Business Insights #57 | Khi tình yêu thú cưng là nền tảng cho thương hiệu bền vững | Ken Võ, Bảo Anh

Key Concepts

• Pet food industry: A rapidly growing niche market focused on animal feed for pets.
• Palatability return rate: A key metric measuring how often pets enjoy and repeatedly consume a particular food product.
• Premium quality: Achieved through high-quality ingredients, meticulous production processes, and appealing packaging.
• Core value: The fundamental principles and beliefs that guide a business's decisions and actions, particularly a love for animals in the pet food industry.
• Functional food: Pet food designed to address specific health issues or provide additional health benefits.
• Global market: Expanding beyond the domestic market to reach international consumers.
• Vietnamese brand: Building a brand that proudly represents Vietnam and its values on the global stage.

Opportunity and Motivation

• Ken's (Vo Hong Duc) initial motivation stemmed from a personal love for animals, starting with his cat Chick.
• He noticed a lack of variety and quality in the local pet food market around ten years ago, primarily dominated by imported brands.
• This led him to create his first product, fresh paté for cats, as a side project while in college.
• Bao Anh joined King's Pet as a co-founder after being a satisfied customer, drawn to the brand's quality and meticulous production process.
• She wanted to support a young Vietnamese brand with strong core values and use her platform to help it grow.

Early Challenges and Growth

• Ken faced challenges in the early stages, including limited investment, self-handling of shipping and promotion, and lack of packaging and branding.
• He relied on the support of local veterinarians to display his products.
• The Vietnamese pet food market has become increasingly competitive, with 3-5 new brands entering each month.
• However, no Vietnamese brand has yet achieved significant global market presence.
• The global pet market has been growing at a double-digit rate for the past 50 years, with pet food accounting for 70-80% of the market share.

Core Values and Business Philosophy

• Both Ken and Bao Anh emphasize the importance of core values, particularly a love for animals, in the pet food business.
• Ken believes that creating a product for a pet to eat once is simple, but ensuring repeated consumption requires a deep understanding of their needs.
• Bao Anh highlights the need for a product to have a core value first and foremost, even if it means sacrificing short-term profits.
• They prioritize quality, meticulous production, and sustainable practices.

Product Development Process

• Ken's R&D process involves purchasing and trying various pet food products, evaluating their ingredients, and assessing their palatability to pets.
• He and his team personally taste the products to understand their flavor profiles.
• They focus on using real ingredients, such as meat and fish, and avoiding artificial colors, flavors, and preservatives.
• They collaborate with veterinarians and researchers to develop functional foods that address specific health issues.
• The goal is to create products with a high palatability return rate, ensuring that pets enjoy and repeatedly consume the food.

Premium Quality and Pricing

• Premium quality is defined by high-quality ingredients, meticulous production processes, and appealing packaging.
• Ken and Bao Anh prioritize fresh, human-grade ingredients and avoid leftovers or low-quality materials.
• Packaging is carefully designed to stand out and convey a sense of cuteness and playfulness.
• The story behind the ingredients and the brand's commitment to quality are also important factors.
• While premium quality may lead to higher prices, Ken aims to balance this with accessibility to a wider customer base.

Marketing and Communication Strategies

• King's Pet by Bao Anh's logo features a heart-shaped diamond, representing their love for animals and dedication to the pet food field.
• Their communication strategy focuses on conveying this love and highlighting the products' core values and quality.
• Bao Anh's image and positive public perception help to promote the brand and build trust with consumers.
• The palatability return rate is a key factor in driving repeat purchases.

Challenges and Solutions

• One challenge is addressing specific health issues in pets, such as kidney stones and hairballs.
• Ken and his team work with veterinarians to develop functional foods that target these problems.
• For example, they are developing a kidney-support dry food product that reduces phosphorus levels and lowers urine pH.
• They are also creating a product for long-haired cats that provides soluble and insoluble fiber to help prevent hairballs.

Global Market Expansion

• Ken and Bao Anh aim to expand their brand into the global market, particularly Europe.
• They want to prove that Vietnamese brands can produce high-quality products that meet international standards.
• They have participated in international trade shows, such as Pet Fair South East Asia in Thailand, to showcase their products.
• Their minimalist and clean packaging has surprised other global brands.

Exporting Wet Pet Food

• Exporting wet pet food requires meeting both Vietnam's export standards and the import regulations of the destination country.
• The first market they exported to was Qatar, which has strict standards for product quality and safety.
• The process involved obtaining approvals from various agencies, including the Animal Health Department, VCCI, and customs in Vietnam, as well as the Public Health Ministry in Qatar.
• The inspection process in Qatar took nearly three months.

Key Factors for International Partners

• When seeking international partners, Ken prioritizes those who share a genuine love and care for animals, rather than solely focusing on profit.
• He believes that a shared business philosophy is essential for long-term success.
• Bao Anh emphasizes the importance of aligning on core values, such as environmental protection, even if it means sacrificing lower prices.

Lessons Learned

• Ken learned a valuable lesson from a failed product line investment, realizing the importance of being mentally prepared and building a strong foundation.
• He emphasizes the importance of experience and using lessons learned abroad to guide future development.

Conclusion

• The success of The Pet Vietnam and King's Pet by Bao Anh is driven by a genuine love for animals, a commitment to quality, and a strong partnership between Ken and Bao Anh.
• Their focus on core values, meticulous production, and customer satisfaction has enabled them to thrive in a competitive market and expand into the global arena.
• Their journey serves as an inspiration for other young Vietnamese entrepreneurs looking to build successful and sustainable businesses.