Vietnamese big bosses struggle to revive their one-time strong brands

Vietnamese big bosses struggle to revive their one-time strong brands

After a long period of absence, once strong brands like Da Lan (toothpaste), Hynos, Co Ba (soap) or Truc Bach (beer) have reappeared before the public. However, it is not easy to regain the heydays.

One-time strong brands resurrected

“Da Lan was a very favorite brand which once held 70 percent of the domestic toothpaste market in 1993-1994. Therefore, I have placed high expectations on bringing it back to the market,” said Trinh Thanh Nhon, General Director of ICC, a cosmetics manufacturer, when explaining his decision to regain the brilliant days for Da Lan.

Also nurturing a hope of revival, Nguyen Hung Viet, Chair of P/S JSC, has decided to reintroduce Hynos toothpaste, a product which was a favorite in the southern region in the 60’s and 70’s.

Similarly, Phuong Dong Production & Trade JSC is now trying to bring Co Ba soaps back to the market after a long period of absence.

Nguyen Duc Hiep, Deputy Director of Phuong Dong, said the company continues making Co Ba soaps because the products are still favored by old people. And more importantly, Hiep wants to protect a strong Vietnamese brand which had conquered the hearts of Vietnamese for a period of 80 years.

Truc Bach beer, a one-time well-known brand in Hanoi, quietly left the market for some unknown reason. However, it reappeared before the public in 2008 thanks to the efforts of Habeco, the largest brewery in the north.

Habeco puts high hopes in the return of Truc Bach because the beer has nostalgia value for many Hanoians’, evoking memories of the old days.

ICC reportedly invested more than $1 million in a production line from Europe to make Da Lan toothpaste. The corporation’s owner has also spent heavily to hire qualified staff and to run noisy ad campaigns.

In 2000-2006 alone, ICC spent $10 million in total to develop the Da Lan brand, and VND1 billion a month on marketing and ads.

Similarly, a new production line has been set up to make Hynos toothpaste. While the manufacturer tries to evoke nostalgic feelings of people with the image of a man, it also tries to show that Hynos is suitable for modern families.

Habeco, when strategizing for Truc Bach Beer’s comeback performance, decided that Truc Bach must be a high end product, even more upscale than Heineken.

A senior executive of Habeco explained that Vietnamese pay more to drink Heineken because of the high value of the brand. Meanwhile, Truc Bach is expensive because it fits the tastes of Vietnamese and has high quality.

The tough second act

Despite the high hopes and lavish expenditures by the manufacturers, both Da Lan and Hynos have found it hard to conquer the hearts of modern Vietnamese consumers.

Hynos’ market share has narrowed year after year. And Da Lan never had a warm welcome, despite the manufacturer’s attempts to distribute the products through different channels. Even the low price of Da Lan, 10-20 percent below comparable brands, has not helped attract customers.

Co Ba soaps have returned to the market, but they can be found only at the Co-op Mart chain.

Doan Sy Hien, a branding expert, commented that it is very difficult to revive past brands, as they exist only in the minds of older consumers. It doesn’t help that 60 percent of Vietnamese consumers are the young.

vietnamnet