Promenade des Anglais 2 Dec 2018
The alarm bells are not exactly ringing themselves like crazy, but the economic situation here in Singapore has been on the slow slide down to negative territory.
Recently in October, I happened to go to Queensway Shopping Centre and bought a new pair of business shoes, as well as a pair of the latest ASICS Kayanos. Both the shopkeepers I spoke with were reminiscing about the 'good old days' just perhaps 9 years ago and never seeing their sales so bad in their decades of working in Queensway.
I was so taken aback that I did not even want to negotiate a discount with them and empathised about their plight. The new Gig economy whereby everything is being migrated first to the Internet Sales Portals like Q10, Lazada and Wish just to name 3 of maybe 100 B to C sites spells the death knell of the bricks and mortar retail shops, the mom and pop shops in the heartlands.
My friends are quite cut throat about not supporting the retail shops and will go so far as to check the prices from the shops and then buy them online for perhaps 30% cheaper.
Such is the sad reality of the traditional business which is fast going the way of the dinosaur.
Zurich Airport 2 Dec 2018
The same feeling that one day AI, algotrithmic software and smart websites will be the end of our business. Not so fast, Speedy Gonzales. We have certain value propositions which no one else can replicate. Its not consumer goods like TV nor the fridge. Our equipment which we sell to the Quality Assurance Departments of companies dealing in Solar Panels, Lithium Ion Batteries, Food Research, Advanced Remanufacturing, Internet of Things and BioPharmaceuticals still require the element of DOMAIN KNOWLEDGE APPLICATION AND SERVICE SUPPORT.
The know how or domain knowledge of the application for these vast array of equipment still lies with the distributor, meaning Us. Hence, there is still some ways to go before the consumer gets so savvy that they can install high end environmental simulation equipment - something which no one learns in polytehcnic or mechanical engineering so our niche is still safe for perhaps the next 20 years.
2 dec 2018 Beautiful Day on the Promenade des Anglais with the Cote Azur in the Background
There are only 3 options if we want to continue. 1. Move part of the operations to a lower cost economy with cheaper price point products and compete in the traditional markets of electronics, automotive and semiconductors from there. 2. Move up the value chain and offer higher value added services like Test Services for pharmaceutical industry and remain in Singapore. 3. Build our own brand and push on with Singapore designed quality and reliability at the same time capturing a niche in a non traditional market which we are one of perhaps 3 players worldwide.
Well, we have done all 3.
2020 will be challenging on the local front, however, with the overheads at an all time low, and recurrent revenue streams coming in from non-traditional sources, I can say that we can do surprisingly well, if we get the lucky breaks real soon.
Carpe Diem.
