Snap Decisions

YOU NAME IT and he has probably done it. Jean-Christophe Babin has dipped his fingers in nearly every luxury lifestyle sector there is – watches, jewellery, leather goods, hotels and fragrances. And so, when the group CEO of Bvlgari made the decision to donate funds to the Lazzaro Spallanzani Hospital in Rome and deploy his production lines to make hand sanitisers instead of the customary high-end wares, everyone sat up and paid attention. Babin was sending a message to the rest of the world that the luxury industry was still very much relevant, even during the pandemic, and it had the resources to do more than produce objets d’art.

When did you realise that Bvlgari needed to be proactive in the face of COVID-19?

Jean-Christophe Babin (JCB): In the early days, the team of researchers from the Spallanzani Hospital in Rome had announced the isolation of the virus and our desire was to be able to give immediate support.

In less than 20 days, we managed to buy and donate a very high-definition 3D microscope to help them speed up the search for the vaccine. The open dialogue with this team allowed us to know that disinfectant gel was one of the missing and necessary products in Italian hospitals.

What happened next?

JCB: We asked our fragrances partner ICR for help on this ambitious project. We stabilised the formula and converted production in less than a month. Today we can produce 12,000 bottles a day of hand cleansing gel with sanitiser, which is then distributed by local authorities both in Italy and in Switzerland.

Can e-commerce help the luxury industry recover?

JCB: E-commerce is an important aspect of the business, but obviously it cannot reach the desired numbers. It is certainly a fundamental tool in many sectors such as fashion, but it’s more difficult in the world of luxury. A Bvlgari customer could easily buy a single fragrance, rather than an entrypriced jewel or the silver collection dedicated to the Save the Children partnership. But there are situations in which we would try to change that; encouraging the buyer to purchase a jewel with precious stones or a watch with a complicated mechanism. These are cases where physical contact, suggestion and explanation of the product and what it entails are fundamental, and how it all works to the benefit of everyone concerned.

IT WAS AT the end of January when Singapore started to feel the effects of COVID-19, despite news of a potential virus outbreak having been released in December 2019. Back then, it was mistakenly considered to be just another flu strain that would probably die down in a few months.

But Ashish Manchharam knew that this could take a turn for the worse and potentially affect his company, 8M, an investment management firm with core businesses in real estate and hospitality. He quickly rolled out measures for both its business arms, 8M Real Estate

(8MRE) and 8M Collective. While the former specialises in taking over conservation shophouses in Singapore and redeveloping them as office and retail spaces, the latter comprises four boutique hotels (Kesa House, Ann Siang House, Wanderlust and Base Residences) all, uncoincidentally, located in shophouses.

How are 8MRE and 8M Collective coping with the virus outbreak?

Ashish Manchharam (AM): 8MRE is actively working closely with its partners, particularly those in F&B, to champion the shift to takeaway and delivery options through marketing initiatives within our network. We have also offered rental rebates and deferment plans where required.

For 8M Collective, as hotel operations have ceased, we are taking this opportunity to refurbish and upgrade some of the properties.

What resources have been allocated to help the community?

AM: In early April, we saw a large number of Singaporeans returning home. 8M Collective offered all its hotels to the Singapore Tourism Board, providing a place for those who have to serve the Stay Home Notice. We have also taken the amenities, such as coffee, tea and soaps, and donated them to Hope Initiative Alliance. This goes to providing meals and essentials to migrant workers in difficult times.

What are some of the short- and long-term effects that the travel and F&B industries will face?

AM: In the short term, it’s about how we can increase the demand and when we’re able to. This will be determined by several factors, including the circuit breaker lift in June, the comfort levels when it comes to socialising, consumer spending in light of the economic climate and, of course, the opening of borders regionally, then globally.

In the long run, I think that the markets will continue where they left off eventually – it’s a blip and may take a few years to recover. The difference is that the entire world’s population has been affected by this and therefore recovery will likely be prolonged.

You’ve had to make some quick decisions. When faced with a crisis of this scale, what are the first few things a leader should do?

AM: Be positive and do what’s best for your team. Transparency is key, so one should keep everyone in the know with regard to company developments. Open and regular communication

(is important) to make everyone feel comfortable and (also) be as flexible as possible. It’s important to look forward – beyond the crisis – and think about what potential opportunities have arisen due to this.

COMPANIES DON’T TEND to think about scaling when a crisis hits, but Jane Lim, vice president of business operations and strategy (APAC) of Tripadvisor, believes in keeping one eye on growth at all times. After all, when the pandemic is over, Tripadvisor will have to ramp up its efforts to cater to the delayed surge in demand. Having cut her teeth as a consultant at LEK Consulting in New York, then leading strategic and operational initiatives at Singtel, she knows all too well that while it’s essential to adjust short-term plans when it’s temporally appropriate, it’s equally important to realign and pave the way for what follows.

How is Tripadvisor coping with a sudden revenue crunch combined with spiralling global uncertainty in the travel sector?

Jane Lim (JL): We are managing costs and taking a hard line on discretionary investments. To this end, our CEO, Stephen Kaufer, is not taking a salary for the remainder of 2020.

With more than eight million businesses listed on our platform, we are, more than ever, aware of the role we can play in helping out the industry, and have prioritised our near-term product road map accordingly.

That said, people will want to travel. The stay-at-home measures across many markets globally are no doubt leading to cabin fever and creating a pent-up demand for travel. We are positioning and preparing ourselves to capture the surge in demand that will come once recovery hits.

How do you think Tripadvisor will adapt to this changing environment in the long run?

JL: We remain focused on our long-term strategy, which is to make people-powered planning a reality.

While the main service we provide is to help travellers find, book and enjoy the trips that matter, the changing environment is broadening our scope and adjusting our focus. That means extensive travel guidance, catering differently to local and domestic travel, and broadening content on the Tripadvisor platform.

During the virus outbreak, we launched #RoamFromHome, a collection of more than 100 virtual experiences, ranging from pasta-making to self-guided wine tasting.

What measures has Tripadvisor taken since the virus outbreak?

JL: For our partners, we have launched a number of initiatives that cover financial relief, new information tools and consultancy, such as free 30-minute consultations on product optimisation for our Experiences suppliers, and a Love Your Local SG advocacy campaign to encourage consumer domestic demand.

We know that travel restrictions have had a severe impact on all businesses. In Singapore, the local circuit breaker means some businesses have had to close entirely.

Where possible, we are providing financial relief for our partners across our suite of subscription products, such as free ads for restaurant partners and complimentary threemonth extensions for annual premium subscribers.

We are also supporting Singapore businesses impacted by COVID-19 with our Love Your Local SG campaign, and we are proud supporters of two social impact initiatives:

Eat for Good by the National Volunteer & Philanthropy Centre’s Company of Good, and the Lend a Hand if You Can campaign by Shopee.

As a leader, do you find it hard to adapt to a situation that is not only out of your control, but also one without a time frame?

JL: Periods of crises do force us to have a long hard think about our future.

Given that travel has almost ground to a halt, we are, on one hand, constrained by costs.

On the other hand, we are freed up to think about what the future of travel will look like coming out of this, and how we can continue to help guide travellers when the world starts travelling again.

possible to retain all of our employees. We are also providing food, supplies and beds to relevant healthcare organisations.

Well-being is part of Como’s brand DNA and we have reinforced this by teaching staff and the communities around us how to improve their well-being and strengthen their immune system in this difficult time. Our therapists are sharing their knowledge through our social media channels and our Como Stories newsletter to reach out to those staying at home.

Do you think that the virus will change the way people travel in the future, even after the pandemic ends?

OJ: This crisis happened at the pinnacle of travel and has caused a worldwide impact, putting a brutal stop to all international travel. I have always said that luxury is about offering space and privacy, and now, this rings true more than ever.

There may be a preference to travel in small groups or stay in an intimate location instead of a 300-bedroom hotel. Our business model has always catered to this, focusing on the soul of each destination, offering limited rooms and suites, and catering to those who seek to improve their well-being. We are successful not by chance, but because we continued with the vision that our founder, Christina Ong, had when she launched the brand 30 years ago. The way we encourage our guests to travel certainly can’t be more relevant than in today’s context.

Some are predicting that the effects will be felt by the economy for the next few years, particularly in the travel industry. What can be done to cushion the impact?

OJ: It’s important to look at your brand DNA and know how to be relatable and relevant to the environment, employees, guests, communities and shareholders. To cushion the impact of the crisis of this scale, there must be some intervention, such as monetary initiatives from governments. That is the right thing to do. But that’s provided the government has the financial resources to do it. This could be complicated for emerging economies.

SHE’S THE YOUNGEST of the five leaders featured here, but Joan Chang has proven her mettle as a savvy entrepreneur and an industry leader. Chang was just 25 when she co-founded Lloyd’s Inn, one of Singapore’s top boutique hotels. Now 30, she runs Ove, a lifestyle concept that includes luxury homes, hotels and spas. While it may be easy to dismiss her as being part of the Instagram generation, you’ll soon realise that Chang’s greatest strength lies in her ability to not just observe what the market wants or lacks, but also how to put a trendy spin on our everyday lifestyles.

How has this COVID-19 pandemic affected the real estate industry in Singapore?

Joan Chang (JC): The real estate industry experienced a knee-jerk reaction. Show flats had to close quite abruptly, buyer sentiments have understandably been affected and sales volumes have slowed.

However, there are many prudent investors in Singapore who will look at this crisis as an opportunity to deploy capital. Singapore’s real estate has typically been less volatile relative to equities. From a capital preservation perspective, real estate is still proving to be an attractive asset class.

Business strategies had to be changed overnight when this outbreak hit us. How do you think Lloyd’s Inn will adapt to this changing environment in the long run?

JC: The core of the business will remain, but we may have to adapt to a new normal. Businesswise, we’re adapting to digital technologies and embracing telecommuting and technology, depending on how COVID-19 pans out. If the situation continues globally, our hotel may shift to a staycation-focused strategy to tide things over.

Some are predicting that the effects will be felt by the economy for the next few years. What are your thoughts?

JC: We have seen from China’s example that they have been able to reopen their economy after curbing the initial burst. I feel this will eventually be the case for Singapore. However, we are different from China as Singapore is largely a trade-dependent country and we don’t have the economies of scale to be fuelled by domestic consumption. Hence, the ripple effects of the global economy will impact us.

As some countries may not have the enforcement, medical or healthcare standards to support or curb the virus, it will likely drag on until a vaccine is eventually found.

What needs to happen next for the real estate industry on the whole?

JC: Real estate, as an industry, has always been constant. Ten, 20 or 100 years back, and now, people have always needed homes and a roof over their heads. People also need a stable asset class to remain invested in.

What changes is the modus operandi – why, who and how real estate is designed, built and sold. This would be something we need to keep a watch on and adapt to the changes.