Could homegrown beauty retail chain Novela become Singapore’s answer to Olive Young and Sasa?
Novela co-founders Ben Lin and Eugene Tay share their entrepreneurial journey in the world of beauty, from cold-calling customers in the early days to the lessons learnt on the way as they aim for Asian domination.
Before starting the multi-brand Singaporean beauty retail chain Novela back in 2013, its co-founders Ben Lin, 39, and Eugene Tay, 34, didn't have any plans of carving out an entrepreneurial career based on skincare and perfumes.
Fast forward to today and they've got seven stores around Singapore. Novela has become a familiar sight at heartland malls such as IMM, Tampines 1 and Waterway Point, and it has even drawn comparisons to other popular beauty retailers such as Sephora, Olive Young and Sasa.
They've done so by doing things a little bit different – by stocking up on "emerging and niche brands" you might not find anywhere else.
While Novela stocks well-known counter names that are available elsewhere, such as Sulwhasoo, SK-II, Estee Lauder, La Mer and La Prairie, it also carries cult brands that may be lesser-known but have also found popularity because they have strong USPs, according to Tay.
“During our travels, we encountered local beauty retailers like Sasa in Hong Kong and Olive Young in Korea. Observing their success, I saw an opportunity for Singapore to have its own representative beauty retailer, particularly in the premium market segment," he said.
And after noticing that there were a lot of other high-quality brands that weren't being sold at these retailers, they decided to position Novela as an alternative platform for these.
“This approach not only supports emerging and niche brands but also enriches our customers' shopping experience with exclusive offerings they might not find elsewhere," said Tay.
Success, for us, entails expanding into all Asian markets and becoming the go-to partner for brands seeking collaboration.
FROM A VACATION STINT TO A BUSINESS EMPIRE
How did Novela come about? It began during the time Lin and Tay were studying business information technology in Temasek Polytechnic.
“We were classmates back then. During the holidays, we worked as fragrance promoters to earn some pocket money and decided to start a side hustle selling fragrances. We cold-called customers, and by my third year of polytechnic, the market had become saturated,” shared Lin.
Following that, Lin had an opportunity to do an internship in Shanghai for half a year. While working there, he found his savings quickly depleted due to the high living expenses, which included his rental deposit.
“To cover these costs, I asked Eugene to send me some products so I could sell fragrances. I spent my weekends cold-calling customers and gradually built a customer base through direct outreach and word of mouth,” he said.
Business grew significantly by 2010, which opened his eyes to the potential of the beauty trade. He then began to attend various trade shows in the industry, which helped him further expand his customer base.
OVERCOMING ADVERSITIES ON THE WAY
Upon graduation, the two decided to join hands and officially start a business in beauty distribution, but it wasn’t until 2013 that Novela opened its very first retail space in Suntec City, which has since closed.
“We initially opened this retail store with the intention of using it as a stock storage solution, assuming it would be similar to warehousing. However, we quickly realised that running a retail operation required much more than simply hiring beauty advisors to sell the products. This turned out to be a costly mistake,” said Lin.
The pair learned a valuable lesson from the experience, which prompted them to refine their approach to retail and devise a strategy to expand into heartland malls, where they believed they could better meet customer needs and provide a more conducive shopping experience.
From here, business grew rapidly and steadily, but like many other trades, Novela suffered a hit during the peak of the COVID-19 pandemic.
“We deliberated, back then, on whether to implement retrenchments or pay cuts to keep the business afloat. Ultimately, we chose a round of pay cuts for three to four months. Once business began to recover, we ensured that our employees were compensated with special one-time bonuses that were equivalent to three times the amount of their pay cuts during that period to show our appreciation,” revealed Lin.
FORMULATING SUCCESS
Novela has rebounded since – two of its current seven outlets just opened earlier this year.
Among these new outlets is a fresh concept store they have created. Scented Journals, which opened in Paya Lebar Quarter, carries niche perfumery brands from Europe including the likes of Rance 1795, Nicolai Parfumeur-Createur and The Different Company.
Also, the store also has a section that spotlights the best of Singapore’s very own homegrown beauty brands, such as The Powder Shampoo, Iren Shizen and Timeless Forever. Selected products from “hidden gems” like Shangpree and JM Solution are also available here.
“Our customers are savvy – they seek not only value but also niche brands that are typically only available overseas. We refer to these as hidden gems, such as Sachajuan, a haircare brand from Sweden, Selahatin, a luxury oral beauty brand, and Filorga, France’s leading dermatology brand,” shared Lin.
It’s not just simply a brand’s “cult hit” value that is important, however. “Before we bring new brands on board, one of the first things we look at is if it’s a good fit with our brand proposition and assortment. Next, we consider if they will be categorised as ‘hidden gems’ or ‘strategic pillars’. Hidden gems give consumers continuous reasons to come back as they will always find something new to explore,” said Tay.
Our core values include a commitment to support local entrepreneurs and innovators.
As a Singapore-based beauty retailer, Novela also aims to bring awareness to local beauty brands and give them a platform to reach a wider audience.
“Our core values include a commitment to support local entrepreneurs and innovators. Our curated assortment of Singapore beauty brands is a strategic move away from the traditional focus on international brands – [we want to] champion local talent and celebrate diversity and creativity within our community.”
While most would consider Novela’s achievements to date to be quite substantial, its founders feel that they are still far from what they consider success.
“We have numerous plans awaiting development, and what we’ve achieved so far is just scratching the surface. Success, for us, entails expanding into all Asian markets and becoming the go-to partner for brands seeking collaboration. Only then will we truly feel that we’ve reached our pinnacle,” shared Lin.