Valuable lesson: Always stay alert
Hao new US strategy
Just stick at home, competing with foreign brands, Hao has enhanced penetration of potential export markets.
It's long-term strategy, and plan for each year, each region was American leadership is good flexibility to change to suit the actual conditions. Few people know that the driver was steady ship - Luong Van Vinh, general director Hao has started his business since 18 years and has seen "waves".
Valuable lesson: Always stay alert
In the 1990s, around alleys and side streets, not the people do not know to Hao. This brand dishwashing liquid goes into the lives of people in a natural way as an indispensable in the kitchen of every family. Good quality, affordable price, so Hao crept to every corner of the market that does not take much effort. "Back then, not much leisure sales as hard as now. Both provinces after just one dealer, and his delivery just for them, all retail distribution chain below, they take care of, "said Luong Van Vinh remembers.
Mr. Luong Van Vinh - General Director of JSC My Hao Cosmetics. Photo: Education
Business start just 18 years old, although no formal education in the chemical industry, but he Vinh quickly achieved many successes in the field of clean kitchen utensils. Success soon and too easily, a little later he Vinh subjective neglect is also understandable. It is the time of year 1997-1998, when multinational corporations massively jumped into Vietnam market. Previously, Unilever has repeatedly come to see him questioning Vinh Hao acquisition. That he does not want to sell, Unilever high rates gradually from a few million dollars and up to number 30 million, but still only get the shake of the head. "My Hao build by my own hand, whilst the business is too favorable. Multinational corporations jumped in Vietnam and questioned business acquisition made me have confidence that you are the business sectors as potential ", Mr. Vinh explained refusal attractive offerings from Unilever.
However, to say no to Unilever's when Mr. Vinh identified itself will have to cope with an opponent is too strong. Only a short time after Unilever entered the market, US sales slump more than half Hao. "Shock" the loss is too large, too fast now, he found himself Vinh was too subjective in setting up sales networks. "In the consumer sector, the construction of the distribution system is the determinant of the existence of the enterprise," said Vinh conclusions.
He started making more attractive discount policy to "ingratiate" dealers to provide customers deeper into the retail store business. The Vietnamese goods fairs or visits to mobile sales are companies take advantage of maximum participation, not only to raise revenue but also to "warm up" the brand in the hearts of consumers. That was the smart way "the poor" in the context of multinational corporations headlining bombing on the media.
"In the consumer sector, the construction of the distribution system is the determinant of the existence of the business."
In competition with larger rival, have strong financial experience in the market for nearly 100 years, what will be the comparative advantage of the United States is good? Mr. Vinh said: "We do not have what they have, but we know the market of Vietnam and the Vietnamese culture than their consumers."
The competition for market share takes place in all regions harshly. With the tenacious efforts of the army distributed about 500 people (total staff of 800 people across the company), far Hao has built wide distribution network across the country with about 150000-160000 of sale.
The domestic market with 50% market share dishwater still considered the pillars of the US market is good. However, for bigger businesses, Mr. Vinh understand that, I can not just hang around in the yard. Persistence gave away samples introduced in many markets, so far Hao has developed export markets to more than 10 countries, focused primarily in Asia. Although revenue from exports remain modest in the company's total revenue (7-8%), but the goal of My Hao is increased revenue from exports doubled, about 15% within 2 next year. Finding and exploiting new markets such as Australia, America ... My Hao being promoted.
Notably, the conquest of the Cambodian market is considered to be an admirable feat of Hao. Only a few years after entering the market, My Hao has built himself quite a solid footing with around 20-30% market share in dishwashing liquid capital markets is very popular Thai restaurant this. Mr. Vinh "Unveiled", to firmly foot temple tower in the country, the US is good to take advantage of favorable geographical distance as well as many gate the natives used to distribute goods.
"I hired a Cambodian personnel through Hanoi University. He is both fluent in Cambodian market, just understand Vietnamese and Vietnamese cultural exchange should work becomes a lot easier, "Mr. Vinh said. With this new HR strategy, US sales were growing steadily Hao in the Cambodian market and domestic market.
Mr. Vinh also want to be able to establish a similar distribution network in other export markets, but he admits it's not easy work can be done overnight.
Strategic use of local personnel are also applicable to the domestic market. Mr. Vinh advocated hiring sales staff at local and split the squad for easier management.
Although the flagship product is the dishwater, but if this product is only based on the company's revenue growth is difficult to break through. So, Mr. Vinh is trying to boost revenue from other product lines are also potential as washing up liquid (US currently accounts for about 12% Hao market share) and fabric softener.
This year 56-year-old admits he is still very "blood and fire" to fight and grab market share every day, but he Vinh has paid attention to find the recipient of the body for many years now. He has 7 children, have promised to study abroad and then return to take over the inheritance replace his father, but no one wants to go. Mr. Vinh still travel regularly between the domestic market and export to your own test, urge each stage of sales. He said: "Direct work in the market, while having problems, I will come up with solutions faster, more precise."