Nguyen Thanh Phuong, Alumnus Class 1 and one of the successful graduates from Hanoi University of Business and Technology, currently General Director of Kangaroo Group, one of the most powerful groups on Household Goods & Safe Home Device of Vietnam.
CEO Nguyen Thanh Phuong: “No Confrontation, No Competition" on The Investment
The CEO of Kangaroo Group has a policy “No Confrontation, No Competition” but focuses on differences in products, brands and technologies. Kangaroo Group was presented with Red Star Award 2011.
In the past, fans of Manchester United (MU) called for establishing "anti Kangaroo" (those who do not like Kangaroo) due to sudden promotions of Kangaroo in the match. “When MU is losing, that Kangaroo appears constantly made MU fans impatient. Finally, MU loses; Kangaroo is regarded as a criminal and anti Kangaroo waves spread social networks.
Now everything is different. Some universities in the United States and Vietnam even apply Kangaroo’s strategy to marketing curriculum. In fact, we have succeeded in promoting our brand", said Phuong.
Whether or not "Anti Kangaroo" was established, Kangaroo-style advertising trends have become popular. The media constantly refers to Kangaroo with both positive and negative side.
However, it can’t be denied that "anti fans" influenced Group's business performance, and opportunities, especially in a difficult year for almost everyone.
“When customers hesitate to spend tens of millions VND on air conditioners, they may be interested in steam fans. When customers want to buy durable goods, they will look for new technologies. Customers may not have air conditioners, but they can help using fans, cookers. Love and hate emotions will be replaced with actual needs. Moreover, Kangaroo applies reasonable price. As a result, they will select Kangaroo.
Although this is the most competitive segment, our strategy is “No Confrontation, No Competition”. Maybe it is unbelievable, we do not confront in competition but focus on differences in products, brands, and technologies”.
It turns out that the 7x CEO is more cautious than his youthful and stylish appearance. Seniors consider capital market a battle, strategies of the 7x CEO is more methodical.
The strategies Mr. Phuong mentioned are Confrontation, Differences and Initiation, which are considered the most perfect ones. However, Vietnamese businesses are inexperienced, insensitiveness to the market, “Difference” is the most difficult and risky way.
“Indeed, it is a challenge for our Group. We follow the most basic principle in business: If original platform is well-prepared, business operations will become easier.
Our technologies have not been developed so we follow Australia's leading brands regarding water purifier’s technology, energy technology to learn not only technology but also administrator system, business management. For household goods, we learned from Japanese leading groups.
In machinery, the differences originate from technology so we look for differences. For ex, they make fans, we have steam fans; they produce hot water tanks, we have hot water tanks coated synthetic diamonds", said Phuong.
When talking about the rapid growth of Vietnam enterprises over years, Mr. Phuong told a story of a fundament for 10 floors but it bears 15 or even 20 floors. Due to the fact that it is too easy and too fast to make money, many people construct too high buildings, but forget that the fundament are so unbearable that it is easy to be collapsed.
Otherwise, successful entrepreneurs applied “Short-term Plans for Long-term Plans” and “Never miss any opportunity”.
“We have seen 2010 difficult economy and 2012 may be even more complex; however, difficult is an opportunity for people to estimate themselves, to consider strengths and weaknesses they does not recognize when developing quickly. We also want to see whether the platform we have created is compatible with the growth rate so that we make appropriate adjustments. In fact, the more stable foundation is, the more enterprise develops.
"After 10 years, has our group developed faster or slower than expected?"
“A story of two people starting their business: The first has a clear strategy; it is easy for him to payback. The second decide to do and create strategies. As a result, the second succeeds more.
We belong to the second group. Of course, we operate on the basis of different administrations, people and strategies.
Initially, Kangaroo produce water purifiers. Now, we manufacture diversified products with the aim of top 10 enterprises in the Southeast Asia. In 2011, Kangaroo's growth rate was 400% and the CEO was presented with Red Star Award - Typical Entrepreneurs.
"I follow a positive trend, and I have responsibility. I am aware that business does not mean profits, or sales, but responsibilities for employees and society."
In the era of technology, a businessman cannot ignore the impact of technology as well as the power of the virtual world. Anti Kangaroo story left unforgetable lessons for the 7x CEO.
Nguyen Thanh Phuong
- Alumnus of HUBT Class 1
- CEO of Kangaroo Group
- Vice Chairman of Hanoi Young Entrepreneurs
- Vice Chairman of Vietnam Retailers Association
- Red Star Entrepreneur 2011
- Talented Entrepreneurs - Top 10 Businessmen
- 6 member companies specialized in home appliances, kitchen appliances, power equipment, safety equipment - silver boxes, door systems and telecommunications devices (phones).
- 3 branches nationwide
- 1 factory
- 1 research and development center
- 3 overseas branches
- More than 3,000 agents nationwide.
Source: The Investments