At the end of this year, Rita Võ officially broke ground on a luxury condominium project, entering the real estate sector. The leadership of the company stated that this is a dream nurtured over 20 years and is only being realized now, having achieved success and sustainable development as a leading distributor of Building Materials and Furniture in Vietnam. Mr. Võ Mậu Quốc Triển shares insights into the business journey, brand positioning in the market, as well as the new plans of the enterprise.
– How has Rita Võ's business been over the past two years amid Covid-19, sir?
- I often humorously say: there may be difficulties, but people are still building houses in abundance (laughter). Therefore, last year, we contributed nearly 700 billion VND in taxes. In the first six months of this year, the company has also contributed 450 billion VND to the state budget, and we anticipate contributing over 1,000 billion VND by the end of the year. Additionally, in the first half of the year, the brand achieved double-digit growth.
In the field of high-end building materials and furniture, Rita Võ is the leading brand in the Vietnamese market. Currently, we have 23 large centers in Vietnam, and all foreign corporations entering the domestic market want to cooperate with us, appearing in Rita Võ's system.
– The furniture market often follows the prosperity and decline of real estate. What challenges have you faced in this context?
– RitaVõ's revenue structure leans towards retail with 65%, while the remaining 35% comes from projects. Therefore, we are not heavily affected by project investors but rely on the overall market. The retail sector in Vietnam is a large cake that almost all global giants want to grasp, competing for market share.
In the real estate and furniture sector, there is significant potential, with stable development over the years. The demand for housing construction is very high, creating dynamism in the market. Furthermore, the strong internal resources of the people, the Vietnamese mentality of buying and saving for their children, provide a stable source of income. That is why we can continuously expand our entire system for many years.
The Hanoi market is very challenging, especially for businesses from the South, but Rita Võ has left a mark by clearly stating the origin on each product. Typically, consumers prefer goods from large countries, but today international corporations have set up factories globally. Where it is produced is not important; the essence lies in technology and the brand of the product. To build trust with customers, we also focus on sales and after-sales services.
In addition to the reputation built over two decades, Rita Võ's strength also comes from an extensive distribution system, people, and partners. Sixteen years ago, I secured a historic contract with Kohler, becoming the exclusive distributor in Vietnam despite having no money or experience. We also secured exclusive agreements with over 30 major international corporations. This is a rare occurrence when these entities enter the local market, as they usually choose from a few to dozens of distributors to increase coverage.
Kohler sanitary equipment
– How did you manage to convince Kohler – one of the leading brands in the furniture industry with nearly 150 years of operation?
– It's a strange thing, but not thanks to luck.
At that time, we had no experience, no email; all transactions were done via fax sent to the US and then forwarded to Singapore. On the scheduled day, we had to travel to Europe, fly to the US, Shanghai, Germany, France…, stand in front of the most experienced experts to present our plan. I communicated with them in self-taught English, sometimes had to ask partners to speak slowly for me to understand and respond.
Among the submitted profiles, we were almost at a disadvantage because we had no showroom and no experience. They asked: What does Rita Võ have? I said: we have this report, and we will do it exactly as planned.
In that report, I wrote about myself: a wife and mother of three, 12 years of running a state-owned business, and a great love for the Kohler brand, with a strong passion for the high-end furniture industry. My love for Kohler comes from the biggest obsession of my life: the toilet. When I was a student living in the dormitory, every time I went to the toilet, I had to cover my nose and hold my breath. So, wherever I went, the first thing I did was observe the toilet. Every business trip, when entering a 5-star hotel and seeing Kohler facilities clean and beautiful, I immediately developed affection and admiration. From then on, the dream of making every bathroom at home a 5-star standard, beautiful space was born.
But love is not enough; in front of a conglomerate with a history of over a century, you have to provide what they need – a strategic plan with great potential. After sitting in the lecture hall, I began to observe the market. Through many jobs, I accumulated knowledge about habits, user needs, and thought about ways to meet those needs.
Mr. Võ Mậu Quốc Triển with strategic partners
– How did you strategize for the Vietnamese market to convince partners despite being inexperienced?
– A distributor is not just a transporter, bringing goods from the US to Vietnam. At Rita Võ, we are the ones who create the menu, prepare the meal according to the taste of the guests. From understanding the market, we carefully select and guide manufacturers to create collections suitable for the Vietnamese people. Like myself, not being taller than 1.7 meters, if a table and chairs are too high, I won't buy them. We must choose sets with smaller dimensions, suitable for sitting and fitting the space of the house.
Regarding prices, although Rita Võ has a group of super-rich customers, the number is extremely small. Therefore, we develop a product range from medium to high-end, willing to negotiate with partners to get the best selling price, accepting the minimum profit margin.
For bathroom and kitchen equipment, we offer competitive product packages (focus and package). In addition to the two major cities, Hanoi and Ho Chi Minh City, we launched Karat – an affordable brand for the mass market.
Simmons pocketed coil mattress
Rita Võ also requested the Simmons pocket spring mattress brand (USA) to produce mattress lines suitable for the majority of Vietnamese budgets, with prices starting from only 12 million VND but maintaining quality and meeting global standards...
These requests were challenging to be accepted, but we succeeded in convincing them through revenue, demonstrating the market demand. The Vietnamese people desire good quality at a lower price. Lower prices may reduce profits, but I believe in the principle of 'slow but steady wins the race.' Rita Võ's Building Materials and Furniture system currently has 23 showrooms. Although the profit margin for each item may not be high, gradually adding products to the basket will create dream-worthy figures.
– Since its establishment, what challenges has the corporation faced?
– People often ask me if I have faced challenges, and I always say it's a constant struggle. That struggle motivates me to avoid complacency and strive for continuous improvement.
In the current context, the manufacturing and logistics industries face numerous challenges, significantly impacting prices. In reality, even staple items like pork and bundles of vegetables in supermarkets have seen price increases. Therefore, as long as the price adjustments are reasonable and justified, consumers will understand and accept them.
This year, Rita Võ's biggest challenge is in the area of human resources. I am planning to expand into real estate and manufacturing. Consequently, the most pressing issue at the moment is finding the right individuals for effective management and operation.
– Why did you choose to enter the real estate sector at this time?
– Rita Võ engages in various industries, and my strategies are based on market dynamics. The core remains in high-end construction materials and furniture, with other sectors serving as support, including real estate.
While real estate may not be the primary focus, it has been my passion for decades: constructing buildings that redefine the standard for high-quality. What defines luxury? It's a project meeting standards in terms of location, apartment quality, and designers. Every brick, light fixture, and toilet meet 5-star standards and are managed by Rita Võ.
In this field, I plan to build a hotel in Phu Quoc and ultra-luxurious apartments in District 5, Thu Duc City, Ho Chi Minh City. The apartment complex, built on a 3,600 m2 area with 22 floors and over 280 units, has a total investment of over 2,000 billion VND. The floor area is 28,000 m2, with the lowest selling price at 12,000 USD/m2, varying by location. The 5-star hotel will also be constructed by the end of this year, featuring 300 rooms with a total investment of 40-50 million USD. With a land bank prepared for 20 years, we have secured prime locations with complete legal documentation.
– How do you assess the allure of the high-end real estate market?
– I am confident that the market will absorb these offers because the number of units is limited, yet they are designed to the highest standards, complete with amenities akin to a 5-star hotel, including restaurants, clubs, business centers, and more. I anticipate that this model will redefine what constitutes a luxury apartment. For instance, stepping into a room with a standardized lighting system that doesn't strain the eyes, Italian floor tiles that remain flat and intact, kitchen cabinets and bathrooms equipped with Italian and German fixtures, and even kitchen cabinets worth a billion VND without household appliances.
The pricing is based on surveys of regional demand compared with domestic assessments. In Singapore, prices range from 60,000 to 100,000 USD/m2, while in Thailand, it's 20-30,000 USD/m2. The Vietnamese market has more accessible pricing compared to these figures.
Ultra-luxury apartments are chosen by discerning customers who feel they are deserving. Rita Võ also selects its customers. With 280 units, it's a straightforward equation for our current customer base. We have tens of thousands of customers annually, totaling over a million to date. Among them, 2-3% are super-rich customers with significant resources, and they genuinely seek a prestigious residence.
– Operating in multiple industries, how do you ensure the sustained growth of the company?
– Many people ask me about the secret to running a diversified business. My approach is quite simple: it's all about personnel. The current vice presidents seamlessly take on my roles in various sectors. From department heads to directors, with a team of 50 people, I have absolute trust. There are months when I only visit the company twice. At this point, the position of chairman is focused on innovation— developing strategy, expanding partnerships, and training people.
Currently, Rita Võ has around 1,500 employees in a dynamic working environment. We offer numerous opportunities for new talents to reach their full potential. I don't have any specific method to retain people, and I can be quite hot-tempered myself, but the senior management team has been with me for decades. Some even joke that Mr. Triển doesn't take breaks even to fire someone. But I don't actually fire employees (laughs).
– What are the unit's plans for the near future?
– We will continue to expand our business activities, focusing on high-end construction materials and furniture, with the goal of opening 50 showrooms nationwide. I expect successful exports and entry into the global market. For now, I haven't considered going public as I still prioritize maintaining control through autonomous management.
In terms of manufacturing, in December 2021, we launched RitaVõ LifeWindow, the precursor to the LifeWindow brand and the aluminum and plastic door manufacturing plant established in 2008. Along with acquiring the plant, Rita Võ transitioned from retail to producing everything related to construction materials. In the future, we plan to expand production for export, serving markets from mid-range to high-end.
The enterprise continues to uphold community-oriented activities, demonstrating social contributions through two main channels – tax payments and charitable initiatives. In the past year, we contributed 700 billion VND to the budget. During the Covid-19 period, we donated 10,000 sets of protective gear and test kits to Hanoi, Binh Duong, Kien Giang, Ho Chi Minh City, among other places. We supported road construction, school building, sponsored heart surgeries, and adopted orphaned children up to 18 years old due to Covid-19.
[Source: Vnexpress]
