SAPUWA CEO, Le Nhu Vu: “… Building a brand must be based on consumer trust”

Vu told me that SAPUWA's development and position in the purified water industry today are due to the trust built with consumers. Amid fierce competition in Vietnam's purified water market, SAPUWA has risen to success through sustainable business strategies and superior product quality.

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* Hello Vu, if you had to briefly summarize the journey of the establishment and development of Saigon Purified Water Company Ltd. (SAPUWA), what would you share?

Mr. Le Nhu Vu: In the early 1990s, when the mineral water and purified water market in Vietnam was entirely open, famous foreign brands dominated and manipulated the market with very high prices. In response to this situation, my father, Mr. Le Nhu Ai, boldly invested and established the private enterprise Saigon Purified Water.

In the early years, the company faced many difficulties due to direct competition with imported products, and most raw materials had to be imported. Therefore, production costs were high, the products had not penetrated the market, the brand was not yet known to consumers, and there was fierce competition from imported products. For many consecutive years, the company suffered losses. However, through the tireless efforts of all staff, SAPUWA has achieved many successes and established a stable market position, capable of competing with multinational corporations in both quality and design.

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* The purified water market is currently fiercely competitive, so what business strategies has SAPUWA implemented to maintain and develop the business?

Mr. Le Nhu Vu: Currently, the bottled water industry is highly competitive, with major brands and water production facilities. To establish a market position, SAPUWA has applied the following strategies:

- Product Quality: SAPUWA adheres to quality certifications such as ISO 22000:2018/HACCP/GMP and the A.P.H.C certification from the U.S. Army - SAPUWA is one of four companies to receive this certification. SAPUWA continuously invests in technology, automated, and closed production lines. Annually, SAPUWA reinvests to enhance technology in production processes, and diversifies packaging to provide the best quality and experience for consumers.

- Product Diversification: SAPUWA actively researches and diversifies products. In 2023, SAPUWA launched the SAPUWA+ ionized alkaline water. In 2024, we will introduce products using recycled bottles to protect the environment. SAPUWA is the first Vietnamese company to pioneer using recycled bottles in food production. To produce this product, we went through many trials and strict control processes from collecting bottles to manufacturing them.

- Maintaining Competitive Advantage: SAPUWA invests in modern technology to produce the highest quality products. The company increases production capacity and scale to promptly meet user needs. SAPUWA also invests in the SAP software system to digitize company operations, managing everything from production, storage, business, distribution, to customer care.

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* According to Vu, what is the most crucial factor for the success of a business in the purified water industry?

Mr. Le Nhu Vu: In my opinion, the most crucial factor leading to success in any service or product is putting your "heart" into the product. SAPUWA carries the mission to provide products of international quality at reasonable prices for Vietnamese people. SAPUWA always focuses on ensuring consistent product quality. After achieving quality products, we continue to focus on service quality, listening to customer feedback to provide the best experience. A product, even if good, will struggle to succeed if it does not deliver a good customer experience.

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* What criteria does SAPUWA have in quality management to ensure safety and quality for consumers?

Mr. Le Nhu Vu: SAPUWA follows strict production processes according to ISO 22000:2018/HACCP/GMP. Notably, the A.P.H.C quality standard certified by the U.S. Army is a particularly stringent certification that no other bottled water company has achieved. Annually, U.S. Army personnel inspect all production processes at SAPUWA and randomly purchase SAPUWA products from the market for testing in their lab in the U.S. with over 200 annual testing criteria.

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* What is Vu's perspective on corporate social responsibility and community engagement?

Mr. Le Nhu Vu: Since its establishment, SAPUWA has quietly participated in many charitable and humanitarian programs. Besides contributing to the national budget annually and complying fully with legal regulations, SAPUWA considers contributing to social and charitable activities an indispensable responsibility.

Currently, SAPUWA is implementing community projects in education, society, and culture, such as sponsoring container libraries for children in difficult areas; participating in the Terry Fox Run and Britcham Fun Run; accompanying the Spring Volunteer Program and the Exam Season Support Program; providing water to people in drought-stricken areas in the Mekong Delta; and the campaign to make the world cleaner...

One of SAPUWA's sales policies includes special preferential pricing for educational institutions, helping reduce costs for schools and ensuring quality water for teachers and students. In 2023 and the first six months of 2024, SAPUWA contributed billions of VND to social welfare, covering various fields.

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* Regarding brand development, what does Vu consider the most important factor?

Mr. Le Nhu Vu: Product quality is always our top concern. Brand development is not just about PR articles or expensive marketing activities but building from consumer trust. Genuine consumer experiences and word-of-mouth stories are the best and most sustainable ways to develop a brand.

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* What means has SAPUWA used to effectively reach and interact with customers in its marketing strategy?

Mr. Le Nhu Vu: Besides traditional media platforms, SAPUWA particularly focuses on reaching customers through digital marketing channels such as SEO, Google Search Ads, Google Display Network, YouTube, and social media. Digital marketing helps businesses save advertising costs, accurately and effectively reach target customers, enhance competitiveness, brand awareness, and increase sales.

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* Has SAPUWA achieved its profit and revenue targets?

Mr. Le Nhu Vu: Honestly, not yet. In 2023, although the business environment gradually recovered, weakened demand affected the bottled water production and business sector. Consumers tightening their spending also impacted FMCG in general. Both revenue and profit are important and equally valuable.

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* What major challenges has SAPUWA faced in its operations, and how did it overcome them?

Mr. Le Nhu Vu: As discussed earlier, in the early 1990s, the production and consumption of purified bottled water were new and faced many issues. My father, Mr. Le Nhu Ai, proposed producing raw materials domestically to reduce production costs and create an independent production environment for Vietnam, free from foreign imports.

Currently, Vietnam's bottled water market is rapidly developing with the participation of many domestic and international brands. This means SAPUWA faces direct competition from the industry's "giants." According to market observations and expert opinions, ionized alkaline water is one of the most health-beneficial beverages currently gaining attention. SAPUWA researched and launched SAPUWA+ ionized alkaline water with a pH of 9.0, produced from SAPUWA purified water, creating a unique point compared to similar products on the market.

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* What specific measures has SAPUWA taken to minimize negative impacts from production and protect the environment?

Mr. Le Nhu Vu: SAPUWA always acknowledges that any production activity impacts the surrounding environment. Therefore, we continually seek solutions to minimize environmental impact and use resources and energy efficiently. Specific measures include collecting and treating wastewater, reducing dust and exhaust pollution, controlling odors from wastewater treatment systems, reusing wastewater...

Since October 2023, SAPUWA has eliminated shrink wraps for bottled water lines and launched the campaign "Recycle SAPUWA+, Protect the Green Environment" with a program to refund 1,000 VND for each returned SAPUWA+ bottle. We also introduced bottles made from recycled materials, hoping these small actions will help create a cleaner and greener environment.

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* What are Vu's experiences and views on business partnerships?

Mr. Le Nhu Vu: In my business experience, I have learned several key points in relationships with partners:

- Understand Partner Needs: Businesses need to understand what partners want and need. Instead of convincing them to buy, businesses should focus on what benefits the partners.

- Appreciate Partner's Work: Everyone prefers to work with those who value them. Building good relationships with partners means showing respect and appreciation. Express respect when listening and exchanging ideas, give positive encouragement, and show appreciation during work and communication. This is a crucial way to build strong partnerships.

- Build Trust: Trust is vital in business activities. To achieve good business results, businesses should build strong relationships with key partners. Building trust can increase value, save time, and reduce costs, benefiting both parties.

- Mutual Trust and Respect: Trust and respect are the top criteria for successful partnerships. Both parties need to be honest and transparent in their activities, always emphasizing fairness and equality.

- Maintain Communication: Building relationships with partners doesn't end after direct contact. Continuous communication and showing care and respect are essential for successful partnerships. Businesses need to be skillful in combining different methods to maintain contact and show appreciation to their partners.

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* As a businessman, how do you manage your time between work, family, and personal life?

Mr. Le Nhu Vu: I evenly divide my time between work and family. Thanks to technological advancements, balancing these aspects of life has become easier. When at work, I can connect with my family through technology and vice versa. Technology helps me balance life and work more effectively.

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* Some believe that managing a business is similar to managing a family, requiring skills and methods. Do you agree with this view?

Mr. Le Nhu Vu: In my opinion, managing a business and a family are entirely different.

- Business Management: This is a win-win relationship based on capability and work efficiency. In business, performance is measured by KPIs, revenue, and the value brought to the company.

- Family Management: Here, we use love to teach our children and responsibility to protect and support our loved ones. We cannot impose KPIs on our children; instead, we guide and accompany them in their growth. Family members cannot be disciplined or debated with as in a business setting.

I do not use the term "family management" because a family cannot be managed like a business. Thank you for the questions, which have helped me reflect more on my actions.

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* Thank you, Le Nhu Vu, for this interesting conversation. I wish SAPUWA continued growth and success, and I wish you and your family peace and happiness in life.