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Reusable Cups during pandemic
[https://newseu.cgtn.com/news/2020-07-28/Rethink-on-reusable-coffee-cups-as-waste-surges-during-pandemic-SthIzXRpjq/index.html]

Inflation
[https://edition.cnn.com/2021/11/18/business/inflation-coffee-prices-weather/index.html]

Employment opportunities through collection and selling of Reusable Cups online
[https://www.eater.com/22848625/fans-buy-starbucks-collectors-cups-tumblers-merchandise]

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Government Initiatives

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Of the 1.6 million tonnes of domestic waste disposed of in 2018, one-third is made up of packaging. More than...

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Labour Market of Retail Sector

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Labour Market of Singapore

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General prices levels situation

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Singapore overall inflation rises to 3.2% in October, highest in more than 8 years

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Core inflation, which better captures the underlying trend in consumer prices, rose to 1.5% last month, highest in nearly three years. . Read more at straitstimes.com.

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Economic situation of Singapore

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SINGAPORE - Singapore's brick and mortar businesses have been hit hard by Covid-19 and retailers have seen sales plummet significantly as a result of Covid restrictions, according to a retail trade body in the country.

Sales have plunged between 30% to 70% for some retailers since the onset of the pandemic, according to Rose Tong, executive director of the Singapore Retailers Association (SRA), a not-for-profit organization with 420 members spanning sectors like fashion, electronics, beauty and wellness, as well as food retailers and supermarkets.

With each round of tightened restrictions, sales have declined between 50% to 80%, she told CNBC's "Squawk Box Asia" on Thursday.

Singapore re-imposed tighter Covid-19 restriction again on Thursday, as the number of Covid cases climbed due to several clusters in karaoke bars as well as wet markets. The increased measures - which include the barring of dine-in services and limiting public gatherings to two - will last until Aug. 18.

According to the Ministry of Health, there were 170 new cases of Covid-19, of which 162 were locally transmitted infections. The number of new cases in the community has grown rapidly, and spiked to 883 cases in the past week from 127 cases the week before, according to the ministry's report.

As a result of the continued restrictions, shopper traffic has dipped significantly - but retailers are still paying the full cost of rent, she said.

"We are hoping that landlords are more proactive and they would take a fair share of the burden," she said, adding that some business owners are seeking support from their landlords to offer rental rebates.

On Friday, the government announced a support package worth 1.1 billion Singapore dollars ($808 million) to help businesses and workers impacted by the latest restrictions.

They included a jobs support scheme for sectors like restaurants and gyms affected, as well as those in the retail and entertainment sector.

Other measures include support for local retailers to get on-board local online retail platforms.

During the Great Singapore Sale shopping festival from June to July, SRA partnered with e-commerce site Lazada to boost online turnovers. This helped drive up sales and there was a high uptake in home deliveries, said Tong.

While businesses have started adopting digital strategies to improve sales, there are plenty of challenges ahead, she added.

"We do face very intense global market competition from the market places all over the world. Cost is high with deliveries and the cost of goods," she said.

Online retail accounts for less than 20% of sales for brick-and-mortar businesses, Tong said.

Members of the SRA collectively hire more than 80,000 workers, and have an annual revenue of more than 32 billion Singapore dollars ($23.5 billion), according to the website.

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Singapore retailers are reeling from further Covid measures as sales drop 70% for some

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SINGAPORE - Singapore's brick and mortar businesses have been hit hard by Covid-19 and retailers have seen sales plummet significantly as a result of Covid restrictions, according to a retail trade body in the country.

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1. GDP : Economic Situation of Singapore

Real GDP:

Singapore real GDP growth narrowed to about 7% in third quarter of 2021 which includes industries such as wholesale trade, retail industry and F&B services.

The retail sector GDP is made of 1.4% in 2021.

Therefore, there is an increase in the GDP for the retail industry of about 0.7% in 2021.

In 2020, the GDP of Singapore’s wholesale and retail industry amounted to approximately 81.8 billion (SGD).

The retail industry comprises roughly 15,000 enterprises and employs around 116,000 people.

50% whom works in departmental stores

Impact on the Retail Industry due to Covid-19 pandemic:

In the retail industry, sales declined between 30% to 70% due to the Covid-19 pandemic.

As a result of the tightening of measures, there were no tourists in Singapore and many locals were encouraged to stay at home to avoid being infected.

On top of that, many retail stores were closed during the Circuit Breaker period, thus further affecting sales.

Several retail stores have turned to E-commerce sites to promote and sell their products.

E.g., Isetan and Marks & Spencer have started selling their products on Lazada.

Impact on Reusable Cups during the Covid-19 pandemic:

According to the article, the demand for and usage of reusable cups has decreased during the Covid-19 pandemic.

Disposable cups were increasingly used since they were seen as safer and lower the risk of transmission. During a time like this it would be safer to use disposable cups since they are only used once and thrown away afterwards, thus people would not drink from the same cup.

Additionally, some cafes have banned the use of reusable cups because they fear contamination when the cup is passed between customers and staff.

As disposable cups have become a safer option, the demand for reusable cups has decreased.

However, it was also noted that there was still some demand for reusable cups especially for those who were working or studying from home.

In May 2020, Poshmark saw a huge increase in sales (100%) of Starbucks mugs and cups due to the pandemic since everyone had to stay home during the lockdown.

2. General price levels situation in Singapore

Demand-pull inflation & cost-push inflation:

Singapore’s core inflation in October 2021 jumped to 3.2% on a year-on-year basis, an increased from 2.5% in September.

The cost of retail and other goods declined at a slower pace of 0.4% last month, compared with the 1% fall in September.

Demand-pull inflation:

With people doing less leisure activities such as shopping during the pandemic, the demand for retail and other goods may decrease as people would be purchasing more on pandemic needed items (Mask, hand sanitizer, canned food). Demand-pull inflation is thus reduced.

Cost-push inflation

There is an increase in the cost of production such as an increase in the cost of electricity from 7.8 per cent to 10 per cent, which gives rise to cost-push inflation.

The increase in labor costs and wages will also boost cost-push inflation.

Prices of crude oil, a primary source of production, is stable and unlikely to be changed. Thus, it will have no effect on cost-push inflation.

3. Labour market situation in the industry and Singapore as a whole

Labour market of Singapore:

In June 2021, the employment rate for residents of 67.2% increase by 2.7% when compared to 2020.

The employment rate of youths aged 15 to 24 also rose to 37.2% in June of 2021, a 6.3% increase from previous year.

As for unemployment rate, it experienced a dipped to 3.4% in June of 2021, down from 3.5% a year earlier.

On top of employment, the nominal median income of full-time residents also increased by 3.2% in 2021 after experiencing a decline in 2020.

Real income is also boosted by 4.6% in 2021, slowly recovering to around pre-pandemic levels.

On top of the improved Covid-19 situation, Singapore is also seeing an improvement in its labour market due to government measures.

E.g., Skills Future Package, Jobs Support Scheme, SGUnited Jobs and more.

Labour market for retail industry:

The retail industry saw fewer employees retrenched or placed on short workweek or temporary layoff over the 1st quarter of 2021.

However, the recovery in the 2nd quarter will be lower due to the reduction of occupancy limits and closure of dine-in services under Phase 2, heightened alert. Hence, lesser manpower needed in the industry.

Employment level: March 2021 compared to December 2020 is (–0.1). Whereas March 2021 compared to pre-COVID is (–10.2).

Total employment: 2020 4th quarter is 3.0. Whereas 2021 1st quarter is (–0.1).

The total employment level in March 2021 is 153.9.

Retrenchment: 2020 4th quarter is 210. Whereas 2021 1st quarter is 80.

Reasons for retrenchment examples:

Recession/Downturn in industry (40)

Poor Business/Business failure (30)

Occupational groups of the retrenchment examples:

Professionals, Managers, Executives & Technicians (30)

Clerical, Sales & Service Workers (50)

Labour Turnover: 2020 1st quarter is 2.3. Whereas 2021 1st quarter is 2.9.

Employment opportunities for Reusable Cups business:

The number of people collecting cups is increasing, especially attractive reusable cups that entice consumers to purchase them.

Consumers resell it on online platforms such as Ebay so that people can purchase limited edition reusable cups, even though it is more costly than retail stores.

In response to the increasing popularity of unique and attractive reusable cups, many consumers can and have turned to online platforms like Shopee and Lazada to purchase them

Therefore, this provides employment opportunities for many, since there is a demand for attractive and unique reusable cups, so people can start online businesses to sell them.

In addition, setting up an online store is less complicated than setting up a physical store; thus, many people can start their own businesses online, providing them with a source of income.

4. Government measures

Implementation of mandatory reporting (2020 onwards)

The government now requires data collection on types and amounts of packaging from companies that place them on the consumer market.

Companies are required to draw up plans to reduce the amount of packaging which will result in being waste

Possibility of the implementation of an Extended Producer Responsibility (EPR) system

Encouraging consumers avoid single-use cups takeaway cups and bring their own reusable containers such as reusable cups

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STAGE 2 : Macroeconomic Preliminary Analysis 

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Tumbler

Have similar functions to a travel cup.

Instead of lids, they usually have reusable straws (normally metal) at the top.

Normally used at home or work-place as it is not that convenient to bring out.

Common brands: Starbucks, Yeti.

Many retail stores such as Typo, Coffee bean, and even Online platforms are seen selling Tumblers with design of their own.

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Travel coffee cups

Reusable cups that are designed for use on the go. Majority comes with leak-proof lids.

Most cups have the ability keep the liquid hot or cold for hours.

Common brands: Keep Cup Australis Thermal, Stojo, Hydroflask.

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Please specific with the type of reusable cup. Put pic of "your" reusable cup.

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One compliment for my team is that we are able to communicate well and are able to accomodate with each other's working styles.

We can improve on finding times where everyone is free to work together as our schedules can tend to be hectic, making it hard to meet up. Personally, i can also improve on creating a better timetable that allocates more time for group projects and work on my time management so i can be more productive in the future.

one interesting thing i discovered is the amount of effort being put behind the recycling initiative by various companies, like Starbucks. I also was able to learn about new and innovative initiatives towards solving the issues around the usage of sustainable products.

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One compliment for our team is how enthusiastic everyone is during discussions and always suggesting new ideas and voicing out their opinion to improve the quality of the work.

One area of improvement in terms of working as a group would be that we all would come together at once to complete it together, which I feel would allow us to become more efficient!

One interesting fact that I discovered is that consumers are willing to spend more on reusable products. It never occurred to me before doing the research that people would spend additional money on reusable products. This thus made me change my perspective on society as I realise that there are groups of people who genuinely care about the environment.

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Hi everyone~
I like that our group always plan beforehand what time we should call and do the project together as well as having some information before we call.
All for one and one for all~

Maybe we can go through each section once again or re-read together?  We would have a broader perspective and more feedback. I will improve on that as well~

One interesting fact I learnt through this discussion is that some consumers actually avoid being charged extra by using reusable cups. Not many of us tend to opt for reusable cups. Hence, now is the time to switch over and save a few cents.

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My group, as a whole, worked very well together. We are determined to get things done right,  and are willing to help each other when someone is facing an issue.
One area I think we could all improve on is making time to work on the project earlier to ensure there are no last minute problems. Other than that, I think there is not much of an issue.

I have found many interesting things about the products during the analysis. For example, I found that a particular called Hitch Botte and Cup, plants trees and removes ocean trash with every purchase.

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One compliment is that my group members and I are able to communicate and allocate different tasks to complete. However, one area that can be improved on is the timing to meet and discuss the project as not everyone is able to meet at a specific timing.

One interesting fact of the product discovered during the analysis is that different stores do sell reusable cups and offer discounts to consumers to encourage them to use more sustainable products.

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Market Structure

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The Best Reusable Cups & Mugs For Every Type Of Coffee Drinker

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Change in consumers' attitudes towards sustainability

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Plastic credits purchased through TONTOTON fund projects that eliminate non-recyclable plastic waste in a sustainable and lasting way. Through our four pillars, you can be confident that your plastic credits go toward meaningful, certified projects that are transformational and sustainable.

The four pillars are:

1. Collection of ocean-bound plastic: We focus on plastic heading to the ocean so that we can collect it before it can cause damage to oceanic ecosystems and wildlife.

2. Collaboration with local communities: We work with communities and waste pickers to ensure that they are fairly compensated and enjoy safe working conditions.

3. Valorize plastic waste collected: We use co-processing to ensure that the plastic waste collected is managed in a safe and sustainable way.

4. Certification of our process: Our solutions are audited by a certified 3rd party to ensure that our projects truly eliminate plastic waste in a sustainable way.

We also encourage our corporate partners to enact their own sustainability protocols beyond purchasing plastic credits. Although plastic credits offer a simple solution to offsetting your plastic waste, to truly ensure the reduction of ocean-bound plastic, your company must make changes to limit its plastic use and production.

Through the purchasing of plastic credits and your own sustainability initiatives, you'll show consumers that sustainable goals are your priority, therefore encouraging loyal customers and potentially growing your consumer base.

Sustainable practices aren't just the right thing to implement for the health of our world; they're key to keeping your company competitive in the modern market. Start making sustainable changes today.

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Consumers Are Willing to Pay More for Sustainable Products. Here's Why - TONTOTON

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Plastic credits purchased through TONTOTON fund projects that eliminate non-recyclable plastic waste in a sustainable and lasting way. Through our four pillars, you can be confident that your plastic credits go toward meaningful, certified projects that are transformational and sustainable.

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Consumers avoid being charged extra by switching to reusable options

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By Tansy Dando | | Add a Comment

Results from a new study by Zero Waste Scotland released today (1 October) suggest that people are more likely to use reusable cups if coffee shops and cafés charge for disposable cups rather than offering discounts for reusable ones.

Zero Waste Scotland ran a trial in four public sector cafés, which stopped offering discounts for reusable cups and instead reduced the total price of a drink by the equivalent amount and charged customers that same amount for single-use cups. For example, a 10-pence reusable cup discount was replaced with a 10-pence reduction in the total cost of the drink itself, then a 10-pence charge was added for using a disposable cup.

The trials, the results of which are published in a report entitled ' Cups Sold Separately ', revealed that cafés that replaced discounts for reusable cups with clear, equivalent charges for disposable cups, therefore making the cost of using a disposable cup obvious rather than hiding it in the price of the drink, increased the proportion of customers switching to reusables for on-the-go hot drinks by 50 per cent.

UK consumers use an estimated 2.5 billion single-use coffee cups each year, and the composition of the cups makes them notoriously difficult to recycle - in 2018 only 0.25 per cent of the 30,000 tonnes of coffee cup waste made it to recycling - leading to calls to increase the uptake of reusable alternatives.

Varying initiatives have been introduced by coffee chains to discourage the use of disposable cups, with Starbucks introducing a five-pence disposable coffee cup charge, while Waitrose and Boston Tea Party have gone as far as to ban single-use coffee cups, with the latter making the decision after take-up of its 25-pence discount for a reusable cup was found to be 'painfully low'.

Commenting on Zero Waste Scotland's new findings, Environmental Policy Advisor Michael Lenaghan said: "We have shown that it isn't necessary to charge people more for their coffee to persuade them to ditch a disposable cup in favour of a reusable one. You just need to put a clear price on the cup and let consumers decide if it is a price worth paying every time they buy a drink.

"Single-use packaging has an environmental and a financial cost, but that financial cost is usually hidden from view, so consumers don't have all the information they need to make informed purchasing decisions.

"Behavioural science has shown that people will make more effort to avoid a cost - such as a 25-pence charge on single-use cups - than they will to obtain a gain of equal value, like a 25-pence reusable cup discount."

Avoiding cost

Lenaghan went on to say this desire to avoid cost had already been used in Scotland's carrier bag charging scheme, which reduced the use of disposable carriers by an estimated 80 per cent in a year.

It will also be used in Scotland's forthcoming deposit return scheme (DRS) for drinks containers, where consumers will pay an extra deposit on a drinks container which they can recoup upon returning the empty container to a designated return point. The scheme is set to come into effect in April 2021 and discussions regarding the format of a DRS across the rest of the UK are ongoing.

Today, Lenaghan will chair a panel on reusable alternatives to single-use cups at the Scottish Resources Conference where Zero Waste Scotland will join business leaders, policy makers and public sector staff to discuss how to reduce Scotland's carbon footprint, most of which is caused by the nation's vast consumption habit.

The Scottish Government has been active in attempting to tackle the issue of single-use coffee cup waste in Scotland, where some 200 million disposable coffee cups are used every year.

In May 2018, it set up an Expert Panel on Environmental Charging and Other Measures, which recommended introducing a charge of at least 20 to 25-pence per disposable cup. This is much like the recommendation of a 25-pence charge - known as the 'latte levy' - made by the UK Parliament's Environmental Audit Committee, though this was not taken up in the UK Government's Resources and Waste Strategy.

Scottish Government ministers indicated in the recent Programme for Government that a forthcoming Circular Economy Bill in Scotland will include measures to enable separate charging for single-use items, including cups. They are expected to issue a formal response to the Expert Panel's recommendations shortly.

The full report, 'Cups Sold Separately', can be found on the Zero Waste Scotland website.

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Charging for disposable cups encourages switch to reusable options, says new study

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By Tansy Dando | | Add a Comment Results from a new study by Zero Waste Scotland released today (1 October) suggest that people are more likely to use reusable cups if coffee shops and cafés charge for disposable cups rather than offering discounts for reusable ones.

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Discount given for reusable cups

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Reusable cups, meatless options and ethically-sourced coffee: How you can help save the planet with Starbucks

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Join Starbucks on its sustainability journey - and don’t forget to get your free reusable cup with every drink purchased on September 28. Read more at straitstimes.com.

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1. Market structure of the Reusable Cups and Lids industry: Monopolistic competition

Product differentiation such as product image, physical image and location is practiced

Different brands across the industry produce reusable cups that are different in material, size, design, colour, and functionality.

For instance, reusable cups can be made up of a variety of materials, such as stainless steel, ceramic, and glass.

The product image of every cup also differs. Branding and packaging can create an impression on consumers. For example, brands can associate their products with minimalism, sophistication, or creativeness to cater to different consumers.

Choice of location also varies. Sellers can choose to sell in brick-and-mortar stores or in online stores, depending on convenience to consumers, brand image, and level of competition.

We can find many sellers in this market, including Hitch, Stojo, Soma, and so on. Platforms such as Taobao or Shopee are also used by sellers.

2. Social media influences on the usage of reusable products

Social media trends, such as ‘#SaveTheTurtles’, have encouraged social media users to opt for sustainable products like reusable cups and straws. This trend has become an international movement, reaching an audience worldwide on platforms such as Instagram and TikTok.

The trend consists of users posting their reusable products under the hashtag #SaveTheTurtle to promote their sustainable options and raising awareness on how plastic wastes are detrimental to the environment.

Businesses, like Fit Republic, can be seen encouraging its customers to go green by promoting reusable cups on social media platforms.

Thus, such exposure will lead to more demand in reusable products.

3. Consumers enjoy discounts and promotions from various stores by using reusable cups.

Starbucks offers customers a reusable coffee cup when they buy a cup of coffee, and when they bring it back on the next visit, they will receive 50 cents off their next purchase. This applies to Tumblr, as well.

For every Venti-sized drink purchased at Starbucks, customers can also choose between a limited-edition reusable cup.

By offering discounts and promotions at the same time, it encourages consumers to use reusable cups and increases demand.

4. Consumers avoid being charged extra by opting for reusable cups.

Research shows that people use reusable cups more often if coffee shops and cafes charge for disposable cups rather than offering discounts for reusable cups.

By charging extra, it would discourage consumers from using disposable cups and instead encourage them to purchase reusable cups.

Behaviorally, people will make more effort to avoid a cost.

Despite most businesses charging a few more cents for disposable cups, in the long run, consumers will realise that the cost of paying for disposable cups would be much higher than just purchasing a reusable one.

5. Change in consumers’ attitudes towards sustainability

Currently, consumers are trying to cut down on their carbon footprint. They are more willing to change to sustainable products to contribute to saving the earth.

There is an increase in number of consumers buying more sustainable products. From a Consumer Sustainability Survey in 2019, 81% of consumers are expected to purchase more sustainable products in the upcoming years.

More people have also realized that by using plastics, it will worsen the environmental impact.

Hence, consumers are more cautious of who or what company would like them to buy from as they want to support sustainable products.

6. The likely price elasticity of demand of the product/service and/or its determinants

Since the market structure is Monopolistic, the degree of market power is to a small extent. Thus, when there is a change in price, the demand for reusable cups will be price elastic.

We will examine the Availability of Substitutes as the determinant.

There are many companies that sell reusable cups. In the event that prices change, customers would seek alternatives, meaning that they might not continue purchasing from that particular company due to the cheap alternative available elsewhere. Reusable cups are therefore price elastic.

At the same time, although the competition is high in this market, there are differences in the product sold by the companies.  For instance, the Stojo Cup and Hydro Flask.

Stojo brand cups are reusable cups that is made from soft but sturdy silicone, which allows consumers to fold the cup into a smaller size.

Hydro Flask are reusable stainless-steel water bottle/cup, which are vacuum-insulated and keep cold drinks cold and hot drinks hot for hours.

Even though there are differences between the two examples, both are still reusable cups.

Despite the fact that there are many substitutes for reusable cups, when it comes to a specific design of the cup, the demand would not decrease since the same design may not be available elsewhere. Thus, explaining why the demand would not be highly elastic but price elastic.

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STAGE 1 : Microeconomic Preliminary Analysis 

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STAGE 1 : Microeconomic Preliminary Analysis 

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Consumers are influenced by social media to make eco-friendly choices

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#SaveTheTurtles: From A Hashtag To A Movement

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BY KARI HAAVERSEN kari.haaversen@go.mnstate.edu What started as a hashtag has become an international movement, one that our environment will thank forever. Many people have heard the term #SaveThe…