(Investment bridge) Austdoor holds 35% – 40% of roller shutter market share. Austdoor’s owner has had many charms with doors.
In July, the thief conducted acquisition and copied the roller shutter code bought from China to open the doors and suddenly broke into DigiWorld Hanoi camera store, stole a number of goods valued nearly 1 billion dong. In September, only within 2 months, Austdoor Group that specialized in manufacturing roller shutters organized a press conference to introduce the roller shutter anti-break technology to consumers.
Mr. Duong Quoc Tuan, Austdoor Group’s General Director.
According to information from Austdoor, using Austmatic rolling code – ARC, Austdoor Roller Shutter control system has capacity of generating billions of random codes that are not repeated after each use, making the thief not able to break into.
This itself is the story that we talk with Mr. Duong Quoc Tuan, Austdoor Group’s General Director, on a day in the middle of September at Austdoor’s headquarters in Hanoi.
Mr. Tuan said that, ARC has been developed by Austdoor for a long time and it is a part of solutions that Austdoor launched. However, Austdoor’s control system has higher price than China’s ones, many customers buy Austdoor roller shutters but use control system in form of fixed code of China.
Mr. Tuan did not share too much about the new marketing strategy of Austdoor, however, some experts in the field of marketing had opinion that Austdoor was focusing on customer’s fear that some enterprises in the consumer field used to succeed in the past years.
The idea for trading roller shutters was found suddenly by Mr. Tuan. He told, before establishing Austdoor, he traded in the field of industrial machineries. In 2002, during a business trip to join a fair in Australia, he found that this country was using a type of roller shutter with features differing from China or Taiwan roller shutters being used in Vietnam.
Back to Vietnam, he and his 5 friends decided to establish Austdoor. They accepted to transfer the technological lines from B&D Australia Group to bring the Australia roller shutters from Australia to Vietnam.
After over 10 years, Austdoor is now a Group with 5 member companies, 4 factories nation-wide and nearly 1,000 employees. Said by Mr. Tuan, in 2013, Group’s revenue reached about 600 billion dong. Particularly, though the field of building materials originally got the most influence during difficult times, the annual growth rate of Austdoor still reached 15%-20%.
“There has been no special milestone during Austdoor’s development. We have been developing year by year at every factory”, said by Mr. Tuan when receiving question that which decisive milestone helped Austdoor develop during our 10-year journey.
However, in the field that is considered to be quite competitive with the following strategy of many brands, holding 35%-40% of Vietnam’s roller shutter market share is not simple at all. Thus, what is Austdoor’s strategy?
“Grasping the market’s taste, considering technology improvement and development are the core elements”, said by Mr. Tuan. He also said that these elements themselves made many Austdoor’s competitors not eligible to follow.
This strategy is clearly expressed when looking at to Austdoor’s product development process. From basic roller shutters to successful application of reverser system when encountering obstacles; ARC control system; Protective Austmatic drive technology, etc., and to line of new generation Aluroll 2013 ventilation spot roller shutter.
Another strategy that helps Austdoor maintain the growth shared by Mr. Tuan is rapidly changing the target customer group: focus on retailing for people instead of enterprises as previous.
He also applied distribution model through agents instead of stores as other competitors to better respond to customer needs. Now Austdoor has more than 200 agents across the country.
Besides, Austdoor expanded to markets in some countries in the regions such as Laos, Thailand to increase output. Now, the export accounts about 15% of Austdoor’s total revenue structure.
Inside the Austdoor roller shutter manufacturing factory in Hung Yen.
Not only helped to maintain the growth rate, the concentration on retail customers helped Mr. Tuan recognize that most of Vietnam door manufacturing enterprises, including Austdoor, only focuses on the top layer of door market, meaning high-ranking segment.
He explained that the doors in a house can be classified into 03 groups as: Protective group (including roller shutters, sliding doors, steel doors, etc.); Exterior group (including balcony doors, windows, glass curtain walls, etc.); Group of doors for connecting rooms (including doors for connecting rooms and toilet doors).
“The third group has very large market demand, from rural to urban. However, now, the products are mostly manufactured manually and use natural wood, leading to forest exploitation for wood, badly affecting the environment. Austdoor will join this segment by product line of artificial wood”, Mr. Tuan shared about Austdoor’s new strategy.
“The products are manufactured from cultivated wood, processed through the following steps: grind, mix, thermal addition and extrude by modern technology process upon large scale will ensure stable quality and competitive price. This will be sustainable direction for Austdoor, contributing to reduce cutting and destroying forest uncontrollably, ensuring the balance for ecological environment”, Mr. Tuan affirmed.
At the moment, the factory to manufacture this product line is completed and will be launched in the near future with another brand.
Fairly discreet with the media, thus, the business world doesn’t know too much about this businessman who was born in 1969. He established Austdoor, but few people know that he also failed in business sometimes.
In 2009, he associated with many enterprises in different industries. However, the market’s difficulties and low-efficient investment made these investments not get the expected results. He sold his investments and decided to the door field.
“It’s necessary to choose a target and define own way. The success or failure in business is due to attitude in thinking more than thinking ability. The art is a fine way, the science is effective way but the business is profitable way”, Mr. Tuan said when receiving the question about what the most meaningful lesson for him during his business is.
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