Ron Sim, chairman of the EY Entrepreneur Of The Year judging panel, brings together entrepreneurs for ‘massive’ growth plans at V3
SINGAPORE (Oct 14): As the world’s economy becomes increasingly digitalised, some old ways of doing business are being disrupted. Ron Sim, executive chairman of the V3 Group of Companies, muses over the fact that the new digital world has created many opportunities for entrepreneurs with the right ideas.
The emerging generation of entrepreneurs, the millennials, enjoy advantages over their older counterparts. They are more tech-savvy and more in tune with the changing dynamics of the market. In addition, they have better access to capital. The start-up ecosystem is healthy and vibrant, with many venture capitalists, angel investors and private-equity funds ready to back a good business idea. “Everything is so well connected and the world is at your fingertips,” says Sim.
This means the emerging generation of entrepreneurs can accomplish more within a shorter time. “It is absolutely a new era, far more powerful and inspirational,” he adds.
From Sim’s perspective, the changes, opportunities and excitement are more pronounced in markets such as China. The 61-year-old wishes he were 20 years younger. “I’ve been going to China almost once or twice monthly, just to absorb the ‘oxygen’,” he quips.
Sim has long been one of the more famous entrepreneurs in Singapore. From the early days selling knick-knacks and kitchen equipment at People’s Park, he went on to build household brand Osim, known for its line of massage chairs and other health and lifestyle equipment.
In 2003, following a string of other awards for his business achievements, Sim was recognised as EY Entrepreneur of the Year, cementing his position among Singapore’s corporate leaders.
Sim is chairman of the judging panel of this year’s EY Entrepreneur Of The Year awards. The panel includes another previous EOY winner: Shi Xu, founder and executive chairman of Nanofilm Group, who was named EY Entrepreneur Of The Year 2017 Singapore. Other members are Chia Nam Toon, assistant group CEO of ARA Asset Management; Alvin Lim, managing director of CVC Capital; Ng Cher Pong, CEO of SkillsFuture Singapore; and Professor Annie Koh, vice-president, business development at Singapore Management University and V3 Group professor of family entrepreneurship. She is also SMU professor of finance (practice) and academic director of the Business Families Institute and International Trading Institute.
Collection of entrepreneurs
Today, Sim helms V3 Group, which has a portfolio of other companies besides Osim, giving V3 a broader platform from which to provide lifestyle and wellness products and services to markets across Asia.
Via a series of acquisitions, he has assembled a core leadership team at V3 consisting of successful entrepreneurs, at least one of whom has a connection to EY.
David Low, executive director and CEO of Futuristic, was 2016 EY Entrepreneur for the manufacturing supply chain, and also overall winner of 2016 EY Entrepreneur Of The Year. Futuristic has an interesting niche. It helps retailers design and build fixtures for their stores. At the time Low won the EY award, the company, via production facilities in Malaysia and China, had built fixtures for more than 7,000 retail stores worldwide, including instantly recognisable brands such as Tiffany & Co, Versacé, Prada, Bath & Body Works and La Senza.
Then, there is Cynthia Poa, CEO of ONI Global, who built up the GNC franchise of health supplements in Singapore. Previously, she founded the Nature’s Farm chain of health food and nutritional supplement stores in 1982. Today, ONI Global has built up a portfolio of health and nutritional products sold under more than two dozen brands, catering for various niches. The brands include LAC, XNDO and Face on Clinic.
Taha Bouqdib, president, CEO and co-founder of the TWG Tea Co, has practically lived a life of tea. He drank his first cup of tea at 12 and entered the tea business at 23. He takes charge of the various aspects of the luxury tea company, from the look and feel of the “boutiques” to the blends of tea.
Taking the plunge
To be sure, entrepreneurs build their respective businesses in different industries, which call for different skillsets and domain knowledge. Nevertheless, Sim sees a few traits that bind them together, even in a changing market and environment. “The characteristics of entrepreneurs have not changed, but the new technology has changed. If you have the nose to smell, the eyes to foresee and the guts to take the plunge, you will win,” he says.
For all their grit and entrepreneurial instinct, however, there is always the wider environment to deal with. This past year, the government has cut Singapore’s economic forecast several times as the US-China trade war dragged on and the export-reliant local economy was affected.
Sim has seen many economic cycles. How is this slowdown different from the previous ones, and how should businesses try and adapt? Sim does not mince his words, saying: “The world is reinventing itself and Singapore will certainly face a slowdown and conditions will get worse, no doubt.”
He urges businesses not to be distracted. Sim’s advice is, rather than try to be all over the place and see whether something works, they should stay focused, strengthen their competitive edge and stay true to their core competencies. “Be mindful of cash flow and operational efficiency. As long as you have the edge and are a builder instead of a trader, there is so much to do in the region,” he says.
Sim is glad the government is not sitting idly by. As demonstrated in previous downturns, it is ready to help local businesses. “Our government is already pushing our companies to go overseas, and that’s the correct move. More can be done to help them understand their strengths and align their expansion targets accordingly.”
He urges Singapore companies, especially small and medium-sized enterprises, to form groups and explore and develop markets together. By pooling their resources, they stand a better chance of succeeding against overseas competitors than if they were to go it alone.
What it takes to succeed
At the end of the day, entrepreneurs need grit, optimism and business savvy to be successful. Sim says, “Our entrepreneurs must realise that there are so many more opportunities in the chaotic marketplace. I see great opportunities coming our way and one must be ready to ride it. Do not be afraid of taking the plunge; you only get smarter and stronger.”
In the same vein, Sim has not shied away from making bold decisions in his four decades in the business world. In 2016, to the dismay of many local retail investors, he privatised Osim International.
Yet, just eight months later, in April 2017, Sim announced his intention to list V3 in Hong Kong, after transforming the company beyond Osim via the acquisition of strategic stakes in companies such as Futuristic.
In December 2018, KKR & Co, one of the biggest names in private equity, announced an investment of up to $500 million in a stake in V3 that gives the company an enterprise value of $1.7 billion. With this sizeable capital injection, V3 has no need to list for now. KKR and Sim have agreed to grow further before considering an IPO.
Putting IPO plans on hold does not mean V3 is standing still. Sim has ambitious plans to grow the company even bigger and more quickly, particularly in Northeast Asia. “We believe there is so much to be done, especially in China, South Korea and Japan,” he says.
V3 has “massive” growth plans for the next two decades. “Come what may, fortune favours the brave. It is not about good or bad times — you ride all the waves,” says Sim.
