32-year-old Gmask founder, Clarence Lai

It's all the rage now - youths spotting a myriad of colourful, wacky designs on their multiple gadgets. You can leave it to the Gen-Y to give a new meaning to the term “individualism”. It makes one ponder on the enterprising individual who came up with the idea to “beautify” technology. Clarence Lai, founder of Gmask, a company that specialises in producing vinyl-film wraps, also known as skin, for gadgets do not take the credit.

“It was a trend in Japan. The Japanese started the beautification of gadgets. I simply localised and improvised the concept, by providing full body protection wrapping, where every single part of your gadget body is wrapped with protection,” admits Lai. His risk-taking move to introduce gadget skins to Singapore proved to be a runaway success. Gmask started as a humble pushcart in Bishan Junction 8 five years ago with $25,000, and today it boasts 55 Gmask outlets in over 12 countries.

At the start of the business, he faced numerous naysayers, including his father. To support the business, Lai kept his day job as a senior account manager selling IT solutions and courses. At night, he would be busy tending to his pushcart. Business boomed within a few months, and it allowed him to quit his job and focus on the business. Using the franchise model, he was able to expand his business relatively fast, but it came with some downsides. He had to shut down a few Gmask franchises in the first few years of the business due to poor management. Instead of giving up, he presevered and started to upgrade and streamline his management by working with franchise consultants to assess and assist his expansion plans. He plants mystery shoppers worldwide to ensure product and service quality compliance.

With an annual operating cost of $700,000, Gmask works with a research and development team in Japan and has a manufacturing facility in Taiwan that produces close to 600,000 vinyl-film sheets annually. Currently, it costs $39 to wrap a mobile phone and $89 for a laptop. After successfully venturing into countries like Bangladesh, Kazakhstan and Austria, Lai wants to add Oman and the UK to his list.

He speaks to Ebizsurf about Gmask's entrepreneurial journey and the lessons he's learnt so far.

How long did it take for the business to break even?

Clarence Lai: It took me one week only. First month, we sold 2 franchises, located at Suntec City and Plaza Singapura.

What was the biggest challenge you faced in the the startup phase of the business?

Clarence Lai: Spending time with loved ones juggling it with business.

How big is the Gmask team currently?

Clarence Lai: We have 25 staff.

How did you manage to expand your business to 12 countries in just 2 years?

Clarence Lai: Through franchising methods. Low capital, high profit margin. We pride on good service, bearing in mind that without our customers’ support, we will not be where we are today.

Do you personally travel widely for the business?

Clarence Lai: I travel to more than 20 countries including Bangladesh.

Which was the toughest economy/country to break into to start the Gmask business?

Clarence Lai: USA. We needed to invest more than USD100k to engage a franchise attorney and franchise consultant for the compliance of franchise law in the USA. This investment is paperwork only.

What gave you the idea to start a franchising model for Gmask?

Clarence Lai: We have many trade secrets, and also we are providing a service, so it is difficult to get into distribution model. That is why we rather work with exclusive partners to develop Gmask businsess in their given territorities.

How much does it cost to be a Gmask franchisee?

Clarence Lai: Between SGD40,000 to SGD50,000 in Singapore. This includes rental deposit, rental advance, kiosk construction, initial stocks etc. Our benchmark is to break-even within less than 6 months.

Describe the scale of research undertaken by the team before starting the business.

Clarence Lai: Our skins are exclusive to us from Japan factory. We modify the film and we manufacture our own inks to blend in with our film modification, with a never fading print technology.

What were your initial expectations for the business?

Clarence Lai: I did not think that Gmask will be where it is today. I ensure that all staff incuding myself are aligned with the company's interest, and we work hard to grow the business.

Describe Gmask's marketing and branding strategy in reaching out to the market.

Clarence Lai: Prime shopping malls. Corporate collaboration.

What is the business outlook for Gmask for the next 5 years?

Clarence Lai: We plan to open 100 more locations worldwide.

What would be the one word of advice you have for entrepreneurs reading this article?

Clarence Lai: Working hard alone does not produce positive results. In business, planning and strategic thinking are very important aspects of setting up your own business.