[Victorious Hyosung People] The path of communication and cooperation, Embracing Customers매거진/Webzine(English) 2017.12.22 09:43
Hermes was the emissary and messenger of the gods, being the catalyst of communication between the mortal world and gods. The myths of Hermes somehow replicate Hyosung People, identifying and communicating customer needs in the battlefield of sales.
Here is the story of Department Chief RYU Gwon-yoon, the winner of Employee of Hyosung for his achievements in customer-oriented sales strategy for the Vietnam Market, transcending to the Asian market.
Collaboration, Secret in conquering the local Asian Market
The growth chart of the past two years marked by the textile sales department of Hyosung Vietnam is dramatic. Once recording a monthly sales of 60 tons in 2015, the same statistic jumped to 295 tons in 2016, and leaped to 715 tons in 2017. The major local customers, which was only 2 in 2015, is now 14, and the sales revenue shows a remarkable growth rate. These achievements are the products of a tight management by providing technical service and solutions customized to each client.
Department Chief RYU Gwon-yoon of textile sales department of Hyosung Vietnam accepted the Hyosung Employee of 2017-3Q representing his entire staff. His achievements in forming a solid foundation for sustainable growth by securing a stable line of supply were recognized.
After accepting the award, RYU said “I would like to thank staff members of Hyosung Vietnam, India, Thailand and Indonesia.”
“There are Hyosung People supporting sales everywhere. The rapid growth in sales was not possible without the local sales officers who helped me throughout every meeting I had. I would also like to thank our customers who trust and respects Hyosung, and our products.“
In June of 2016, when RYU arrived at Hyosung Vietnam, the Asian Market showed rapid change. Automobiles and tire production, especially, showed continuous growth following robust industrialization. On the other hand it was a thick red ocean.
China, a major tire exporter was restricted to trade with USA, and turned the key toward south-east Asia, building new factories and relocating tire reinforcement companies to south-east Asia.
At that time, Hyosung‘s global sales operation of tire cords was conducted from Korea, where enforcing sales capacity in the Asian market was an urgent issue. A strategy to turn the red ocean to a purple ocean was necessary. RYU found the solution in collaboration.
Hyosung Vietnam, turning a Red ocean to a Purple ocean.
“When I was at sales team of Corporate HQ, I once was in charge of domestic customers. Since working for sales of tire cords, it is obvious that I mainly communicated with members of the procurement staff of customers. However, to actually make a deal, I had to collaborate with the R&D Team that approves the products, the Manufacturing Team that actually processes the products, and even the warehouse manager. Moreover, in the local Asian market we don‘t get real-time correspondence which is expected from other global customers. We had to expand our role.”
RYU had meetings with personnel from almost every department and encouraged a diverse communication. RYU communicated what was discussed with the R&D Team to the Procurement Team, and vice versa. He also expressed his passion to take a further step from simply selling products and to a joint-effort to develop new products by sustaining good relationships with customers. I evidently came familiar with customers’ ’circumstances‘. That is why I was able to provide customized service for each client.
“Collaboration with corporate HQ was also important. Informing clients with the market trend of tire cords, development trends of other major tire suppliers, and features of Hyosung‘s new products, leading the process up to joint-development were performed by the specialists in technical marketing team and consultants, while our role, as a local representative, supported these efforts to cultivate a positive atmosphere and convince customers to expand their business with Hyosung.“
Clients in Indonesia requested higher quality including durability. Knowing that they were having difficulty in keeping the rubber and cord together, we dispatched a tire technology expert and suggesting changing the design and sub-components. Clients in India wanted an extra-strong cord. This comes from the harsh road conditions. We are currently under research to develop a highly durable yet low-cost tire cord.
Clients in Vietnam and Thailand, are mainly subsidiaries of a Chinese company where all approvals of procurement comes from China which was delayed more often than not, and it was usual to encounter difficulty in negotiating the purchase amount. To overcome these obstacles, Hyosung Vietnam‘s Textile Sales Department collaborated with Chinese Sales Department and willingly visited their headquarters in China to sit down with staff members of their Procurement Team.
Customer-oriented Sales Strategy, corresponding to local circumstances
“Frankly speaking, I‘m not a specialist in tire products and technological aspects. I‘m rather a people’s guy. Clients in the local Asian market are compelled to the emotional side of relationships. I basically operate off the basis of bonding. I try to establish a relationship somewhat like a partnership, comradeship, and friendship. Not just talking business, but showing sincere interest and concern in their personal wellbeing jells one another.“
Clients recognize Hyosung‘s advanced technology and quality in tire cords. But the market price in Asia is relatively low. Only increasing the volume of sales secures profitability, which is easier said than done. Sales Department of Vietnam Hyosung has implemented a two-step approach to attract the local Asian Market.
The first stage was increasing Hyosung‘s market share, putting market share over profitability. The second stage will begin in 2018, where sales of premium products with relatively higher profitability will be emphasized to increase the revenue.
Mercurius, the Latin name for Hermes, originates from the Latin word ‘merx’, which means “merchandise”. Hermes taught business to the merchants under his care and was referred as the protector and patron of merchants. The ‘Employee of Hyosung’ he won may be recollected as the ‘Medal of Hermes‘
Written By | LEE Miseon
Photo | JEON Moon-sik (Day40 Studio)