Singapore SMEs cannot properly grow due to economies of scale. What usually happens are global trading MNCs brings in 50 or more brands and the ones who achieve critical mass will have the brand owner coming in to setup their own regional HQ for SE Asia.
You need to do a lot of work as a SME owner, negotiate for at least 10 brands with defined obsolescence schedule which all aspiring MNCs will have, have an in house service team to service all the brands and hope that the brand owner will buy off a branch from you if you succeed in growing it.
During early negotiations, if the exit clause is not well defined, the SME gets owned by having the distribution agreement terminated with standard 1-3 years notice and no compensation. The brand owner goes direct and thank you for your services.
Most SMEs are not making much due to lack of proper planning. Air freight instead of ocean freight which is why you can even consider buying direct from Taobao. With lemon laws in place, local importers are choosing replacements instead of repairing. To be cost effective in repairs, you need minimum economies of scale. Standard diploma educated repair technician costs 4k per month when cpf and all other overhead costs are factored in. 200 worth of repairs per day to even be worth the investment.
200 working days at 5 repairs per day of 1k machines per annum, with 20% servicing rate after year 1 translating to minimum 5k machines operational in the field. Charge $300 for simple repairs and you will only hear complaints of expensive repairs. Your repair technicians may however offer unofficial repairs to the customers to earn the arbitrage. So just charge customers $150 transport fee and everyone is happy.
You don’t hear of office water dispensers breaking down even when they are China oem as they have monthly servicing and breakdown contracts in place to pay for the engineering team.