Novena Global goes beyond aesthetics services in merger with China hairdressing firm

Singapore

HOMEGROWN Novena Global Lifecare is taking its business beyond aesthetics healthcare to hairdressing by merging with China's Xingkeduo.

The marriage, which will result in a merged entity worth US$350 million (S$476 million), gives the Singapore aesthetics chain immediate access to 100 hairdressing outlets in China's first- and second-tier cities, along with Xingkeduo's technology and e-commerce platform.

Novena Global co-founder Nelson Loh, who will be chairman of the combined entity, said the merger will enable the company to tap China's market and resources, and so offer better services to customers.

"As an investor in the medical industry, and with our experience in operating a global chain of aesthetic healthcare stores, both data and intuitive experience tell me that this industry is a field where consumers need more affordable and convenient services," he said.

The merged entity, called Novena Global Lifecare in English, is to push out two brands, NOVU Aesthetics and Xingkeduo; it will offer customised aesthetic and hairdressing solutions driven by artificial intelligence, and generate cross-selling opportunities between the brands.

Mr Loh's cousin Terence Loh, a co-founder of Novena Global, will serve as chief executive officer alongside Xingkeduo's founder Willy Chuang. (see amendment note)

Xingkeduo, founded in Beijing in 2015, has a reach of some three million customers; since its debut, it has rung up six million sales of its products and services online.

Mr Chuang said that China's e-commerce retail system has enabled Xingkeduo to expand beyond its brick-and-mortar stores, and that taking Novena Global onboard will grow the business quickly.

"We analysed the prospects of the service industries and the healthcare sector, and we believe that future unicorns will be multi-branded matrices, and the customer experience will not be limited to the store," he added.

The merger will enable Xingkeduo to venture into medical care for hair, such as scalp management and hair transplant services.

Mr Terence Loh said the merger has huge growth potential because of Asia's leading position in the beauty industry.

"There is definitely room for a well-run, well-funded integrated practice that provides affordable and accessible healthcare and medical aesthetics services to the mass market."

Amendment note: An earlier version of this article incorrectly stated that Terence Loh is the co-founder of Nelson Global. It is in fact Novena Global.The article above has been revised to reflect this.