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Is your job in the interior design and renovation sector affected by Post COCID-19 Recession?
The sombre realisation that Singapore is entering into a technical recession which will eventually translate into job losses, salary downward revisions or companies going bust. Many interior designers, project managers who work on BTO, resale flats or commercial interiors, will soon have to look for alternative means to supplement their income as companies go on cost-cutting measures or retrenchment exercise.
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Let’s look at the various concerns and options available to the interior design and renovation industry in the post-COVID-19 economy to see if it is a viable business.
Impact on Singapore Renovation and Home Furnishing Industry
The unpredictable COVID-19 situation in the coming months have impacted on how the government will manage the flow of labour in the construction and renovation industry as a whole as the safe-distancing measures and the dormitory clusters situation has severely hampered the availability of tradesmen from Malaysia and Singapore.
Major economies have gone into a tailspin which will impact our export volumes here and with the continued spread of COVID-19, Singapore economy will look grim for the short and medium terms. As such, the likelihood of many being affected will be high and spending on home renovation will be prudent with customers either delaying their renovation plans, scale down their renovation budget or eyeing cheaper alternatives.
So you may asked what the real industry situation going forward?
There are several scenarios here and one pertaining to the interior design and renovation companies that did not hedge on their finances for bad times and built a good relationship with their suppliers. These companies would probably have to wrap up their business as they have expanded their creditworthiness. Some will try to continue to rely on other suppliers to finance their business which is nearly impossible as these sub-contractors are often cash strapped and more often than not they have lost money on other bad debt situations.
The question here is how many of such companies are there within the industry? The answer is not clear as most of them are still running their company with the money given by new clients to pay off their old debts. There are of course reputable companies that have managed their finances well and would be riding through the recession with hiring freeze or cost-cutting measures.
It is now imperative that companies who are doing business with legacy business models operate with models in the new norm and reduce their reliance on traditional resources to survive the tough times.
The above dire situation will create a group of people who will eventually lose their jobs due to business closure or bankruptcy, among them are credible and creative people like interior designers and project managers.
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Their skillset earned through the school of hard knocks are valuable and could generate comfortable income with the acceptance of the new business model termed as the new norm which we believed will renovation companies and industry talents makes a comfortable living as the industry goes through the post-COVID-19 evolution.
The entire renovation and decorative industry is worth SGD 745 Million in 2018 with a 18% growth post-COVID-19 Online Source, https://www.statista.com/outlook/255/124/furniture-homeware/singapore
Will there be a substantial business for the industry to ride out the pandemic? The answer is an emphatic yes based as seen on HDB Key Stats report from 2019-2020;
Source online; https://www.hdb.gov.sg/cs/infoweb/doc/ar2019_keystats
The renovation business from the above-developed units mention in HDb stats 2019-2020 will come online in 2021 to 2013 and in 2020 HDB is pushing out around 16,000 flats to the general public notwithstanding private residential and commercial projects. Source online; https://www.singsaver.com.sg/blog/hdb-bto-launches-in-2020#HDBBTOPastLaunches
Evolution Of The Gig Economy Augmented By e-Commerce
There is a bright spark of hope in the horizon despite the gloom that can be viewed as a good opportunity for interior designers and project managers who intend to capitalise on the blossoming gig economy. The revolution aided with the help of specialised renovation and furniture e-commerce platform, now available through Postofixe.com, will taste success in the same manner as seen in Airbnb in the hotel industry, GRAB for point to point transportation and food delivery and Amazon for online marketplace
Let’s explore this different business model for the interior design and renovation industry and compare the two business models, one lagacy and the other the gig economy, to see how feasible it is to make a good living in the new economy.
Typical Interior Design and Renovation Processes:
Typically most interior design and renovation companies will endeavour to provide all or majority of the above processes shown on the activity chart.
However, this is a rather tedious and stressful process especially when one has to handle 2-3 projects with consecutive handover dates. It can be overbearing for both the interior designer and project manager to handle as a result they suffer career burnout over a short period of time.
There is an alternative process proposed by Postofixe.com where various tasks are assigned to different professionals/tradesmen who are highly competent in their respective trade to complete the tasks.
The differences here is all parties benefits in the transaction.
Each partner within the value chain makes sufficient profit/income to stay in their trade or profession which will result in higher professionalism within their trade.
A high level of trust and comraderies is built with respective partners to complete their job in a professional manner. Working collaboratively also compels them to complete their job so as not to affect other trades especially in terms of schedule and final payment.
Payment is dispensed to all suppliers upon completion and acceptance by the customers. In contrast, in the legacy model suppliers are only paid for their previous completed job to allow them to roll over their cash.
The entire process from start to finished is allocated to three or more parties with core competencies in;
- Designers will focus on designing and attending to the needs of the customers,
- Automating all operational paperwork online from payment, documentation, sales, manufacturing to delivery orders are managed by Postofixe,
- Quality control, solving technical problems, managing schedules, client expectation and on-time delivery which will be handled by experienced project managers.
- Level of stress is now manageable and responsibilities are well defined and spread out to various parties within the value chain.
Postofixe e-commerce platform makes work FUN as;
- There are less paperwork to slow you down,
- it is less stressful to work on any project since there is a predefine scope of works and responsibilities resulting less burnout.
- Income is based on an individual’s level of commitment, those who work harder make more money.
- Level of professionalism will grow as designer, manufacturers to tradesmen are treated as equals offering their best products or services to the client.
- the contractual arrangement offers a truly win-win situation where individuals or suppliers gets the fair share of returns
- The main financier of the projects is the client rather than sub-contractors.
Hop onto the instant benefits of Postofixe’s renovation and furnishing e-commerce where parties to the transection;
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- 40 uploaded design layouts in our 3-D drawing tool for various residential units that are already available on the platform to enable designers to start selling on the fly with no downtime.
- The works you love what you do within your expertise with plus plenty of chances to hone your skills.
- additional income where talented interior designers are able to publish their design on a peruse basis allowing others to use them for a fee.
- get sufficient income for project manager as he/she don’t have to worry about making ends meet with other overheads. Unlike the legacy model he/she received a fixed salary for whatever numbers of projects he works under his employment.
- offers clients the benefits of a one-stop shopping experience with the latest home design and products at a fair market price.
- enjoys risk free business model to develop a interior business where even customer could now accept in the post-COVID-19.
So what is holding you back to explore the possibility of creating your own destiny? Stop worrying about losing your income or the drag of an overwork and under-pay situation. Postofixe lets you makes a good income through our specialised renovation and furniture e-commerce platform.
Register here zoom meet up to explore the how the platform can help in your gig with a online demo and we will end off with Q & A session.
There are two sessions;
- 27th July 2020, 4pm
- 30th July 2020, 4pm
Put in your preferred time slot on the “Message area” we will send you a zoom meeting details as soon as possible, see you soon.