The departure of the big brand that many people ask the question: Vietnam Trademark able to survive?
After more than two decades of opening up, many businesses (DN), Vietnam has built the famous brand in the country, Thorakao, Biti's, Pho 24, X Men, Diana, Trung Nguyen, All American, Tribeco, Vinamilk , My Hao, P / S, Highlands Coffee ... However, in a short time, many of these brands, in various forms, has been owned by foreign companies.
Photo: Do Hoa
Do you hurt yourself
Lack of knowledge about brand management inevitably lead to the disappearance of many brands.
According to branding experts, which causes the first Vietnamese brand names are being "disappeared" by the business owners are not aware of the importance of branding, which leads to forgetfulness of consumers.
For example, the brand consumers Thorakao been popular in the years 1960-1970 and the early 1990s, became Thorakao brand names on the domestic market and is widely overseas overseas use the information.
Many multinational corporations to do business across Vietnam also made that point acquisition or joint venture Thorakao invited. However, an employer brand has to stand firm: "In any case, too, should preserve heirloom."
Consistency is so, but in business strategy, Thorakao does not seem interested in branding by that, "Every good product, the brand will surely have the market".
Because so quiet Thorakao although still on the market, the export turnover is high, but the name still exists Thorakao faint, even not a few people said that this company is operating perfunctorily.
Similarly, countries like Indonesia whether a consumer brand is also popular and are classified as "durable, timeless," but this brand is also being "faded" in the hearts of consumers.
According to Lien Phuong, director of market research firm Epinion, other causes that are being lanq Vietnamese brand as consumers forget that Vietnam remains skeptical, even allergic to domestic products. Partly due to the external outlook, partly because Vietnamese products have not really understand the consumer, leading to brand strategy has not provided false and trust with consumers.
Epinion research results showed that 60% of consumers, especially younger consumers, who have negative ideas about Vietnamese brand because that product is very good at first but that the quality is not stable and ensure; 40% said that Vietnamese brand consumers do not understand.
Vietnam not to brand gradually disappeared, Phuong recommended: "The most important factor is to know the quality of products come from and how to maintain the needs of consumers. To do this they must listen to consumers and to make good the combination of business strategy and brand. "
Many surveys also said that some companies appreciate the importance of market research, listen to consumer feedback before making decisions about business strategy as well as the importance of marketing strategy and the brand is rather limited.
Meanwhile, research and market survey was last done in the most frequent foreign enterprises. Take the example of Nescafe, despite becoming a global brand but through Vietnam, to the brand is not eroded and was won over by Vietnamese consumers, the brand has strongly changed the coffee taste for the Vietnamese.
Mr. Le Quang Phuc, Chairman of JSC BDSC solution development company, also said: "To nurture the brand, the Vietnam enterprises also need to understand consumers and how to make own brand for Vietnamese people" .
Sharing this opinion, Ms. Bich Lieu, Head of Company markets THP, also said: "The brand of green tea is not widely remembered because of product strategy, we always adhere to criteria : Do not give what we have just launched the products consumers need. "
Do we harm
Photo: Do Hoa
Unfair competition has led many dying brand itself.
Due to competitive pressure, companies are scrambling to launch more competitive tactics. However, the market had no time by doing less product brand makes consumers "turning".
For example recently, brands such as instant noodles, soy sauce instead of advertising to improve the quality of some products, the company re-launched the abilities of unfair competition, threatening consumers compounds substances in the products of competitors.
As "Omachi delicious pasta without getting hot," because made of potatoes, sauce Chinsu not contain 3-MCPD should be safe for their families, or pasta PhD King does not use the oil to fry several times, does not contain transfat (fats cause strokes, heart attacks and coronary artery disease) ...
It is noteworthy that the introduction of advertising tactics, some brands fall into that "his boomerang." For example, the analysis results of the Corporation of Science and Technology Lighthouse chromatography, in a package of noodles Tien King, the rate is 0.097% transfat substance rather than 0 as advertised.
Or PhD King ad cows carrying wheat noodles with toxic food coloring E 102, but through examination, wheat PhD King (old type) and some other contain E 102. Omachi potatoes or noodles only 5% of material is potatoes.
Clearly, the service was launched after the summer and clear black and white, the brand on both a significant drop in sales. About the present, but the product has not yet lost, but clearly the vitality and prestige gradually fading in the hearts of consumers.
According to a report just completed by brand projects by B & Company Asia Vietnam in cooperation with Nikkei BP Consulting's performance: "Compared to before, the Vietnam enterprises have paid more attention to brand building. However, the Vietnam enterprises should pay more attention to creativity and innovation in building its brand image. This is associated with the development of a strategic product development and synchronization service, which focuses on bringing maximum benefits to consumers and integrating value-added products, services, and associated with creating images and style for the brand. This will help the brand get a "personality" separate and potentially leave deep impression in the perception of consumers. "
Sell it can take?
Photo: Do Hoa
The question was repeated after several expensive lesson, think about whether the brand and global brand has changed?
Recently, several acquisitions, mergers took place continuously, typically as the X-Men, Diana Services Corporation sold its shares to Unicharm Company (Japan). Next is the brand sold 100% for Pho 24 Highlands Coffee.
Then Highlands Coffee to sell 50% stake to Jollibee (Philippines), followed by Kinh Services recently completed the merger with Vinabico and Vinabico becomes Kinh Do Company Limited by 100% foreign ownership, Lotte Group also has held more than 38% of Bibica ...
First batch of famous brands Vietnam sold to foreigners, many people have questioned: "Does the Vietnamese brand sold be lost? Vietnamese brand still exists in the upcoming competition ". This question posed for Vietnam enterprises had expensive lessons when selling foreign brand. The most typical example is toothpaste Da Lan.
During the period 1990-1995, Da Lan toothpaste accounts for 30% market share nationwide toothpaste. However, his trademark owner has sold Da Lan for Colgate U.S. corporations with $ 3 million, while the brand is priced at over $ 20 million.
With $ 3 million acquisition and Son Da Lan Hai, now Colgate has become a strong brand cosmetics market in Vietnam. I have returned to Thailand despite the market, but sales are still struggling just like the new era was born, there is no chance before the big foreign brands. Perhaps now, the brand has spread boss realized, to account for 1% market share, need to spend millions of dollars for marketing costs.
This problem also members Friday Business Forum (a non-profit projects for the business community of Vietnam) in place. A member of the group is Mr. Le Quang Phuc said: "There are two possibilities lead to the purchase of the brand. First, strategic financial investment, profit; secondly, by not withstand or inability to lead a better brand development. "
Where to buy Highlands Coffee Pho 24, while this brand are slipping on the reliability of high consumer prices and heterogeneous quality chain system, are more likely to favor investment objectives financing, buying motives appear to be derived from profit alone (that is to resell at a higher price).
Maybe once the sale of coffee and noodle strings will increase the value of the deal and the extent to which Jollibee to penetrate the Vietnam market. X-Men will not withstand the competitive pressure, while Diana and Pho 24 if alone will not continue to develop the brand to the world, so the boss has chosen interim strategy called "send me" to expect their brands will be developed further.
And trading stories at this time is the shortest way to the Vietnamese brand strengthening, stretching to the world. Do Tu Anh, General Director of Diana, who said: "The Unicharm become shareholders shares will help Diana improvements in technology, product development and boost exports through a network Unicharm global wide. "
Photo: Do Hoa
But the merger with Kinh said Vinabico, utilizing the strengths of Vinabico in the fresh bakery products, array Kinh yet powerful product. In addition, the product of Vinabico candy decorations almost no domestic rivals, are exporting more.
In contrast, Vinabico also take advantage of efficient distribution systems up to 120,000 points of sale across the country located. According to the 2011 annual report of Vinabico, sales by taking advantage of this system accounted for more than 70% of total revenue in 2011 of the Company.
The sale of the triangle Jollibee, Highlands Coffee and Pho 24, if Jollibee plans to exploit brand PHO24 for their full retail chains in the Philippines and use it to exploit the world market then, future cash flows future will be great and $ 20 million figure is considered low. Hoang Tran, President and CEO of Vietnam Marcom Company, also said that PHO24 would be better after the sale, Highlands Coffee is still unknown.
Sale, merger is crucial principle of the emerging markets, the regional countries like Thailand, Singapore ... also experienced similar stages Vietnam today. In the context of open economy, production and business stagnation, Vietnam enterprises are very difficult to protect the brand.
So companies need orientation, led by associations, ministries, industries and government. Explaining further the cause businesses fall into the scene to sell the brand, Mr Phuc said that, in addition to practical difficulties due to economic situation, the Vietnam enterprises are constrained in how to keep and develop the brand, get form of ownership and administration is poor, often apply the same management in the way of doing business and change management methods are slow, while the rate of economic growth so fast, leading to impaired .
With brands operating in the culinary field as Pho 24, Highlands Coffee, he Nanthorn Limtrakarn, vice president of Corporate Governance Association of Thailand, said: "The weakness of Vietnam enterprises is too little experience, expertise to organize a franchise management system closely and science to conquer the domestic market and reach out to the world. However, take away food Vietnam conquered the world market, only the new Vietnamese enterprises do, because only they have the love and pride in their products. "
Although, in the opinion of most experts on the brand, though the Vietnamese brand, the brand sold to anyone that is not lost. In the global stage, it is important that brand from the country, not everyone else who run the brand will be lost.
However, Tran Hoang said: "The Vietnamese brand just does not really lost when that brand gain credibility thickness, which was of essence, bring the soul Vietnamese, Vietnam's manners. For example, if Minh Long ceramics sold is still the pride of the Vietnamese brand, but some other products if not reached its essence, long reputed brand in the domestic market, if sales do not mean the loss of brand and will very likely happen. "
The recent large acquisition
Pho 24, Highlands Coffee sold to Jollibee: $ 20 million
Trade in Vietnam lies in the expansion strategy of Jollibee Food Corp.. (JFC). JFC has acquired 50% stake Superfoods Group, which owns Highlands Coffee chain in Vietnam, the restaurant system franchise Hard Rock Café in Macau, Hong Kong and Vietnam, Vietnamese Pho 24 in system Nam and other Asian countries.
With a series of acquisitions, Jollibee aims to become the No. 1 chain in Asia and finally named in the list of leading brands.
Diana sold to Unicharm: USD 184 million
Diana Corporation sold a 95% stake to Japan's Unicharm. According to magazine The Asset, the deal was worth USD 184 million. For Unicharm, after years of doing business in Vietnam, since 2007, products in the premium segment of the tampon Unicharm Sofy and Mamy Poko diapers can not thrive and achieve desired market share (market share small that statistics can not be).
Thus, acquisition of Diana, Unicharm set two objectives simultaneously: the Vietnam market and become the center for export to China and Southeast Asia.
Meanwhile, Diana wanted to sustainable growth and improve export competitiveness in the long term, they must choose one of three paths: either to continue self-advocacy by bank loans or issue shares shares to the public, or merger with a strong strategic partner.
Lotte acquired Bibica: 35.65% ownership
The acquisition of Lotte Bibica was done in a long time, specifically to purchase 4.6 million shares (approximately 30.15%) on the floor from 2007 to early 2008 then purchased an additional 5 , 5% stock ownership percentage up to 35.65%. Up to 3/2012, not to own 49%, but Lotte has held key positions and control of important Bibica through two important positions Chairman and CFO.
Initially, acquisition Bibica, Lotte was able to produce even in Vietnam, inherited more than 20,000 stores, retail Bibica should Lotte Confectionery will soon dominate the Vietnam market. Shareholders Bibica concerns, like the script took place in many enterprises invested from foreign direct (FDI) other activities for years without interest and gradually Bibica mere tool for for Lotte.