Mahesh Wijewardene, Chief Executive at Singer (Sri Lanka) Plc, has navigated the company through the recent waves of adversity and emerged stronger than ever. In this interview with Echelon, he shares insight behind the company recording the best performance in the company’s history, the result of nurturing a culture of collaboration and transparency that empowers people to excel.
How has Singer responded to the impact on the consumer durables segment caused by the unfolding economic crisis, unlocking new opportunities and carving a new path for itself?
The impact has been severe because the crisis has affected both the availability and affordability of these products. A sizable portion of our key product categories is under import restrictions. Rising inflation, high interest rates and the lack of disposable income have impacted sales as consumers prioritize necessities over consumer durable goods such as washing machines, refrigerators, televisions and appliances. There are also the costs of operations added that are reflected in the market prices to ensure business viability.
Given that we are now in a contracting market, our focus is on increasing our market share rather than our sales volume. We’ve improved the availability of products by strengthening our local production. Singer produces goods, including sewing machines, refrigerators, washing machines, furniture, and water pumps. We are also working with local manufacturers who build furniture and metal cabinets that are high in quality. With the slow sales situation, we’ve created a certain buffer in our inventory, which has cushioned the existing gap between supply and demand to a certain extent.
We actively engage with the vast consumer base we have built over the years doing business, pursuing loyalty programmes to retain them. Our hire purchase scheme is one of our greatest strengths, making consumer goods more accessible to customers, especially essential tech goods such as computers and smartphones. We are also exploring new opportunities in renewable energy and agriculture.
What is your leadership mantra, and how do you approach engaging with and inspiring people in your company?
I firmly believe in the importance of professionalism in everything we do and in developing and building quality talent as the ultimate theme to running any successful organization. It’s crucial to have the right person for the right job, from divisional heads to the shop floor employee, which is difficult to achieve in an organization as large as Singer, but we are getting there.
How has Singer created an internal culture that helps people and the organization thrive?
Singer has evolved from a company that sold its now iconic sewing machines to a large retailer in its 145 years of history. Business models have changed, and so has the company’s culture, but our purpose continues to be the heart of what we do. We are here to elevate the living standards of Sri Lankans and to enrich people’s lives through the products and services we supply.
We emphasise the importance of principles such as demonstrating responsibility and integrity, collaborating for success and responding with agility to achieve this. These are entrenched in our culture and are familiar to every employee, from top management to regular workers, which has helped us evolve into a more performance, results and competency-driven organization.
Caring for our employees is also important to us at Singer, which echoes the values of Hayleys Group. We promote employee well-being and conduct regular health camps and leisure activities, from sports tournaments to talent shows and quiz competitions. We even organize events and excursions that include employees and their families.
Protecting employees goes beyond gestures such as these. Amidst the challenges of the pandemic, our primary concern at the time was safeguarding the nearly 3,500 direct and 3,400 indirect jobs that rely on us. We ensured employees could work comfortably without neglecting any party, provided salaries and benefits to all without delays or layoffs.,
Even during this economic crisis, we communicate transparently with all employees throughout our network. We update them about the company’s current circumstances, and we observe that everyone has been very collaborative, reciprocating the support we showed before.
When showrooms were closed for months during the pandemic, we supported them, even providing cash advances to help them maintain their businesses. When the country opened up, everyone hit the ground running at full speed, which resulted in us ending the year with the best performance in Singer’s entire history.
What is your outlook for the economy, and what are the factors shaping the future of Singer Sri Lanka?
The immediate years ahead will be challenging, but we will continue to stick to our values and we are very confident that Singer will be very fast to bounce back when the conditions improve. Besides exploring new opportunities, as mentioned earlier, we aim to look beyond Sri Lanka’s borders, including the potential of exporting Singer products to foreign markets and creating opportunities for Sri Lankans overseas to purchase items for family back home.
We will do this while protecting our employees, aiming to grow faster during better times ahead. As part of management, it’s our job to find sustainable solutions to help navigate this difficult period. We will continue being transparent, communicating and collaborating, elevating both people and the company.