#16 | Vietnam and a strong transformation in the digital economy – Guest Dr. Chen, Vice President of Qualcomm
Seizing the opportunity and making a difference are the key elements for quick but sustainable business development. In this week’s episode, Tran Le Nguyen, CEO of KIDO Group, brings to The Next Power a story about the growth in a traditional sector: the confectionery industry.
On The Next Power’s episode 11, Tran Le Nguyen, CEO of KIDO Group, discussed the innovation stories surrounding the Group and the desire to become the leader in the food industry in Vietnam.
Mr. Tran, along with his brother at a young age, took over and expanded a mid-sized company into a million-dollar KIDO Group. It is now one of the most prestigious companies in the food industry, winning the national brand award 7 times in a row.
The CEO has led KIDO to its current position as by making groundbreaking and innovative decisions throughout the company’s history. Most M&A transactions include the acquisition of Wall ice cream from Unilever, which developed primarily two lines of Merino and Celano ice cream and contributed tothe company’s 20 percent growth to.
KIDO began as a small company with an initial investment of 1.5 billion VND and 70 employees, specializing in the production of bread and fresh cakes, but by 2013, Mr. Nguyen expanded the business to include over 4 factories, 5 food companies, 300 distributors, 200,000 retail points, and over 7,000 employees. According to Euromonitor, KIDO leads the ice cream market with 43.5% market share and more than 30% market share in the cooking oil sector.
Kinh Do cake brand was built famously, KIDO Group has sold its “golden egg” to Mondelēz International for VND 10,000 billion and announced to focus on essential food… In 2021, the enterprise made a bold decision – to return to the confectionery industry after 6 years of transfer.
In 2014, the slow growth cycle and seasonality of the confectionary industry was identified as a hindrance to KIDO Group’s goal of becoming a billion-dollar enterprise. Mondelez International acquired the Group’s confectionery business.
Due to this successful transaction, the company now has sufficient funds to join in the cooking oil market segment. Since the Group received the Tuong An brand nearly 5 years ago, its revenue has increased from 1,000 billion to nearly 5,000 billion. “Vietnamese people use Vietnamese goods” is one of the key factors to this success.
Following the success of its cooking oil development, KIDO is determined to return to the confectionery industry. The Group is focusing on a comeback with three decades of industry experience and a dedication to confectionery products.
The unchanging motto of KIDO is to prioritize quality and prestige at all times. Furthermore, as part of its comeback, the company has launched a variety of new products at a variety of price points in order to broaden its distribution network and reach a wider range of customers.
KIDO Group, in addition to maintaining the value of quality and price, renews itself through numerous innovative steps. Instead of mass production, this company focuses on developing valuable and effective products such as fresh cakes.
Furthermore, the brand constantly captures market trends in order to be adaptable in terms of taste, design, packaging, etc. In addition to 450,000 points of sale, the group continues to invest in and develop technology applications for expansion of online sales channels.
KIDO aspires not only to bring Vietnamese culture to the world, but also to bring the essence of world cuisine to Vietnam. The quality of Vietnamese products, packaging, and production equipment meet the standards required to produce previously imported food items.
However, customer needs in the food & beverage (F&B) industry are constantly changing at a rapid pace. Furthermore, Gen Z is a potential customer in this segment. In order for a nearly 30-year-old company like KIDO to create innovations before the market changes, a combination of seasoned employees and younger generations is essential.
While the younger generation has a better understanding of the market and trends, the senior leadership team will develop strategies for long-term growth. KIDO has also listened to the ideas of the younger generation in the process of innovation, therefore opening up completely new paths.
The KIDO Group had a successful breakthrough as a result of the transaction, but the group’s next innovation strength will be the return to the “king” of the confectionery industry, transforming cakes into essential consumer goods. Vietnam and its culture to the international community.