Report: Market Entry of NOVU Aesthetics in Singapore - Analysis

This report analyzes the potential market entry of NOVU Aesthetics into Singapore, evaluating the economic environment and applying Porter's Five Forces model to assess the competitive landscape. The analysis reveals a high GDP per capita but also a strong currency and high medical equipment costs, impacting disposable income and treatment expenses. The Porter's analysis highlights high bargaining power of customers and suppliers, and intense competitive rivalry within the aesthetic market. The report concludes by recommending a marketing strategy for NOVU Aesthetics, focusing on excellent customer service, potential for manufacturing its own machinery to control costs, and a focus on non-invasive treatments to meet increasing demand. These recommendations aim to address the challenges and capitalize on the opportunities present in the Singapore market.

Running Head: Market entry of NOVU Aesthetics in Singapore 1
Market entry of NOVU Aesthetics in Singapore

Market entry of NOVU Aesthetics in Singapore 5
Novu aesthetics is aiming to gain entry into Singapore. Below is an analysis of the economic
environment of Singapore followed by an analysis of macro environment using Porter model.
Economic landscape of Singapore
The most important positive factor of the economy is that GDP per-capita in terms of purchasing
power parity is US$ 85,535 which is one of the highest in the world. It means that people have
high amount of disposable income (Trading economics, 2019).
Figure 1 GDP Per-capita in terms of PPP (figures in US$)
However, on the negative side the currency of the country is strong and the cost of medical
treatment is high owing to high cost of medical equipment which is a deterrent for people
seeking aesthetic treatment (UI-Hoon, 2017).
Figure 2 Singapore currency's performance against US $

Market entry of NOVU Aesthetics in Singapore 5
Porter’s forces
Bargaining power of customer- High
The aesthetics market in Singapore is highly saturated. The customer can either go for invasive
or non-invasive aesthetic treatment (Shiao, 2018). The other option for the customer is to go for
cosmetic treatment. Additionally, owing to the strong currency, and high cost of medical
equipment and machinery required to deliver the treatment pushes the cost of aesthetic treatment
upwards. On the other hand South Korea and Thailand has been offering superior treatments at
lower prices.
With so many options available at hand, the bargaining power of customers is high in the
industry.
Bargaining power of supplier- High
One of the most important necessities in delivering quality aesthetic treatment to patients is
machinery. However, there has been phenomenal rise in the price of medical equipments and
consumables in recent years (UI-Hoon, 2017). This has negatively impacted the aesthetic
business as high price of medical equipment reflects on the final price of the aesthetic procedure.
Thus, the medical aesthetic business is left at the mercy of suppliers of medical equipments. In
other words the bargaining power of the suppliers is high in the industry.
Competitive rivalry- High
The medical aesthetic industry in Singapore is highly saturated. There is also lot of options
available to customers like invasive or non-invasive aesthetic surgery and cosmetic surgery. The
customer is also highly price sensitive owing to cheaper costs of similar procedures in
neighboring countries. Thus, the existing players are trying everything from lower prices to
holistic treatment and pre-emptive diagnosis to lure customers.
Thus, the competitive rivalry is high within the industry.

Market entry of NOVU Aesthetics in Singapore 5
Implications for marketing strategy
In view of the above macro economic factors, the marketing strategy of Novu aesthetics should
be as follows-
1. The company should offer excellent customer service to lure customers. Rather than
providing the customers with aesthetic treatment, it should offer customers holistic
healthcare solutions.
2. The company should try manufacturing its own machinery, so as to keep control on
prices. This would help it in offering services at lower costs thereby luring in customers
who would have otherwise deflected to South Korea or Thailand.
3. The company should offer non-invasive aesthetic treatment as the demand for the same is
increasing (UI-Hoon, 2017).

Market entry of NOVU Aesthetics in Singapore 5
References
Shiao, V. (2018). Facing the future. Retrieved from
https://www.businesstimes.com.sg/magazines/the-sme-magazine-januaryfebruary-2018/facing-
the-future
UI-Hoon, C. (2017). Is the rising trend of singapore women seeking cosmetic surgery leading to
botched results? Retrieved from https://www.herworld.com/beauty/cosmetic-surgery-
precautions-korean-beauty-trends-singapore-bad-botched-surgery-overseas
Trading economics. (2019). Singapore - economic indicators. Retrieved from
https://tradingeconomics.com/singapore/indicators