ABC Bakery: Continuous Growth and Maturity

Despite continued difficulties in 2013, ABC was among best-performing companies in the country. With 32 distribution outlets and showrooms, ABC-branded products are sold in districts in Ho Chi Minh City. In 2014, the company plans to open 10 more stores and this is seen a prime target. To meet domestic and foreign market demands, especially difficult markets, ABC boldly invested to build a modern, specialised bakery and confectionery manufacturing system with an hourly capacity of 7,200 high-quality products. Besides the domestic market, ABC also runs 5 retail outlets in Cambodia and exports products to Japan, the UK and Australia. Moreover, ABC is also outsourcer and supplier of hamburgers and sandwiches for global brands in Vietnam as KFC, Lotteria, Jollibee and Burger King.

 

In the past years, ABC did not run many advertisement and PR programmes, its products are still widely known, trusted and welcomed by consumers because of product quality, hygiene, food safety, taste and very competitive price. For ABC, price-driven competition is also one of ABC's business strategies. ABC product prices are relatively lower than similar products of its competitors but quality is not inferior, let alone better.

 

Especially, ABC annually introduces new products with eye-catching package designs and premium quality to impress customers. ABC always focuses on utilising and managing materials to boost efficiently and avoid waste of materials as well as ensure absolute quality. By this unique saving technique, ABC always makes sustainable development.

 

Needless to say, ABC’s firm steps not only contribute positively to economic growth of Ho Chi Minh City in particular and of the country in general but also provide more jobs for local labourers. These contributions are worthy of respect, encouragement and replication. Mr Kao Sieu Luc, General Director of ABC Bakery, said “Starting up a business is very difficult, maintaining it is much more difficult. After its split in 2007, ABC rebuilt its brand name. A period of seven years is perhaps rather short for other brands but we manage to make customers know and trust our products. Strong brand and high quality produce direct impact on consumers. To have this, ABC focuses on carry out three basic elements, namely good material, intensive investment for equipment and technology to create unique high-quality products, and personnel training. That is also the secret of our success."

Speaking of Japanese partners, he said "Japanese cakes have been famous throughout the world. In Asia, hardly any country can compete with Japan on cakes. Once Japanese leading bakery and confectionery brands want to invest in Vietnam, this is considered a good sign for the domestic bakery and confectionery market. The presence of Japanese bakery and confectionery firms not only boosts competition but also forces domestic firms to enhance product quality and internal forces to compete with brands of richer experience, capital and technology. This is also the catalyst for the Vietnamese confectionery and bakery market to thrive.”