Unique Business Models & Their Online Marketplaces

Online businesses have come a long way from the typical business models of direct sales, franchises, and brick and mortar stores. Nowadays, anyone with an internet-accessible device, a budget, time, and an idea can set up a business. Here are just a few unique business models that leverage the sharing economy, customization, and subscription content.

Shared Accommodation Providers

Airbnb is the main example that allows travellers to find accommodation from strangers willing to open up their homes or available lots. This business model is dependent on supply and demand and caters to the market of travellers who are either looking for short-term accommodations that are more affordable, in areas where hotels are unavailable or have a more personal touch.

Ride-Sharing Services

Grab is one of the top ride-sharing services in the Asia Pacific that has expanded to services like food delivery, bill payments, cleaning services among other things. Initially, Grab created an ecosystem with on-demand drivers and dynamic pricing to meet the needs of consumers. The marketplace for Grab includes individuals who are tech-savvy and need paid car services or see a benefit in ride-sharing. 

Tool Rentals

Hilti is a company that handles the development, manufacturing, and marketing of tools used in construction, maintenance, and mining. Their tool rental service provides consumers with the tools they need, like particular tools or specialised tools that may either be too expensive or not used enough to justify a permanent purchase. 

Online Education

SkillShare is a platform for anyone to learn just about…anything. It is for skilled individuals who are looking to share their knowledge and expertise to anyone willing to learn and pay for a subscription, creating a massive intellectual marketplace. 

Personalized Printed Stationery 

Paperless Post is an organization design-driven online invitation company and encourages customers to add customizable touches to personal messages such as on invitations, greetings, wedding suites, birthdays etc. This market leverages on customizable gifts or products that carry value and meaning to the user and is unique to what is commercially available.

Beauty StartUp Subscription Service 

Ipsy Glam Bag provides users with a blend of high-end and drugstore makeup, skincare, and beauty tools among other personalized beauty items in a stylish bag. This appeals to the market of people who are into the exploration and excitement of trying new products.

Software or App Business Models

Netflix is just one example of the many streaming services with both global and exclusive content covering a multitude of genres and languages. It leverages on the consumer’s need for content and recreational activity especially now in this time when people are confined in place.

It takes founders 2 to 3 times longer than they expect to validate a business model. Like a typical business model, unique ones also require several rounds of customer interviews and product iterations before they turn into a product/service that people know, love and use. And with the constant evolution in the demands of the market, a unique business plan is needed to solve unprecedented problems. 

How to Run a Successful Crowdfunding Campaign

Many startups turn to crowdfunding as a potential means of securing funding. Not only do crowdfunding campaigns provide a visualisation of potential customers, but they can also help you gauge the interest of your target audience so you can adapt accordingly. All of this information can even give you more merit when approaching larger investors.

However, a phenomenal idea doesn’t guarantee crowdfunding results, the ability to market and sell your idea is what will secure the funding. Here are some tried and tested tips that can bring you closer to a successful crowdfunding campaign

  1. Don’t jump the gun.
    Timing is everything. The peak moment for you to seek crowdfunding largely depends on what stage your company is in. While there is never a ‘perfect time’, it’s imperative that you have a well-developed model or plan to present to the masses. Presenting a half-baked will not only deter potential backers, but the lack of planning may also come back to haunt you further along with the project development. Crowdfunding campaigns shouldn’t be seen as a shortcut, it’s best used for ideas that are already well-developed, ideas that can inspire people to place their faith in your product or service.
  2. Have a sustainable plan.
    A crowdfunding campaign has three key phases: the launch, maintenance, and the final push. Most campaigns have funds start pouring in right after launch, but when the hype dwindles, so will the funds and momentum. That’s why it’s vital to have a proper plan for all three phases. Don’t play all your cards at once, keep some promotional ideas or interesting content. This way, the campaign will seem to be growing steadily and not stalling out, which will keep backers coming. Plan for a steady stream of content, updates, perks, and opportunities to keep the momentum going through the tough maintenance phase before reaching the final push.
  3. Be concise!
    You have to convince backers to fund your project in as little time as possible, in other words: create the largest impact with the least words. The best way to do this is by writing your pitch, trimming it, then trimming it even more. Get to the point quickly, your audience should be able to determine the value and main selling point in no more than 90 seconds of reading. Within this time, it is also important to diminish any doubts they may have, which brings us to the next point.
  4. Build trust with testimonials 

People often trust referrals. Whether it’s a recommendation from a friend, an endorsement by a celebrity, or an online review, evidence of reliability in any form helps ease the fear associated with trying new products or experiences. Reference press releases regarding your campaign and gather support from respected figures, as all of these will serve as testimonials that will build a sense of confidence in your idea. 

Common Consumer Behaviours for New Entrepreneurs

Starting new entrepreneurship or business is never easy. No matter what industry you are in, we will all have to engage with clients or customers, virtually or physically. And as a fresh newcomer into this enterprise, you might need a few tips on common consumer behaviours. So take a look below and find out what kinds of behaviour your target customer groups fall under and how do you adjust your marketing strategy to fit them. 

The Definition of Consumer Behaviour

Before entering the den, we must first know that consumer behavior is personal, situational, psychological, and social reasons why people shop, buy, and use, then dispose of products. 

Get In-Game: The Kinds of Consumers

  1. Complex Buying Behaviour

This type of behavior can be commonly seen when buying something expensive or unfamiliar to the consumer. Consumers will invest more in researching and getting information from family and friends in order to prevent too much monetary burden after making a purchase. 

  1. Dissonance-reducing Buying Behaviour

With not many choices, consumer engagement is greater as decision making is quite confined. This type of behavior will show if there are not many choices in the market. With budget limitation and lack of choices, not much research will be done on the consumers’ end as the brands available are not in abundance. 

  1. Habitual Buying Behavior

Like the name, consumers pay little to no attention to researches of the brand or product, as the products they use are bought habitually and out of familiarity. Not a lot of thought will be put into the decision process, as the products bought are usually daily products. Other than that, these brands and products are common to purchasers, as they are buying what they usually go for. 

  1. Variety Seeking Buying Behavior

Variety seeking consumers are the ones that switch between brands, wanting to try new things. This is because brand switching has low cost and at the same time, the curiosity to try new things and different products will be fulfilled. These types of brand switching are often unintentional, as consumers are just purely variety seekers.

Do You Know Your Consumers?

It is important for you to figure out the type of consumers you are targeting. Prepare some surveys and allow customers and clients to fill in. This is great for you to get insights and understand the purchase intentions of your consumers. If you understand your consumers, you are able to create effective marketing strategies that are able to retain new consumers while at the same time, keep loyal consumers by your side. Remember to always stay connected with your consumers and keep track of your own progress as well. This way, both sides will grow together. 

Reduce Operating Costs by Minimising Food Waste

One of the best, yet often overlooked, ways to keep operating costs low is by reducing food wastage. 

This can be achieved by conducting a Food Audit! A food waste audit’s primary function is to identify where the operation’s waste comes from as finding the source is the first step to reducing waste. There are two primary sources, pre-consumer waste, and post-consumer waste.

Pre-consumer waste is food that never leaves the kitchen due to either improper handling or storage. This is the largest contributor to overall food waste and the easiest to manage.

Ways to reduce pre-consumer waste includes:

  1. Storing perishables in ways that maximise shelf life.
  2. Evaluating the inventory by ordering fewer food items that are often thrown out or left unused.
  3. Repurposing ingredients, like using old bread for croutons.
  4. Training kitchen staff to ensure all food items are properly prepared and no usable bits are thrown out.
  5. Keeping the inventory organised so food is used by its due date and no food is mistakenly reordered.
  6. Offering daily special menus based on food items that need to be used.

Post-consumer waste is food that is leftover by patrons. There are a few steps restaurant owners can take to reduce the amount of leftover food, including:

  1. Ensuring that guests are properly informed of portion sizes, so your customers know what to expect and can eat until they are comfortably full.
  2. Encouraging customers to take home leftovers and providing proper takeaway boxes
  3. Managing customer expectations with accurate descriptions of dishes so that food isn’t sent back to the kitchen
  4. Adjusting the menu and dishes based on what is most often left on the plate or least ordered.

By decreasing food waste, not only are operating costs reduced but can help build a loyal base of customers who are becoming more aware of conscious practices by restaurants. 

Innovative Tech Developments in F&B

In this tech-driven society, it’s unsurprising that tech has been making waves in the food industry. We’ve seen advancements such as delivery apps for restaurants and supermarkets, digital menus in restaurants, and even purely online food businesses that don’t have physical locations. But what other, more obscure, yet innovative tech developments are occurring in the F&B industry?

  1. Personalised Nutrition
    In the future, there will be more services offering nutrition that accounts for both genetic and environmental factors to maximize the nutritional value of certain diets for consumers. Companies like Sun Genomics test tailor probiotics by sequencing the human gut and analyzing the distribution of the different types of microbes. An increase in food allergies and intolerances worldwide will also give a boost to this trend. Meal plans such as Platejoy offers solutions by providing meal plans tailored to specific diets and cooking habits, in addition to integrating nutritional data with health tracking devices.
  2. Self-service Kiosks or Vending Machines
    People are mobile and constantly on the go. As time becomes more of a luxury than a commodity, the mobile snacking trend continues to rise. Self-service kiosks and vending machines that are accessible 24/7 are becoming the new norm. Japan pioneered this trend and caught the attention of the global market with their vending machines across its cities, which provided consumers with both convenience and quality. Restaurants are implementing more self-service Kiosks, as seen in many McDonald’s outlets, while vending machines are being innovated to produce more complex food orders.
  3. 3D Printed Food
    While 3D food printing is still an expensive and time-intensive method of food production, many have begun investing in this method due to the increasing demand for plant-based meat products. This is due to its efficacy and ability to replicate the texture of meat. As such, it is predicted that innovations in 3D food printing technology will see a surge in 2020.
  4. Vertical Farming
    Current agricultural practices are proving unsustainable for the growing population. In hopes of reinventing traditional farming to meet rising demands for food, vertical farming, an umbrella term for crops grown in urban areas, was invented. Being able to grow and harvest crops in indoor urban spaces would lessen the dependence of food import for cities that lack land, use less water, and produce a 200-400% higher yield. While it is still a fairly new concept that requires large amounts of energy, the concept is growing in popularity in urban areas. 

The Challenges of Halal Food Logistics

We’ve all experienced the convenience of the food products on supermarket shelves, all readily arranged to be taken home, prepped, and made into meals for the rest of the week. 

In a country like Malaysia where food is widely available, chances are you don’t think too much about how the food you eat makes its way into the shelves. However, there is a meticulous process that occurs between the food source and the store, one that is even more complex for halal-certified food products.

In Halal Food logistics, it is really the concept of combining consumable products that are deemed permissible under Syariah Law with Logistics.

“Halal” is the Arabic word for lawful or permitted, the opposite of which is “Haram” (non-halal), meaning unlawful or prohibited. The food products within the grey areas are called “Syuhbah” meaning doubtful or questionable. These phrases span across all facets of a Muslim’s life, though more commonly in relation to food, meat, cosmetics, personal care, pharmaceutical products and even in banking or lifestyle.

It is written in the Hadith (the book containing the words of Prophet Muhammad), that the consumption of what is haram results in the rejection of a person’s prayer by Allah, which is why the differences bear such significance.

At the beginning of the supply chain, the food prepared cannot be done by just anyone, so here is some insight into how the halal food industry begins its process. For meats, trained slaughtermen and service managers who are able to separate and identify non-halal products are crucial when preparing the food before it is processed.

The reason lies in Islam’s emphasis on how an animal’s life ends because all life is considered sacred and not to be taken lightly. This means any life taken is to be done in the name of Allah, so there are certain rules as to how the slaughter of the animals is done. That is only the beginning as throughout the whole process from farm to plate, food that is considered halal must be separated from food that does not meet the requirements of Syariah Law.  I think this portion can be shortened! Since the essay is more so focused on the logistics! 

The requirements of Halal Food Logistics, which lies under the bigger umbrella of the Halalan Toyyiban Supply Chain (Halal Supply Chain), covers the whole process from sourcing, manufacturing, transportation, warehousing, ports, and freight handling. The reason for its existence is to upkeep the Halal integrity and to provide educated consumers with a sense of transparency in terms of their food source.

The Halal Food Logistics industry faces many challenges in order to keep to their standard, the first being the issue of improper segregation of food items due to a lack of proper classification of halal services/products, questionable sources, or difficulty in detecting compromised food. In short, Halal Food logistics take extra measures to ensure separation between haram products with halal products to prevent contamination. 

The last issue is a lack of traceability along the supply chain. There are a number of risks that can occur along the supply chain that may result in contamination of the products. Potential risks include contaminated transport vehicles, tools, or contamination due to personnel negligence. Here are some issues Halal Food Logistics have to take into account for quality assurance:

  1. Hub: Dedicated storage and packaging along with warehouse distribution.
  2. Transport: Dedicated liners/transport in order to avoid cross-contamination en route. 
  3. Route: Dedicated route for a faster turnaround.
  4. Management: Supervises all aspects of the supply chain from the manufacturer  

to the distributor to prevent contamination.

The existence of varying standards for halal food worldwide due to a vast number of certification bodies presents another challenge. What may be acceptable in certain countries may be deemed haram in others. Halal Food here in Malaysia is represented with certification from JAKIM (Department of Islamic Development Malaysia) and its purpose is to verify that the food produced and consumed is up to the standard of being considered halal. The categories required for such certification include ensuring it passes all points in the supply chain process including manufacturing, distributing, repacking, any subcontract manufacturers, and the premises up until the slaughterhouse.

Nevertheless, the global halal food market was worth US$ 1.8 trillion in 2019, despite the challenges it has faced. Both Muslims and non-Muslims opt for halal food regularly for various reasons including the assurance of food safety, hygiene, and reliability. Thus, the halal food market is predicted to grow up to US$ 624.52 billion at a growth rate of 7%!

Sustainability in F&B Logistics

Sustainability in F&B logistics involves finding ways to generate less waste of resources, time, and energy, and reduce carbon emissions, all while staying in line with government regulations and dealing with consumers’ increasing awareness of their food sources. Ideally, the process covers traceability, precision, seasonality of flows and consumer protections, but that’s easier said than done. 

Players in F&B logistics have to take into account more than just purchase costs, but also ownership costs such as maintenance, operations, cleaning and disposal of materials, essentially a product’s entire life cycle. 

So streamlining and automating processes to optimize the business and meet consumer needs is essential in F&B logistics. Here are three angles that help achieve higher sustainability:

Warehousing 

  • Implement warehouse management systems and IoT technology like voice technology, sorting systems, telematics, and energy management, warehouse solutions and management processes better automated to optimize time and space and able to function without human supervision.
  • Strategically locate inventory based on operation data from similar facilities to maximize space, thus optimizing the handling of materials, orders, equipment and also personnel movement. 
  • Digitize warehouse processes to reduce paper consumption. 
  • Utilize technology like LED, natural ventilation, and daylighting technology to cut back on energy costs while maintaining the ecological balance of the warehouse.

Shipping & Transport

  • Eliminate certain transport movements, such as delivering goods directly to the end customer instead of shipping products in between plants before reaching the final customer.
  • Accumulate larger shipments and delay certain deliveries for a calculated time to reduce waste from idle vehicles and making multiple runs with small loads and returning with empty vehicles. 
  • Fill vehicles with loads from other companies, even competitors just to save costs. 
  • Potentially create an app that helps facilitate such processes and links companies up with one another to optimize load efficiency.

Packaging

  • Create reusable packaging that can be used for every shipment.
  • Reduce excess volumes of packaging to help save diesel and lessen carbon emissions by using automated box forming machines that allow for greater package sizing flexibility and reduces wasted space.
  • Utilize curbside recyclable protective packaging that has been created specifically for electronics and insulated recyclable paper pads that protect temperature-sensitive and perishable goods for up to 24-48 hours. 
  • Sugar cane is a sustainable material that yields a negative carbon footprint due to the carbon dioxide use and oxygen release, useful for packaging as polyethene foam. 
  • Manage and trackback all this reusable packaging using SmartTrak as a viable system.

Irreplaceable Jobs in the F&B Industry

The progression of AI in the F&B industry has seen that certain jobs and roles have been rendered obsolete. Technology has been opted by certain companies to increase efficiency and reduce human error in areas like manufacturing and data organization. Although it has not greatly caught on, this rise in Artificial Intelligence has faded out service roles in certain eateries.

However, as advanced as technology becomes, there is always a uniqueness to human interaction especially within the F&B industry that is so closely intertwined with the hospitality industry that is not easily replaced. Some areas that are irreplaceable by Artificial Intelligence include areas that require building relationships, creativity and handling unpredictability in consumers.

The reason that human touch is needed more in certain roles than others is that humans are gifted with the ability to ideate and come up with unusual and clever ideas or solutions depending on a given topic or situation. Most AI lack social perception and are programmed to carry out selected tasks leaving them unable to negotiate, persuade or innovate on an emotional level.

Here are 5 jobs that require such emotional and adaptable skills which are difficult to be achieved by the use of Artificial Intelligence:

  1. Bartenders  

This role is one that is centred on human interaction coupled with the skill and flair that is achieved through social experience, practice and innovation.

  1. F&B marketers  

Finding out the best way to reach out to an audience for any product, food products, in this case, requires a level of creativity and understanding of human behaviour that is lacking within AI to create any unique experience for consumers.

  1. Hospitality Managers

Being a manager in the F&B / hospitality industry requires human judgement and response needed when dealing with unpredictable situations and building relationships with customers on an emotional level.

  1. Chefs / Bakers / Craftsmen

While the skills themself can be performed by AI, the ability to create complex and new recipes or dealing with the crisis within the kitchen requires a level of innovation that AI cannot achieve.

  1. Educators in F&B 

Human interaction is necessary for the process of passing down wisdom and experience within the field as it is easier to assimilate the knowledge that is taught with a human touch.

Eco-Friendly F&B Packaging

Brands and individuals alike are always looking for new ways to decrease their carbon footprint and be responsible for their impacts on the environment. The main consideration is to ensure that the packaging is environmentally friendly: recyclable, reusable, or biodegradable, multipurpose, and functional.

  1. LEAF PLATES

Leaf Republic is a German company started by Pedram Zolgardi that focuses on making disposable tableware and food packaging designed to reduce plastic waste. It is inspired by leaf plates that are commonly used during social gatherings in India.

The plates themselves are made with leaf paper sandwiched between two layers of actual leaves, sourced from a wild creeper plant collected by villagers in Asia and South America, then pressed with machines. The leaves themselves are stitched using fibres from palm leaves and are biodegradable within 28 days in compost.

  1. TAKEOUT CONTAINER

This Chinese Take Out container was a student project by JoAnn Arello back in 2012.

It resembles a tiffin carrier, with its option for multiple levels. This design comes with a removable tray on top to place cutleries and dividers to separate food as desired. If there is more than one container of food, it is designed to be strung through with a carrying string, holding up to three packages.

  1. HAPPY EGGS

Happy Eggs is a design concept by Polish designer, Maja Szczypek, who created this packaging as a way to engage people through visual language and smell. The concept of it ties the product together with its packaging that is reminiscent of eggs in a chicken’s nest. 

The package is made out of cut hay that is hot-pressed into its shape. Hay is a fast-growing, natural material and is ideal for maintaining environmental balance. 

  1. CRAVE NASI LEMAK PACKAGING


CRAVE is a Singaporean company that specializes in serving nasi lemak, a traditional Malay dish familiar throughout Southeast Asia for decades. They partnered with TRIA Sustainable Packaging to come up with biodegradable and recyclable packaging that is similar to its traditional wrapping and secured by bamboo skewers rather than plastic tape.

  1. “THIS TOO SHALL PASS”

Tomorrow Machine is a Swedish Design Studio that introduced a biodegradable food packaging line called “This Too Shall Pass”.

Oil Package

This container is made out of caramelized sugar and coated with beeswax to hold oil. To use the oil, the package can be cracked like an egg. Once cracked, the wax will no longer protect the sugar and the package will melt and biodegrade once it comes into contact with water.

Smoothie Package

This smoothie package is made up of agar-agar and water. To consume its contents, just poke the top of the package with a straw. It is made to contain perishable drinks and food items that need to be refrigerated as it is only made to last as long as its contents. 

Rice Package

The rice package by Tomorrow Machine is made out of biodegradable beeswax. It is opened by peeling it like an apple. It can be used to hold dried goods like grains and rice.

  1. Disappearing Package

Twinings is an English brand of tea & beverages that came up with the idea for a disappearing package. Instead of the commonly seen boxes, they designed the packaging to closely wrap the product. It was then folded and impermanently glued in the form of an accordion.

The function of the packaging aside from minimizing waste was also to provide a storybook-quality to it where the packaging was utilized to tell the story of its product. The Disappearing Package works as consumers tear away one segment at a time, and with the holder acting as a tag, the package itself is eliminated with the last teabag.

What is E-Commerce Personalization?

Online shoppers nowadays are spoilt with choice. With no shortage of e-commerce sites to choose from, your virtual patrons will expect nothing short of an exceptional experience when shopping on your website. This is where personalisation will help you stand out. But what exactly is e-commerce personalization?

Imagine entering a shop and the employees are immediately able to provide you with tasteful recommendations based on your preferences, environment, and prior purchases. An entire store catering to you would probably feel like exclusive treatment. This is what e-commerce personalisation is, except in a virtual sense. Rather than taking a one-size-fits-all approach to e-commerce, retailers can ensure each individual has an enhanced shopping experience. Providing customers with a memorable and comfortable shopping experience on your site will lead to loyal customers and higher conversion rates. Retailers have reported a 20% increase in sales after implementing personalized features.

To give you a clearer picture of what e-commerce personalization is, here are just a few examples of effective personalization features on e-commerce sites. 

  1. Product Recommendations (Zalora)

On the Zalora website, customers will be shown clothing recommendations based on previously viewed items below. Showing items that are similar or related to previously viewed products can help improve the likelihood of purchasing as it can help customers find products of interest. 

  1. Abandoned Cart Emails (Amazon)

When customers put something in their carts without proceeding with a purchase, Amazon will send out emails to remind them of these items. A customer may have hesitated, been distracted, or still contemplating a purchase, and these emails may just prompt them to proceed with the transaction. 

  1. Geolocation Functions (Shopee)

Shopee uses the customers’ locations to provide a shipping fee estimate, which provides convenience and ease to shoppers, increasing the likelihood of them returning to Shopee for future purchases. 

  1. Chatbots (AirAsia)

AirAsia allows customers to personalize their requests by providing them with ‘AVA’, a virtual assistant that can provide page visitors with useful information in addition to helping customers complete purchases by providing instructions to book flights or hotels, then redirecting them to the relevant webpages. This will help potential customers navigate the site to make purchases.