Dennis Lee is your classic entrepreneur. The founder and managing director of Denetron always has his eyes peeled for fresh opportunities, no matter how diverse they may be. He enjoys exploring new horizons and keeping his finger on the pulse when it comes to upcoming commercial trends.
The businessman founded Denetron back in 1985 while working for a local Singaporean equipment manufacturing company. He had set up an electronics components division for them, but the owner wasn’t too receptive to Dennis’s desire to grow and evolve it.
The equipment manufacturing department was much more lucrative at the time. “So I thought to myself, ‘If they don’t want to expand the business, then perhaps I should actually do it myself’,” he recalls. Denetron was formed as a result.
Denetron: distributing components throughout Asia
“We’re in the components business, which includes electronic assemblies and hardware,” Dennis explains to The CEO Magazine. “We’re actually distributors and agents authorised by US manufacturers, and our specialty is in the distribution and selling to the contractors. We’re based in Singapore, servicing Asia region.
“In the first 5 years of operation, we grew to 64 people, but we have had to scale that number down a bit because the manufacturing environment is becoming very difficult in Singapore.
“Most manufacturing has been moved out into China, Malaysia, Vietnam and Thailand, and that has happened primarily because of the advancement of the internet – a lot of buyers and customers have started sourcing products online.
“The distributor or agent’s role is minimising; however, I believe that what we do is still very important because we have the local context, which is something that the manufacturers and suppliers don’t have. We know the local environment much better than they do. We are also grateful to our principal for its continuous support throughout the years, and in particular US Sensor Corp, who has been instrumental for Denetron’s sustainability.”
Dennis Lee sees the potential in LED lighting
In addition to the component distribution side, Dennis has identified a new pathway for the business that he believes will be highly profitable in the years to come: LED lighting. “That’s our own product line that we are manufacturing,” he says. “LED will eventually replace all conventional lighting, so it’s an area that we believe we have a strong future in.”
Dennis first became interested in the world of LED around 7 years ago when he visited an exhibition and was curious whether this type of lighting could be made into fluorescent tubes. “LEDs are actually light-emitting diodes,” he explains.
“They emit light by converting the electrical energy into light energy. I was deliberating with the idea and I said, ‘Look, can you convert this into a fluorescent tube – you know, the conventional frozen tube?’ 2 years down the road and the whole of China started producing these LED fluorescent tubes and the price went down tremendously. It’s a very competitive industry. That’s why we went into this, because we knew that there was going to be a future in it.”
You need to look at the ‘sunrise’ industries rather than the ‘sunset’ industries.
Dennis continues to note that, while he didn’t have any experience in this new business venture, a good businessman must always be entrepreneurial. “You need to be constantly on the lookout for new growth areas,” he states. “You need to look at the ‘sunrise’ industries rather than the ‘sunset’ industries. That is all part and parcel of being sustainable in business.”
Always on the lookout for new products & new industries
Today, LED lighting makes up 20% of Denetron; however, Dennis is looking to grow it to a 50:50 split with the component distribution division. On top of that, there’s another area of interest he’s delving into. It was actually his son who first brought this forward-thinking idea to Dennis’s attention. “We’ve gone into hotel automatic kiosk check in/check out systems,” he says.
“In Singapore, the hospitality industry is growing, and the government is actually encouraging all hotel owners to automate their processes. The way we look at it is that most of the time there’s a backlog in the hotel check in/check out process – there’s always a queue, which may frustrate guests. So we have these automatic kiosks from a Japanese company. This company has been in the industry for the last 50 years selling these systems into hotels in Japan.
I’m always on the lookout. New products, new industries – that’s my role.
“Recently – I think 2 years ago – they were interested in expanding to overseas markets and we picked up the product line, becoming an official agent for them. The system works by freeing up the time of the receptionist or the front-office person so that they can do what they’re supposed to do better – provide great customer service.”
With these 3 lines of business ticking along nicely, Denetron looks set to continue to thrive well into the future. But Dennis is still open to more opportunities if they present themselves to him. His son has stepped up, taking an active role in the company’s day-to-day running, leaving Dennis with the time to travel around South East Asia seeking out new horizons.
“I’m always on the lookout,” he concludes. “New products, new industries – that’s my role.”