Derick Ooi, the founder of Hairstory International, has a hair story.
As a teenager, he often felt a pang whenever he looked in the mirror. Heng Ee High School in Penang – where he studied – had a rule that its male students were only allowed to sport a crew-cut no longer than 0.6cm from the scalp, also known as the ‘Number 2’ haircut.
Ooi reluctantly soldiered through his school years without his crowning glory. The long year-end school holidays would be a reprieve, as he could let his hair grow. He experimented and styled his hair with his friends during this time. The experience taught him how the right hairstyle could boost one’s confidence and self-esteem. It was also then that he found his calling.
In 2000, when Ooi was 20 years old, he joined a local hair salon as an apprentice. In a mere four years, he established his own Hydro Hair Salon business in Bandar Baru Ayer Itam. What started as a humble establishment manned by three hairstylists grew to strength over two decades.
Today, Hydro Hair Salon has been rebranded into Hairstory International – an award-winning chain.
“At Hairstory, we want to give everyone the ‘right fit’, or a hairstyle of your own. Having a nice hairdo will be just like having a story of your own, as our brand name implies,” says Ooi.
Hairstory employs 120 employees across its 17 outlets in Penang and Klang Valley. During the pandemic, it defied the devastation sweeping through the hairdressing industry and earned record-high revenue.
Yet a business is a lot like hair. The more it grows, the more challenges may crop up – along with more potential.
The root of Hairstory
Since starting his entrepreneurial journey at the young age of 24, Ooi has two questions: one, how to turn the hair salon scene into a luxurious, pampering affair that remains affordable for customers. Two, how to create more career advancement opportunities for fellow hair stylists in the industry.
“I asked myself, why are people willing to spend so much on coffee at Starbucks? And if a can of Coke is priced at RM1.80 in the supermarket, how could it fetch up to RM18 at a hotel? It’s all about unrivalled service and creating an exceptional experience in a relaxed environment. People are willing to pay if you can add value or provide a good customer experience,” says Ooi.
He realised that when a customer entered a Hairstory outlet, it should “never just be about getting a hair wash, a new perm or a different hair colour”.
“We are selling service at a place where everybody knows you by name and provides therapy for the mind, head and soul. We are here to ensure you emerge rejuvenated and ‘ready to take on the world’ after each visit,” he explains.
In 2010, Ooi roped in a new business partner, Leon Lee, to explore market opportunities and growth strategies.
“I am more of a technical person, while Leon is a business-minded entrepreneur. The both of us only had one goal then – work towards boosting the brand name in an increasingly hair-conscious society,” Ooi recalls.
Their complementary strengths sparked a turning point for Hairstory, which would expand from a single outlet to 16 in Penang and one in Klang Valley. Amidst the dizzying pace of growth, Ooi and Lee ensure that all its outlets provide a consistent experience.
“The Hairstory management team has to thread this very carefully. We must ensure that our employees are aligned with our company concepts and direction, and familiar with our products and services.
“One must remember that our hair salon is not all about haircuts, colouring, perming and rebonding. It is what we call affordable luxury, where stylists must be well trained in styling and soft skills. They need to understand that every treatment has to be tailored to fit the client and enhance the already inborn beauty,” he explains.
Ooi admits that dealing with people – whether customers or staff – would remain one of the biggest challenges a hair salon faces. But people are also the lifeblood of the business, and over the years, he has devoted much attention to solving this puzzle.
‘They are not robots’
Just as there is no one-size-fits-all formula for dealing with different customers, Ooi understands that every team member is equally unique in their interests, skills and career goals. “They are not robots,” he quips.
Yet, one common issue that hairdressers face is a foggy future. Most, even the skilful ones, tend not to stay in the profession for long due to the limited career advancement opportunities. This makes it challenging to attract, engage or retain talents.
“Thus, we planned and created a business model developing hairdressing as a skilled and competitive profession. We want to transform the hair and beauty industry into a value-based enterprise contributing to economic growth. In short, to turn the profession into a high-status job in the market, with a future-proof career pathway. If you work hard, you’ll move up the ladder, just like those in the corporate world,” says Ooi.
Hairstory invests heavily in human capital, equipping its employees with artistic and entrepreneurial skills.
For example, the company’s Employee Entrepreneurship Programme empowers each team member to become the boss of their salon. They are then motivated to ‘duplicate’ more Hairstory outlets. In the programme, one can start from the bottom – as a junior stylist – before being promoted to senior stylist, artistic director and professional trainer.
“This is much better than opening up new outlets with external shareholders, who may not be aligned with our work culture,” Ooi reasons.
He adds that high-performing employees with little interest in entrepreneurship can opt for a different career track – to be part of the Hairstory management team, such as an outlet supervisor or manager. “This is what we can offer. The career pathway is clear.”
To develop new leaders and entrepreneurs, Hairstory provides various training, workshops, discussions, sharing sessions and occasional business and learning trips for its employees.
“Our employees are our assets, and they too need to be ‘upgraded’ as a person,” Ooi says.
To date, some 50 employees have been trained to become artistic directors, while 25 have advanced to the management level and are now managers and partners of Hairstory.
Other than upskilling its employees, Hairstory also wants to develop the next generation of hairdressers – especially among the low-income group. The company designed a zero-fee programme for school-leavers, youth and young adults who could not afford to further their studies but were keen to pick up a vocational skill in hairdressing.
Since the programme began in 2014, at least 80 youths from low-income families have benefited.
“We provide equal opportunities for these youth to develop skills in hairdressing, which will turn into job opportunities, with no fee and employment bond upon completing the training. They have the freedom to pursue their career, stick with Hairstory or other entities once they complete their training,” Ooi explains.
To ensure the programme brings value to the most deserving, Hairstory collaborates with elected and district representatives to identify young people from families with a household income of less than RM5,000 a month.
With multi-faceted strategies in place, Hairstory seemed to be on the right track in growing its talent pool and the business.
Then, the pandemic hit.
Damage control
When the first lockdown was imposed due to the Covid-19 pandemic in 2020, the entire hairdressing sector was left in a lurch. Hairstory dived into brainstorming mode, and the team finally devised a game plan – with no cut to the basic pay of all employees.
The staff who are adept in front of the camera were tasked to go live on their personal Facebook account to maintain brand awareness.
“They taught the public some simple and basic steps on haircuts. Some also sold hair treatment products online. We all did whatever we could to stay relevant and keep ourselves afloat,” Ooi points out.
Hairstory also launched several promotional packages, which customers could use once the industry was allowed to reopen and operate. These packages included haircuts, basic and luxury hair and scalp treatments, chemical work, hair spas, colouring, perming, and rebonding. The validity for the package is one year.
“We were able to make up for the lost time during the various phases of the Movement Control Order (MCO). We worked non-stop whenever we were allowed to operate, with the standard operating procedures in mind.
“We have our regular customers to thank for their continuous support. Many of them bought our vouchers. We are forever grateful for their kind gesture and warm thoughts during difficult times,” he said.
What did not break them certainly made them stronger. In 2020 and 2021, Hairstory International posted revenue totalling tens of millions of Ringgit each year – a record high for the company.
“I believe the stellar financial results are one of the best among those in the fraternity in the northern region. It shows that you will get the desired result if you are determined to achieve something great,” says Ooi. “If there is one thing to learn from the pandemic, then I would say it has made us better prepared to cope with any difficulties in life.”
Moving forward
Hairstory has an ambitious target – to open its 30th outlet in five years. Ooi believes the expansion plan will allow more employees to make career advancements – including becoming business partners – and provide more opportunities for young people to pursue their dreams of becoming entrepreneurs.
The chain also runs Globalstory Academy, which Ooi says is meant to provide a comprehensive beauty course, with Training Qualifications UK (TQUK) or Sijil Kemahiran M Malaysia SKM 2 & 3 training and diploma certification, in hairdressing, hair styling, hair care, nail care, beauty and make-up as well as wellness.
Hairstory has also upgraded its salons and training facilities to provide a more optimal learning environment for all trainers and trainees, thus ensuring sustainable development through vocational education.
For aspiring hairstylists, Ooi advises them to try and develop a crucial trait: problem-solving skills.
“We must enjoy everything we do and learn through experience. Don’t just bring up grouses and complaints. Bosses like those who solve problems,” says Ooi. “Do not be afraid of problems. Treat it as a learning process. Just put your mind and soul to it, and believe me, all your problems will be resolved at the end of the day.”
