Macao has been recognized as UNESCO-designated Creative City of Gastronomy. To reflect the diversified catering characteristics and rich choices available in Macao, ingredients and seasonings of high quality are the keys to authentic and special cuisine. As the largest integrated resort operator in Macao, Sands China owns a series of feature restaurants at its properties with various cuisines, which all require ingredients and seasonings from all over the world.
An idea that took shape
Established in 2017, Ipalate Macau Ltd was among the suppliers that observed the unique need for special ingredients and seasonings in the Macao market. Choi Kam Lun, Ipalate’s product development and account manager, explains how his business idea took shape: “In the past, there were few imported Indian ingredients in Macao; the source was mainly from Hong Kong. When we realized the gap in the market, we decided to introduce premium ingredients and seasonings from India. As our business expanded, we increased the number of goods to over 50, and explored the mainland market.”
Aware of the existence of an Indian restaurant at a Sands China property, Ipalate Macau actively approached Sands and introduced their products and services. Ipalate participated in Sands China’s yearly invitational matching session in 2017. The invitational matching sessions are part of Sands China’s F.I.T. (Financial Support, Invitational Matching, and Training and Development) programme, which is aimed at continually increasing and strengthening procurement between Sands China and local SME suppliers.
During the session, Ipalate Macau’s products attracted the attention of Sands China’s chefs.
“In the past, Sands China’s Indian food ingredients were mainly purchased from Hong Kong and then shipped to Macao, but the delivery was not always timely. After becoming aware of Ipalate Macau’s connections with suppliers in India, we continued to explore their products and samples,” said Sands China’s procurement and supply chain senior supervisor Alex Mok and assistant manager Bella Pun. The two parties began cooperating in July 2017. At first there was a run-in period as both sides adjusted to delivery times and service requirements. After becoming familiar with the operations, the cooperation progressed smoothly.
Management from Sands China pointed out that it is the professional team and efficient logistics that make Ipalate Macau stand out. “The company has a team who can function in Chinese, English, and Hindi, and can communicate directly and smoothly with Indian suppliers. What’s more, the source of goods is directly shipped from India to Macao, saving transportation time and reducing costs.”
Change and challenge
For Ipalate Macau, working with a large-scale enterprise like Sands China means the SME needs to be sensitive to market changes and adapt quickly. The sales volume increased significantly in 2019. Apart from supplying the Michelin-starred Indian restaurant with Indian products, the SME has been providing more product types.
Choi advised, “Our company started by supplying Indian seasonings and gradually expanded to basmati rice, soybeans, curry powder and other products. Soon after, we reached into the mainland seasoning market in response to Sands China’s need for special spices and herbs to supply its new Chinese restaurants.” He added, “The monthly order amount grew from between MOP20,000 and MOP30,000 in early 2018 to MOP200,000 in 2019.”
Choi revealed that working with Sands China proves the SME’s products are well-recognized, which is helpful when expanding cooperation with other companies.
As the year of 2020 witnessed the outbreak of Covid-19, many restaurants in Macao had to stop business during the first half of last year. The demand for ingredients and seasonings dropped sharply. Ipalate Macau, of course, was affected. It was not until the individual visit scheme to Macao gradually resumed in the second half of 2020 that demand from restaurants started to recover.
The business of food ingredients from the mainland has recovered to approximately 80% of pre-epidemic levels. In terms of Indian food ingredients, transportation has been hindered due to the impact of the epidemic, and India-based employees could not go out to source goods, hence the import of products was suspended. With the support of its mainland business, Ipalate Macau barely managed to maintain its operations. However, their office was relocated from a commercial building to an industrial building to reduce costs.
According to Mok, Sands China understands that it was not easy for SMEs to do business during the epidemic, so it called and communicated with them to understand the needs of its suppliers, assisting SMEs to deal with overstocked inventory and provide financial support, so that SMEs could get through the difficult time.
Both Mok and Pun advised that products with unique users that fulfill unique demands are an advantage for SMEs. Sands China encourages SMEs to take the initiative to contact and provide them with a clear product catalog with detailed product information, including product photos, manufacturer information, and wholesale and product prices.
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