Scavi Group JSC: Success from Differentiation Policy

Scavi’s main products are couture lingerie in addition to kidswear, men’s underwear and sportswear. Currently, the group owns five factories, including four in Vietnam and one in Laos, and joins forces with 15 satellite facilities in Vietnam, Cambodia and Laos with about 10,000 workers. Its customers are leading industrial groups and distributors in the world, mainly in Europe, North America and Japan.

 

The current success of Scavi mainly comes from competitive tool differentiation policy characterised by creativity and service - a competitive tool widely used in developed countries; and avoidance of common pathways of apparel companies at that time (in the 1980s, 1990s and earlier) which chiefly relied on low cost factors of underdeveloped countries or developing countries. Since its inception, Scavi has upheld creativity and service policy. With a breakthrough direction, even in the most difficult times because of substantial limitations of the Vietnamese garment and textile industry in general and Scavi Company in particular, Scavi has gradually deployed and implemented technical objectives for specific stages of development. The company builds an integrated industrial cluster: creation, design, material purchase, production organisation and delivery to customers’ warehouses from the stage of technology transfer and fundamental professional personnel training to the group (particularly creative, design staff) to the stage of deep technological finalisation of lingerie industry. This is a solution to cope with increasingly fierce competition in price that Scavi has defined from the outset and has achieved great success. The company has confidently built a professional, trusted sourcing, outsourcing supplier brand name in the international market.

 

Perhaps, with many FTA and TPP agreements signed, the upcoming phase is an opportunity for Vietnam to reach out the open sea interspersed with a plenty of advantages and challenges. In this context, Scavi will continue to focus specifically on the lingerie market and aims at the No. 1 position on the international market by 2015, based on policies of providing value-added high-grade services to leading corporations in France - Europe, North America and Japan. Specially, the group will increase investments in new technologies and human resources with over 10,000 employees in Vietnam and Laos. Specifically, Scavi will invest in technology in Scavi - Hue with the plan to consolidate and build the Central Region Integrated Management and Industry Centre, which will principally serve the North American and Japanese markets. It will invest to expand production facilities, technologies and human resources in existing factories in Bien Hoa, Bao Loc, Da Nang and Vientiane. These facilities mainly serve European, Canadian and Vietnamese markets.

 

After the testing phase with a small scale distribution in the Vietnamese market, Scavi will invest in long-term distribution programme in Vietnam. The company will build a nationwide system of lingerie, kid’s wear and men’s wear shops.

 

The current success of Scavi also results from the enormous contributions of the founder and the Board of Directors, including Tran Thi Moc Lan, the captain of Scavi Group from the starting date in her capacity as Vice President of the Group and General Director of Scavi Hue Company. From being a French and piano teacher to a talented general manager of Scavi, she is admired by many people for her enthusiasm, talent and extraordinary bravery. In business governance, she upholds the "Love and Responsibility" policy. This is a guideline for her to do all her work. In daily life, she is a deep, gentle, caring woman and an enthusiastic benefactor of social activities.

 

The radiance of the Scavi brand name in the market is created not only by impressive business results but also by subtle gestures for the sake of community happiness. During the operation, Scavi always tries to fulfil its social responsibility by means of meaningful social welfare activities, which are said to be a way of thanking the community and the society. This is also the way of building corporate culture that General Director Tran Thi Moc Lan leads Scavi towards. Based on deep humanity and collective culture policies, Scavi has constantly bettered its corporate culture, not only for all employees and their families, but also to less fortunate people in the society. However, she said Scavi’s involvement in social charity carries high social significance, not a mere effort or purpose to polish the name. It comes from the heart of a successful business that wants to give back to the community. Besides, with the ambition of improving cultural life for its employees, Scavi has built cultural spaces like music schools, libraries, gyms, and cultural houses, and will continue projects to enrich the spiritual life of workers.

 

Sharing the secrets to balance her family life and her work, Ms Lan said "As a woman, no matter how high and important her position in the society is, her family is always a small "society" of her own - a important and essential fulcrum for her spiritual life. This fulcrum, if lost, will imbalance the personal life and the career of a woman. To fill the role and responsibility as a daughter, a wife, a mother and a leader of a social collective, the woman must first love herself by taking care of her own physical and spiritual health. So, I always use my free time to practice sports, guitar and painting. I also have time for my warm family picnics or weekend meals. These are occasions for all the family members to talk together and make the family the “breathable lung” of every family member in this society full of uncertainties and pitfalls."