In an uncertain economy, this is how to position your business for success

The company has since stuck to this strategy, choosing to focus on “captive locations” such as high-density residential and educational hubs to ensure ongoing engagement with its customers, leading to same-store sales growth of 7 percent in the first quarter of the year, she says.

“Learning from this, we will continue to double down on this playbook to fuel our future growth carefully and selectively.”

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Similarly, Hussain Elius, the founder and CEO of Singapore-based fintech startup Wind.App, which blends traditional financial and banking services with blockchain technology, retains an upbeat outlook. Citing anticipated US rate cuts and a promising outlook for the cryptocurrency market, he emphasises targeting recession-proof segments such as remittances to ensure the company’s growth.

“We are expanding by securing regulatory licences in key markets in Asia, Africa and the Middle East, and refining our product to simplify blockchain technology for users.

This includes offering real-time fiat-to-digital currency conversion and high-yield savings on stablecoins, which are appealing features in today’s economic landscape,” he says.

This combination of regulatory agility, technological innovation to make blockchain technology accessible and user-centric design keeps the company ahead of the curve during economic downturns, he adds.

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Leveraging technology to surge ahead

Businesses that offer premium products in the affordable luxury category are also in a strong position during wallet-tightening times, when more consumers seek indulgences that are still relatively affordable.

Venon Tian, COO of Malaysia-based speciality chain Zus Coffee, notes that his brand provides quality coffee at an affordable price, “which may potentially serve premium segment customers who are affected” by the downturn.

Read more: Why coffee can be a ‘latte’ trouble

He is also leveraging technology and innovation to run lean operations and keep costs manageable. “We are rolling out a range of products including pre-mixes, canned coffee, drip bags and roasted whole beans to make us more accessible and to target different customer segments,” he says.

“We also look into how technology such as an order queue, scheduling system and automation that eliminates the need for manual data entry can keep us lean. This means our people can do more meaningful work and we do not have to implement cuts during economic downturns.”

Likewise, Singapore robotics company Augmentus is experiencing a surge in interest in its automation technology. Its products, which help to lower the time, cost and skill barriers in industrial automation, are used for applications such as robot welding, finishing, sandblasting and painting.

Co-founder and CEO Daryl Lim acknowledges that while there is a noticeable slowdown in manufacturing, “automation within production environments remains a beacon of high demand.

“This surge can be attributed to the persistent scarcity of skilled manufacturing labourers like welders, painters, sanders and grinders, which primarily impacts developed nations such as Singapore, Australia and the US.”

This has led to manufacturers pivoting towards reshoring strategies, where they opt to transfer their manufacturing processes from offshore back to their country of origin. By focusing on meeting the needs of high-value markets and economies in automation, the company has held onto its competitive advantage.

Read more: Robotics trailblazer Jane Wang on creating wearable robotic solutions for rehabilitation

Strategies for long-term sustainability

Businesses that address sustainability issues are also well-positioned to secure long-term viability. Take, for instance, Prefer, a Singapore-based bioflavours startup that has launched a new bean-free coffee. It is made from upcycled ingredients, including bread, soy and barley that have similar flavour molecules to coffee, as well as tea-derived caffeine. Providing an innovative new source of coffee—production of which is facing a reduction due to climate change—ensures resilience in turbulent times.

“Food remains a powerful lever to deliver climate impact at scale, regardless of the economic outlook. Our product is an innovative solution to disrupt the global supply problem,” says Tan Ding Jie, Prefer’s co-founder and CTO.

While coffee habits are likely to remain unchanged regardless of economic or environmental climates, Tan recognises that it will take time to “condition” businesses and consumers to the concept of bean-free coffee by working with them to understand their habits and preferences. He says, “Our edge is a production process that can be controlled and tuned to adjust flavours and caffeine levels based on customers’ feedback.”

Read more: How Singapore start-up Prefer makes Asia’s first bean-free coffee from repurposing food by-products

Similarly, Amit Oz, the co-founder and CEO of Hong Kong’s Conspiracy Chocolate, a bean-to-bar chocolate maker, has found that staying true to its principles of setting the standard for quality and sustainability in niche chocolate-making has allowed it to blaze its own path.

“Sustainability is a big focus of some of the leading hospitality and F&B players, and their customers are expecting more than before,” says Oz, who has collaborated with luxury retail brands such as Rosewood Hotels on unique projects.

With rising cacao prices globally, he says he is focused on finding ways to absorb them. “It is equally important to protect our farmers and invest in them, as they rely on us for their own survival in a time like this.”

Read more: From MasterChef Junior to chocolatier: How Louise Mabulo is making cacao farming cool

This has paid off over time, with the world becoming increasingly educated about chocolate quality and ethics, as customers with like-minded values recognise the brand’s authenticity.

“It is a pleasure and an honour to see such positive responses for something I have believed in for a long time and that consumers are increasingly beginning to notice too,” he says. “So the economic downturn has not changed our approach—it has only made us more focused on what we do.”

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