Demand for Chinese New Year hampers better than previous years, but higher costs remain

SINGAPORE: People may be tightening their belts amid inflation, but they are not scrimping on hampers ahead of Chinese New Year this year. 

Two major stores said that demand for their hampers has increased, compared to last year, amid the lifting of COVID-19 restrictions for gatherings this year.

At Joaquim Florist & Gifts, demand has increased 10 to 20 per cent compared to last year, and the shop has brought all hands on deck to get orders filled. 

To prepare the 300 to 500 orders each day, Mr Chee has hired 10 to 20 more workers. 

"Majority of our range has already sold out. More or less, we've already reached our target this year," said Mr Kenneth Chee, the firm's managing director. 

The most popular hampers are those costing between S$100 and S$200, he added. Seafood hampers containing food items that recipients have to prepare themselves are less popular. He intends to fulfill more orders if they come in. 

Similarly, Eu Yan Sang said it is seeing "double digit growth" compared to last year in terms of hamper sales. 

"With people more into the festive (mood) of giving, we see more people willing and more generous to give them (hampers) to business associates or even families and relatives," said Ms Rachel Cheng, the traditional medicine store chain's managing director. 

Hamper giving is a Chinese New Year tradition, with the gifts symbolising prosperity and good fortune for the year ahead.

CHALLENGES DESPITE INCREASED SALES 

While demand has picked up for these retailers, they are facing other challenges - increased costs, supply chain issues and manpower shortage. 

"The cost (of materials) has gone up, and there's also a supply chain problem. China side, we are facing some challenges because of delays in delivery. Also, our delivery contractor, we are (facing) shortage of drivers. So this year, we are facing some challenges on delivery as well," said Mr Chee. 

It is a similar picture for Eu Yan Sang.

Faced with rising costs and this year's 1 per cent GST hike, the retailer is working closely with industry partners to keep prices of their hampers low. 

"Despite the GST increase, we’ve adopted the (same) selling price as last year. Our intention was to really put our customer first at the centre of the heart," said Ms Cheng. 

THE EXPERIENCE OF A SMALL BUSINESS 

While things are looking up for bigger players this year, the situation for one small business looks different. 

Unable to absorb higher costs with its smaller pockets, JoyAvenue SG has been hit with about a 30 per cent drop in sales demand as customers search for low-priced deals. 

"Compared to last year, we're seeing a trend where customers are leaning towards cheaper and more affordable hampers. It's likely due to inflation this year, where there's a rise in prices, and people are keeping to a tighter budget," said the firm's co-founder Tan Jinhao. 

The store is taking a different route to stand out by offering customisable options to cater to individual customer's tastes, preferences and shrinking budgets.