Singapore’s Hello Kitty craze shows potential of time-sensitive e-commerce

Long lines formed at McDonald’s outlets islandwide this week as Singaporeans jostled to buy a set of Hello Kitty plush toys. Tempers flared and the police were called in to settle disputes between patrons (many of whom were grown adults) or between the staff and customers.

While non-Asians — and even Asians — are finding it hard to understand the Hello Kitty craze that has engulfed not just Singapore but this part of the world, that has not stopped online merchants from making money out of this cultural phenomenon.

As an example, consider this Taobao merchant, which is selling what he claims are original Singing Bone Hello Kitties at 35 Yuan (USD 5). While it may be difficult to verify the authenticity of the soft toys, reviews for this seller appear positive.

This is good news for Singaporeans who did not manage to get the toy despite queuing for hours. Not all Taobao sellers ship internationally however, so buyers might need to go through a Taobao agent to get these plushies.

Merchants are finding other ways to take advantage of this craze: an eBay auction managing to jack up the prize of the soft toy to an absurd SGD 126k (USD 100k). While a bid on eBay is considered a legally binding contract to purchase an item, there’s no telling if the collectible will eventually be sold.

Recent events in Singapore have prompted e-commerce operators to respond to demand as it arises. During Singapore’s Great Haze, residents embarked on a frenzied rush to purchase dust-proof N95 masks.

With physical stores running low on supplies, online sellers have picked up the slack, advertising their wares on Amazon, Qoo10, and various daily deals sites.

Call it time-sensitive e-commerce. While inventory forecasting is an integral part of any successful online retail operation, there are still pockets of opportunity that lie outside the scope of the bigger e-commerce players. It’s the long tail of things described by tech writer Chris Anderson has described in great detail.

As e-commerce platforms like Qoo10 and Taobao gain prominence, we can expect more savvy individuals or small-medium enterprises to take advantage of these seasonal items. It’s been done for a while — prices for roses jack up leading up to Valentine’s Day, but flowers are just scratching the surface of what merchants can potentially sell.

Their challenge will be to anticipate demand and ensure sufficient inventory to maximize their profits.

Forecasting is the easy part. Consider the popularity of the minions from Despicable Me. With a spin-off movie in the works focusing on these gibberish-speaking characters, smart individuals could make a decent buck selling minion plushies online, timing it with the release of the movies. And they already have.

The difficult bit though comes in sourcing for the inventory at cheap prices and in a timely manner, and selling enough of these items to justify the costs of procuring them.

That’s what will separate the pretenders from genuine entrepreneurs.

Read: Qoo10 transactions in Asia doubled to USD 224M in one year; company gunning for IPO