When Singapore implemented the “circuit breaker” measures on April 7 to stop the community spread of Covid-19, mc.2, a homegrown company retailing smart home furnishings, saw sales plunge 90% between April and June after the showroom was shuttered and non-essential renovation works were prohibited from being carried out.
Those were not the only worries for mc.2’s founder and managing director Wilson Chew. The company’s workers from China were in their hometowns, and some of them could not return to Singapore. His team of installers, made up mainly of Malaysians who commute across the Causeway, were in a similar bind. Before the borders closed, Chew rented flats for them so that they could continue working here. He also set up a makeshift dormitory in his factory to house his other foreign workers, allowing them to continue working even as Singapore battled the early stages of the novel coronavirus outbreak.
More importantly, Chew realised that as a result of the circuit breaker, people were staying at home more and people were using their mobile devices more often. According to StarHub, home broadband traffic on their network grew by over 40% during the circuit breaker period, and also observed that customers were placing greater importance on having high- speed WiFi coverage in their homes to facilitate remote working and studying.
Chew therefore turned to social networks like Facebook to market his products. “I think we adapted very fast to all this and we have digital marketing, which is the differentiation between the traditional [sellers] and us because when we first came into this business, we focused a lot on digital marketing because we know the customer is starting to spend a lot of time on their mobile device and on social media,” he tells The Edge Singapore.
Chew also created videos featuring their products, and used the tried and tested marketing tactic of celebrity endorsement. He worked with showbiz personalities Mark Lee and Li Nanxing to demonstrate how they put mc.2’s smart blinds and curtains to good use.
“For example, Li loves to cook. But the wind affects the fire from the stove, so he has to block out the wind. Meanwhile, Mark wants privacy because he stays at the ground level and if the sweeper sees him, he will tell everybody Mark Lee stays here,” quips Chew.
Funan beginnings
mc.2 started out as a company selling electronic products and accessories at the popular tech-gadget hangout now known as Funan Mall back in 2003. After about 13 years, it finally exited the IT and electronics arena due to strong competition from giants like Sony and Apple which set up their own stores as well as e-commerce sites.
Instead, what Chew did was to pivot mc.2 into selling so-called smart home furnishings. He wanted the firm to differentiate itself from the competition by offering customers a multi-sensory experience, something new and exciting in what is widely seen as a “traditional” trade. “A lot of people have been selling curtains and blinds for many years. But I think we do it differently because we can take advantage of the user experience, the customer experience and the retail experience which are all very important,” says Chew.
According to Chew, many retailers do not invest a lot in getting their showrooms properly done-up as they prefer to sell through samples and catalogues. In contrast, Chew invests heavily in renovation, paying attention to small yet critical details from lighting to even the scent pervading the room, so that all five senses of the potential customers can be charmed. “We really believe in total customer experience,” he explains.
To that end, the company opened its Ubi Showroom in 2018, developed its own brand of blinds called ALTEX SecureZip, and partnered with established furnishing brands such as Renson, Hunter Douglas, and TOSO to deliver a range of “smart blinds” to its customers. These blinds are not only fully motorised, they can also be controlled with smart home appliances, such as the Google Home Mini and through customer’s smartphones.
Customers could come and view actual models of the blinds, curtains, and even see them in operation. “If you want to see our outdoor louvres, smart awnings, or blinds and curtains, we have the full set so people can really see what they’re buying,” says Chew.
The company also conducted group viewings, where up to 40 potential customers can come to the showroom and see a demonstration of various products. The showroom, spanning about 7,200 sq ft, was designed specifically to allow customers to witness their products in action, with all of them in full working condition.
Quick to adapt
Indeed, the Covid-19 pandemic has plunged the world into an unprecedented crisis. Economies, livelihoods, jobs and even lives have been turned upside down. Businesses that relied on human traffic coming to them also found themselves at a loss.
While sales did not pick up during circuit breaker, there were many enquiries. That gave Chew the confidence that sales would pick up once restrictions were lifted. In addition, the money he spent housing his workers in Singapore meant they were ready to respond promptly to pent-up demand upon lifting of circuit breaker measures.
Now, instead of group demonstrations held in the retail outlet, mc.2 uses Facebook Live. His sales staff have even started using video conferencing tools such as Zoom and Google Hangouts and even Whatsapp to communicate with their customers and bring them around the showroom.
The months of working from home — which may end up as a permanent feature — has also inspired many people to carry out home improvement and renovation projects, according to Chew, creating potential demand for his products.
While working from home, parents want their own comfortable space so that they can be productive throughout the day. Previously, having spent the entire day in office, they might not realise how hot their apartments can be. “So, they will ask if we have something that can keep out the heat or wind? They say ‘I want some privacy because my neighbour is looking at me when I’m working’,” he adds.
Chew knows that even when the pandemic is over, it will be difficult for life to return to “normal”. People may continue to work from home and some may not want to come down to the showroom as they have to book appointments under safe distancing guidelines. “We see consumer behaviour is starting to shift, and if people stay home more, they will want to smarten up their home,” he adds.
Online sales platform
To cater to this new group of customers who want to improve their homes, mc.2 is preparing to launch their very own e-commerce platform to shorten the sales process. Chew reveals the typical sales process for home furnishings takes a relatively long time, consisting of multiple visits to the showroom, sometimes with the customer’s interior designer in tow, which complicates the decision-making process.
Through this new e-commerce platform, customers can get immediate quotes for balcony blinds from mc.2 by selecting from over 200 types in the fabric and colour of their choice, among other options. The customer can then order, make a deposit, and arrange for delivery online, shortening the sales process significantly.
Chew says this online model of e-commerce, digital marketing, and selling via video calls will be the future of shopping as people stay homebound more often. “Before circuit breaker, nobody buys via Facebook Live. Now, it is all changing and people are buying via Facebook Live.”
