Digital Transformation In Singapore: An Unstoppable Mega Trend
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With the Covid-19 pandemic, many people are using their holiday budget for online shopping. This means E-Commerce sales will soar during the season.
Lunar New Year can be a fruitful time for online businesses based in the Asia Pacific, especially if your business targets key areas such as China, Taiwan, Hong Kong, or Singapore. If managed correctly, E-Commerce and direct to consumer (D2C) businesses can bring in millions within the two week holiday period. However, not all businesses are adequately prepared for the season, causing business owners to miss out on a valuable opportunity to boost inflow.
To be ready for Lunar New Year sales, you should start preparing now!
The Lunar New Year will come with challenges your D2C business must overcome. First of all, there will (hopefully) be an increase in sales. To prepare, businesses must make sure they have sufficient supply to answer to the increasing demand. Additionally, founders should consider that factories in China, or even Vietnam, may give employees up to two weeks off and adjust their ordering schedule in advance to compensate for this.
Furthermore, with the unpredictable nature of the Covid-19 outbreak, founders should consider the possible shipping or production delays that may affect the arrival time of inventory. The increase in traffic during the holiday season may cause inventory to move slower, or even increase the chance of accidents. Founders may want to consider purchasing accident insurance, or ensuring that they take necessary precautions to ensure inventory arrives safely.
What to expect during the holiday season
If your business is based in the Asia Pacific, you will need to consider several factors. The Lunar New Year holiday is one of the biggest holiday seasons in East Asia. This will mean some employees will take days off, or deliveries from places such as China and Vietnam will come to a halt. If you haven’t stocked up by November/December, you may not be making full use of this opportunity to drive sales!
Ensure that you have enough inventory to respond to the sudden increase in demand, as it may be too late to order more inventory come December/January.
How can I buy more inventory if I don’t have money
One of the biggest pain points when it comes to bootstrapping your own business is financing. E-Commerce businesses tend to be asset-lite and fast growing; on the one hand you’re struggling to receive funding from banks because you don’t have any assets to act as collateral, while on the other hand you need capital to sustain your rapid growth.
Founders can raise collateral-free growth capital through revenue based financing. Companies such as Choco Up will give cash advances of up to US$10 million to startups and ask for a small percentage of the company’s monthly revenue until the advance has been paid off.
Our credit team bases our risk analysis off transaction history and sales revenue. Therefore, you won’t have to put your family home on the line just to get your business going.
Click here to apply for funding!
Interested in learning more about raising capital for your company? Check out the following guides we prepared for you:
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Explore digital transformation initiatives in Singapore, and get insights into what you should know as a business.
