INTRODUCTION

The following is our interview with Ms. Shermaine Wee and Mr. Alan Wee, the Founders and Directors of Klosh. Klosh is a gift company that focuses on consumer and corporate gifts.  Klosh believes that Gifting is an attitude, each and every gift you give or receive reflect a personal connection.

 

1. Can you tell us about your background, what led you guys down the entrepreneurship path and starting ArtBox / Klosh

I have always deviated from a normal path of career. Straight from graduating with an accounting degree from a local university, I went to work in the travel industry for a few years as a product manager. Alan was from engineering and decided to join me after my first 2-3 years in the wholesale and distribution business. During my course of travel, we came across this major gift chain Artbox. We decided to bring back the franchise and opened our first retail outlet at Ang Mo Kio Hub, a new shopping mall back then, in 2006.

 

 

2. What would you say were the main stumbling blocks you faced as a start-up back then?
The main stumbling block was the capital needed to open a retail store and the lack of retail experience then. Ignorance was bliss and the first few years were good for the retail industry.

 

3. Having been in this industry for many years now, what would you say are some unseen difficulties? Any tips for handling doubt and adversities? 
The unseen difficulties during the last few years were the shift in consumer habits gradually from offline shopping to online shopping. This trend accelerated during the last one year when Covid-19 hit. We are definitely learning from this journey and changing our focus.

 

4. What would you say are the benefits and difficulties of creating a business together as a couple? What are your tips for working around the difficulties and separating work from home?
The benefit of working together is that each person knows what the other person is going through. As a couple, we can also get to travel on business trips together. The difficulties are that sometimes it is hard not to talk shop in front of the kids. Also, it can be unnerving when things are not going so well and the whole family’s livelihood can be at stake.

 

5. What is the most enjoyable part of being an entrepreneur? What is your most memorable experience?
The most enjoyable part of being an entrepreneur is making new friends and expanding our network. The most memorable experience must be the pop-up we did in Philippines in 2019. We even have the honour of our Singapore President – President Halimah Yacob visiting all of us at our retail pop-up in Manila.

 

6. What is the best piece of advice you ever received? Is there a popular piece of advice that you disagree with?

The best piece of advice is that “when you do what you love, you will never work a single day.” Most advice are appropriate at a certain season of each life. I do not have one that I disagree with.

 

7. History shows us that the best opportunities come from bad times rather than good. How would you suggest people get into the right mindset, where they are positioned to best capitalise on opportunities presented to them in times of crises?
It is harder to do the talk than to say it. I should say that the pandemic presents the hardest time for most companies not just retail and F&B. We should always have an attitude to go back to basics if we have to.

 

8. Where do you see yourselves and the Klosh brand in 10 years?
I really hope that Klosh will be global brand in 10 years, selling to the rest of the world. Most companies in Singapore are currently importing their products from overseas. I hope the trend will reverse in 10 years.

 

How can people connect with you?

Contact: 6451 3117

Email: hello@klosh.com.sg

Website: https://www.klosh.online/

Facebook: https://www.facebook.com/kloshsingapore/

Instagram: https://www.instagram.com/kloshsg/?hl=en

Lazada: https://www.lazada.sg/klosh_/

Shopee: https://shopee.sg/klosh_official

Zalora: https://www.zalora.sg/klosh/

Q0010: https://www.qoo10.sg/shop/klosh

Amazon: https://www.amazon.sg/s?me=A3CY8RW4514USS&marketplaceID=A19VAU5U5O7RUS

 

Klosh Retail Store Outlets

COMPASS ONE
1 Sengkang Square, #03-06/07
Singapore 545078
Contact: 6802 4963

Opening Hours:
Mon – Thu: 11AM – 9.30PM
Fri – Sun: 10AM – 10PM

JEWEL CHANGI AIRPORT
78 Airport Boulevard,
#04-230
Singapore 819666
Contact: 6214 3321

Opening Hours:
Mon – Thu: 11AM – 9.30PM
Fri – Sun: 10AM – 10PM

Member of The Fair Tenancy Industry Committee (FTIC)

Being Kids fully stands by and supports SGTUFF, a Singapore-registered SGTUFF Co-operative Ltd governed under the Registry of Co-operative Societies, since December 2020.

About SGTUFF

As a part of the Fair Tenancy Framework Industry Committee and Fair Tenancy Pro-Tem Committee, SGTUFF is tasked to propose Fair Tenancy Legislation for commercial tenancies. The association is actively representing the community on engaging with multiple government ministries like MTI, Min Law, working with fellow TACs (ASME, RAS & SRA) and engaging landlords to give feedback and recommendations on what are the short term and long term measures that will address the core issues faced by frontline businesses. On top of providing an organised platform for retail related businesses to lobby with stakeholders, SGTUFF has also started multiple community building and self-help initiatives to form new alliances, new ideas and promote synergies amongst frontline businesses.

Mission of SGTUFF

  1. SGTUFF represents and advocates for frontline businesses (focus on SME and micro-SME) on key common areas of interest especially Fair Tenancy and Manpower matters.

  2. SGTUFF provides meaningful and relevant activities/services to our community in areas like cost savings on shared services, digitization, legal help, business advisory, business synergy/networking and lease/rental information.

  3. SGTUFF reinvents frontline business models in Singapore in the pursuit of successful pivoting or driving further growth in so doing, help to regain Singapore’s status as the premier Shopping, Wine & Dine and Services destination in the world.

About The Fair Tenancy Industry Committee (FTIC)

On 26 June 2020, key representatives from Singapore’s landlord and tenant communities, together with industry experts, formed the Fair Tenancy Pro Tem Committee in a bid to strengthen collaboration and increase the vibrancy and competitiveness of Singapore’s retail, food & beverage (F&B) and lifestyle sectors. The result is an industry-led Code of Conduct for Leasing of Retail Premises in Singapore (“Code”) based on the principles of transparency, reciprocity and sustainability.

On 3 May 2021, the Fair Tenancy Industry Committee (FTIC) was set up to be the custodian of the Code and ensure that it provides guidance to landlords and tenants of qualifying retail premises so that fair and balanced lease negotiations can be achieved. It is represented by both landlords and tenants, as well neutral parties to offer a holistic approach when addressing matters related to retail lease agreements.

The FTIC comprises 14 members who are elected to oversee matters related to fair tenancy for retail premises in Singapore. The FTIC plays an important role to create a symbiotic landlord-tenant ecosystem in which all stakeholders reap long-term benefits from the increased vibrancy and competitiveness of Singapore’s retail and F&B industries.

Goals of the FTIC

  • To equip the industry with the knowledge of the Code that serves as a mandatory guide to fair retail
    tenancy negotiation.
  • To ensure that the Code is kept up to date with the latest market practices, guided by the principles of transparency, fairness, reciprocity, and sustainability.
  • To monitor the performance of the Code and submit recommendations to the Government to enhance the regulatory framework.

 

INTRODUCTION

The following is our interview with Ms. Adeline Woo, Founder and Managing Director of Diaper Cakes SG. Looking for a unique, cute, and memorable baby gift? Look no further! Diaper Cakes SG creates customized cute and practical baby gift hampers – perfect for the occasion!

 

What is your story? Can you tell us about your background, what led you to become an entrepreneur and start Diaper Cakes SG?

I started creating diaper cakes as a hobby when I first received one as a gift for my firstborn.
At that time, I was still working full-time with an MNC. Among the sea of baby gifts I received, the diaper cake was the only gift that really stood out to me. All the other gifts from well-meaning friends and relatives were either very cute (plush toys), or just plain practical (ang baos and vouchers). But the diaper cake was both cute AND practical. I was impressed not only at how cute it looked as a gift, but also how useful every single item inside was. I then went on to make diaper cakes for friends and relatives whenever there was a new baby to celebrate. Orders started trickling in via word of mouth. The rest is history!

 

What would you say is your best investment thus far?

My definition of investment is both in terms of time and money. I would say my best investment so far is in creating my own brand and product packaging. It was scary at first having to fork out so much money just to spend on packaging, and not knowing whether or not the products would sell.
At that time, I was still doing it from home, so I was really worried that I would be stuck with thousands of boxes in my living room! But I knew that I had to take this first step if I was serious about building a long-term business around it, rather than just doing it as a home-based hobby. I even went so far as to filing for (and investing in) a trademark for the name Diaper Cakes!

 

What are you most proud of achieving?

My greatest achievements are the things I created. My greatest “creations” are of course my two daughters. But I do tell some of my friends that I actually have 3 “babies”. The third being Diaper Cakes! I’m proud that I managed to create a product/brand from scratch and built it up to where it is today, one customer at a time.

 

You are not only a founder and director but also a wife and mother. How do you manage everything?

I am blessed to have an extremely supportive network of family and friends who are always there whenever I need help. I’m a huge believer of the saying “Ask and you shall receive”. So I’m seldom afraid to ask for help. And a great deal of people to be thankful for. I have a great helper who takes great care of my home and my two children, a supportive husband who is always ready to listen to me, whether I’m ranting about an awful day or raving about a record day of orders. My two beautiful girls who never once complain whenever I have to bring them back to the office on weekends to pack orders. Not forgetting friends and relatives who always choose to support me whenever they need a gift!

 

If you could go back in time, what would you do differently?

Hindsight is always 20-20! But if I can turn back time, I would try to let go and delegate more instead of wanting to do everything myself. Building an online business is a very long and tedious process. Just working on SEO and Social Media Marketing these days can take up almost all of my time!

 

As a businesswoman, do you agree that it can be much more difficult for women to be entrepreneurs? Or is there generally no difference?

It really depends on the industry you are in. I find being a woman is more of a boon than a bane for my business. Having a female face to represent the product/brand actually makes customers feel more comfortable, especially when they are shopping for a baby gift. And being a mother too helps in making my advice and suggestions more valuable and credible to my customers, like what size of diapers and clothes to get for a newborn baby. It’s heartening to see more and more women being featured as entrepreneurs in the media. I think we’ve been around all along, just not making ourselves very visible. So it’s great that you guys are doing this!

 

How do you measure your success?

My definition for success is very simple: Financial and time freedom. The day when I’m able to spend as much time as I want with my family, without having to worry too much about the business operations. That is the day I am truly successful. Because this means that I have been successful in creating a process that works, and I have nurtured a capable team of people to help manage and grow my business, so I can choose to focus on the things I love, which is designing adorable Diaper Cakes!

 

What set of skills do you think is crucial in today’s world?

Definitely the ability to adapt, especially during times when change is the only constant. And resourcefulness. Come what may, the fittest will always survive.

 

What is the best piece of advice you ever received?

Always be humble and willing to admit your mistakes. It is a slight variation of the “Customer is always right” mantra. In today’s competitive environment, customer retention and loyalty is extremely important and valuable. So whenever I make a genuine mistake, I make it a habit to inform the customer straight away and apologize, including details of what went wrong on our end and offer a proposal to rectify the situation. Never sound like you’re making an excuse, always be sincere with your apology. Most customers are very understanding and reasonable. A small handful might sometimes try to take advantage, but in order to win some, you gotta lose some! It’s a long game, so think long-term.

 

What is your vision/ Where do you see Diaper Cakes SG in 5-10 years?

I’m hoping to see Diaper Cakes expand into overseas markets, hopefully with a new product range that’s friendly enough to withstand the rough handling that comes with overseas shipping. I also hope that Diaper Cakes will become the “diamond ring” of the baby gifts industry. Just like how most people would buy a diamond ring for a marriage proposal, my Diaper Cakes would be seen at every baby shower or whenever people celebrate the arrival of a newborn baby.

 

 

How can people connect you?

Whatsapp Only : +65 9766 0661

Email : Contact@DiaperCakes.sg

Website : diapercakes.sg

Facebook : https://www.facebook.com/DiaperCakesSingapore

Instagram: https://www.instagram.com/diapercakes_sg/?hl=en

 

We use Xero that’s synced with our Inventory Management Software DEAR Systems. This is our workflow for reconciling Lazada sales with our bank statements.

  1. All sales in Lazada are created as invoices in DEAR. The report that we use from Lazada can be found under Finance -> Account Statements -> Transaction Overview
  2. Select the date range and export the report. Filter out for items under “Item Price Credit”. Note to self: invoiced value = selling price after discounts
  3. We use an invoice template and upload the details into DEAR
  4. This in turn is synced to Xero
  5. Once the monthly bank statements have been uploaded, that’s when the reconciliation states.
  6. In the Xero reconcile screen, find all the invoices that falls within that payment period
  7. The total amount from the invoices should be more than the amount paid out. This is correct.
  8. The difference between the invoiced value and the amount paid is attributed to the following:
    • Lazmall Commission (inc. GST)
    • Shipping (inc. GST)
    • Payment fees (inc. GST)
    • Other price/invoice/refund discrepancies
  9. While still in Xero, simply enter the difference under Adjustments -> Bank Fee
  10. We have an account called “Merchant Fees” to park all these expenses under.

That’s it!

For a distribution business, keeping track of your inventory is extremely critical. For such an important topic, I seldom read about other small businesses talk about their processes and software that they use to manage this function. Here’s how we do it at Being Kids.

But first, why is accurate inventory important?

This might seem obvious at first but let’s peel back the layers behind this. At the most basic level, having accurate inventory allows you to forecast. If you sell 500 units of Product X a month, a simple forecast could be as follows:

Sales per month – 500 units
Order to delivery time – 2 months
“Inventory Buffer” – 1 month (this means I always want 1 month’s worth of stock in the warehouse)

This means I should always order 500 * (1+2) = 1,500 units of product with an average re-order period of 3 months. That is to say I place an order for 1,500 units every 3 months.

This only works if the inventory is accurate.

If your product isn’t perishable, you might be tempted to load up on more stock to prevent out-of-stock situations. Retailers HATE IT when you go out of stock. Well yes, if you’re confident of sales and if your cash flow is good. The fact is that unsold product in the warehouse represents a cost in both storage and return on cash. The general rule of thumb is to have 3 months opex in the bank and not more than 2 months worth of stock (this depends heavily on your industry).

Inventory Management Software (IMS)

Managing inventory becomes a problem as soon as you have more than 1 point of sales. To do this properly, you will need an inventory management software and no, I’m not talking about Excel.

The biggest challenge in choosing a new software is that you don’t know the limitations exactly unless you’re using it operationally. Online documentation/youtube videos (if at all) just doesn’t cut it. Oftentimes for new business owners, you won’t even know what your requirements are. For Being Kids, there are a few key functionalities that we look for in an inventory software.

  1. Cloud based
  2. Handles consignment
  3. Has stock adjustment/stock take functionality
  4. Has good integration with ecommerce platforms
  5. Able to mass update product information easily
  6. Syncs with an accounting software like Xero
  7. b2b sales functionality
  8. Most importantly, doesn’t cost more than $1000 a month

Back when we were researching this 4 years ago, there were only two apps that fitted this criteria. They were Trade Gecko and DEAR Inventory. If I starting from scratch today, I would probably take a closer look at Unleashed.

Trade Gecko

I couldn’t get pass the initial bulk load of my products. The app kept hanging so this was quickly ruled out. Note that I only had about 1000 SKUs in my CSV file.

DEAR Systems

DEAR Systems checked off all the requirements on the list and more. So far, our experiencing with DEAR Systems has been positive. It has also allowed us to implement better workflows that has made our business leaner and more efficient. I’ll be talking more about DEAR in future blog posts on how we use it.

Before we switched to DEAR, we were using a locally hosted version of Inflow. Back then, they only had a self-hosted version of their software. In terms of pricing, Inflow is unbeatable. If you have a simple operation, Inflow might just be good enough for your needs. But one of the major issues we were having was managing consignment customers. Inflow (at that time) just didn’t seem to have a good way to manage this.

In the world of distribution in Singapore, consignment is a dirty word. We hate it. Retailers love it. And for some reason, consignment is not common in other countries. As the word suggests, consignment is the act of consigning your goods to a retailer on the promise that they will bill you for whatever items that was sold during the month. Any breakages, pilferage is borne by you, the consignor.

More than half our current customers are consignees. We needed to know what stock was being held, by which customer, at all times, so that we could do our replenishments in a timely manner. The feature that allows this is called “multi warehouse”. DEAR Systems has this. Essentially each consignee becomes a warehouse which if you think about it, is conceptually correct. Each time we deliver stocks to a retailer, a “stock transfer” document is generated thereby adding more stock to that warehouse. At the end of the month, the retailer should generate an itemised sales report that allows you to create an invoice that then deducts stock from said warehouse.

The added benefit of having this is that it allows you to easily generate a “per-store” sales report of what items were sold.

Yes, this entire blog post is just an elaborate ruse for me (and for you!) to save 10% a month on subscription costs. Use our referral code 9DCD1357-2F5C-4084-A5F6-77641A1BAF5E if you decide to sign up for DEAR and save us both some $$$.

PSG Grant Approved Software

Honestly, I just don’t trust locally developed software. I’ve just seen too many examples of poor implementations over the last 10 years of me working in software and agency world. Too much over promising and under delivering by local SIs and software houses has made me extremely skeptical and jaded with software made in Singapore.

eCommerce Inventory

Now that we have established your IMS to be the primary data store, keeping your eCommerce platform in sync should be relatively simple. Most IMS have integration points (at a fee) that connects your eCommerce software to it. The 2 most common ones on the market are Woocommerce and Shopify; both of which have are served by DEAR Systems. In my opinion, if you’re using an IMS that doesn’t support Woocommerce or Shopify, it probably isn’t very good.

Marketplace Inventory

The final piece of the puzzle is connecting the inventory to the various marketplaces that you operate. As of 12/09/2020, the only marketplaces worth spending time on in Singapore are: Lazada, Amazon, Shopee, qoo10 and Redmart. Of the 5, Lazada and Shopee have APIs that allow you to programmatically update your inventory. Amazon probably has one too but I’ve not been able to work with the administration to get access. Redmart has an old API documentation but it does not look well-maintained. Eventually I imagine Redmart to be rolled in completely with Lazada and it’ll probably share the same API endpoints once that happens. qoo10 is a bloody mess so I’m not going to even talk about it.

https://open.shopee.com/

https://open.lazada.com/

https://redmart.github.io/partner-api-doc/

In an ideal world, the inventory software should offer integration extensions to these marketplaces. But because more SaaS software are dedicated to serving US/Western audiences, the support for Lazada and Shopee will always be lower.

So, we made the deliberate choice of choosing to build out a plugin on our Woocommerce platform that syncs with both Shopee and Lazada. So the flow goes like this:

DEAR -> Woocommerce -> Lazada/Shopee

Unfortunately, API support for both Lazada and Shopee is basically non-existent. If you run into any issues, it’s going to be very hard to get any answers or feedback about it. After spending close to a year trying to get a reliable sync going between our Woocommerce and Lazada/Shopee, I gave up and went back to using Excel uploads.

Until the APIs for Lazada and Shopee are more stable and mature, I won’t be spending more time and money trying to create a hands-off solution.

This checklist serves as a guide to onboard future employees helping out in the eCommerce operations for an SME. It’s written from a wholesaler/distributor point of view which might have nuances that differ from other types of operations (like having a warehouse instead of operating a dropshipping model).

General

  • For orders that were sent, offer an exchange +50% of value to avoid a refund/return
  • Offer refunds through Paynow instead of through the platforms to avoid platform penalties
  • Thermal waybill is 100mm x 150mm. This can be purchased in bulk from Taobao: https://detail.tmall.com/item.htm?id=570048639543&spm=a1z09.2.0.0.3bd82e8dUZsp32&_u=o1r3gs33a329
  • Polymailer bags can be purchase from Taobao: https://detail.tmall.com/item.htm?id=548567965026&spm=a1z09.2.0.0.3bd82e8dUZsp32&_u=o1r3gs33eb52
  • Keep at least 1 month extra waybills and polymailer bags. Note that shipping lead time from Taobao is about 2-3 weeks

Lazada

  • Chat response affects seller picks. Check at the start and end of each day.
  • Change invoice paper size to 80% to save paper
  • Print both invoice and shipping label together so that they will match up in the same sequence
  • Check reviews every 2-3 working days. Reply in a helpful and friendly tone for those buyers who bothered to leave a written review (as opposed to just leaving a star)
  • To keep sales up, participate in all the campaigns
  • Create a free shipping voucher
  • Create a flexi combo voucher
  • Create normal vouchers aimed at increasing average order value (AOV). Refer to the tutorials on Lazada university for this. (IIRC, set basket value at 30% and 70% higher than the current AOV)
  • For Lorikeet, use the oldest product as a base to “copy decoration” from instead of needing to scroll all the way to the bottom of the page
  • Create invoices daily to update inventory records
  • Stock update template contains conversion amounts from individual products to bundled products. Update this every Monday (after stock take) and Thursday/Friday.

Redmart

  • Leave 2-3 weeks for new product creation
  • Stock update template to be done on Mondays and Friday’s
  • Create invoices daily to update inventory records
  • Cut-off time is 12pm on weekdays
  • Stock to be moved to 3PL warehouse by Thursday each week
  • Promotions are submitted via spreadsheet and is updated monthly: http://sellersupport.redmart.com/support/solutions/articles/5000809263-participating-in-monthly-marketing-campaigns
  • The quantity of a product will be set to 0 if it was 100% fulfilled.
  • Support email: rm_partnersupport@care.lazada.com

Shopee

  • Many points are similar to Lazada
  • Need to maintain 12 hours chat response to get the Preferred Seller Badge which improves SERPs
  • Cash in wallet to be withdrawn one a month on the last day for easy accounting reconciliation

Woocommerce

  • Overseas orders are managed using easyship.com
  • Choose DHL eCommerce packet plus where possible
  • If the package goes missing, use this page to contact support: https://www.dhl.com/sg-en/home/our-divisions/ecommerce/customer-service/contact-ecommerce-consumer-international.html
  • Update the customer notes using the tracking link provided by easyship