Cocobay boss told the story of wound in 15 years immediately scarred: If not for CEO passionate about golfing, perhaps now Nikko has been the leading electronic brand in Vietnam
Cocobay boss told the story of wound in 15 years immediately scarred: If not for CEO passionate about golfing, perhaps now Nikko has been the leading electronic brand in Vietnam
The lesson of a digital electronics company with a parent in Vietnam, who once planned IPO, but after dissolution only because the young CEO was playing ... golf.
Few know Mr. Nguyen Duc Thanh, Chairman of Empire Group, the unit behind the current Cocobay Danang project chain, who is also the Chairman of Nikko Vietnam 15 years ago.
At that time, mentioning Nikko was referring to the leading electronics manufacturing company in Vietnam with the main product being air conditioner. Thanks to the orientation of connecting with Nikko Japan under the method of buying trademark rights, technology transfer, hiring Japanese experts to guide and train Vietnamese workers, in the year 2000, Nikko Vietnam self-made life of imported equalizer quality that is affordable.
Even, this brand has a superior strategy compared to foreign competitors when it not only focuses on hitting big markets like Hanoi and Ho Chi Minh City but also moves to provinces to build a network of agents and offices. and product distribution. As a result, product sales have continuously increased, with a year up to 200%. In May 2007, Nikko Vietnam was equitized to be ready to list on the stock market early next year.
However, in the middle of the momentum, Nikko suddenly fell into a spiral of crisis and quietly disappeared in the market. The latter reason was revealed by the former president of Nikko, who came from General Director Dau Manh Hung, who once destroyed the monopoly of foreign brands in the air conditioning sector, but also the one who pushed Nikko to love. so tragic.
"This pain has really happened for 15 years. I have been able to tell all the stories now," said former president Nikko at the seminar "Business lessons - Pain not easily shared" by the Association Young career Hanoi held recently.
Mr. Thanh said that while the brand was at the peak, the distribution system was stable, the cash flow was very good, General Director Hung entered the golf game but neglected his job. At first it is only 1 week 1 session on holidays, then up to 3 sessions / week, 5 sessions / week then all week for golf only. Promise "I will finish the job, okay" in the end is not real.
"The story began to happen. The brand did not sell the goods. The delivery was returned by the agent very much because there was no control of product quality."
"Especially the company's cash flow is dead. Dead for 2 reasons: one is unsold goods, the other is the entire distribution system has no control. They go to collect money from the agent, there are people who pay. But there are also people who do not return to the company, tens of billions of goods ", Mr. Thanh recalled.
By the time the Nikko Board of Directors discovered the problem, there were people holding up to 3 billion, 5 billion or even tens of billion but not paying to the company fund. One member of the BOD proposed the idea of "going to jail" but the rest thought that "going to jail for 8-9 people this time ... is fine".
"So the company is broken. Disappearing Nikko brand in the market. I think if it is maintained for 2-3 years now, Nikko may become a top brand", former chairman Nikko shared regret.
From the story of the head of golf, the control of the company was affected, Thanh advised young entrepreneurs to be vigilant so as not to fall into the same situation. Because according to him, for those who have a foothold in the market, building a solid system, having a hobby will not affect much, but for small businesses, leaders are young, there is much work to do. This is another story.
"I see many friends also play golf, of course you are doing very well but if you are a direct operator, you need to be aware of it," said former president Nikko.
Cafebiz
