Saturday March 12, 2011

Growing demand for tiffin carriers Brisk sales since Jan 1 anti-plastic ruling

TIFFIN carriers are selling like hot cakes due to the Penang Government’s No Free Plastic Bags policy.

Sellers have been enjoying brisk business since Jan 1 when the state government implemented the policy on a daily basis.

Tan Saw Bee, who has been selling tiffin carriers for the last 20 years in Sungai Dua and the Chowrasta Market, said she could sell up to 25 tiffin carriers when business was good.

“Of course, there are times when I only have two people purchasing them in a day. Still, the number of people buying them has been increasing,” she said.

Tan, 55, said the single-tiered stainless steel lunch box, that could also maintain the heat of food kept inside, was gaining popularity.

“It is one of the most sellable items among my tiffin carriers. Customers find it convenient especially for takeaways that come with soup.

“They can also eat from the lunch box without having to pour them into any bowl,” she said, adding that these lunch boxes were sold from RM15 to RM17 each.

Another seller Ch’ng Ah Sim, 34, said more people were going back to the olden days when people carried tiffin carriers for takeaways.

“The sales of tiffin carriers have significantly improved, particularly those that can maintain the heat of the food,” she said.

Apart from the lunch box, Ch’ng said customers also purchased those in two tiers, three tiers and four tiers to buy dishes at economy rice stalls.

“They are priced from RM15 to RM30 depending on quality and size.

“Customers find them more hygienic and non-toxic compared to plastic sheets and polystyrene,” she said.

Housewife Loh Ah Hoon, 70, who was spotted selecting a tiffin carrier for her son, said her family would always carry one in their car.

“It has been a ‘must-have’ in our car following the state government’s call for no free plastic bags and polystyrene,” she said.

Penang State Health, Welfare, Caring Society and Environment Committee chairman Phee Boon Poh said the state encouraged Penangites to go back to the olden days when their grandmothers used to carry tiffin carriers.

Asked if there were plans to obtain discounts for the pur-chase of tiffin carriers, he said there were no none so far as the state government did not wish to be marketing a particular product.

“An increase in demand will automatically bring down the market price,” he said.

Source:http://thestar.com.my/metro/story.asp?file=/2011/3/12/north/7886150&sec=north

Summary

The article mentioned about the growing demand for tiffin carrier brisk sales since January 1 anti-plastic ruling at Penang State. This policy made tiffin carrier’s seller to enjoy brisk business in the market. From the survey between the sellers in the article, past 20 years there were only 25 tiffin carriers that had been sold when the business was good and sometimes only to people purchased tiffin carrier in a day. But after this implementation, the demand for tiffin carrier increase higher.

The tiffin carrier benefits the customer by the single tiered steel lunch box, which could maintain the heat of the food inside and also convenient for takeaway that comes with soup. Cause of these advantages, the tiffin carrier was sold from RM 15 to RM 17 each.

Apart from this lunch box, customer also purchased those in two to four tiers to buy dishes at economy rice shop. Customers find this is more hygienic and non-toxic compared to plastic sheets and polystyrene. One of the housewife also mentioned that it is a must to have tiffin carrier in their car since the state government’s call for no free plastic bags and polystyrenes.

Phee Boon Poh, who is the chairman of the Penang State Health, Welfare, Caring Society and Environment Committee, encouraged Penang sites to go back to the olden days when their grandmothers used to carry tiffin carriers. Then, so far there were no plans to obtain discounts for the purchase of this product because government did not wish to market tiffin carriers as a particular product

Analysis and the use of graph

The demand is one factor that affect the supply of the tiffin carriers. When everybody following the government’s policy, the demand for tiffin carriers will be surely increase and this will lead to an increase in the supply of tiffin carriers. The main reason why people’s demand for tiffin carriers is increase because use of tiffin carriers is more hygienic and non-toxic compared to plastic sheets and polystyrene Producers are profit makers. Therefore, they will try their best to maximize their revenue and minimize their cost. One of the seller have said that although two people purchasing them in a day, the number of people buying them still has been increasing. So, if government market the tiffan carriers as a particular product, the price will surely decline more when the demand increases. When the prices decreases, more people will able to purchase the tiffin carrier. Tiffin carrier is not only hygienic but also long-lasting. They can use it for long period of time depending on the quality. Lastly,when the price is cheap and affordable, customer will buy more and the demand is high, supplier need to supply more to meet the demand of customer

Graph (1), (2) and (3) will show the changes that happen when the price change and changes that happen when the other thing then price change(Government Policy).

Graph (1)

P

P1 A

B

P2

Q1 Q2 Q

The price of tiffin carriers will decreases P1 to P2 when the Qd increases from Q1 to Q2. There is a movement along the demand curve from point A to point B. This is called expansion of demand.

Graph (2)

P

D1

D

Q

Factors that cause to change in demand is when government implemented the Penang’s No Free Plastic Bags. When government implemented the policy, the demand curve shift rightward. ( Increase in demand)

Graph(3)

P S

S1

P1

P2

D1

D

Q1 Q2 Q

Price of tiffin carriers falls from P1 to P2 when demand for tiffin carriers increases from Q1 to Q2. Therefore, suppliers move increase the supply of the product due to increase in demand.

Conclusion

The anti-plastic implementation by Penang government has really changed the demand on the suppliers for the tiffin carriers. This can conclude by overlook at the graphs that illustrated above. Besides this, we can also protect our country by not polluting using more plastic for unnecessary. We can follow up with environmental friendly by using tiffin carrier which can be reuse for long term n save the Mother Nature. From this habit we can see well that the demand for tiffin carriers surely will be increasing and this will lead to an increase in the supply of tiffin carriers. Suppliers will try their best to maximize revenue and minimize their cost as well

References

Source of Article: http://thestar.com.my/metro/story.asp?file=/2011/3/12/north/7886150&sec=north

*http://anilnetto.com/environmentclimate-change/no-free-plastic-bags-in-penang/

*http://www.spartech.com/packaging/polystyrene.html