A new order of business calls for a different approach from retailers
As I’m writing this article, we’re midway through the 15 days of Lunar New Year celebration and while there are new COVID-19 measures to deal with this year, like curbing the traditional visitations and large gatherings, it’s uplifting to know that most people are still upholding the traditions, albeit in new ways. In fact, my go-to florist reported better than expected sales of their lunar new year floral collections, even after accounting for extra demand, in anticipation of projected increase in sales. They were sold out of all arrangements way ahead of time. Perhaps it’s because everyone is spending the long lunar new year weekend in town, since travel restrictions are still in place, or the gifting culture, which gained traction during the circuit breaker has endured and it’s now a new normal to be sending gifts to even more recipients than before. I like to believe it’s both and maybe more of the latter. After all, it’s always more gratifying to give than to receive.
Even at the midpoint of the two-week long festivities, my stash of Chinese New Year goodies still looked barely untouched, despite regular consumption and reallocation of my stockpile. At last count, I still have at least a dozen jars of pineapple tarts, still freshly sealed. Let’s not even start counting the other treats like bak kwa, love letters, etc. Yes, I do have a tendency to over order. I mean, more is more right? As Oscar Wilde once said, “everything in moderation, including moderation” — a motto I hold dearly!
However, this year’s “inventory issue” is beyond my innate hoarding and overconsumption instincts. I rationalize it to the “new order” of doing business. Previously, consumers can sample the treats before making any purchase decisions. But this year, due to heightened hygiene measures, sampling is non-existent, which means the only way to try that pineapple tart or cranberry cookie is to buy the whole jar! It’s a Forest Gump moment, like a box of chocolates, you never know what you’ll get or if you like it!
This scenario is the same for cosmetic products too. We cannot try the color on our skin to see if “cherry” is the right shade of, well, cherry, that will “illuminate” our complexion. I have many lipsticks that were used only once because it’s not the right or preferred shade and I could only tell, after buying it, just to try it out !
While I understand the rationale behind these new measures, I find it extremely wasteful and unsustainable. It’s akin to wanton, excessive consumption that could be better managed, if we tweak product offerings to keep up with the new order of doing business.
For instance, since we cannot sample food products, how about selling “sample boxes”? So it’s a little bit of everything and you can always just make a repeat purchase of the ones you like. That way, you don’t end up with jars of cookies that you don’t like. It’s the same for cosmetic products; start selling more items in sample sizes, or a tester kit. These are not entirely new, there have been travel sizes or sample sizes but now, more than ever, we need even more product offerings in sample sizes. In fact, it’s a new and highly lucrative source of revenue for the brands, as what was previously a complimentary item, is now a sellable product.
As we navigate through a new matrix of operations and procedures, the way businesses are conducted have to evolve and acclimatize too.
Another significant change is with social group sizes, not just for dining out, but also for house guests. Previously, for private home catering, most caterers will require a minimum number, typically starting from 10-12 pax for a sit down meal, or a higher cost per pax to make up for the smaller capacity. However, in current times, group sizes are smaller not by choice. Hence, pricing and packages should take that into account.
The 10:30pm curfew on alcohol consumption affects both F&B operators and their customers, perhaps more for the former, as the alcohol sales window period has decreased and we all know that’s where most of the revenue is generated. So since volume is curtailed, how about offering more alcohol options that are on the higher price range? The “better” bottles, so to speak. Previously, a group of four diners may consume two to three bottles of wine over dinner. But if they have a shorter time frame to consume all the alcohol, they may just order one or two bottles instead. Therefore, quality rather than quantity. This way, consumers will be more willing to buy and consume as they go along throughout the night, within the curfew, rather than to risk buying another full bottle and not finishing it in time. See the pattern? More “bite size” product offerings.
Regardless of whether it’s food products or cosmetics or any other products and services, the gist of the new order is flexibility and adaptability. As Charles Darwin aptly predicted, “It is not the strongest or the most intelligent who will survive, but those who can best manage change.”