Companies on the digital bandwagon have enjoyed success reaching their customers due to the ease of online shopping. This has been advantageous last year as a result of Covid-19 where lockdowns made online the only access to customers. Businesses that have failed to transform digitally have fallen casualty. One such example is Home-Fix, a family-run hardware chain of 26 years, $43 million turnover and 20 outlets in Singapore at its peak.
The DIY Market in Singapore
The Do-It-Yourself (DIY) culture in Singapore is not evident. Families rather call a local handyman than to pick up an item from a mall-based DIY store and do home-improvement and repairs themselves. However, some Singaporeans do take the effort to fix up their homes themselves. Home-Fix has been serving this small and niche market.
For many years, such Singaporeans have depended on Home-Fix to scour the world and made DIY products available at the neighbourhood malls so that they can conveniently pick up what they need.
Home-Fix’s decline over the years
Home-Fix began to see a decline in business three to four years ago, with the growth of online marketplaces which were not burdened with high mall rentals. Manufacturers also re-strategized to cut out the middleman via such online marketplaces which sold direct to consumers. Online savvy consumers also began to check out the items at Home-Fix stores before going online to search for the best price for the items, further shrinking Home-Fix's customer pie. It failed to engage this niche group of consumers.
Digital Transformation Journey
Could Home-Fix have fared better with Digital Transformation? Certainly.
The first stage is to embark on streamlining and integrating its businesses processes to enhance productivity and efficiency. This will allow Home-Fix to be nimbler and be in a position to compete operationally with the online marketplaces. In the second stage, Home-Fix will need to go regional by connecting to global trade ecosystems to reach new markets and grow the business. The Singapore market is just too small. The final stage would be for Home-Fix to adopt advanced technology to make its business smart and leapfrog its online competitors. These recommendations are found in the Wholesale Trade Industry Digital Plan published by IMDA.
For more information on how to get your business started on the Digital Transformation Journey, do drop an e-mail to sales@zooloo.asia.
Explore more
- Learn more from our eBook series on Digital Transformation for Wholesale Trade
- Learn more about our “Digital Backbones”
- Learn more about IMDA's Wholesale Trade Industry Digital Plan
- Learn more about IMDA's Start Digital Pack