Brand21 Asia Founder/CEO Alvin Soh says his company is overcoming inflation issues through business diversification.
“Diversification of business or recreating new products and solutions with totally different pricing mechanisms can actually work the magic.
“In business, regardless of product nature, we always enhance the features and value proposition in order to maintain good rapport with the loyal customers,” he says to Business Today.
He adds that his company would offer new solutions with value-added components and the new package can be easily accepted by the existing customers.
“In short, retaining your customers and not losing them due to price increase by offering new products/ solutions/ packages with new pricing mechanisms can be easily applied to almost every company,” he says.
Alvin considers himself fortunate in that his business was not adversely affected by inflation; in his opinion, his business is more service-oriented as compared to other product-oriented based companies; hence the company pricing model remains flexible.
“We are fortunate that our businesses were not heavily affected by the inflation as we are now restarting the momentum to grow the businesses abroad.
“Our business nature is more towards B2B and B2G channels; hence our pricing indeed remains flexible especially in services-oriented industry,” he says.
Brand21 is a company greatly known as the ecosystem builder focusing on entrepreneurs and brandpreneurs community which it has worked with numerous partners and clients covering various industries.
However, as for other sectors, according to Alvin, may experience some pressure especially for the product-oriented due to the usage of the raw material.
“Well, in other sectors, some business owners who are product-oriented may experience the stress level due to the increase of raw materials which can’t be avoided and couldn’t even transfer to the customers.
“I have seen such a scenario in which majority companies rather enjoy minimal/lower profit margin than increasing their selling price in order to avoid losing valuable customers to competitors.
He also emphasizes that the current post-pandemic can be considered distressing for business and everyone due to business hibernation over the last few months.
“The current post-pandemic is considered an alarming state due to the previous months of business hibernation affecting almost everyone; it is all about business owners’ directions; at-risk of losing loyal customers prior to increasing selling price or absorbing such variation with lower profit margin,” he says.
Iffah Salleh contributed to the article
