given the nature of e-retailing, the condition of the business and the investment atmosphere locally, fund raising was viewed as a waste of energy. He strongly believed with a million dollars additional working fund mainly to strengthen the stocking, with the profit generated to fund further business expansion, the business stand a greater chance to evolve to be a new business model in time that would have not existed today.
A bankrupt in business.
He was the founder but has been until today employed to work as a manger playing a key role in developing the business. Year 2003 his wife sold the entire business to Mr, Henry Wong Young Won, the ex-managing director of ex-public listed Amcol Holdings Limited for a sum that fully paid up her bank debt. With Mr. Henry Wong assistance by contributing a sum of payment to his bankruptcy estate maangaed by his official assignee, he was discharged from bankruptcy in May 2006. He insisted the injection of additional working fund by Mr. Henry Wong is not a necessity.
The unusual formation of the management team.
Mr. Henry Wong the CEO today, acquisition of the business and Mr, Shrinivas the key person for the creation of the Internet eCommerce platform, being the co-founder of Pchub.com placed the bet on the business capability of a bankrupt. The three spread over 3 generations today aged 72, 29 and 50 respectively.
The confidence and trust between the three and the inspiration of business growth to the existing 10 working staff, the business being a e-retailer has reach a level that all include the staffs begin to see the possiblity to be awarded the way that may have not ever happened in Singapore within the next five year.
The single most signaficant experience gained.
Time, temptation and adversity of life could be disastrous to many thing but the beauty of one soul could only be risen to a new high if one know how to face, when to accept and left them behind and to feel and look forward what life is bringing
Startup experience to share.
On the path of growing your business, you would face great frustration, risks threatening survival. Without the needed support and appreciation, you find thing happening unfair and feel lonely.
Peace in mind or the capability to keep away the ill feeling is the source of will power and attitude of dealing is the foundation on which to build. Cares no people think otherwise, accept what they are, and do whatever you could today and everyday, for you are not one of them.
2 Comments:
It's a bit hard to read the above post because of the strange english, but I am very impressed of the hard work of Mr. Chong Kin Siong to go from bankruptcy to a good, profitable business so well. Great job! I wish good luck to him, Mr. Shrinivas and With Mr. Henry Wong so that they may continue this excellent site and build good profit from it.
Acidentially landed on this site, and after reading what Mr. Chong has had gone through could inspired many of the same similarity. With the true and strong believe of setting up the e-retailer, let not forgetting all the efforts that had put up by the three partners.
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