Stepping inside a store has been a significantly new experience since COVID-19 cases skyrocketed in the second quarter of 2020. Apart from physical distancing, strict safety measures such as the implementation of temperature checking, using the SafeEntry check-in system, and tightening occupancy limits have substantially affected regular foot traffic in retail shops across the island.
Many retail spaces in Singapore sat unused for at least two months after Prime Minister Lee announced a circuit breaker period from 7 April 4 May 2020. There were at least 50 new coronavirus cases daily, so the call for a nationwide lockdown to pre-empt escalating cases came to no surprise. All workplaces and establishments – except those that fall under the essential services sector such as markets, clinics, and hospitals – remained closed during the quarantine period. While this health measure was necessary for the greater good, it also meant lost profit for businesses that heavily rely on in-store customer purchases.
An index report from the Department of Statistics stated that “retail sales fell 52.1% in May 2020 from May 2019, compared to the 40.3% year-on-year decline recorded in April 2020”. It also adds that the circuit breaker measures in place for May 2020 resulted in notably lower sales.
An evident preference for online shopping during the lockdown period was also noted by the Singapore Tourism Board (STB) and credit card company Visa’s joint research. According to their study, the local retail landscape saw a significant uptick of online shopping activity via Visa’s VisaNet electronic payment network’s transactional data. Moreover, they observed that “the lack of online presence has left local brands increasingly vulnerable to the adverse economic impact of the pandemic”.
Now that consumers are increasingly inclined to stay home and buy items from their mobile devices, will online marketplaces force physical stores to vacate their spaces gradually? In this report, local enterprises weigh whether digitalization and online migration could harm or boost the retail sector.
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- RESPOND, ADAPT, REVOLUTIONIZE
- A PROMISED FUTURE
- BLESSING IN DISGUISE
- HARNESSING THE WEB
- A LEAP INTO THE YEAR
- LESS THAN PHYSICAL
Respond, Adapt, Revolutionize
For Kelvin Tan, managing customer traffic in all FairPrice stores was the utmost priority after the circuit breaker announcement.
“We reckoned that there would be panic buying among patrons, so most of our marketing efforts were geared to serve, educate, and engage our customers promptly,” the Customer and Marketing Head for FairPrice Group’s Retail Business says. “All promotional initiatives were reduced to minimize crowds and ensure customer safety.”
FairPrice Group is one of the leading retailers in Singapore, serving more than half a million shoppers daily through a network of over 370 outlets. The retail conglomerate comprises FairPrice supermarket, FairPrice Shop, FairPrice Finest, FairPrice Xtra, Unity Pharmacy, FairPrice Xpress, and Cheers convenience stores.
As a response to the pandemic, Tan shares that they launched a three-prong communication strategy. “First was debunking fake news,” he starts. “Accurate and timely announcements were released to alleviate concerns and mitigate potential fears in the market.” He also supplies that doing so helps customers have a better sense of the situation and assists them in their decision-making as buyers.
The second communication strategy was giving assurance to both customers and staffers. “Keeping both stakeholders updated on market sentiments and regularly informing them through owned, earned, and paid media,” Tan says. “Most importantly, we also publicly spotlighted our staffers’ contribution to motivate and boost their morale, as they have been working round-the-clock to provide the nation’s grocery and essentials needs.”
Suggesting stay-at-home ideas via social media channels – whether through food recipes or wellness fitness regimes – was FairPrice’s third communication strategy at the height of the circuit breaker period, according to Tan. “We supported the nationwide #stayhome narrative by delivering content that eases the pressure of being in quarantine.”
Store-wise, Tan says that they reinforced customer safety and accessibility. From implementing priority shopping hours and allowing proxy shopping for the Pioneer Generation (seniors), persons with disabilities, and pregnant women to opening up more temporary atrium spaces – social distancing was in full swing.
“We’ve also started initiatives that include ordering items via our digital catalog, enabling curbside pickup, and implementing FairPrice on Wheels, where we had vans peddling grocery items in five estates with a higher concentration of seniors in Singapore,” Tan explains. “These are just some of the many things that we have been challenging ourselves in terms of rethinking the retail space and customer experience
- RESPOND, ADAPT, REVOLUTIONIZE
- A PROMISED FUTURE
- BLESSING IN DISGUISE
- HARNESSING THE WEB
- A LEAP INTO THE YEAR
- LESS THAN PHYSICAL
A Promised Future
To cater to the increasing demand for online shopping, Tan says that they started partnering with ride-hailing app Grab and delivery platform foodpanda for FairPrice Xpress, Cheers, and Unity Pharmacy. The customers’ response was encouraging, so the company is looking to scale them to ensure a seamless transaction process and a more diverse product listing on these platforms.
“We are looking at an exciting journey ahead where we cater to consumers’ evolving grocery and food-related needs,” Tan says optimistically. “As modern lifestyles become more complex and demanding, we will look at both mid- and long-term strategies that will serve customers through their different life stages. Accelerating omni-retail plans, for example, will help us deliver greater value, providing customers with ease and convenience.”
Whether or not retail spaces are here to stay, two things would continuously underpin how FairPrice delivers its brand promise, according to Tan: customer centricity and better value.
“If this [digitalization] is where the trend is going, then we should work towards leveraging on it instead of worrying that it would harm the retail sector,” Tan declares. “The sooner we understand how we can marry omni-shoppers and technology, the higher chances we have at delivering a truly customer-centric experience.”
“The concept of brick-and-mortar shopping will also see constant reinvention to not only stay relevant but also excite the customer communities we serve,” Tan finishes optimistically.
- RESPOND, ADAPT, REVOLUTIONIZE
- A PROMISED FUTURE
- BLESSING IN DISGUISE
- HARNESSING THE WEB
- A LEAP INTO THE YEAR
- LESS THAN PHYSICAL
Blessing in Disguise
Unlike most Singapore companies during the circuit breaker period, Wellchem Pharmaceuticals General Manager Geraldine Lim says that 2020 remains a particularly strong year for the homegrown pharmaceutical company.
Established in 1975, Wellchem Pharmaceuticals supplies medicinal products and medical devices such as surgical masks, gloves, biologics, orthopedic implants, eye drops, and oral supplements. Their products are located in various retail stores across the island, catering to hospitals, medical specialists, general practitioners, and retail pharmacies.
“We exceeded our targets by more than 200%,” Lim reports. “Sales from the retail sector increased as the general public was stocking up on immunity boosters, masks, and vitamins.” While the circuit breaker period was an extremely hectic time, she adds that it was also a meaningful interval because the company was heavily involved in bringing in medical essentials required by the healthcare institutions.
- RESPOND, ADAPT, REVOLUTIONIZE
- A PROMISED FUTURE
- BLESSING IN DISGUISE
- HARNESSING THE WEB
- A LEAP INTO THE YEAR
- LESS THAN PHYSICAL
Harnessing the Web
Instead of spending money on in-store displays during the nationwide lockdown, Lim shares that they reduced their overall advertising and promotional spend because they foresaw that their retail store partners would experience significantly less foot traffic. The ads and promotion budget that they saved was instead allocated to support social media-related initiatives to drive awareness via their online platforms.
When asked about the technologies they have procured to keep abreast of online shoppers’ needs, Lim says that her sales and marketing team has always been ready for the ever-evolving consumers’ needs.
“We’re well-versed in online advertising tools such as Google AdWords and Facebook Business Manager, as well as familiar with e-commerce platforms like Magento, Shopify, Lazada, and Shopee,” Lim answers. “We also worked with giant health and beauty chains Guardian and Watsons to have our products listed on their online listings.”
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- RESPOND, ADAPT, REVOLUTIONIZE
- A PROMISED FUTURE
- BLESSING IN DISGUISE
- HARNESSING THE WEB
- A LEAP INTO THE YEAR
- LESS THAN PHYSICAL
A Leap Into the Year
Wellchem Pharmaceuticals plans to activate one key revenue-boosting strategy next year: to grow its proprietary brands such as Leftose® and Miriqa® overseas. To maximize profit and mitigate risks of COVID-19 infections among their in-store customers, Lim shares that they will do away with physical stores, source international distributors, and exclusively promote these brands directly through their websites.
“Space would keep getting bigger, and the beauty of it is that it can transcend geographical limitations,” Lim reflects. “In a way, we are a ‘transitional’ generation who grew up buying from brick-and-mortar stores. We are the same ones to see the promising beginning of the online space.”
Lim adds that despite the pandemic, this year is an exciting time for retailers. However, their biggest challenge is the technical limitations that come with it. She surmises that “technology is both an asset and a challenge”, and that retailers and brand owners who can utilize digitalization to their benefit will be able to maximize the potential of their sales by capturing both physical and online spaces.
“It is not enough to just do one or the other,” Lim concludes. “Combining both is imperative to achieve maximum exposure and revenue.”
- RESPOND, ADAPT, REVOLUTIONIZE
- A PROMISED FUTURE
- BLESSING IN DISGUISE
- HARNESSING THE WEB
- A LEAP INTO THE YEAR
- LESS THAN PHYSICAL
Less Than Physical
Pauline Ng, founder and managing director of local skincare brand Porcelain, is the boss behind innovating and expanding the company’s existing product lines. Their business is sustained by revenue streams coming from Porcelain Spa and Porcelain Skincare (product range). Porcelain currently operates three upscale spas in Singapore’s central locations and offers a range of skincare products that are all developed in-house.
Like FairPrice and Wellchem Pharmaceuticals, Ng says that Porcelain has been accelerating efforts to grow its e-commerce site to keep up with its customers’ increasing preference for online shopping.
“We recently revamped our website to provide our patrons a more seamless user experience and integrated payment methods like GrabPay,” Ng reports. “Moreover, we have leveraged on the government-assisted funding called Enterprise Development Grant for Singapore Businesses to launch our skincare line online.”
planPorcelain Skincare products can now be found at several popular e-marketplaces, including Lazada, Amazon, iShopChangi, KrisShop, and TANGS.
Plans to open more outlets in new locations have taken a back seat, according to Ng. Instead, Porcelain will focus on improving our business operations to ensure that their spas are operating at maximum effectiveness in terms of manpower and equipment.
“We believe in leveraging on technology to drive our business operations, including the retail operations at the spas,” Ng says. “Last year, we opened Porcelain Origins, Singapore’s first Smart Spa, which offers curated touchpoints and digital innovations that help meet our clients’ changing skincare needs. ”
Ng finishes: “With the help of digitalization, we have been able to offer our clients a personalized, unique, and holistic in-spa experience that cannot be achieved online.”
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