LMD 100 Q&A
SINGER (SRI LANKA)
Q: What are the main concerns for Sri Lanka today?
A: There are many. The most significant is the lack of political harmony needed to resolve this crisis. Government expenses – especially related to inefficiently run state-owned enterprises (SOEs) – are sky-high and hinder our debt payments. The brain drain is unstoppable; corruption levels are rising; and social indices related to education, law and order, and security are plunging.
Sri Lanka is losing its reputation as a brand on the world stage. From a business angle, we are scoring very low in terms of ease of doing business. From a tourism angle, we have issues such as power cuts, fuel shortages, and frequent social uprisings and disruptions.
It is vital that the private sector – which has been keeping the economy afloat through the Easter attacks, COVID-19 pandemic and economic crisis – is supported. It should not be viewed as a moneymaking machine that can be taxed but a facilitator of solutions to help Sri Lanka come out of the crisis.
Q: What are the main challenges impacting your sector?
A: Sri Lanka’s retail sector, which contributes substantially to GDP, employment and economic value creation, is gravely challenged. Businesses have to battle several issues including prolonged import restrictions.
Increased taxes, inflation and high interest rates have reduced consumers’ buying power.
Singer helps consumers elevate their living standards, be it by offering a gas cooker to someone who uses firewood or providing a working mother with electrical appliances to improve kitchen efficiency. By preventing people from buying these products, their aspirations for better living standards are lost.
Another issue is the increase in grey market activities especially for mobile phones and electrical appliances whereby the government is losing revenue.
Q: Should organisations place more emphasis on driving innovation, in your opinion?
A: Yes, absolutely. Innovation drives the market, and continuously sets the bar higher for products, processes and services. It also ensures that businesses run efficiently. Given the prevailing crisis and shrinking margins, Singer is looking at innovative ways to optimise our cost structure by investing in technology.
We also prioritise process innovations with regard to digitally enabled transactions.
Having invested in expanding an omni-channel presence with our retail network, and mobile and e-commerce, we’re looking at AI-based solutions to cater to customer needs at an individual level.
Q: How are you contributing to uplifting local industries?
A: Singer has a vast local footprint with three factories: one dedicated to refrigerators and washing machines; another dealing with furniture, water pumps and light engineering products; and a third that’s a sewing machine assembly plant.
We also work with hundreds of suppliers who provide us with components and raw material. Our islandwide wholesale and distributor networks, and over 400 retail outlets – coupled with factories, transport network and service grid – create a self-sustaining ecosystem that provides direct and indirect employment to many. Over 10,000 families depend on Singer operations for their livelihoods.
Q: What is the level of technology integration at Singer?
A: In terms of digital communications and e-commerce, about 70-80 per cent of our operation is technologically optimised. We seamlessly provide end-to-end services to our customers, which we’re increasing. In terms of manufacturing, technology integration is relatively low since local product volumes are not significantly high compared to regional markets, and our processes have more manual inputs.
Q: How are labour market dynamics impacting business?
A: The unprecedented labour migration from the country is impacting all sectors. Sri Lanka is losing the talent we need to help our nation emerge from this crisis, as well as creating a huge skills void in the future.
Employee expectations have also changed. Baby boomers wanted to work for the same outfit all their lives. Gen X was keen on building a good career. And now, millennials will only remain with an entity as long as they are happy. Labour has become a commercial commodity and loyalty to organisations is lost, making it very challenging to retain and develop talent.
Sri Lanka is losing the talent we need to help our nation emerge from this crisis, as well as creating a huge skills void in the future
Telephone 5400400 | Email singer@singersl.com | Website www.singersl.com