Service and Jobs Transformation Leadership Programme
David Black (CEO/Founder of Blackbox) - Full Speech to Leaders from the Food and Retail Industries, Singapore Productivity Centre, Service and Jobs Transformation Leadership Programme; 8 May 2024
Good afternoon, everyone.
I am delighted to join you today – a special thank you to the Singapore Productivity Centre for the kind invitation, and for Workforce Singapore for making today’s event possible.
It is a privilege to have the opportunity to share some of my thoughts and research insights with leaders from the food and retail industries here today.
We all operate in a business environment which seems to accelerate ever faster. Like we see in many sectors today, food and retail is undergoing rapid market transformation and changing consumer expectations. This brings challenges, but also opportunities.
Blackbox Research’s work is centred on data-driven decision intelligence that aims to empower leaders and changemakers in government and business to anticipate what’s ahead and to get in front of what they see – whether it is good or bad.
Today, I will share some insights, trends, and strategies that we think are shaping things in your industries.
I will not speak for too long, so let me quickly touch on three inter-related issues, all of which are important:
First, Consumer Behaviour Shifts
Second, the Changing Dynamics of the Modern-Day Workforce; and
Third, Strategies for Future Readiness
1. Let’s start with Consumer Behaviour Shifts.
Time and again, Blackbox polling has illustrated very dramatic shifts in consumer behaviour across SE Asia in recent years:
The impact of Covid on the food sector is well-known, turbocharging y.o.y. growth for food delivery apps in SE Asia by 183% (Inside the Gig Economy, Blackbox)
This trend was fuelled by consumer’s switch to convenience over other factors – during COVID, convenience was rated a 4x more important factor for SE Asian shoppers than even price (Blackbox-ADNA, Inflation and Shopping study, 2022)
Post-Covid, we have seen the striking emergence of cost of living concerns, which Singaporeans have ranked as their no.1 concern for the last 18 months. In fact, 95% of Singaporeans have now reduced their lifestyle spending as a direct consequence.
With tightened belts, a crowded retail marketplace, and stiff competition from digital players not bound by geography – 62% SE Asians now prefer to shop online vs 38% who prefer to shop in person (ASEANScan, Apr 2024) – retailers need to be acutely aware of today's consumer shapeshifting:
They value experience over transaction
More personalised service over general outreach
Plus, convenience is as important as price.
We also see emerging sustainability and ethical concerns amongst younger consumers, which some marketers are picking up on
These changes are not just passing trends but are reshaping the foundation of consumer-business interactions.
2. Secondly, let’s look at the Changing Dynamics of the Modern-Day Workforce.
Parallel to evolving consumer patterns, the Singapore workforce is also transforming. The rise of remote work, the gig economy, and a shift towards more autonomous job roles are just the beginning.
We see a significant and ongoing demand for job flexibility and roles that merge technical skills with customer-centric capabilities. On top of that, AI has come along like a tornado which, potentially, may have the same impact that the birth of the internet did in the 1990s.
Many Singaporeans are re-evaluating their relationships and expectations they have of their workplaces. Some numbers to tell the story:
1 in 2 Singaporeans say they would quit their job if not given flexible work opportunities (note: look at the debate stirred up over the FWA government advisory recently!)
4 in 5 Singaporeans say mapping a career today is more difficult than 10 years ago
54% say that the food industry is less desirable today for a career than 10 years ago
More than half of Singaporeans consider AI & Machine Learning to be the hottest career path today
But at the same time, AI in the workplace continues to cause Singaporeans anxiety – one in four believe there will be higher unemployment because of it.
The workplace is changing, and the values around it even more so. Embracing change proactively and empowering staff with digital cross-skilling will be crucial steps for business leaders.
3. Lastly, let me touch on some Strategies for Future Readiness.
To effectively respond to some of the changes and trends I have mentioned today, Blackbox advocates a three-pronged approach based on the decision intelligence that we have gathered:
Integration of Better Technology: Leverage technology to enhance operational efficiencies and customer engagement. Artificial intelligence and big data are not just tools for your IT department; they are essential for many people right across your business. Also, you do not always have to overspend – low cost options are abundant. As an example, for us at Blackbox, we now apply AI in 70% of all our projects – across all departments. And not only has AI not taken away any jobs at Blackbox – it has added them.
Employee Empowerment: Enriching jobs to include multifaceted roles and responsibilities allows employees to feel more engaged and less likely to seek opportunities elsewhere. This also positions your business to react swiftly to changing market dynamics. Younger workers want to multi-task – let them!
Agile Job Redesign: The future of work requires flexibility. By designing – and redesigning – jobs that can adapt to future needs and technologies, you prepare your business to face uncertainties more robustly.
To conclude, there is good reason to be optimistic if you think in new ways. As you chart your course through these new and varied challenges for the food and retail sectors, your focus must be clear: Innovate, Integrate, and Inspire. By doing so, you can not only adapt to the new market realities but also set the stage for continued leadership and future success.
Thank you for your time today.
