28-Jan-2021 Intellasia |
The Saigon Instances |
It’s undoubtedly a memorable journey for Thien Lengthy Group to develop from a small manufacturing unit producing ballpoint pens, which was established in 1981, to a well known model within the stationery market. The Saigon Instances has an interview with Co Gia Tho, chair of Thien Lengthy Group, to be taught in regards to the group’s journey previously and new ambitions of this producer.
The Saigon Instances: What are Thien Lengthy’s most useful property within the lengthy journey of over 40 years?
Co Gia Tho: I’m proud that Thien Lengthy at all times makes progress and our income has elevated yearly, even when the financial system has encountered difficulties.
One other essential worth is that the FlexOffice model has been current in lots of international locations worldwide, proving that Vietnamese stationery merchandise are aggressive within the world market. Thien Lengthy has pursued this orientation since 2000, after we noticed a shiny way forward for the sector. Updated, our merchandise have been exported to 65 international locations and territories.
Through the Covid-19 pandemic, regardless of the closure of colleges and difficulties in export actions in lots of international locations, Thien Lengthy has nonetheless been faring effectively. The group has benefited from the outcomes of its preparations. Now we have not been confused however stayed calm to work out response plans. Through the pandemic, Thien Lengthy’s staff have been at all times stuffed with vitality and enthusiastic.
Have Thien Lengthy confronted any difficulties?
They had been probably not difficulties, however Thien Lengthy has typically confronted slowdown resulting from its nice ambitions. In 2008, with an expectation to spice up the teams’ growth, we invested within the Lengthy Thanh Industrial Park in Dong Nai Province and the Dong Van Industrial Park in Ha Nam Province to provide file covers, notebooks, pencils and chalk.
Nonetheless, the financial disaster arose on the time and the rates of interest of financial institution loans had been typically over 24%. If we borrowed financial institution loans on the time, we would not recuperate capital within the following 5 to 10 years. We determined to keep up the manufacturing unit within the Lengthy Thanh Industrial Park solely.
Are thorough preparations the important thing for Thien Lengthy to keep up the continual development over the previous 4 a long time?
It may be mentioned that Thien Lengthy’s achievements at current are because of the outcomes of the group’s efficient methods, that are additionally the important thing for our sustainable growth over the previous 4 a long time.
Over such a very long time, Thien Lengthy has immediately improved its merchandise. Through the journey, Thien Lengthy’s inside pressure has been constructed by its analysis and growth, manufacturing and automation.
Stationery merchandise are required to have prime quality, which is able to come from the synchronisation of applied sciences, supplies and abilities of labourers. Ballpoint pen producers are likely to spend much less on the manufacturing of pen ideas resulting from their small scale, tough strategies and excessive funding. We expect that despite a low revenue margin, we should develop superior applied sciences.
We’re not happy with our merchandise’ excellent high quality that outcomes from imported applied sciences and supplies. Due to this fact, the group has progressively improved itself to provide many important supplies for its manufacturing, corresponding to ink and pen ideas, thus lowering reliance on worldwide companions’ provides of important supplies. Thien Lengthy has additionally taken the initiative within the design and manufacturing of molds and automatic meeting machines to serve its manufacturing and speed up the automation course of. The agency’s automation fee has reached over 74%.
In 2019, Thien Lengthy reported income of VND3.252 trillion and constitution capital of VND778 billion. Are these figures modest in contrast with its age of 40?
In actuality, the stationery sector doesn’t have a big scale in contrast with others. Nonetheless, we proceed to overwhelmingly dominate the home market with rivals trailing far behind.
Within the worldwide market, Thien Lengthy is a provider for the world’s main manufacturers in the US, Japan and Southeast Asia. Plimsoll, a British market analysis company, has assessed Thien Lengthy as an organization with the very best income development within the Southeast Asian area and one of many 15 corporations with the very best income development on the earth and one of the best commerce companion on the earth in 5 consecutive years.
Nonetheless, regardless of how a lot the income is, we imagine that essentially the most beneficial asset of enterprises is customers’ belief. Tens of tens of millions of loyal prospects, together with college students and workplace employees, are an essential basis for Thien Lengthy to broaden its checklist of merchandise and enterprise traces to turn into an enterprise with income of trillions of dong sooner or later.
You could have talked about the income goal of VND10 trillion by 2025, which suggests Thien Lengthy has to publish an annual development fee of some 25%. Is the determine bold?
It’s fairly an bold determine with the present income, however, as I’ve talked about above, we’ve the energy of the Thien Lengthy model. Our product portfolio is at all times expanded and the standard of our merchandise is ceaselessly improved because of our uninterrupted and enduring creativity. As well as, we’ve a big stationery ecosystem. Due to this fact, all staff of Thien Lengthy imagine that our plan will come to fruition.
One other issue that I need to stress is the ability of customers. Massive markets might be Thien Lengthy’s potential markets. Now we have during the last two years labored on plans to broaden to the Indonesian market with a inhabitants of 300 million folks.
The Philippines has additionally posed optimistic indicators as Thien Lengthy has been listed among the many high suppliers of stationery merchandise. In the meantime, the Myanmar market has reported a development fee of over 50%.
Within the Southeast Asian market with 600 million folks, Thien Lengthy may have plenty of issues to do within the subsequent 5 years.
Moreover the growth of markets, is expertise the following focus of Thien Lengthy?
With 1000’s of SKUs (stock-keeping items), Thien Lengthy will discover it exhausting to handle them successfully with out digital transformation. A pen is straightforward however it consists of many elements and equipment. Manufacturing traces are completely different, so price administration is extraordinarily essential.
Since 2010, Thien Lengthy has invested within the ERP/SAP system, which is an built-in answer for company governance. On the time, the system remained new and just some enterprises utilized it. After two years, the system at Thien Lengthy has been operated and created a premise to develop different company operation software program.
On the finish of 2020, Thien Lengthy and FPT signed an settlement on the consultancy of the general digital transformation course of in order that Thien Lengthy might be nearer to customers, cut back prices and enhance the effectiveness of its operation. The best problem in digital transformation is the change of the outdated governance mindset to a brand new one. That can also be a goal set by Thien Lengthy.
Class: Enterprise, Vietnam
Article supply: https://www.intellasia.web/an-ambition-of-huge-revenue-862725