Free drinks with your sofa

Novena Holdings wants its customers' shopping experience to be a happy one

By Noelle Perera
Jan 12, 2005
The Straits Times

The reason for this apparent extravagance is a simple one.

"Singapore service is not up to standard," observed Mr Toh Soon Huat, 44, CEO of the local furniture giant, explaining the decision for Novena Holdings to do all it can to provide for the customer.

His first furniture store, Novena, was in an HDB shop- house in 1984. He would open his store at 7.30am to greet people on their way to work, closing only around midnight.

His reasoning was that customers notice your store when it is the only one open. He was eventually able to turn Novena into a chain of stores, opening several across the country.

He soon realised, however, that Novena would not appeal to everyone. So four more furniture brands were set up: Castilla, Modern Living, The White Collection and Natural Living.

Twenty years on from Novena's first operations, Novena Holdings, established in 2000, now lays claim to 37 furniture stores. In 2003, the company enjoyed a turnover of $69.5 million, a 39.2 per cent increase from the year before.

The name has become synonymous with quality furniture in Singapore, and the benefits of this association have not escaped Mr Toh, who lists branding as one of the tenets necessary for a company to shine.

"Customers trust branding," he stated. "They don't mind paying 10 to 20 per cent more for a recognisable brand." He believes that if customers are prepared to spend that extra money on a company's wares, it becomes the company's job to ensure the customer's happiness.

This mantra has resulted in the practice of making customers feel comfortable and at home in each store.

Customers who stay in the Castilla or Natural Living showrooms for three minutes are presented with menus listing complimentary beverages that include wine and beer.

If they ask for a salesperson's mobile phone number, should they need further advice or information, they get it.

For their efforts in prizing the importance of their customers, staff members of Novena Holdings have been honoured with the Excellent Service Award for the past three years.

Last year, the company was also named winner of the exclusive Furniture Retailer Award at the Singapore Furniture Industry Awards 2003.

Having created a solid base in the furniture business, it has now branched out into beauty. It acquired a 70 per cent share in beauty and cosmetics retailer, Leewah Beauty, and manages its eight stores. There is also b.s.p Beauty & Slimming Place in Bugis Village.

Novena Holdings is now looking into expanding Leewah Beauty locally, and developing its furniture brands' presence in Taipei and China, and hopes to break into the Malaysian market.

While the company stays realistic about constant expansion and maintaining a decent profit, it is clear monetary gains do not undervalue the importance of a satisfied customer.

"People buy furniture only four or five times in their lives," said Mr Toh. "We should make it a happy time for them."

Fast facts
. Novena Holdings has won a Patron of the Arts Award, two Retail Courtesy Gold Awards, and was named in the Retail Asia-Pacific Top 500 list.

. Castilla features Italian-influenced designs; Modern Living, chic urban functionality; The White Collection, bold use of colour; and Natural Living, nature resort-themed concepts.

. Customers at selected showrooms are offered free refreshments like Corona Beer, red and white wine, cappuccino, Coca-Cola, and Cadbury chocolate.

Noelle Perera is a freelance writer.
This article appeared in a Straits Times Special: Superbrands 2005.