ถอดรหัส หยั่นหว่อหยุ่น ส่งออกระดับโลก l THE SME HANDBOOK SS10 EP.60

This episode of The SME Handbook by UOB features a discussion with Mr. Wasuphol Tangsombatvisin, representing Yanwun Corporation Group Co., Ltd., a company with 81 years of history in Thailand. Yanwun, known domestically for its sauces and condiments, has successfully expanded its reach to global markets. The company's journey into international markets began during the current CEO's father's era. Recognizing a significant opportunity, they initially focused on the European market, which was perceived as a "blue ocean" due to the limited presence of Thai sauces and condiments. This strategic move, dating back 50-60 years, involved overcoming the challenge of gaining acceptance for Thai flavors in markets with high standards. A key takeaway for expanding internationally is the importance of finding the "right partner." This partner should possess a deep understanding of local consumer behavior, eating habits, and distribution networks, which is often more nuanced than what a company can grasp from afar. The selection of local partners involves considering whether to engage with large, established distributors or smaller, more agile entities. The latter, even if smaller in scale, may exhibit a stronger drive and commitment to growth, making them potentially more valuable partners. International trade ethics are paramount. Issues such as payment terms and credit periods can be challenging. The company has encountered situations where payments were delayed or never received, highlighting the risks involved. Unlike domestic business where legal recourse is more straightforward, navigating international legal systems can be complex, resource-intensive, and time-consuming. The speaker advises caution against partners who promise large volumes without clear commitment, as this can lead to production without payment. To mitigate financial risks, the use of financial instruments like bank guarantees is recommended. UOB Bank is mentioned as a provider of such services, facilitating international transactions and offering currency exchange flexibility. Regarding product adaptation, Yanwun acknowledges that while Thai consumers are familiar with their products, foreign palates may require adjustments. The company distinguishes between cooking sauces (used in preparation) and dipping sauces (ready to eat). Dipping sauces, such as chicken, chili, and seafood dipping sauces, have proven particularly successful in export markets, becoming staples in various cuisines globally. They note that in some countries, they have multiple brands catering to different market segments. The strategy of offering multiple brands in a single market is discussed. This is often driven by the need to provide exclusivity to distributors, especially in large markets like China where one distributor cannot cover the entire territory. This approach aims to prevent direct competition and price undercutting among partners. Building trust and confidence with these partners is essential, akin to a marriage where both parties need to feel secure. Meeting international standards is non-negotiable. European and American markets, for instance, have stringent regulations (e.g., FDA in the US). Maintaining backend systems, ensuring compliance, and staying updated with technological advancements are crucial for global acceptance. Investment in machinery is a significant consideration. Machines can be a "money-making machine" during high demand but a "money-draining machine" during downturns due to fixed costs. The evolution of machinery, with improved technology and competitive pricing from countries like China, has made it more accessible. The choice of machinery impacts production capacity, quality control, and the ability to meet large orders, thereby influencing a company's competitive advantage. Employee welfare is another critical factor, especially for companies aiming for global reach. Adhering to labor laws, such as working hour limitations, is essential and subject to audits by international clients. Factories are essentially evaluated like a "home," with clients assessing cleanliness, operational efficiency, and capacity. A one-stop service offering, supported by robust infrastructure, provides a competitive edge. The discussion also touches upon the importance of mutual assessment between companies and their potential partners. Just as a company evaluates a distributor, distributors also assess the company's capabilities, infrastructure, and capacity. Business growth and sustainability are linked to performance metrics and key performance indicators (KPIs). If partners fail to meet agreed-upon KPIs, it can lead to the termination of the relationship. However, the evaluation shouldn't solely focus on sales figures; other factors like distribution efforts and market engagement are also considered. A broader perspective, looking beyond immediate numbers, is advised. Brand positioning is vital for standing out in diverse markets. Yanwun aims to position its brands with specific expertise, whether in dipping sauces, cooking sauces, or other product lines. The perception of a brand can vary significantly from country to country, necessitating tailored strategies. For children's eyewear, for example, the focus is on maintaining brand vibrancy through continuous product innovation, catering to evolving consumer needs, and embracing digital trends. The company emphasizes the importance of quality and taste as foundational elements for brand trust, especially in the culinary industry. Innovations like 0% sugar and low-sodium products reflect a response to the growing health-conscious trend. The shift from being a behind-the-scenes ingredient provider to a more visible brand, offering ready-to-use products, is also a strategic move. Sustainability is viewed from a long-term perspective, considering future market trends and potential global shifts, such as space travel and its implications for food consumption. Identifying opportunities in emerging markets and catering to diverse needs is key. Supply chain management is highlighted as a critical component for both domestic and international operations. Investing in systems, utilizing technology like barcode scanners and GPS tracking, and ensuring efficient logistics are essential for controlling inventory, managing raw materials, and delivering products reliably. Service level, particularly timely delivery, is crucial for customer retention and business sustainability. Distribution channels are evolving, with online sales showing significant growth alongside traditional offline channels. Online platforms offer a 24/7 storefront, expanding reach and providing direct consumer engagement. The company aims to increase its online presence and sales proportion. The entrepreneurial DNA of Yanwun, passed down through generations, is rooted in ethics, quality, and adaptability. Facing challenges like the 1997 economic crisis, the company's grandfather demonstrated foresight by adapting payment terms and currency strategies to navigate economic fluctuations. The core lessons learned from previous generations are: 1. **Ethics:** Upholding fairness and morality in all business dealings is paramount for long-term sustainability. 2. **Taste and Quality:** Consistently delivering high-quality products with appealing taste is fundamental to brand reputation and customer loyalty. 3. **Adaptability:** Embracing innovation, new technologies, and evolving market trends is crucial for extending the company's lifespan beyond its current 81 years. The conversation concludes with a reiteration of the importance of standards, quality, and ethics in building a trusted global brand. The success of Yanwun is attributed to these core principles, enabling them to adapt and thrive in international markets by understanding consumer needs and maintaining product integrity.