Inflation issue

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2023-11-06
News

What is inflation?

The inflation means your money become small.

I remember when I was a kid, a cup of bubble tea with a tapioca is only 25 to 30 twd but now become 50 or more as well as the food and something as necessity for life.

Do you have the same feeling?

 

Price seems to go up but never goes down.

 

As record the shipping cost in 2020 from usd 800 to the highest 8000 usd ,as it might be the key for the inflation as everything need to transport. so all the price goes up a lot.

Take the Tapioca as an example, the price from USD21.5 rise to USD27 per box during the covid. so all the price at the retailer must go up.

 

Too many wholesaler might be a good thing to the shop owner.

As we know some wholesalers start to import their bubble tea material, it is because when the covid happened , they are unable to buy the material from their regular local supplier, so they decide to import themselves and resell to other but now after the supplies now get better, they have no choice to make their price low to sell to other or they will have to close.

 

The lowest price will always get the order??

 

We have just got back from Europe, one of our partners said there is one bubble tea wholesalers due to their fairly bubble tea material quality, so their price is cheaper 5% than our partner, but people still use our partner’s product for their bubble tea shop.

And the key is when people request our partner a question, my partner will always reply in a day.

So they always know that the Service and quality will be the key.

This remind me of  a story that when we were having lunch in Swiss, the owner said they request from the bubble tea material to a wholesaler but they reply after 1 week.

I think no one can wait for a week.

So in Fokus we always reply our request in 1 hour as our service

 

 

Too much stock

 

We Fokus team got a trip to Europe to visit our partners ,We have some partners who over predict their sales and over order too much bubble tea material, and their stock cannot sell well and ask for support we will try to support them with % discount

As we are always concerned about partnership 

"we know if our partner can make money we can make money" and we take the risk together if our partner lost.

But we also have no choice to give up the partners as they ask us for discount and mention their material has some problem.

We know business is always hard and with competitive but we hope we can face the issue instead of keeping complaint without any reason.

 

The shipping cost back to Original

We adjust down over 17% to our partners after all raw material stable.

As we know our partner will also have a lot of difficulties to do the retail or some bubble tea shop owners will have met the issue of rental fee rise as well as the higher and higher labor cost , so we try to adjust the price down for our partners around the world , though it is only a little but a support we can do.

 

We learn a lesson from the inflation

 

We saw a lesson of less waste.

Not sure if it is because the food now is getting expensive so we notice there are more parents start to ask their kids to finish their meal

It should be the thing we do that no waste the food

But it seems now more people realize they should not waste

This might be a good thing too in this monent.

 

In the post-pandemic era, people optimistically anticipated a gradual economic recovery. However, with the rising inflation and the conflicts in Ukraine and the Middle East introducing numerous uncertainties. In the midst of a constantly changing world, Fokus pledges to provide customers with consistent and efficient service, along with the stable and high product quality. We stand together with our partners, side by side, navigating through the uncertainties..