Categories
Business & Commerce

From Local to Glocal:
An Urban Farm’s Tale in Singapore

By Catherine Yang
Nov. 16, 2020

There are farms in Singapore. But they are squeezed into just one per cent of the total land area in urban Singapore.

And there are farmers. Like David Tan, who used to be an electrical engineer, and his partner, Daniel Wong, who used to be a software engineer. The pair are part of a rare species on this island which is sometimes called the Little Red Dot after how it appears on world maps.

Tan and Wong gave up their corporate lives as engineers to become farmers, but with the help of technology.

The adventure began more than a decade ago when Tan visited Singapore’s HortPark, which advertises itself as the first one-stop gardening lifestyle hub in Asia. He noticed how the plants there were watered by drip irrigation to get them acclimatised to the local weather before they were moved to Gardens by The Bay, which was then coming up on Marina Bay.

He was fascinated – that led to the founding of Red Dot Farm in 2008. He also met Wong, a software engineer, and other like-minded people with a keen interest in urban farming and how advancement in agriculture technology can help Singapore tackle food security concerns.

Inside Red Dot Farm’s greenhouse. PHOTO CREDIT: Red Dot Farm

Now we need to plant some essential background here.  Singapore imports more than 90 per cent of what it needs to feed the more than 5.6 million people who live on this island.  When the coronavirus pandemic triggered a tsunami of lockdown measures, global food supply chains were thrown into disarray. The Singapore Food Agency needed to ensure the resilience of the country’s food supply. Barely a year old then, the agency set a “30 by 30” goal in March 2020, to produce 30 per cent of Singapore’s nutritional needs by 2030.

Around the same time, RedMart, Lazada’s online grocery arm, announced a partnership with 20 local farms, to sell their vegetables, eggs and seafood online, and help them to reach a nationwide market.

Red Dot Farm was RedMart’s first urban farm partner, when it joined the platform in 2017 as part of the farm’s expansion strategy. Both brands believe in disruption through technology and automation. So Red Dot Farm was more than ready to start selling its produce via RedMart, and experienced the efficiency and transparency in managing their business on the platform.

Once they launched on RedMart, their sales doubled. RedMart’s data enables the farm to determine what is popular product so that it can adapt its output to match local demand. Red Dot Farm spent the next few years increasing its local produce offerings, expanding the variety of vegetables offered, which now include water spinach, milk cabbage, Chinese kale and more.

Due to the pandemic, a nationwide Circuit Breaker in Singapore in early April forced many food and beverage establishments to close shop temporarily. That hit local farmers hard. They were oversupplied and couldn’t sell enough to make ends meet. Red Dot Farms quickly scaled up to supply RedMart and benefited from a spurt in demand from families cooking at home.

Tan said: “The partnership with RedMart has been instrumental to developing a sustainable distribution strategy for Red Dot’s business. Our sales doubled when we joined RedMart in 2017 and jumped by three times when Singapore entered the Circuit Breaker period. With RedMart, our business has more agility to meet both consumers’ demands and local produce surplus. We are fortunate to work with a supportive team in RedMart and look forward to taking on new challenges together.”.


An irrigation system similar to that used by Red Dot Farm. PHOTO CREDIT: Netatech

Red Dot Farm nurtures, grows, and harvests crops including such favourites as red spinach and bok choy without using pesticides. At its base in north-western Singapore, it uses smart solutions such as the Internet of Things for farms and vertical spaces to grow high-quality vegetables. To ensure that plants receive the proper nutrients, Red Dot waters crops using a cost-efficient and smart system of drip irrigation. It harvests rainwater and storm water runoff in tanks that deliver water to the vegetables slowly but efficiently.

In addition, Red Dot Farm is cultivating a new generation of young urban farmers in Singapore and the region. Currently they operate farms in Singapore and Thailand, with plans to expand into Malaysia, Indonesia, Brunei, Philippines, China and even the Middle East. With the expansion of the farms, the founders intend to increase job opportunities, especially for youths looking to provide for their families.

“Even though these farms are overseas, they are Singapore-owned,” Wong said. “The idea is to set up many Red Dot farms in the region. We share our know-how and technology with the farmers so that they can grow high quality safe food for Singapore. The produce is sent back to Singapore to contribute to our food security.”

The farmers, some of them from poverty-stricken areas, also learn to better manage their cultivation and supply their villages with fresh produce that is safe for consumption.

Red Dot Farm has successfully shown how taking on a “glocal” strategy, with its business in different markets across Southeast Asia, has contributed to meeting Singapore’s food security target. They have expanded their offerings to include temperate fruit such as avocados, pomegranates and strawberries. These are grown regionally using the same planting protocols and stringent controls and then imported to Singapore. The business also continues its mission to assist local farmers in the region to improve their livelihoods.

Catherine Yang is a manager in the Lazada Singapore’s public relations team.

Featured photo above shows Daniel Wong (on the left) and David Tan (on the right), founders of Red Dot Farm, an urban farm that was the first to onboard RedMart, Singapore’s largest online grocer. PHOTO CREDIT: Red Dot Farm

Categories
Business & Commerce Entertainment

Breaking Records and Bringing Joy
to Brands and Consumers for 11.11

By LazBeat Staff
Nov. 16, 2020

In a year that has seen Covid-19 create unprecedented challenges across all sectors of society, Lazada Group’s 11.11 Shopping Festival was designed to give merchants and consumers alike a reason to spread joy, said Lazada co-president and regional head of commercial, Jessica Liu.

At the Alibaba Global Pulse Press Conference on Oct 29 in the lead-up to 11.11, Liu offered an overview of the highly anticipated shopping event. She also explained how Lazada, Alibaba’s flagship eCommerce service in Southeast Asia, was fully committed to empowering micro, small and medium-sized local businesses to find new opportunities through e-commerce, while also helping international brands connect and engage with consumers from this diverse and dynamic region.

Liu sees eCommerce as the future of Southeast Asia. “Building a trusted, safe and reliable platform for consumers is our number one priority,” she said. “We have an unrivalled advantage in the region because our digital commerce infrastructure is powered by Alibaba’s technology, and our fulfillment and logistics capabilities are comprehensive and advanced in the region,” she added.

11.11 Performance

In the lead up to 11.11 and during the platform’s biggest retail event, Lazada’s capabilities were on full display. It is well known that 11.11. drives massive order volumes. And this year Lazada surpassed its 11.11 shopping festival records, with more than 40 million users and 400,000 brands and sellers participating in the one-day sale event across the region. The majority of these brands and sellers were local small-and-medium enterprises, and of these, more than 8,000 of them garnered over USD10,000 in sales in a single day. This yearly 24-hour shopping feast has been a golden opportunity for sellers to recover and regain growth in a year when retail has been hit particularly hard by the pandemic.

LazMall, Lazada’s premium platform for authentic brands and the region’s largest virtual mall, also broke record by exceeding its 11.11 sales performance last year in under half a day. It welcomed four new joiners, including Tefal, to its list of 26 brands who made the ranks of its LazMall Millionaires Club, which are brands that achieved sales exceeding USD1 million in one day. Electronics brand Samsung also became one of the first two brands to hit over USD10 million in sales.

Data insights from the eCommerce platform proved especially helpful to participating brands and businesses in the wake of new consumption patterns shaped by pandemic restrictions. For example, demand surged for health-related products, children’s toys, home décor, kitchenware and home-office equipment once lockdowns were imposed across the region. That prompted many sellers to stock up on these categories in the run-up to 11.11, Liu said at the Oct 29 conference.

South Korean actor and model Lee Min Ho as Lazada’s first regional brand ambassador for this year’s 11.11

This year’s blowout 11.11 success was also a shining example of Lazada’s immensely successful “Shoppertainment” strategy, a stellar blend of retail and entertainment. A month earlier, Lazada had kicked off its 11.11 campaign by announcing South Korean actor Lee Min Ho as its first regional brand ambassador – a move that underlined its continuing commitment to bringing A-list entertainment to shoppers on its platform. Not only did the mega sales event feature more than 200 million shopping deals, it also exploited to the utmost Alibaba’s digital technologies to create highly personalised and engaging consumer experiences. These ranged from data-driven product-discovery journeys and exclusive 11.11 catalogues to a star-studded show and an interactive game that allows users to win redeemable rewards worth close to USD2 million.

By launching its new game Happy Bounce in the lead-up to 11.11, Lazada saw increased user engagement of over 3.5 times as consumers spent more than 70 million minutes playing Lazada’s in-app LazGames titles. Along with Fun Farm, both new games saw players collect more than 20 million vouchers in 24 hours. LazLive, Lazada’s livestreaming technology, gathered over 11 million views on Nov 11 alone and saw more sellers adopt the service, which resulted in a 380% year-on-year growth in GMV generated from their sessions. In Vietnam, the platform’s Super Show gala event attracted nearly 10 million views across all channels, including TV networks, YouTube and LazLive.

By leveraging all of Lazada’s digital innovations and delivery capabilities, Liu said at the Oct 29 event that this year’s 11.11 would empower sellers and delight customers across Southeast Asia.  

“Together with local businesses and renowned brands, we have curated the best-value deals for the eighth edition of our 11.11 Shopping Festival that will no doubt bring non-stop happiness to our shoppers in the region so they can treat themselves and their loved ones this year,” she said.

Looking at the record-breaking results that Lazada’s 11.11 has achieved, Liu’s words rang true for businesses and shoppers throughout the region.

Lazada co-president Jessica Liu, who is also regional head of commercial, details the efforts in the build-up to 11.11 at the Alibaba Global Pulse Press Conference on Oct 29.

Featured photo above shows Lazada’s Jessica Liu on the panel with other Alibaba executives, including (from left to right) Alibaba Group’s chief marketing officer Chris Tung,  president of Tmall import and export Alvin Liu and the general manager of Cainiao Global Supply Chain James Zhao.

Categories
Business & Commerce

Behind the Scenes:
Revamping Seller Platform and Features

By Haniko Martin Tio
Nov. 16, 2020

Just in time for Lazada’s 11.11 shopping festival this year, the revamp of the Alibaba Seller Centre that began in March was completed and ready to make onboarding, listing, managing, marketing and selling products more efficient for sellers.

Lazada initiated the changes, based on a survey with about 6,000 sellers online and interviews with 20 sellers individually that identified the pain points and areas where the process can be improved.  

“We heard our sellers’ feedback loud and clear, we will keep lowering the entrance barriers for eCommerce, especially for sellers venturing for the first time into it,” said Aidan An, executive vice president of seller product. “Our top priority is to optimize the user experience, from onboarding to product listing, to the day-to-day and campaign management process.”

For instance, by leveraging Alibaba’s technology, artificial intelligence (AI) can now automatically populate the product category and more key features to enhance the content quality, An explained. Sellers only need to upload a product image and leave AI to do the rest. That means they can now list their products about four times faster than before. Under a pilot project in Malaysia, simplifying the onboarding process boosted the number of new sellers by nearly 25 per cent within three months.

Alibaba Seller Centre’s new design and features

“I love the new design of the homepage, especially the shortcut icons. It saves time by allowing us to access all the frequently-used features,” said Lim Szu Xin, an authorised dealer of the Autobacs franchise, who has been selling autoparts and accessories on Lazada for about three years. She also has a physical store in Singapore. Selling online has helped her reach a younger demographic of customers, who are more digitally-savvy, Lim said.

Thai seller Thanaporn Chumphonphaisan’s family has been in the garment business for 30 years and owns a factory that makes jeans. Six years ago when revenue started sliding by 90 per cent every month, She closed all her physical stores and moved the business completely online. She reckoned that the revamped platform saves her about 80 per cent of her time every day, because she spends most of her time tracking logistics, such as pick-up status, and details of item in an order.

The mobile app homepage also underwent a significant redesign to better provide actionable data insights for Lazada sellers, so that they can quickly pivot to cater to consumers’ changing preferences – while on the go. The redesign has also boosted the stickiness of the app’s usage. At a later stage, a new order management page will be rolled out more widely. This will offer such handy features as a simplified summary dashboard and overview of logistics status.

“I quite like the product upload design,” said Rehiga Muktilana, a seller who is still in school.  The 19-year-old Indonesian student started selling small household items online only this year after seeing advertisements on social media and getting a recommendation from a friend. Since the outbreak of the pandemic, he said he has seen a demand for portable laptop tables, mirrors and plastic cups.

“The process is easy enough for someone like me who is just starting out the eCommerce journey,” said Muktilana, who aims to be financially independent so he can fund himself through high school and university. 

“Customer first is our core value. We aim to provide our Lazada sellers the best experience in Southeast Asia. That’s why we started this project,” said Gerald Tang, head of seller operations at Lazada. “We will continue to invest in simplifying our product, increasing sellers’ operation efficiency and making it easy for sellers to work with us. Fast onboarding, easy listing, clearer order management, simpler seller tools, and so on, we will continue to listen to our sellers and provide them better solutions, to empower our sellers for both mega campaigns and daily sales.”

Tio is a product operations manager who works with Lazada’s sellers

Featured photo above shows Thai seller Thanaporn Chumphonphaisan (top), owner of garment shop Saza, who went completely online and closed all her physical stores after steep declines in revenue, and Lim Szu Xin (bottom), an authorised dealer of an Autopacs franchise in Singapore, holding up one of the many  products she offers online. PHOTO CREDITS: Saza and Autopacs