1. The fateful connection with imported confectionery
In the early 2000s, when domestic consumers were still familiar with traditional processed confectionery, what motivated you to start distributing imported confectionery, a relatively unfamiliar product on the market at the time?
Answer: I graduated from university just as the country began to open up to globalization, and I had the opportunity to work in an international environment, so I had a long time of traveling and working abroad. Every time I came back from Malaysia, I had the habit of going to the supermarket to buy confectionery to bring back as gifts for my family and colleagues. When I saw that everyone was enthusiastic about those gifts because of their exotic flavors that were difficult to find in Vietnam, I began to think: "Why don't I distribute these products in Vietnam?" I thought it was a good idea, so I went to the wholesale heads on Hàng Buồm Street (Hanoi) to promote my products. That's how my business began to be associated with confectionery and later the food industry.
In the context of a modest level of income for people, and the high value of goods, was it difficult to find a market for your products?
Answer: At that time, there was a huge difference in quality, packaging, etc. between imported and domestically produced goods. Imported confectionery that met the taste of consumers: delicious, beautiful, and not too expensive... were all the dreams of everyone.
Meanwhile, the production capacity of our country was still very limited, and goods were always in short supply. So, people with income, people who needed to buy confectionery as gifts, would be willing to pay a higher price for imported products.
In 2000, I returned to Vietnam. "Finally, the time has come to realize the plans I have been cherishing for a long time," was the biggest thought in my mind, which prompted me to embark on a series of busy tasks. I started the procedures to establish my own company to officially distribute imported confectionery. Hoàng Mai Trading and Production Company was born that way.
What difficulties did Hoang Mai face in the early days of its establishment, and how did the company overcome them to achieve the results it has today?
Answer: The biggest difficulties for start-up businesses are the lack of capital and experience. Fortunately, with my personal reputation and serious work ethic from before, I made a good impression on my partners. After a short time, they trusted me and were willing to accept deferred payment. In other words, they indirectly invested in me in the early days of the company's establishment.
Next, I focused on the issues of goods and product consumption. By putting myself in the shoes of the customer to select the right products to distribute that meet the needs of consumers, we quickly sold out our products immediately after importing them. In fact, many distributors even paid in advance to receive the goods.
With capital and goods, the business cycle was smooth, and the company grew rapidly. We quickly became known as a reputable importer and distributor of high-end imported confectionery in the North. In 2004, I began to "advance to the South" and open branches to expand market share in the South and win the title of "Trusted importer of confectionery in Vietnam". On the 10th anniversary of its establishment, we became the exclusive, reputable and reliable partner in Vietnam for 15 major confectionery brands in the world from Europe to Asia, such as: Lambertz, Witor's, Gavottes, Elvan, Apollo, Lot100…
Expanding the business model from a distribution company to a manufacturer must not be easy. What was the reason for this decision?
Answer: At the time of its 10th anniversary, Hoang Mai was a reputable distributor in the market. However, our activities could be affected at any time when partners change their cooperation terms or business strategy. Moreover, at that time, imported goods from abroad were all high-end products with relatively high prices, so middle-class customers in remote areas could not access them. This was what bothered me.
At the same time, Vietnam has many strengths and opportunities for development: abundant raw materials, cheap labor, and high consumer demand. We have all the reasons and conditions to develop the food industry that is not inferior to neighboring countries such as Malaysia, Indonesia, etc., which are exporting their products to many countries around the world, including Vietnam.
By taking control of production, I will stabilize the company's operations, expand the distribution market, promote the country's inherent strength, and develop the domestic confectionery industry. These reasons motivated me to decide to invest in building a production plant to create my own brand, a Vietnamese brand, and the Richy brand was born from there.
2. The "overseas trips" that brought Richy fame on the international stage
When you first started, what product did you choose for Richy?
Answer: In 2011, our first factory went into operation, officially marking Richy's presence on the market with its first product, rice cake. I think Vietnam is the world's leading exporter of rice, so there is no reason why we can't produce rice cakes like Japan, Thailand, and China... Rice cakes are a new product, not overlapping with the product range we are distributing, cheap labor, and potential market... I have all the reasons to convince myself to start production.
How did Richy implement the plan to find a market for the product?
Answer: Right from the establishment of the factory, I determined the 50/50 formula for the domestic market and export to sell the products. For example: Tet Nguyen Dan in Vietnam usually takes place in January-February; Tet in Thailand and Cambodia in April; Eid al-Fitr (Malaysia, Indonesia, etc.) - July; Diwali in India falls in October; Christmas for Christians falls in December... If Richy can reach, conquer all of these markets, then the factory will always be busy, the products will always be sold out, and it will be like Tet all year round!
As of now, Richy has exported its products to 30 countries and territories, including developed countries with very strict quality regulations such as Japan, South Korea, and the United States.
After rice cakes, Richy has started producing many other product lines and has chosen to export all of them. Is "going abroad" considered a mandatory criterion for each Richy product?"
Answer: Yes, "going abroad" is considered a mandatory criterion for each Richy product. In the digital age, trade barriers are being reduced, and the market for Richy is the market of 7 billion people around the world, not just the market of 100 million people in Vietnam. By improving product quality through the process of improving production technology, always innovating and creating, we will be confident in going abroad and competing fairly with other brands.
In the past, when people mentioned Richy, they would think of rice cakes. Now, Richy is also associated with the line of fresh egg waffles with Karo dried meat. I know that this is a product of foreign origin. How did Richy "Vietnamize" this type of cake?
Answer: Waffles originated in Greece and were later developed by the Belgians into two forms: one is a dry, crispy, buttery cake; one is a fresh, frozen cake that is stored in the refrigerator and must be steamed before eating. Waffles are delicious, but I still feel like they are missing something to be a quick and nutritious snack. That's why I came up with the idea to improve this type of cake.
Our R&D department stepped in. By adding dried meat and fish sauce, which are pure Vietnamese ingredients with the breath of Vietnamese cuisine, mixing them in the right proportions and baking them, we successfully created the first "Vietnamese Waffle" on the market, with a taste that is very close to Asian consumers. And that is Karo fresh egg waffles with dried meat - a pioneer product in the fresh cake market today.
The greatest joy of Richy is that when Karo was first released and introduced to users across the country, it received very positive feedback and was ranked No. 1 in the "Vietnamese Products Loved by Consumers in 2020". Now, when people mention Richy, they no longer think only of rice cakes, but also of Richy Karo.
As Karo waffles have a very short shelf life. How does Richy export the products?
Answer: After receiving the love and support of domestic users, Karo was then exported to Laos and Cambodia, and was also warmly welcomed by the people of those countries. The transportation time to these two countries is about 2-3 days, so it does not affect the quality of the cake. The plan to take Karo even further to new lands and markets is being carefully considered and calculated by us, partly because it is a fresh cake product with a short shelf life, and partly because of the strict regulations related to quarantine for products containing meat in some countries.
However, the barrier we are facing is also the barrier that international fresh cake brands face when entering the Vietnamese market. This is a challenge but also an opportunity because it means that the fresh cake market is the playground of Vietnamese people, and Richy. I believe that fresh cakes will become a new consumption trend in the near future, as consumer demand increasingly focuses on taste - delicious but clean, without preservatives. The long-term strategy, although costly and predicts a fierce competition, but we are confident that we will continue to expand our market share in the coming time and conquer consumers with the product Karo - the first Vietnamese Waffle on the market.
3. Richy: "National Brand 2020" - A well-deserved reward for a 10-year journey
Richy ended 2020 with the achievement of the "Vietnamese National Brand" title. What do you think about this result?
Answer: This title is a source of pride for the Vietnamese food industry, especially in the context that we still have a relatively large gap with countries in the region such as Indonesia and Malaysia. To be honest, when I received this title, I felt both honored and pressured (laughs).
Honored because this is the most noble and prestigious title awarded by the Government and the Ministry of Industry and Trade to products and services that meet a series of stringent criteria. With the recognition of the National Brand, Richy is more confident than ever to "bring our bell to foreign lands". Pressured because now Richy is not just ours anymore, but it belongs to the nation, it represents the country, and the responsibility will be very great. We must strive even harder to develop products and ensure quality with more stringent criteria than before. The National Brand is the result of Richy's efforts over the past time, and it is also a driving force for us to continue to strive, a foundation for a brighter future in the future.
In the context of an open economy like today, what will the National Brand help Richy in the upcoming overseas journeys, Mr. Truc?
Answer: With the recognition and recognition of Richy for the title of "Vietnamese National Brand", the Government has helped to commit to international consumers: Richy's products are quality products. This will be very convenient for Richy when going to introduce and expand into new markets, especially when the reputation of Vietnam is being enhanced on the international market.
Just imagine the image of Richy's boxes of candy appearing on the shelves of a supermarket in a foreign country with the logo of the Vietnamese National Brand, when that time each Richy product will be an ambassador of Vietnam to international consumers.
To seize the opportunities that the National Brand brings, what plans will Richy have in the next 5 years, Mr. Truc?
Answer: Continuing to move forward on a new journey, Richy will not stop investing, researching and developing new projects, bringing out products that are in line with the current consumer tastes, while ensuring the criteria for nutrition and quality. In particular, we will leverage our strengths at the moment in the fresh cake industry to develop clean food chains on the basis of clean raw materials. To do this, I am embarking on the project of the Richy North Confectionery Production Complex according to international standards, large scale and concentrated modern technology. At the same time, Richy also focuses on investing in human resource development, training the professional skills of employees, to join Richy in the new journey carrying the mission of the National Brand.
Source: Cafef