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Key Concepts

• Core Value-Driven Management: Prioritizing long-term philosophy (people-centered, high quality) over short-term market trends.
• Incremental Innovation: The belief that innovation is not a single "big step" but the accumulation of small, consistent improvements based on direct consumer feedback.
• Preventive Healthcare: Shifting consumer behavior from reactive treatment (curing disease) to proactive daily care (maintenance).
• Resilience Strategy: Maintaining business continuity through a diversified product portfolio and multi-channel distribution during crises (e.g., COVID-19).
• "Moving the Heart": The corporate slogan representing the emotional connection between employees' dedication and customer satisfaction.

1. Main Topics and Key Points

• 30-Year Market Presence: Rohto Mentholatum entered Vietnam in 1996. The company attributes its longevity to consumer trust, employee dedication, and double-digit sales growth.
• Market Entry Rationale: The company was attracted by Vietnam’s potential and the "young, energetic" image of the population, which the chairman believed signaled strong future development.
• Evolution of Consumer Behavior: Over 20 years, Vietnamese consumers have shifted from using eye drops only for medical treatment to incorporating them into daily hygiene routines. Similarly, sunscreen usage has become normalized across genders.
• The "Three-Factor" Success Framework:
  1. Quality: The non-negotiable foundation of all products.
  2. Continuous Innovation: Small, iterative improvements based on real-world consumer needs.
  3. Community Commitment: Long-term investment in public health programs.

2. Real-World Applications and Case Studies

• COVID-19 Resilience: During lockdowns, while sunscreen sales dropped, eye drop demand increased. By maintaining a diverse portfolio and ensuring presence in essential channels (pharmacies/convenience stores) when supermarkets were closed, the company sustained growth.
• LipIce Strategy: When launching lip balm in a warm climate where it wasn't a traditional necessity, Rohto positioned it as a "fashion item" for school-aged girls who were restricted from wearing lipstick, successfully creating a new market segment.
• Yakuzen Restaurant: An example of expanding into the clinic/food space to support the "preventive health" vision, moving beyond just pharmaceutical products.

3. Methodologies and Frameworks

• The "Small Step" Innovation Process:
  1. Direct engagement with consumers to identify specific pain points.
  2. Market observation of shopping habits.
  3. Iterative product adjustment (e.g., creating specific formulas for dry eyes vs. digital eye strain).
• Leadership Integration: Mr. Shirasu emphasizes blending Japanese discipline and principles with the hardworking, diligent nature of the Vietnamese workforce to create a unified corporate culture.

4. Key Arguments and Perspectives

• Trend vs. Value: Mr. Shirasu argues that while market trends are important, they should not distract from core values. Short-term trends are "not meaningful" if they do not align with the long-term vision of improving public well-being.
• Proactive Health: The company advocates for education as a business tool. By teaching consumers why daily eye care is necessary, they create sustainable demand rather than relying on sporadic medical needs.

5. Notable Quotes

• "Innovation is not the very big step but an accumulation of very small steps." — Mr. Hiroumi Shirasu
• "Our corporate slogan is 'Moving the Heart.' That means move our heart to move our customers' heart." — Mr. Hiroumi Shirasu

6. Technical Terms

• GMP (Good Manufacturing Practice): A system for ensuring that products are consistently produced and controlled according to quality standards; Rohto was among the first to implement this in Vietnam.
• Myopia/Dry Eye: Specific ocular conditions addressed by Rohto’s product line, exacerbated by modern digital device usage.

7. Data and Research Findings

• Growth: The company has maintained double-digit sales growth over its 30-year tenure.
• Community Impact: Programs in locations like Da Lat have served hundreds of elderly patients, reinforcing the company’s commitment to the aging population.

8. Synthesis and Conclusion

The success of Rohto Mentholatum in Vietnam is a testament to the power of long-term commitment over short-term opportunism. By prioritizing high-quality standards and a "people-first" philosophy, the company successfully navigated the transition of Vietnam from a developing market to a modern economy. Their strategy of "incremental innovation"—constantly refining products based on small, direct consumer insights—has allowed them to remain relevant to new generations while maintaining the loyalty of long-term customers. As Vietnam faces an aging population, the company plans to leverage its experience from the Japanese market to continue its mission of preventive healthcare.