The organic products are made by quality raw materials with the belief that creating beautiful and healthy products leads to value for the community and customers.
Minh Tuan Pham
Le Thi Le Diem
University of Economics Ho Chi Minh City, International School of Business
Hong Lam Herbs located in Vinh City, Nghe An Province in the Central of Viet Nam that grows, produces, and sells organic and natural herbs. They started in 2014 with the orientation: “Becoming a reputable company in growing, producing, and selling the high quality organic herbs and hopefully to reach 10,000 return customers in 2020”.
Specially, all of Hong Lam’s products are completely pure, organic, and do not use any chemical materials. This enhances consumers awareness in using high quality products that are good for health and beauty.
To find out more about the company, we contacted Mr. Nguyen Ba Thanh, founder member, Marketing Director in order to interview regarding his company history, policies, products, strategies, and future orientation, etc. There are many products on the market that come from difference sources which can not ensure their quality. Hong Lam generated its natural product and customers know where and how it is made. Mr Thanh shared: “We started Hong Lam with vision to bring organic nature products to customers in order to help care good health and beauty”.
Although they have a good purpose, there are lots of challenges to face. The first, key workforces lack management and business experiences. Therefore, they have to research and learn by themselves and it is often very difficult to apply new knowledge in actual situations. Second, the raw materials are not stable for producing large quantities. Hong Lam also turns to organic certificates of Japan and the US to serve export goals as well as getting ISO certification but it is a challenging journey and a long process. Nowadays, to meet the great material needs, Hong Lam began building a farm to grow clean and fresh materials at Thanh Chuong district, Nghe An Province with 14 hectares using the biodiversity model. To ensure the stable materials, they cooperate with farmers, and provide the variety and permit to buy all products with a high price. However, these materials shall be grown with no chemical ingredients and not contain harmful compounds.
Finally, the current market has strong brands such as Fami Turmeric, Thu Hong Turmeric, etc which have been established for a long time and some of household business. However, Hong Lam does not think they are competitors, Hong Lam just focuses on product quality and customer satisfaction, fix the weaknesses and maintain its strengths to reach the international standard which competes with products made from Japan, China, and Korea. Hong Lam tends to develop products to international market that both improve quality and brand image in domestic and foreign countries as well.
At the bottom line, Hong Lam is a young and enthusiastic company. They are always willing to change to bring the best quality products to customers, specifically, and the communities, in general. Hong Lam has a clear vision and mission to get their target in served communities. They put customers and communities benefit as their first priority, from that they can make and create value to the economy.
As we searched on its website for Hong Lam and product information, we found at the end of their webpage a quote “Be your trust”. It was impressed on us much and build us a belief that was a trustworthy brand and everything that comes from them is trustworthy. Hong Lam is not only a company producing organic products that focus only on women's beauty and healthy of everyone, but it also participates in charity works for encouraging and helping communities, such as “Only rice is not enough” program which provides food for highland children in the north of Vietnam.
Hong Lam continues to gain benefits in the form of value in customer loyalty and market share compared to other competitors.
The impact of Hong Lam is bringing their core value to the community to benefit customers with their quality products.
All Hong Lam products are used for wellness and beauty for everyone. For example, turmeric starch product contains at least 20 antibiotic compounds, 14 anti-cancer compounds, 12 anti-tumor compounds properties, 12 anti-inflammatory compounds, and at least 10 antioxidant compounds. Pure green tea powder helps supplement antioxidants and EGCG enhanced anti-cancer, skin care, supplement the amino acid L-theanine, improve memory and concentration levels, strengthen immunity, decrease fat in the body, reduce cholesterol, prevent heart disease, detoxify the body, and so on.
Moreover, Mr. Thanh said: "Hong Lam always cares about the comments, feedbacks from customers and improves the quality of products and services. Hong Lam always ensures to provide the best quality to customers." Mr. Thanh said more: “In the first time when they ship their products from Nghe An to Ho Chi Minh City, because of product packed in foam box, products did not ensure the highest quality, Hong Lam replaced all of these products and customers are pleasure to use Hong Lam’s product”. Hong Lam believes that bringing the best quality products is the easiest way to connect and build customer trust as well as their loyalty. Customer benefit is the core target Hong Lam always want to reach by control quality of material and finished products.
Starting from 4 main product lines (medicinal herbs, turmeric flour, lemongrass essential oil and green tea flour) Hong Lam only focused on these lines and improve the quality day by day to bring the best value to customer. Moreover, Hong Lam always has a sense of brand value through websites and quality policies. All Hong Lam’s products have separate manufacture process and are tested by reputable agency before selling to the market.
Because this is the new and potential market, there is low competition in this field. On the other hand, as awareness of consumers is changed that creates more and more opportunities for Hong Lam to develop as well as they shall face a lot of challenges.
Hong Lam, at the beginning, is focusing on the sustainable value to the community, with the implementation of natural and organic products and also contributing to help create the balance of ecosystem between environment and people as Mr Thanh shared.
In general, Hong Lam Herb has brought fresh products to the market which are friendly to the environment and nature and help reduce and prevent serious pollution within Vietnam's current dirty food situation.
Specifically, Hong Lam has created stable demand in agricultural products for farmers and supported them by buying products at higher price than general market. It not only ensures to maintain input material that supplied to produce finished products for Hong Lam but also creates stability in workload for community which prevents unemployment rate and a decline in the number of poor households. This is also a good way that Hong Lam supports local government by creating job and helping the poor improve their economic conditions. Moreover, Hong Lam also does charity works that supports and encourages the poor to get through hard times.
“The more human life is improved, the more economy develops”. Hong Lam believes human is the core factor that affects the change of the world in general and Vietnam specifically. From this reason Hong Lam strategy from the beginning is always tend to human life from natural products to farmer working conditions. These must improve significantly the local economy by creating jobs and contributing economic value in developing company. In the future, Hong Lam plans to export products to compete with others and gains product value and it also want to upgrade facilities to improve technology to make quality product that adapt strict requirements from importers and potential customers.
Le Thi Le Diem, Hong Lam Herbs Interview
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Nghệ An, Việt Nam
Business Website: http://www.honglamherbs.com/
Year Founded: 1970
Number of Employees: 11-50