As a wholesale F&B supplier, PJ Grocer has built an extensive distribution network after over 10 years in the industry. But when Covid-19 and MCO came around, that strong network was in jeopardy as many F&B retailers went out of business.
Since 2010, PJ Grocer has been solving sourcing problems. Finding the right suppliers and products has always been a key struggle for F&B retailers, and PJ Grocer understood the value of an effective middleman to deliver what the customers needed.
“Most of the customers say that they are having issues finding suppliers for the needed products.”
As of today, PJ Grocer does pure trading in the grocery industry. Additionally, the company also supplies products and raw materials to F&B outlets.
Even though the demand for F&B continued to rise during the pandemic, it doesn’t mean everything was smooth sailing for businesses. PJ Grocer still saw a drop in sales and had to come up with new ways to make up for the losses. We spoke with Foo, the Business Development Manager at PJ Grocer and he took us through how the company weathered the storm for over two years.
Adapting to Market Changes
Despite the rising demand for F&B, many retailers and dining outlets struggled to make ends meet during MCO. The biggest culprits? No dine-ins and the supply chain crisis. Supply shortages were one of the main reasons businesses failed during Covid-19 as they simply did not have enough stock to meet the demand.
Retailers going out of business meant PJ Grocer took a big hit to its sales channels. The company had to pivot quickly as sales were dropping drastically in the first months of the pandemic.
“We had no choice but to look for something new that would let us re-enter the retail industry.”
Instead of operating as a wholesaler, PJ Grocer approached its manufacturers to get a distributorship. By becoming a distributor, PJ Grocer acquired new sales channels and had greater control over its wholesale trade.
Providing Solutions to Problems
Unlike some businesses that chase their customers or sell aggressively, PJ Grocer takes a passive approach by letting customers come to them. Foo realised that trying to sell to every customer in the market is counterproductive as not all of them are looking for what you’re selling.
Foo claimed: “It takes the right time, the right place, and the right person to get the deal closed fast.”. He likens approaching customers aggressively to “giving customers answers without questions being asked”.
By letting the customer approach it, PJ Grocer is able to learn the problems that need solving quickly to deliver the appropriate solution. This has always been the main goal of the company, to solve sourcing problems for F&B retailers.
Expanding the Network with Dropee
PJ Grocer stays true to its identity as a solutions provider on Dropee. Instead of listing every product on our marketplace, PJ Grocer thinks of itself as a product sourcing advisor. This means providing products that Dropee customers are specifically looking for that they can’t get anywhere else.
Expanding your network effectively is not just about building a presence on as many channels as possible. It’s also important to understand the demand on that channel so as to not waste your efforts onboarding onto a new platform.
“Dropee’s customer service is always quick to communicate with us to ask if we have certain products that retailers are looking for.”
With Dropee, PJ Grocer is able to maximise its sales by marketing in-demand products based on insights that we provide. Aside from the information on products customers are looking for, Foo also commends Dropee’s fast responses in helping to create a seamless user experience.
Staying Informed on the Market Conditions
PJ Grocer was able to come this far and overcome hurdles during Covid-19 by constantly learning about the market to serve its customers better.
“Gaining knowledge – from technical information, logistics, manufacturing and the market condition has been key in providing solutions to our customers.”
The F&B industry is rapidly evolving and the pandemic changed how businesses operated. Like all wholesalers, PJ Grocer has to stay on top of the market conditions, demand and price changes to continuously adapt.
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