SINGAPORE — Being born into one of Asia’s wealthiest families certainly has its advantages. But it also means difficult times if you want to carve out a career on your own terms.
That was definitely a consideration for Caldecott Music Group founder and CEO Kuok Meng Lu. Mr Kuok, 35, is the son of Mr Kuok Koon Hong, co-founder and chief executive officer of palm oil and agribusiness giant Wilmar International. In 2012, at the age of 23 and fresh out of college, Mr. Kuok bought local music retailer Swee Lee.
As a mathematics student in the UK, Kuok noticed the shift from traditional retail to online retail that was already underway in more established markets at the time. He realized that the trend was not yet evident in Singapore and believed he could do something about it.
Basically, Kuok is a passionate music fan who writes his own songs and sings blues on his guitar. It was during his student days in England that he first encountered bands such as Radiohead and Muse and taught himself to play instruments.
More than a decade later, Kuok expanded Swee Lee into a regional musical instrument retailer. Since then, he has acquired various companies in the music industry and also launched his own social music creation platform, his BandLab. He has acquired some of the biggest names in music, from heritage brands such as Heritage Guitars, Harmony and Teisco to the renowned music publication NME. In 2021, Kuok integrated these companies under the Caldecott Music Group umbrella in a rebranding effort.
In an interview with Yahoo Finance SingaporeKuok took us through his entrepreneurial journey in the music business.
What made you decide to try the music business?
The most important advice I got when I graduated from college was that if you’re not passionate about it, you won’t succeed.
Another important piece of advice is that you need to consider your competitive advantage. You can have a passion, but you also need to understand if you have a competitive advantage. Passion may be one thing, but there are many things that are extremely valuable in business, such as access to capital, education, and networking.
Was your father trying to discourage you?
I think he understood that there was potential for new business models, so he was very supportive. My entry point was music retail, distribution, and the consumer perspective…it’s not a new trading business. I had a plan and the support to execute it.
How did you feel about being called the “billionaire’s son”?
From my point of view, it was never a worry or worry. My goals have always been very clear. I wanted to spend the rest of my life doing something that I was passionate about.
But certainly, I had to personally accept the idea that taking risks does not guarantee success. Everything has its pros and cons, so I think I had to come to terms with them before enrolling.
The biggest challenge is the unknown. In business, you can spend years building a great restaurant and then it all disappears in a matter of months due to events completely out of your control. But you still have to work hard and get better.Kuok Menlu
At the time, (for example) I had to ask myself if I was willing to put my name out there. Especially in Asia, it’s not just my name, it’s your family’s name too. From that perspective, it was very early on that we decided, “This is a competitive advantage.” Capital is also a competitive advantage.
In the end, you can get benefits and have access to things, but what you do with it is what matters.
You could have gone into being an artist, but instead you went into business. why?
It’s a very competitive space. I really enjoyed playing music, but there was a time when I became more passionate about what I could do to empower people.
Having a better guitar doesn’t make you a better player, but playability is important and can actually make things easier if it’s already difficult. If we can make learning even a little bit easier, whether it’s through technology or devices, that’s actually a huge step forward in reducing barriers and empowering people.
For me, one of the opportunities with Swee Lee was the access to online and e-commerce and the pricing model that made it a better experience. I felt that if we could break down barriers, more people would make music and more great musicians would appear in the world.
When I was lucky enough to have access to the instruments I was able to get when I was starting out, focusing on people who don’t have that access was more of a passion than being creative myself. I think that’s what I was pouring into.
When you first started in the music business, what did you do to learn the ropes?
The first time I took over Swee Lee was when we were doing due diligence for a deal. We had a six-story warehouse. Up to 40,000 SKUs (stock keeping units). This was new to me and I had never done a due diligence process before. My inventory check involved going through all the boxes and counting all his SKUs, which was a real learning experience.
When I took over the business, the first thing I did was be on the (sales) floor and sell guitars with everyone at Brass Basah. It was important to me to spend time with the team, see what they do every day, and learn about our customers. If we really wanted to tell people what to do and change things, we needed to understand how the system worked.
What were the challenges you faced when you first took over Swee Lee?
I was very lucky to be in a situation where everyone was so supportive. The team, including the previous owner, who sold me the car and supported me with the transition were very clear. He decided to sell because something needed to change. Swee Lee was founded in 1946 and is a brand with over 70 years of history. To move forward into the next 70 years, something had to change.
When I was lucky enough to have access to the instruments I was able to get when I was starting out, focusing on people who don’t have that access was more of a passion than being creative myself. I think that’s what I was pouring into.Kuok Menlu
One of the biggest challenges in business was, and continues to be, a challenge for me as a mathematician. Business is just a math problem with many variables, many of which are out of your control. There are no right or wrong answers. There are many ways to make money, if the correct answer is only evaluated by how much money you make.
The biggest challenge is the unknown. In business, you can spend years building a great restaurant and then it all disappears in a matter of months due to events completely out of your control. But you still have to work hard and get better.
How have you overcome skepticism and resistance from people who doubt your efforts and abilities?
The biggest skepticism for those coming in from outside the industry, especially from established industries, was: “Are we here for the long term?” And that was an opinion from someone in the industry. The people I value are the most honest people.
Some of them I had to really sell and say, “Trust me to take on a new brand.” For example, MONO, which we currently own, was one of the first brands that believed in us. Distribution changed to Swee Lee. It took a while. Because things like, “This company may be raising money, but are they serious about actually growing their brand, growing their business, and representing their brand well?” Because I had to convince them.
What advice would you give to aspiring entrepreneurs?
The best advice I’ve received is to not be too happy when things are going well, and not too sad when things are not going well. Whatever is going on, things can change quickly or overnight. For those who are away, be grateful for the situation you’re in and don’t see it as a problem when things aren’t going well. If you see them as challenges that you can overcome, everything will be fine.
I was very fortunate to be able to take the risk. Not everyone can do it. The advice I always give to entrepreneurs and people who are quitting their careers is to think about what’s important to you. If you are a person who likes to go to bed early, do not open bars or nightclubs. If you love Christmas and love celebrating Christmas and everything that comes with it, like spending time with your family, don’t open a retail store. Because it’s your most important and craziest time.
I never turn off (thinking about business). You need to figure out what is right for you. And there are ways you can design your life based on what you think is right for you.
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