In the field with Sheng Siong

In a Singapore heartland, a Sheng Siong Supermarket cashier paused to inspect a loaf of bread. Noticing a small hole, she swiftly replaced it, ensuring the customer left with a perfect product. This moment, shared by a customer on Facebook, encapsulates Lim Hock Chee’s philosophy:

Founded in 1985 as a small pork stall, Sheng Siong has grown into a billion dollar retail empire by sticking to its corporate culture rooted in Mr Lim’s family values. Yet, as digital disruption reshapes retail and younger generations opt for tech-enabled convenience, Sheng Siong faces a pivotal question: Can a family business built on traditional human-centric values survive – and thrive – in a modern world?

At a glance

• Sheng Siong Supermarket, established in 1985 as a family-run pork stall, has become one of Singapore’s top three supermarket chains. In 2023 it achieved S$1.37 billion in revenue, and by 2024 it had 74 stores across the country and five in China.
• The company’s “heartland model” focuses on affordability, fresh produce and community-centered service, targeting the 80% of Singaporeans who live in public housing.
• Lim Hock Chee, the co-founder and chief executive officer of Sheng Siong, has his own unique work philosophy. His and his family’s values have had a strong influence on Sheng Siong, driving the company’s success over 40 years.
• As a family business built on strong values, Sheng Siong faces an interesting challenge: How to adapt to digital disruption in the retail industry while keeping its human-centered focus.

The broader issue

In an era in which corporate success is often equated with artificial intelligence (AI), data analytics and digital disruption, Sheng Siong Supermarket offers a counter-narrative. Its co-founder and chief executive officer (CEO), Lim Hock Chee, built a billion-dollar family business not through cutting-edge tech but by embedding traditional Chinese values – frugality, humility and human-centricity – into every facet of operations. To Mr Lim, the customer is the true boss of the company. While many rivals raced to automate, Sheng Siong doubled down on what it called its “auntie-led” service, as well as profit-sharing with employees and building community trust.

This raises a critical question for modern management: Can values-driven cultures compete in a tech-dominated world? Sheng Siong’s success suggests so – its 9.8% net margins (vs. industry averages of 5% to 7%) prove that prioritizing people over algorithms can yield profitability. Yet challenges persist: Can such values scale globally without dilution? Can younger leaders sustain this ethos amid pressure to digitize? The dilemma transcends retail, forcing leaders to ask: Is humanity the ultimate differentiator in an age of efficiency or a relic of the past?

“It doesn’t matter whether you are the CEO, director or manager, the day you fail to deliver value to your customers, the company will start to decline and eventually you will lose that job.”  –  Lim Hock Chee

Sheng Siong’s strategy was not primarily geared toward technology or premium branding. Instead, it carved a differentiated path rooted in Eastern philosophy, based on the principle of “how you behave as a human being in this world.” This approach embodies the dual wisdom of “growth” (for self-improvement) and “sharing” (for others, mutual benefit).

Growth

Hiring talent. The company proactively hired mature workers (“aunties and uncles”) from local neighborhoods, prioritizing their life experience. In doing so, it put community need before technical expertise.

Values-driven training. New employees received training not only in logistics but also in Sheng Siong’s 10 Daily Principles, ranging from “smiling more frequently” to “taking proactive actions.” These principles were reinforced by Mr Lim’s actions; he even publicly displayed his mobile number in stores, encouraging customers to call him directly with feedback on service and products. This embodied Taoist “leading by doing,” and built radical transparency.

Continuous improvement. The company established a culture of continuous learning and improvement. Mr Lim showed management excellence when he transformed an in-store trolley incident into a learning opportunity, guiding his team to analyze operational gaps, implement corrective measures, and foster resilience.

Sharing

Profit-sharing with employees. While competitors prioritized shareholder returns, Sheng Siong allocated a fixed percentage of pre-tax profits to employee bonuses. During the pandemic, this policy awarded staff with up to 15.7 months of bonuses. It also invested part of its returns in training to allow employees to continuously evolve. This ensured that Sheng Siong was able to retain capable, hard-working, and loyal employees, enabling the company to achieve even higher returns. This “shared prosperity” approach was rooted in the traditional Confucian philosophy of “when wealth is accumulated, the people scatter; when wealth is dispersed, the people gather.”

Value-sharing with customers. Stores transformed into neighborhood anchors through:

• 24/7 operations – supporting shift workers’ needs
• Wet-market and seafood counters – preserving local culture
• Co-creation of a hit TV show – sparking shared moments of happiness with customers
• Affordable house brands – delivering premium goods at honest prices.

By prioritizing human connections, Sheng Siong achieved what algorithms could not: irreplaceable trust and loyalty in an industry focused on tech-enabled convenience.

Did it work?

Sheng Siong’s approach delivered tangible results:

Financial resilience

• Revenue grew from S$728 million in 2014 to S$1.37 billion in 2023
• Net profit margins outperformed rivals (9.8% vs. FairPrice’s 5% in 2023

Customer satisfaction. Sheng Siong ranked #1 in customer satisfaction among Singapore supermarkets in 2023 and 2024 while online reviews praise its “world-class service” and “auntie-approved freshness.”

Employee loyalty. Long-serving employees often train new hires, perpetuating the culture.

Stakeholder relationships. The company received the SIAS Investors’ Choice Award 2023 (Consumer Staples Category): Most Transparent Company Award (MTCA) Winner.

Takeaways

Family values become strategic assets when institutionalized through policies, rituals and incentives – not just slogans. Mr Lim’s values – frugality, humility and human-centricity – were not just ideals but the backbone of Sheng Siong’s strategy. By codifying these values into actionable systems and employee incentives he transformed abstract philosophy into measurable competitive advantage.

Balancing a family business legacy with evolution can mitigate risk. While founding family values provide clarity, overreliance on them risks rigidity. Sheng Siong’s success came from evolving without eroding core DNA.

In industries racing to digitize, humanity – when systematized – can be the ultimate differentiator. In a tech-obsessed retail landscape, Sheng Siong’s human-centricity became its moat. Older staff mirrored customer demographics, driving unmatched community loyalty. Publicizing Mr Lim’s phone number for customer feedback motivated employees to work harder, as they sought to prevent direct complaints from reaching the CEO by maintaining high service standards.

“Just as a tree needs healthy roots to grow and fish need clean water to survive, people require a sound mindset to develop into their full potential.” – Lim Hock Chee

Sheng Siong’s story reframes the CEO’s role as a wise mentor: Values are the roots, but agility is the water. As the company’s legacy shows, enduring success lies in balancing unwavering principles with the courage to evolve.

This article is based on IMD case IMD-7-2589, available from The Case Centre at www.thecasecentre.org.

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