Dien Quang tactics to maintain leading position

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Tapping foreign markets and constantly rolling out new products are core factors helping Dien Quang Lamp (DQC) retain its impressive market share.

The company’s products are now available in more than 30 countries and territories, with export value surpassing VND300 billion ($14.2 million) out of DQC’s total revenue of VND795 billion ($37.8 million) last year.

To avoid competing head-on with strong foreign brands, DQC has chosen similar foreign markets to Vietnam which lack strong local brands, according to the company’s chairman Ho Quynh Hung.

Venezuela is one such market. In 2008, the company established the VietVen energy-saving lamp manufacturing complex in Venezuela via a $300 million joint-venture in with DQC holds a 30 per cent stake.

The complex has operated for two years, providing energy-efficient products for the Venezuelan government.

Company chairman Ho Quynh Hung recalled the doubts some people expressed about the project, “We will not enter in a joint venture if we did not grasp one the two factors - technology and market. Our partner had a clear plan that by 2017 when the plant completes its next-phase construction, its products will serve both domestic markets and be ready to export products to surrounding countries.”

“Investing abroad is one of our priorities and we will take on further ventures when opportunities come,” Hung added.

In the domestic market, the company has to compete fiercely with both local and foreign rivals such as Philips, Osram, Toshiba and Panasonic.

To boost competitiveness, DQC has focused on developing its brand and promoting research and development.

In the past three years, its 50-staff strong R&D centre has launched some 600 new products focusing on products with unique features and more affordable versions of existing products.

For instance, the company has developed humidity-resistant compact lamps meeting IP65 international standards on humidity and dust resistance, making them suitable for outdoor lighting and use in agriculture-fishery production, meanwhile its energy-saving LED lamps are available in a diverse range of styles that meet different cost points.

Sales in the domestic market are expected to contribute VND601 billion ($28.6 million) to the company’s revenue this year, up 24 per cent on-year.

In the first nine months this year, DQC reached 76 per cent of its full-year revenue target, up 56 per cent on-year and its profits rose 56 per cent on-year and more than double its full-year target.

Human resources have also proved a big challenge to the company development.

“DQC is finding diverse ways to retain talent. We have worked with consultants to adopt measures such as periodic wage increases, development of a company culture and offering bonus shares to employees,” Hung shared.