Don’t be too quick to write off sharing economy in COVID19 pandemic times.
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Lockdowns and concerns over safety initially affected businesses in the sharing economy, but they have since re-aligned their priorities, says SUSS’ Dr Wang Yue.
This model has been helping the resource owners reap profits while reducing the cost to consumers or plugging a service gap that was previously missing.
Until Uber came along, for instance, most of us had to hail cabs off the street or wait on the phone to book a taxi. Uber allowed us the comfort of doing so seamlessly through its app.
HOW THE PANDEMIC CHANGED THINGS
But the pandemic’s impact on businesses involving face-to-face interactions was devastating. Many in the sharing economy were casualties.
Because of travel restrictions, lockdowns, circuit breakers and various containment measures, regular consumption habits were severely disrupted.
Since everyone had to stay home, they hardly took taxis, travelled overseas or went to the office.
Like many other travel-associated companies, Airbnb suffered as the demand for short-term lease of its apartments fell without travel.
Its CEO Brian Chesky said in June: “(In March), we spent 12 years building our business, and within six weeks lost about 80 per cent of it.”
Industries like ride-sharing or car-sharing were presented a double whammy: Along with passengers commuting less, some were also concerned about being in a car that may have carried an infected passenger or driver.
“Based on our analysis of the gig economy and the overall pie of consumers, unfortunately, there’s a slice that — until there’s a vaccine — will not get in a ride-sharing vehicle or use an Airbnb,” Daniel Ives, managing director of equity research at Wedbush Securities in the US, was quoted in a New York Times article last May.
Local ride-sharing company Grab’s CEO Anthony Tan told media in April that in some countries its “transport GMV (gross merchandise value) is down by double-digit percentage”. In June, the company announced a cut of 5 per cent of its headcount after it also reduced incentives for its drivers.
IT WASN’T ALL DOOM AND GLOOM
Such developments prompted observers to proclaim the sharing economy dead. That was premature, though industry players needed to act quickly to rescue themselves from the dire situation.
In the short term, and as soon as some mobility of people and services resumed within countries, sharing economy firms implemented measures to reassure consumers their services are perfectly safe.
For instance, a mask verification technology was built into Uber’s app to ensure drivers wear a mask before they start to drive passengers or deliver food. Airbnb introduced 24-hour vacancies between bookings as part of new cleaning protocols.
But for the longer term, companies in the sharing economy need to rethink its business operations.
After all, the sharing economy was already facing challenges even before the pandemic hit as achieving profitability was harder than predicted.
For instance, Uber lost US$8.5 billion in 2019. Although Airbnb’s revenue jumped 32 per cent in 2019, it still reported a net loss of US$674 million the same year due to increased marketing spending, adding technology and expanding its programmes.
DEEPER CHANGES WERE NECESSARY
These were signs that changes needed to be made and the pandemic-led slowdown provided the opportunity to take a step back and review the business.
However, given the different nature of the various industries even within the sharing economy, some companies chose to focus on their core business to recover from the pandemic-driven slump while others diversified to increase revenue sources.
For instance, Airbnb paused its efforts in transportation, reduced investment in hotels and Airbnb Luxe (for luxury travel), and focused on its core business, which is renting out private homes.
Drawing from Airbnb’s data from about 200 countries, Mr Chesky predicted that leisure travel will resume before business travel, as businesses can operate with video conferencing, but people need to reconnect with family and friends, and to have different experiences.
He also predicted that people will choose to stay in nearby small communities instead of urban city centres or overseas destinations, and the rental period will be longer, perhaps monthly.
Airbnb thus changed its focus to market domestic reservations and nearby stays within 200 miles.
Although Airbnb went through the toughest year, its IPO and stock market debut on Dec 10 was a good sign of its business recovery and market confidence. Its recovery has been faster than that of traditional hotel and travel businesses.
Grab, on the other hand, focused on its non-core business.
Although its transport business suffered during the circuit breaker, the pandemic created a golden opportunity for Grab’s food-delivery segment.
GrabFood grew fast and now accounts for more than 50 per cent of Grab’s revenue, with 150,000 of its drivers switching to becoming delivery men.
This trend may prompt observers to conclude that the company could increasingly rely on its food-delivery business to drive growth.
However, we shouldn’t write off its core ride-hailing business.
It was reported that Grab’s earnings bounced back to pre-COVID numbers in October, in part because some wary commuters find it less risky to travel by ride-hailing cabs than on the MRT trains and buses during peak-hour traffic. Such trends reflect the resilience of the sharing economy.
SHARING ECONOMY PRINCIPLES HERE TO STAY
Other businesses have also adopted sharing economy concepts to better utilise idle resources.
An example in Singapore included office space provider O2Work, which took advantage of low prices of central commercial rental and expanded its business to offer co-working spaces.
The company believed in the market’s need for working together instead of working in isolation from home, as well as a long-term flexible working arrangement and companies’ needs to downgrade from renting a whole office to sharing space to reduce operating costs.
Despite the pandemic, sharing economy principles are here to stay.
For one, the economic fallout brought about by COVID-19 may leave consumers more cost-conscious. More affordable choices offered by the sharing economy could be attractive for consumers. For instance, some consumers could shift from car ownership to renting cars from Gojek or BlueSG.
From a business perspective, COVID-19 could reduce the number of competitors for companies in the sharing economy. For example, many hotels may not survive the decline in travel and tourism during the pandemic. However, an asset-light Airbnb may be better able to do so.
Thus, the company could have less competition to deal with going forward and have greater market share.
The pandemic has provided companies a good chance to re-examine the value of their businesses, who their core customers are, what the real needs are and where the growth opportunities are.
Firms need to stay vigilant of what’s happening to discover new consumption patterns and opportunities.
This has not been different for the sharing economy players, which initially suffered a setback to their operations and revenues but have bounced back by re-aligning themselves and recalibrating their strategies.
With new green targets announced by the Singapore Government, will we be seeing more electric vehicles on our roads in the near future? An energy expert and a business professor weigh in:
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National University of Singapore Business School 2018-07-23
The Asian Development Bank (ADB for short) recently announced a supplementary report on the “2018 Asian Development Outlook”, which predicts that the Asian region’s economy will continue to maintain steady growth this year and next. ADB predicts that the growth rate of the Asia-Pacific region will reach 6% in 2018 and 5.9% in 2019, which is consistent with the forecast released in April.
The latest ADB report believes that the growth of Asian developing countries is expected to grow as expected. The report also shows the economic growth rates of the Asia-Pacific region and major economies. It is estimated that China’s GDP growth will be 6.6% and 6.4% in the next two years, India’s 7.3% and 7.6%, Vietnam’s 7.1% and 6.8%, Indonesia’s 5.2% and 5.3%, Singapore’s 3.1% and 2.9%, and the Pacific region They are 2.2% and 3.0%.
*Data from the supplementary report of the Asian Development Outlook published by the Asian Development Bank in July 2018
According to Reuters, a recent report issued by ADB mentioned that the overweight US trade protection measures and countermeasures by China and other countries will bring obvious economic downside risks. The latest forecast also takes into account the tariffs imposed on July 15 and stated that “the risk of the continued escalation of protectionism may hurt the confidence of consumers and businesses, and will also affect the growth prospects of developing Asian economies.
How the turbulence and adjustment of the international economy and trade will affect Asian economic growth and industrial structure is not only a difficult problem facing governments around the world but also a major test for many companies seeking to expand overseas markets.
In fact, more and more international companies favor Asia, and more of them have high hopes for the vigorous development of the Asian market, which has 45% of the world’s population, which also means huge consumption potential. Especially in recent years, the Southeast Asian market has become “a must-named place for military strategists.” Whether it is the relocation of the traditional manufacturing industry or the investment and acquisition of international technology giants, they have injected new vitality into the development of Southeast Asian countries.
The Southeast Asian market continues to be popular and is listed by many companies as the first step to enter the international market. However, for ambitious companies, the multi-economy of ASEAN (ASEAN) is full of hope and danger.
In this uncertain era, Singapore shoulders the important task of ASEAN’s rotating chairmanship, not only to undertake the internal coordination of the 10 ASEAN countries but also to promote win-win cooperation with countries outside the region.
As we all know, Singapore is the most developed country in Southeast Asia. Although small in size, Singapore has the best business environment, the most stable financial system, the most complete legal protection, and the most diverse social culture. As the most important international metropolis in the world, Singapore can rival New York, London, Paris, Shanghai, Tokyo and Hong Kong.
Located in the Strait of Malacca, the only route for shipping and trade in Southeast Asia, Singapore has become a core hub connecting important markets such as ASEAN, China, India, and Australia. At present, Singapore has more than 26,000 multinational companies setting up regional headquarters in Singapore. From here, you will have the opportunity to explore the market potential of major Asian countries such as China and India, and to understand the business environment of Southeast Asian emerging economies such as Vietnam and Indonesia. At the same time, you can also experience the benefits of well-known companies in developed countries such as Japan and Australia. The vitality of the entire region.
In order to make further use of its unique resource advantages, the National University of Singapore Business School provides Asian immersion EMBA degree courses for founders, executives, and corporate managers of various countries with promotion potential. Use international thinking and Asian perspective to deeply analyze the commercial development and business strategies of major Asian economies.
As the first business school in Asia to offer EMBA degree courses, the EMBA English course of the National University of Singapore adopts a mobile classroom teaching method, and carries out in-depth teaching and including business visits in seven Asia-Pacific cities.
O2Work Pte Ltd x APSN Chinese New Year
As Chinese New Year draws close, O2Work Pte Ltd has partnered with Rainbow Culture Media and the Association for persons with special needs (APSN) to make this festive season more meaningful.
Established in 1976, APSN is a social service agency providing special education for people with mild intellectual disabilities (IQ 50-70). They operate four Special Education (SPED) Schools (APSN Chaoyang School, APSN Katong School, APSN Tanglin School, and APSN Delta Senior School) for students aged 7 to 21, and APSN Student Care Centre for children aged 7 to 18 and an APSN Centre for Adults for persons aged 16 and older, benefiting 1,200 beneficiaries each year.
On 22 January 2021, O2Work Pte Ltd supported a Chinese New Year online Charity event at APSN- Café for all. During the one-hour live-streamed event certified APSN students also sold home-made festive cookies.
In addition, children from a local international school also joined in this meaningful event through the making of terrariums. Their masterpieces are displayed at O2Work Income@Raffles.
During the Livestream, APSN Deputy Director, Mr. Philip Li, APSN’s instructor, Ms. Jeanne, and chef Eric also shared their experience working with people with special needs in APSN.
Mr. Robert Li, CEO of O2Work Pte Ltd also pledged his support of S$1500 on behalf of the Company to APSN. O2Work Pte Ltd is a strong advocate for eco-friendly coworking spaces that inspires creativity and supports productivity.
The proceeds from this charity, sales will help to fund APSN CFA’s education and training courses for the students.
#Charity #Singapore #APSN #specialneeds #apsnrainbow
Ecological Coworking Space Office In the Post Pandemic Era
Original Article By:
Dr Chen Zhong
Chief Scientific Officer
International Institute of Mgrass Ecology
With the effective control of the new COVID19 pandemic and the active cooperation of the people, the current pandemic growth slowed down, community transmission gradually disappeared, unfolding Phase 3 is just around the corner. In the process of social and economic reconstruction and the steady and orderly return of enterprises to work and production, more and more office workers have returned back to the office environment.
Although many employees working from home thought it was quite feasible during the pandemic outbreak. But after a few months of working entirely remotely, the novelty wears off and the lack of social interactions plummets, most people want to go back to the office. And this pandemic outbreak has made more and more people realized health is very important, green ecology office environment has become the first choice in people’s minds.
Picture above shows O2Work front reception area at Income@Raffles Place
Indoor Air Quality
Indoor Air Quality in Office Environment is an Important Determinant of Workplace Health Index.
Because of the tropical humidity and hot climate in Singapore, people rely heavily on air-conditioning system and mechanical ventilation to maintain the comfortable temperature of indoor closed environment. There forth a series of health problems caused by indoor closed environment also follow. When indoor air pollutants continue to accumulate, indoor air quality problems become increasingly severe.
Poor air quality in indoor air-conditioning environment can have a profound impact on the comfortable zone and potential health problems. Some unpleasant symptoms caused by poor air quality include dizziness, nausea, cough, fatigue, headache, nasal irritation and skin irritation etc., which are generally referred to as morbid architecture syndrome. Therefore, maintaining good indoor air quality is crucial to the physical and mental health of indoor employees.
In addition, in crowded indoor office conditions, a variety of respiratory viruses are easy to spread and cause acute respiratory diseases. Most of the pathogens of acute respiratory diseases are transmitted mainly by droplets but some can also be transmitted by contact and close range of transmission of aerosols of different sizes.
The pathogenic viruses that causes acute respiratory diseases include rhinovirus, severe acute respiratory syndrome(SARS) associated coronavirus(such as COVID ) and influenza virus. And the new coronavirus of 2019 is the number one public health threat in the office environment.
This picture is O2Work Hot-desk area.
How to Work More Healthier and More Efficiently in a Post Pandemic Era
As a high-tech research institution specializing in urban ecological issues, Mgrass International Ecological Research Institute has developed a series of intelligent ecological technologies tailored to achieve green office and ecological office through unremitting scientific research and practical exploration, developed by strategic partner O2WORK Practical and feasible ecological butler solutions create an environment-friendly office space for you, highlighting the company’s exclusive green ecological business card.
O2WORK adopts the scientific demonstration of the Mgrass International Ecological Research Institute, adhering to the indoor environment design tenet of “people-oriented, ecology first”, organically place the green spirits of nature in the indoor office space, and rationally exert their inherent ecological functions.
With the establishment of plant communities as the core, it is equipped with a complete ecosystem: plants are producers of natural resources, environmental regulators, pollution filters, and carbon storage. In photosynthesis driven by light energy, plants produce oxygen, remove carbon dioxide, filter harmful virus particles, maintain humidity, and reduce ambient temperature; plants also provide aesthetic posture and microclimate benefits. Utilizing omnipotent tropical green plants, the Mgrass International Ecological Research Institute is developing a series of intelligent ecological screens, which can significantly improve indoor air quality, green working environment, and promote health.
Picture above shows the O2Work Income@Raffles Level 12 leisure area
Picture above shows O2Work Income@Raffles Level 12 event space venue
The foundation of great health is the health of the environment. In the post-pandemic era, invest more in health and choose a greener ecological office space!
Want to know more? Welcome to visit O2WORK’s environmentally friendly co-working spaces at ODEON TOWERS and INCOME@RAFFLES.
Where does the coworking space come from and where does it go?
Original Article: Mr Robert Li Ruiwu, Professor Chu Junhong, National University of Singapore Business School
Before the Industrial Revolution, the first administrative buildings appeared to manage state affairs. Uffizi Gallery, the oldest office in history is nearly 500 years old.
▲The appearance of the Uffizi Art Museum in Italy
Between the Year 1760 to 1840, the first industrial revolution to promote labor from a “small workshop“ to produce a more focused “big factory“ and people began to go out to work.
In the early 19th century, telephones, telegraphs, typewriters, and public electricity were born and innovated, which brought about the first change in the modern office in the United States.
At the beginning of 1940, chemical synthetic materials that are easy to shape, rich in color, and low in price have been increasingly used in interior decoration. VOC and other volatile organic compound pollution have become more and more common, which is more harmful to closed office rooms.
After World War II, a more casual office layout became popular in Europe. People can walk around, chat, and use screens and green plants to separate private spaces. This kind of design called “office landscape“ has become popular.
In 1968, a designer Robert Propst redesign the “ office landscape“ based on the design of a cubicle, which fully demonstrated its position within the company, grade, reflecting the effective management and control of consciousness, which until today is still the mainstream design. Blocks of partitions not only limit the physical and mental freedom of employees but also block communication and collaboration between departments.
In 1973, former NASA engineer Jack Nilles proposed that telecommuting is an innovative way to solve the problems of urban expansion, traffic congestion, and lack of non-renewable resources. At this time, telecommuting refers to working at home, and today’s telecommuting refers to working in spaces outside the office, including residences, coffee shops, and shared office spaces.
With the advent of the digital age and the widespread coverage of networks and communication signals, there are more than 3 billion netizens in the world, and home office work has not taken the world by storm. With the widespread use of WIFI, Starbucks and IWG (formerly REGUS) are expanding rapidly around the world. Why? Because people are social animals, they need to stay with people, even strangers.
In 1987, Howard Schultz bought Starbucks shop, bakery factories, and its branding. He believes the core values of Starbucks which is the “third space“ meaning Starbucks not only provides customers with a place to drink coffee but also gives spiritual enjoyment and satisfaction while making people feel fun in this atmosphere and thus winning the trust of customers.
In 1989, the originator of serviced office operators was born in Belgium – IWG. At present, it has launched shared office brand SPACES. Some serviced office spaces will be closed after the contract expires. Members are invited to settle in the new shared office space.
In 2009, WeWork, the originator of a shared office, was born in New York USA. Its community concept and community activity model was a breakthrough in-office functions.
Today, although Wework is in financial woes, however under Neumann’s crazy promoting of the shared office model, it has become a common practice. Freelancers, innovative entrepreneurs, small and medium enterprises, and multinational companies have all realized and experienced the flexibility, economical, and community value of the shared office.
Choosing a shared office can not only save time, effort, and money in the process of property screening, decoration, and use, but also reduce logistics staff.
At present, the shared office market has entered a bottleneck period, and it is difficult to follow the trend and simple imitation. The cruel survival of the fittest has caused operators to reflect on the nature of the format of the shared office? What kind of office environment do various companies and organizations need?
No matter what kind of setting is an office, its essence is always “the place where people work“.
For a long time, the “person“ here refers to the boss. That is, the location of the office, renovation, functional configuration, etc. are all determined by the boss, and then the boss appoints a trustworthy person to be responsible for the renovation project, and in the end, it is often done by someone not professional. It is hard for people to do something that is difficult to do well and it is difficult to have the opportunity to do it again, one can imagine what the result will be.
It will become a trend to entrust the office site selection, design, decoration, and environmental ecological optimization to professional companies, and enjoy the convenience of just carrying a bag and check in to work in a relaxed, comfortable and healthy environment.
Of course, different cultural backgrounds, different ages, different industries, and occupations have different requirements and preferences for the office environment. The traditional office needs to continuously optimize the indoor environment, but the situation of having an unoptimized air indoor environment will still exist for a long time down the road.
To a coworking space, “person” refers to every professional freelancer and every innovative entrepreneur who chooses their own work stations. The bosses of SME(Small Medium Enterprise) will also undergo the choosing of office spaces and workstations selections with their partners and employees together. For huge multinational companies that choose coworking space as their service providers, they tend to cancel their own private office rooms or workstations. What they just need is the flexibility of using meeting rooms and phone booths.
The “ person “ here refers to almost every member. Not only do they have the right to choose space, but they can also choose which office to sit in, sit out of the office, sit in a shared workstation or leisure area and they can also choose to sit or stand.
What is most important to most people? Of course, it is a person’s health!
A high-end office should be an indoor environment that is beneficial to people’s physical and mental health, not just high-end luxury renovation. The exterior beauty is necessary, but it must be based on the physical and mental health of people.
How can we create an indoor environment that is beneficial to people’s physical and mental health? Some coworking companies have already carried out active explorations.
For example, the air quality in the indoor environment is very important. The dust, microorganisms, oxygen enrichment, and humidity in the air are all related to plants.
Build a suitable plant community indoors, and customize ecological products and ecological equipment to create an ecological optimization system, absorb carbon dioxide, ionizing radiation, absorb dust, microorganisms, degrade organic pollutants, and release negative oxygen known as “air vitamins“ Ions, purifies the air and regulates temperature and humidity.
At the same time, natural light is also essential, not only for plants but also for people. Sunlight not only makes the human body form vitamin D, calcium, etc., but more importantly, it makes people cheerful, avoids depression, reduces the risk of dementia, can also regulate the biological clock, strengthen the immune system, and disinfect.
In order to solve the problem of VOC pollution, all renovations, materials, and furniture must use green label certified products.
The coworking space must be the place for “work“. Although it is necessary to take into consideration of the lifestyle needs of members, to be equipped with coffee machines, tea, fresh juice, and other healthy drinks, nuts and dried fruits, healthy food, table tennis table, table football, and other leisure facilities. However, a co-working space must not be a gym or a casino, or a cafe or bar. Co-working space must not be made unlike of office settings, the practice of grandstanding is difficult to sustain.
At present, various forms of coworking office space are still in rudiments, and operators need to use their respective advantages to continuously optimize and upgrade according to market and customers’ needs.
However, it is always necessary to design, decorate, and configure functions closely around the nature of the “place where people work”. Otherwise, it will be neglecting the fundamentals and concentrate on details causing things to turn out contrary to the way one wishes.
Starbucks is testing the industry of shared office/Coworking space. Are the small giants in the industry afraid?
Original by Li Ruiwu, Chu Junhong, National University of Singapore Business School
More than a month ago, an article titled “Starbucks’ first paid office cafe is here, WeWork is trembling”, this article caught my eye. Is Starbucks also going to enter the shared office industry? I happily read it three times and found out that Starbucks is providing precise services for business customers.
It’s not so much an offensive move but defensive, because the free coffee in Co-working spaces has taken away many of Starbucks customers.
On 23rd March, Starbucks in Japan Tokyo Shinagawa Takanawa subway station launched the ” SMART LOUNGE” concept store, which offers: window for a single person seating area, private balcony, private boxes and Hot desks, this is simply the scene and configuration of the shared office space .
< < Swipe to the left to view the next picture >>
▲ In March 2020 , Starbucks launched the “SMART LOUNGE” concept store in Tokyo, Japan to test the industry of shared office space ( data picture )
It seems that Starbucks has launched a battle to target business people with shared/coworking office space.
What kind of love/hate relationship does Starbucks and shared offices/ coworking spaces have? Let’s start with the evolution of the Internet and the office.
Mr Robert Li Rui Wu
National University of Singapore Business School Institute
Chinese EMBA-21 Class
Founder and CEO of O2Work
Chu Jun Hung
National University of Singapore Business School Institute
Department of Marketing Associate granted
Marketing Analysis and Decision Master Shi
Course Academic Director
Research fields: Management Channels, E-Commerce, Network Effects, Retail Competition, etc.
The commercial application of the Internet began with highly standardized books and audio-visual products, which disrupted the retail industry and gave birth to new business giants such as Alibaba, JD.com, and Amazon. Since then, people have believed that the Internet will be unprofitable and will disrupt all industries, including the office leasing industry.
Is it really going to happen?
2C vs 2B
First of all, the retail industry is a 2C format, and its business path is: consumer goods producers – large wholesalers – small and medium traders – large shopping malls / supermarkets / convenience stores – consumers.
With overcapacity and increased in competition, large wholesalers, small and medium-sized traders, and large supermarkets are afraid to stock up the inventory because afraid that their stocks does not sell and thus making losses ; on the other hand, they are unwilling to prepay for goods from manufacturers and cannot afford the costs. For manufacturers, receivables are losses. At the same time, manufacturers do not dare to hoard raw materials and products, hoping to time production according to orders. The entire supply chain does not function smoothly, and all parties have a hard time.
With the application of the Internet and its technology and the logistics of the last mile industry in the city has been opened up. Many manufacturers can achieve on-demand production, delivering products directly to supermarkets, convenience stores or consumers. E-commerce platforms have subverted and integrated the supply chain of consumer goods, compressed intermediate links, and benefited the interests of producers and consumers.
The Internet has also opened up the entire upstream and downstream of coffee production, circulation and consumption, making Starbucks a platform that provides unique consumer products and lifestyle services. It not only directly connects coffee bean plantations and bean farmers, to roasting and processing plants and food factories, but also establishes a global logistics distribution network and a global member network, and opens directly-operated stores around the world to serve every store and Takeaway customers.
Drinking a cup of coffee and spending some time in a Starbucks coffee shop has become a way of life.
The office leasing industry is a 2B format. Even if a large number of freelancers and individual entrepreneurs emerge (they are actually more like sole proprietorships) , the office is still not an impulsive consumer goods, and the main users of office space are from all walks of life. Industries, enterprises of different sizes and various government and non-governmental organizations.
The business path of office leasing is: property owners – property leasing brokers / real estate agents – shared/coworking office space operators – tenants . The popularization of the Internet and mobile Internet applications has greatly accelerated the transmission and dissemination of property rental and sales information, effectively resolved information asymmetry, and shortened the vacant period of properties.
At the same time, due to the wide application of the Internet in the office, the infrastructure configuration of the office has been changed, and emerging office scenarios such as serviced office and shared office have emerged.
The iterative upgrade of the Internet and the widespread promotion of laptops and smart phones have an impact on the office leasing industry not to eliminate the intermediate links of its industrial chain, but to create new customer needs and extend the business negotiations and other affairs originally carried out in the office. Arriving in hotel rooms and lobbies, airport lounge areas and cabin seats, high-speed rail seats, fast food restaurants, coffee shops, this may be unique to the new era of digital economy.
As the saying goes: I destroyed you, but it has nothing to do with me .
“The Third Space”
Due to the promotion and application of mobile Internet and WIFI , Starbucks has created a ” third space ” , that is, for office workers, it is a third space outside of residences and offices, and for students, it is a third space outside of residences and classrooms. , Is a decent, warm and comfortable place for everyone .
Suddenly at one point of time, there were almost two kinds of customers in Starbucks coffee shops, students with thick textbooks, computers and a large cups of drinks, and business people with computers, mobile phones, thick business card holders and a cup of coffee .
Despite this, Starbucks coffee is still a lifestyle service business. Based on espresso coffee, it has developed a variety of drinks and foods, and it sells fruits, dried fruits, coffee utensils, water bottles and cups, and some Starbucks brand accessories, etc. It is similar to the convenience store in Japan’s fourth consumer era, and has become a small living community of ” leisure, gathering, learning, and meeting “.
“New Scene of Office Space”
Nowadays many shared/coworking space borrowed the idea of Starbucks’s store design. Some coworkings space’s cafes have baristas preparing coffee for their customers/members, while others have launched self-service freshly grounded coffee beans coffee, all provided for free.
The furniture category and layout in the shared office space are exactly the same as those of Starbucks coffee shops, mainly the sofa area, high table area, square or long table area, and deck area. Members especially like the deck area. Business people who used to have business meetings in Starbucks coffee shops have returned to coworking office spaces.
Because the public sharing space area of coworking office space is often larger than that of Starbucks coffee shop, the view outside the window is better, the business atmosphere and office facilities are more professional and complete. Such scenes and functions not only meet office needs to the utmost extent, but are also more attractive to students’ choice of space for self-study and various trainings.
As we are in office service providers form, coworking space office provides members with comprehensive and complete office hardware. At the same time, it also creates an open public area similar to the Starbucks third space. Some coworking space operators even provide free beer and pastries.
▲ The shared office space in Singapore’s central business district can achieve the same office environment as a Starbucks coffee shop (O2Work picture)
Facing with more and more members, not only we provide professional finance, taxation, legal affairs, investment, marketing guidance and services, but we also start to pay attention to the lifestyle needs of members. Youke Workshop, a Chinese co-working brand, is already promoting a corporate welfare program and an e-commerce platform for members.
In fact, this may be an inevitable trend in the development of social and economic life. Urbanization is another feat of mankind following industrialization, but the biggest problem in modern cities is transportation. As the Internet is getting faster and faster, people can no longer bear the wasting time commuting.
Therefore, nowadays is not like the only way to be productive is you has to be in the office, but when we are at different times choose a suitable place nearby to complete different work content. These suitable places not only include various coworking office spaces like WeWork and O2Work, but also various stores like Starbucks Coffee cafes.
The business community value of coworking office space is becoming more and more prominent, and the living community function of Starbucks coffee shop is improving so much more. Each has its own characteristics but learns from each other, interacts and learns and integrates with each other, and jointly meets the work and life needs of urban white-collar workers and perhaps it will be the future trend.
Article By: Mr Robert Li RuiWu (O2Work Founder and CEO, National University of Singapore Chinese Business School EMBA-21 class ) , Chu Jun Hung ( Associate professor of Marketing at the National University of Singapore Business School)
*The views in this article do not represent the institutional views of the National University of Singapore Business School
Singapore O2WORK shared office Space, waiting for you in the thick greenery~
O2WORK takes “Indoor Environment Ecological Majordomo” as its mission, in order to make the indoor environment more ecological and better physical and mental health for people. O2WORK operates an environmentally-friendly co-working space, and provides your office with indoor environment plant community establishment and maintenance services, and indoor environment ecological design & ecological optimization one-stop service.
O2WORK adheres to the concept of “people-oriented, physical and mental health oriented”. While ensuring complete and professional office facilities, O2WORK turns the working environment of employees into an interesting, comfortable and cozy ecological scene. It not only provides creative and trendy coworking space for enthusiastic freelancers and entrepreneurs but also creates a green, natural, relaxing and healthy ecosphere for enterprises of all trades and sizes.
An eco-friendly co-working space, dedicated just for you
No O2WORK LOGO on the entrance, front desk or Pantry.
Plants were designed and placed at the reception desk, and red lily flowers were printed on the water cups
◆ ◆ ◆ ◆Ecological community, rich in oxygen and energy◆◆◆ ◆
Tested by the authorized organization designated by BCA, the VOC value of 15 test points in the ODEON TOWERS space was all lower than 100 PPB. On March 25, 2020, BCA presented the GREEN MARK [GOLDPLUS] to O2WORK’s ODEON TOWERS.
O2WORK will provide each member with unique plant seeds and tissue culture seedlings, wishing these seeds and tissue culture seedlings with strong vitality can be as vigorous and grow together with you and your enterprise!
◆ ◆ ◆ ◆ECOLOGICAL DESIGN CONCEPT◆ ◆ ◆ ◆O2WORKWorking in O2WORKEvery day is an energetic day
To be good for your health, O2WORK strives for excellence in the selection of decoration materials and strives to be green and eco-friendly. For example, the composite wooden board meets E0 standard, certificated eco-friendly products are used for carpet, vinyl floor, carpet glue, wall paints, etc. The chair is selected from STEELCASE, a famous brand which has been adhering to the concept of “health of furniture, environment and people“ for hundreds of years.
In addition, O2WORK is equipped with the RAINBOW, a high-tech vacuum cleaner that can act as an air purifier. It can absorb dust particles below PM0.3 in the air and purify the air concurrently. O2WORK is also equipped with steamers which can release 150 ℃ high-temperature steam, and can kill more than 99% of the carpet mites, virus and bacteria, so to ensure you work in a clean environment healthy.
◆ ◆ ◆ ◆COMMUNITY CONNECTS THE WORLD◆ ◆ ◆ ◆
O2WORK organizes various community activities, such as entrepreneurship sharing, product launch, lectures, health talks, yoga classes, education and training, and TV series filming…
Ecology is decent, health is wealth
We sincerely invite you to visit the space
Enjoy 1-hour usage of the conference room for free for the first experience
+65 69099492；+65 98694753；
331 North Bridge Road, Level 22& 23, Odeon Towers, Singapore 188720
WeWork’s prospectus is like a blockbuster, causing huge waves in the US and global capital markets. In just over a month, WeWork has become a hot topic of global public comments and discussions. Various media have repeatedly reported the news, questioning with doubts and comments, and the “pride of the sky” has become a “street mouse.”
From the evaluation logic of WeWork to the review of Softbank’s investment strategy, from WeWork’s corporate governing structure to whether the directors who represent the interests of investors is responsible, what exactly is the coworking spaces industry? Is it a bubble blown up by a capital predator? Or is it a real estate leasing industry that has been played out? Is it the second landlord of the new era, or is it another unicorn? The astronomical capital injection is not just blood, but also adrenaline.
Softbank CEO Sun Zheng felt that WeWork’s CEO, Neumann was crazy, so he chose to invest in WeWork. However, Sun Zheng warned that Neumann would be even more insane to grow revenue to hundreds of billions of dollars. As a result, WeWork’s format is more and more like Softbank. Thus, it becomes what it is today.
WeWork was born under the background of a weak real estate market. Its original intention was to provide freelancers and start-ups individuals with decent and affordable office space.
With comprehensive market research, Neumann found that freelancers and start-ups lack professional and commercial resources and gradually realized that coworking office space should be a community that can brainstorm and share resources, so WeWork began to organize various Community activities to help members get additional value-added services.
He discovered that office space could serve as an incubation center for science and technology enterprises, and believed that it could share premium income by helping members grow and participate as an investor, which was a fantastic idea.
Perhaps Softbank CEO Sun Zhengyi is optimistic about this because it can scale investment and incubate the “next Alibaba.” However, with the expansion of cross-border and the rapid increase in the number of spaces, Neumann found that there were not as many science and technology Start-ups, and most of the tenants were enterprises from all walks of life, like marketing departments of multinational organizations.
As a result, WeWork made a strategic adjustment and began to customize the office space for more significant numbers of customers. However, when they found out that the property rent was a heavy burden, WeWork started to acquire the properties under their own to create new coworking space centers. From the perspective of the second landlord, such ideas and logic are correct.
Just like a noodle restaurant owner with a unique recipe and entrepreneurial passion, he wants to make one of the world’s largest chain noodle franchise, and also attracts a considerable investment, but his reasons make his career fall short. We can’t ignore the quality of the noodle restaurant because of the boss’s problems, and we can’t refuse to eat noodles.
A coworking space operator is just the second landlord. It is a capital predator who try to exaggerate it a technology star. Hot pot has existed for more than 1,700 years. HAIDILAO made a smart restaurant in Beijing last year, implementing technology and smart tablets. Does it mean it isn’t hot pot? The speed of China’s high-speed rail has reached the speed of the plane’s take-off. Does it mean its not a train but an airplane?
The second landlord concept has been around for more than 100 years. However, just as all the traditional office operators are continually upgrading and changing to keep up with the times and technology, the second landlord is also improving towards The internet era… Different from the traditional landlord, the coworking space industry has unique market value and social value.
Is there a future for Coworking space?
Coworking space operators have created and boost value for commercial property owners. Since 2010, the growth period of the coworking space business is just a period of weakness in commercial real estate. Coworking office space not only fills up the vacant area of a large number of commercial real estate but also increase the rentals price of these.
The area of all coworking space in Singapore has increased from 1.2 million square feet in 2015 to 3.7 million square feet. Since the beginning of the fourth quarter of 2017, property rents in the CBD area have increased by more than 20%.
Since the number of office members of a coworking space is generally higher than that of traditional offices, coworking spaces properties often provide services such as shopping, catering, entertainment, etc. Coworking spaces also bring a large number of daily consumer traffic to the property itself. As a lease period for a coworking space is generally more than five years, which plays a crucial role in stabilizing property rent.
At the same time, to further expand and increase functionality, some operators are gradually placing coworking space offices with retail malls or hotels. Some owners are also planning to take advantage of existing real estate resources and create their coworking spaces brands. It could be said that the emergence of coworking spaces not only stabilizes the rental market but also provides owners with more choices of property use.
Coworking space solves the efforts and hassles of selecting a location, designing, decorating, screening of renovation materials, furniture procurement and maintenance, water and electricity set up any utility payments as it enables tenants to be able to avoid the cumbersome and time-consuming matters but achieves the convenience of ready move in, flexible lease period and significantly helps to reduce the costs associated with office set up.
Public areas such as business community lounges, pantry areas, phone booths, and meetings rooms spaces cover more than 50% of the total office space, which is an unattainable enjoyment of traditional offices, which is loved by young people who grew up in the Internet age. Because of this, Google, Facebook, Microsoft, and other Internet giants offices are all design like a Coworking space.
Nowadays, coworking space operators have converted public access spaces into commercial communities giving members/tenants extensive access to information, interaction, resource, and different channels of business opportunities.
Coworking space indeed brings excellent social value as you can see for this instance, the lease term of a coworking space operator is generally more than five years while a traditional office space lease term is typically 12-24 months. Therefore in this aspect, the amount of waste from a renovation in a coworking space is reduced by at least two times compared with a traditional office, and the labor work required would also decrease accordingly. In this way, it not only saves resources, reduces environmental waste, but also helps those countries which generally rely on foreign workers such as Singapore to bring down the need for hiring foreign labor.
On the other hand, a city’s real estate prices and property rents are too high to curb economic activity, and coworking space operators rent properties in large-area, long-term leases, enabling freelancers, science and technology companies, SMEs and Branches of large enterprise groups are able to stay in a pleasant environment and fully furnished office space at a low cost.
In the early days, second-hand landlords rented out property without even dividing into a simple division to obtain the wholesale and retail balance in prices. After decades of improvements, the second-hand landlord has made progress in integrating the property, designs, and decorations and includes other productive and meaning resources to meet the needs customers. In this way, the introduction of the concepts of coworking space has opened up to broader and further developments in this industry.
Today’s coworking space operators, such as WeWork and Regus, have not only professional designers, engineers, but also professional space optimization technicians, artists, and scientists working together to create a more efficient atmosphere and functionality for customers and Inspiring workspace.
But this only opens a window for the advancement of office space. An excellent office space design is an organic integration of aesthetic design, functional design, and ecological design, all of which are indispensable. The aesthetic design focuses on the beauty of color, the technical design focuses on office space and function optimization, and ecological design focuses on the optimization of indoor light, air, sound, and other elements, and builds indoor plant ecology to create a relaxed and healthy working environment.
The current concepts or designs of aesthetic office space have shortcomings in the above three aspects, especially the ecological design, which has been seriously neglected for a long time. The number of people working in coworking spaces offices is often twice as large as traditional office space, and even higher, and the requirements for the ecological design of the office environment are also higher.
The indoor working space is the indoor environment where the intensive office people stay in for a long time. The essence of office space is the place where people work. It is people-oriented, and people’s physical and mental health is the foundation! If you only pay attention to the luxurious materials, furniture, and equipment, and ignore the impact of the space on people’s physical and mental health, what will happen to the tenant´s health?
Today, 5G has emerged. The Internet has become the basic configuration of office space like water and electricity. However, whether the indoor environment of this conducive to the physical and mental health of the dense population living in it has not been concerned, therefore, ecological design and optimization for the indoor environment of office space will be the focus of highlighting the connotation of science and technology.
After all, shared office space is an indoor environment in which people work for a long time. Whether the environment is beneficial to the physical and mental health of the people directly affects the work efficiency and performance of the workers. Many companies give employees free coffee, tea, fruits, cakes or snacks, as well as adequate medical insurance, but do they pay enough attention to the office environment that affects their physical and mental health?
From the perspective of this industry, the operating mode of coworking space is the second landlord, that is, renting in and renting out. Therefore, the rental income must be the primary business income. However, it is necessary to give full play to the value-added benefits of public space resources, facilities, equipment, and provide value-added services to tenants and members through community activities.
In the United States, some bars, restaurants, and hotels rent unused space and facilities for certain times of the day as shared office space, which can maximize the utility of various real estate resources and gradually change the real estate industry to its benefit.
As coworking space becomes a new trend in the property business, each operator is improving and innovating in different levels and angles. Although a coworking space operator is at most a corporate tenant, an enterprise is made up of different people, and different people will have a diverse variety of needs and requirements; thus, a coworking space should naturally be also equipped in a diverse variety of ways.
Nowadays, coworking spaces are not only loved by freelancers and small and medium-sized enterprises but since 2018, many large Multinationals have realized the value of coworking space. Currently, the coworking space industry is still a booming industry, and the operators’ concepts and models should be diversified to meet the needs of different customers.
With the growth of a new generation of entrepreneurs who are free-minded and open, the coworking space industry is bound to keep up the pace with the times and continue to grow.
O2Work: Robert LI
NUS Business School Professor: Junhong CHU