StorBOSS Vol.3 Cover Story: Present & Future of Storage

The SSAA sat down with Helen Ng, Chairman of the SSAA and CEO of General Storage to talk about the present and the future of storage. The expectations of customers are changing and self storage is moving with them as new technology enables new ways of using space. With a multinational presence and international investors, she has her eye on the direction of the industry Asia-wide.

SSAA: THANKS FOR SITTING DOWN WITH US. WHO IS USING SELF STORAGE NOW AND WHY?

Helen: The world we live in is bound by space and time and storage is all about space. Given the freedom to do so, people and companies use storage in creative ways that we don’t always anticipate, but need to accommodate.

Small business support is one of the most important and fastest-growing segments within our customer base. Startups storing materials and prototypes, e-commerce companies seeking ‘close to customer’ distribution and companies experiencing a transition or move all need storage and have made self storage part of their business model.

A recent study of self storage business users in Singapore makes it very clear that many companies now depend heavily on self storage. 83% said self storage is important to their growth and business plan.

The past few years have been turbulent years across the region from the COVID pandemic to high inflation. One of the ways companies are keeping costs down for consumers and devoting more budget to staff salaries and training is by having access to storage they can upsize and downsize at will.

Fig. 1 The use of space varies according to business type. Any business that takes up more space than a laptop needs self storage. Source: The Indispensable Industry, Cimigo Consulting January 2024

SSAA: WHAT BUSINESS SEGMENTS ARE THE BIGGEST USERS OF SELF STORAGE?

Helen: Among business users, tech and electronic products are the biggest category in Singapore. Anecdotal evidence suggests it is the same in many countries in Asia. Much of that would be for e-commerce products where small businesses aim to have their distribution close to their customers. They’re comfortable using new tech coming to self storage like electronic locks controlled via apps. This is helpful to control delivery persons’ access to units and to increase responsiveness.

The second biggest category is F&B, especially fine wine. Hong Kong has reduced its import taxes on wine to zero, driving a boom in new business formation and related services. Transport, storage and auction have all taken off, as hoped for by the Hong Kong government.

The use of space varies according to business type. Any business that takes up more space than a laptop needs self storage.

Riyaz John at Lock+Store

SSAA: CAN YOU GIVE US SOME EXAMPLES OF BUSINESSES THAT USE SELF STORAGE?

Helen: We have a lot of customers in our business that fit that description. The flexibility is hugely helpful for many conditions. One of our customers, Riyaz John, runs an apparel business.

For him, the seasonality of his business means he would be wasting money to have the year-round capacity for what he needs for peak periods. By running a more efficient business, he can better manage his cash flow and focus on growing his business. This means he can also pass savings on to his customers.

SSAA: WHAT’S NEXT FOR SELF STORAGE AND MSMES?

Helen: Those of us in the industry are always listening to our customers. As in other parts of their lives, they want to be able to control it from their phones. So apps are being developed that integrate with other self storage tech systems to handle access, billing and security. AI is now being used to help with business analysis and customer support.

The key is maximum flexibility so that businesses can innovate in how they use the space. In some markets in Asia, self storage companies are responding to customer ideas by providing co-working space, event space, influencer film studios, live streaming rooms (for products), pickup and dropoff points for goods and more. In those markets, it’s very exciting to see how businesses are innovating and how self storage operators are answering to their needs.

Members of the SSAA from around the world come together every year to share ideas and successes in using new technologies and new business models. This year, it’s in Hong Kong from May 7-9th and I’m sure we’ll be spreading ideas of best practices and innovations to make all our businesses better!