Brand development from quality and technology
Thanks to strong digital transformation, aiming to meet the demands of domestic and foreign consumers who prioritize the use of green, environmentally friendly products and limit carbon emissions, Rang Dong Light Bulb and Vacuum Flask Joint Stock Company has achieved growth in recent years.
Mr. Nguyen Doan Thang - General Director of Rang Dong Light Bulb and Vacuum Flask Joint Stock Company shared that the secret to helping Rang Dong accelerate digital transformation is the right combination of a strong force of intellectuals with the company's team of technology engineers and external partners. Thanks to that combination, Rang Dong's smart lighting and smart home fields have developed very quickly. Rang Dong has also brought AI into the product ecosystem, not only controlled by mobile phones but also controlled by voice, recognition, behavior, etc.
Rang Dong has introduced robots into 5 production lines. In the 2024 plan, the company will continue to implement any lines that incorporate robots that can increase efficiency. "At that time, Rang Dong's factory will quickly keep up with the demands of the times," Mr. Nguyen Doan Thang affirmed.
Rang Dong considers digital transformation an indispensable tool to restructure product strategy and bring the brand to the international arena.
Currently, Rang Dong's factories have all installed smart factory applications, so the inventory value at Rang Dong has decreased by 30%, saving more than 1 billion VND in interest costs per month... compared to before. Since then, the Company's products have met the evaluation requirements of international certification agencies, satisfying "demanding" customers such as the US, Japan, Korea, Canada... In addition, Rang Dong's smart lighting and smart home fields have also developed.
In the first quarter of 2024, Rang Dong's revenue reached VND 2,837 billion, up 32.74% over the same period, and realized profit reached VND 207.73 billion, up 8% over the same period. And from the beginning of the year to April 20, 2024, the company's revenue increased by 37% over the same period.
An Cuong Wood Joint Stock Company said that up to now, the company has received export orders until the end of November and domestic orders until the end of August-September 2024. Exporting under its own brand has helped the company gain profits 3-4 times higher than processing. If previously, when processing, the company only earned 2-3% profit in the total order value, now it has increased to 8-10%.
Currently, the company focuses on two main markets, the US and Japan, of which the US market accounts for 85%. The company actively participates in trade fairs abroad, especially in the US, to promote its brand and find customers. Each year, the company spends about 3% of its total revenue on brand building.
According to experts, these are positive results that have a ripple effect on potential markets, thereby creating motivation and favorable conditions for Vietnamese export industries and enterprises to increase their markets or brand value in traditional markets, while also approaching and penetrating new markets.
According to the assessment of the world's leading brand valuation consultancy - Brand Finance, Vietnam's national brand has a growth rate of 102% in the period from 2019 to 2023. The national brand value in 2023 reached 498.13 billion USD, an increase of 15.6% compared to 2022 and has continuously grown by double digits over the past 5 years, ranking 33rd in the top 121 strong national brands in the world.
Affirming Vietnamese values and brands
According to Associate Professor Dr. Nguyen Quoc Thinh, Head of the Department of Brand Management (University of Commerce), Chairman of the Advisory Board of the Institute for Brand and Competitiveness Strategy Research, brand is the greatest asset of an enterprise. However, the process of building a brand takes a lot of time, effort and cost. In the context of the world market and new generation free trade agreements (FTAs) opening up many opportunities for enterprises but also facing great difficulties and challenges, enterprises can even be eliminated if they do not pay attention to brand development.
"Entering any market, big or small, the basic principle is to understand the legal regulations and barriers that these markets set. In addition, businesses must understand market trends to have a way to develop their business," said Associate Professor Dr. Nguyen Quoc Thinh.
According to experts, brand building requires perseverance, continuous and unceasing innovation; brand building must be closely linked to brand management. In particular, businesses must overcome the mindset of exporting good products and selling poor products domestically; conquering Vietnamese consumers on the basis of building a widespread, closed distribution network with the coordination of industry associations and a close, effective combination between the market and the state.
On the other hand, it is necessary to meet all requirements of quality, price and satisfy diverse and increasingly demanding tastes, respect and protect the legitimate interests of consumers. In addition, it is necessary to build brand trust through product quality and value; better exploit potential strengths, strongly exploit the domestic market and promote exports, combine building product brands, corporate brands and national brands, creating added value.
To continue building brands and increasing export value for Vietnam's key products, Mr. Vu Ba Phu, Director of the Trade Promotion Agency (Ministry of Industry and Trade) said that in 2024 and the following years, it is necessary to continue raising awareness of all levels and sectors about the role, significance and necessity of building and developing product brands in production, business and investment.
In addition, ministries, branches, localities, and industry associations need to review, summarize, and re-evaluate the implementation of programs and projects on product brand development that have been issued so far to update, adjust, and supplement appropriately; improve the capacity to build and develop brands for relevant entities. On the other hand, it is necessary to promote support for registration, brand protection, and propaganda and promotion of key export products and potential exports in international markets. In particular, building and developing product brands must be carried out at all three levels: national brands, regional and local brands, product lines, and corporate brands.
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