Expanding Horizons – SUTL Group’s Arthur Tay Charts A Bold Vision To Take The Business Global

For a people who call an island home, Singaporeans don’t quite venture out on the water enough, observes Arthur Tay – the chairman and CEO of the island republic’s top lifestyle and consumer goods conglomerate, the SUTL Group.

Of course, Tay is talking about leisure boating, as we look out on the many luxury yachts docked at ONE° 15 Marina Sentosa Cove – part of the growing network of marinas worldwide run by the group’s listed arm, SUTL Enterprise.

At the same time, he’s also referring to the diversification of a business that’s more than half-a-century old. From the 20-man ship chandelling and trading company that Tay’s late father founded in 1968, SUTL has grown into a diversified group that operates in some 18 markets globally. “Through him, I honed my entrepreneurial and trading skills, among others.” Tay also remembers developing his business instinct by observing how his dad, Tay Choon Hye, meet and deal with various clients while looking into day-to-day business concerns. “But suppose he wasn’t a man with a great many words. Instead, he worked hard and taught me to prove myself through my actions.”

SUTL has since set sail to conquer new territories with even more diversified brands. From ship chandelling, the company moved on to become a duty-free supply and trading company – so since it’s early days, it has always placed great importance in having the right kind of brands on offer to please the buying public.

“First and foremost, we are the ones behind the distribution of many global brands in Singapore and our fast moving consumer goods (FMCG) portfolio includes globally-renowned brands like Evian, Fiji Water, Nestlé and Singha Beer, amongst others. But we are also looking to expand our offerings to include even more locally well known beverages which we currently distribute to broader markets in the region, such as Aik Cheong and Yeo’s,” reveals Tay.

“Before we began owning and operating marinas, SUTL built up a reputation distributing FMCGs and operating lifestyle brands throughout Asia. Today, these also consist of globally-renowned brands such as Nike and Elizabeth Arden, while we continue strengthening our position even further by promoting brands like our own in-house wine labels Arthur’s Reserve and Heritage Vale,” continues Tay.

And from personal observation, Tay feels that the food and beverage consumer market in Asia is very different than, say, the one in Europe. He goes on to elaborate: “We Asians definitely love to eat a lot more and are extremely passionate about food! This is especially so in cities like Singapore, where dining has become a great lifestyle pursuit and also a wonderful communal activity to bond over. That is why even though barriers to entry for the F&B industry are low and it is extremely competitive, it’s still full of opportunities, provided that the branding is done right.”

Tay feels that it is most important for his company to share a common vision to achieve success. He firmly believes that brand owners who work with SUTL must not only be successful to begin with, but also have a reputation for being fair to their franchisees. “In turn, I know our brand partners will appreciate us for our strong track record and unique combination of marketing, distribution and product or brand management expertise.”

SUTL does work with and gets support from government agencies such as Enterprise Singapore, and Tay feels that as a business, any help is a bonus but this should never be a pre-requisite. “We have to make sure we are able to deliver on our own, as the Government has so many businesses to take care of, everyone from hawkers to multinational companies!”

Moving ahead, Tay reveals that the SUTL Group currently already has a presence in 18 markets throughout Asia. “In terms of distribution markets for our FMCG brands, beyond Singapore, we are in the midst of venturing into Malaysia while also eyeing China and Myanmar. I feel that it is important for Singaporean business people and enterprises to get out of their comfort zones and take risks in bigger markets, even if it means forgoing the luxury of convenience. Yes, the Singapore market is thriving but it is still very small compared to the rest of the world. Nonetheless, we are proud to call ourselves a home-grown brand as the Singapore identity is well respected and associated with integrity!”

At home, SUTL is expanding its fleet of delivery vans from 38 to 60 as more and more international brands tap on their distribution channels to reach end consumers With such growth, embracing technology has become a priority – whether to optimise manpower, make better use of its database of distribution partners, or in transforming the whole customer experience. For instance, the Nike Jewel Changi Airport store – which SUTL opened in March and is the largest Nike store in Southeast Asia – offers Singapore’s first ‘Nike-by-You’ service that allows shoppers to customise their purchases.

“SUTL wasn’t the first to open Nike only stores here in Singapore but we have outlasted competing Nike franchisees with our focus and ability to read local consumers well, thus adding value to the brand. This is why just in August 2019, we went on to acquire a majority stake in the company that operates Nike stores in Kuala Lumpur, Perak and Penang, making us the largest operator of Nike-only stores in both Singapore and Malaysia!”

This expansion across the Causeway means SUTL now has a 51-per-cent stake in Malaysian Nike retailer Sportsland. This has resulted in a new joint-brand, SUTL Sportsland, which operates Nike monobrand stores in Kuala Lumpur, Ipoh and Penang, with a new store opening in Johor Bahru just last September.

The acquisition comes just months after the successful opening of Nike Jewel Changi Airport in Singapore, the largest Nike store in Southeast Asia and India to date. It also fulfils SUTL Sports Retailing’s long-time goal to expand beyond the shores of Singapore, and attests to the Group’s agility in realising market opportunities in its partnership with Nike.

“Being a Singapore-run business, expanding to Malaysia is a very natural move for us as it is just across the border. As such, we are definitely looking to expand our FMCG distributorship there, and we already have a retail presence there through our recent acquisition of Nike stores across Malaysia,” says Tay. He then goes on to reaffirm that neither a stagnating Malaysian economy nor a recent, lacklustre budget announcement worries him.

“We don’t base our business expansion plans according to the budget. Rather, it’s based on sustainability and holding power. More importantly, no matter which new markets we take our businesses to, we always look to create jobs for the people there,” says Tay.

On top of all this very visible growth for the businesses, Tay goes on to say that SUTL is also always looking into ongoing consumer trends and market developments, while at the same time reassessing their current portfolio of offerings to ensure they are up to date with consumer demands. “The SUTL Life membership for our sports retail activities and our ONE°15 programmes to promote customer loyalty also goes a long way in securing market shares regionally and globally.”

Tay believes firmly in innovating the whole consumer experience and because of this, SUTL has always recognised the potential of membership and data collection since many years ago, and the company has been operating its respective membership portals to build and grow the value of this.

“The emphasis on membership and securing market share with unique experiences is very important. Today’s retailers have to lure shoppers with experiences that stand out in order to procure a customer database that gives very valuable retail advantages. As such, we are always seeking to amplify the retail consumer experience through new technologies and digital experiences, such as what you’ll find at our Nike stores.”

His future goal, however, is to go beyond facilitating the success of other brands, and to have SUTL build brands of its own. “Owning brands is the most exciting. If you don’t own brands, you’re just one of a dime a dozen,” he says.

Yet Tay is the first to admit that this can be a tricky exercise. He reveals that he wants to make sure that SUTL goes on to own brands that don’t antagonise, but instead complement, its current list of brands in one way or another. Moving ahead, the group is considering whisky brands, as well as a brand in the natural organic foods space. “I’m always moving because the world is changing. The next generation will, willingly, pay more for what is natural or organic. The natural organic foods market is certainly very sexy,” he reveals further with a smile.

Among SUTL’s current suite of outstanding brands, ONE°15 Marina is by far the one he is most proud of. “It’s a beautiful brand and its name represents the latitude location for Singapore – one degree and 15 minutes north of the equator,” he proudly reveals. “When I first came to see the site and told people about it more than a decade ago, everyone thought I was out of my mind, but look at it now.”

Tay was convinced of latent demand for quality berths in Asia, and this fuelled his determination to get ONE°15 Marina Sentosa Cove up and running. “Being a megayacht owner myself, you could say taking SUTL into the marina and yacht chartering industry was like turning one of my passions into a business,” revealed Tay with just a hint of excitement.

“The history of this part of our business can be traced back to the launch of ONE°15 Marina Club right here in Sentosa back in 2007. This club was part of a transformation for Sentosa that took place during a very exciting time back then. When I bid for this spot in Sentosa, it was with a vision to take the ONE°15 brand global.”

The club has since picked up a string of boating awards, hosted international boating and water-sports events, and recently opened its own customs clearance facility for the convenience of yacht owners who frequently berth there. SUTL as a group, meanwhile, built up its expertise in providing marina consultancy and development, alongside luxury yacht chartering services.

“But it was definitely a steep learning curve, and it definitely opened my eyes to how vast the yachting and marina tourism industry is. Indeed, we went into this field because I noticed how underserved the industry was in Asia, as compared to in the West. Now, with the ONE°15 brand, I aim to change all this and the progress over the years has been very good indeed.

Tay goes on the say that there are so many marina locations where he wishes to expand the ONE°15 brand to. “Unfortunately, the required capital expenditure for marinas is rather high, so we can only make the best out of our existing portfolio of marinas right now. “

Incidentally, SUTL Enterprise now holds management contracts for marinas across Indonesia, China, and in the U.S. Apart from the one at Sentosa Cove, the company also holds a majority stake in the marinas at Puteri Harbour in Johor, Malaysia and in Phuket, Thailand, while SUTL privately owns ONE°15 Marina Brooklyn New York in the U.S.

Tay’s optimism over the growth potential of SUTL’s marina business is not only due to Asia’s growing affluence. He also sees Asia as the new playground for the super yachts of the world, and hence dreams of stringing together a belt of quality ONE°15 marinas that will connect the most alluring of Asia’s coasts and draw the who’s who of the world’s boating community to Asia.”Now, we’re continuously but selectively looking for more good marinas in strategic locations around the world to acquire. Our market cap as a listed entity is not big, but we have many models of fund-raising open to us, to fast-track joint ventures and buy,” says Tay as he scans the horizon with a glint in his eye.