Cat Loi Trading Service Co., Ltd- Leading Distributor

4:54:21 PM | 10/5/2011

In six years of operation, Cat Loi Trading Service Co., Ltd has asserted its leading position in the distribution industry in Dien Bien province. The firm is now exclusive distributor for 20 brands, including well-known ones like Vinamilk and Chin-su. It is now running 500 retail outlets throughout the north-west mountainous province of Dien Bien.
New ways of business thinking
Dien Bien is a very poor mountainous province with weak infrastructure, large area and undeveloped economy. These weaknesses affect trade development. From generation to generation, trading has been attached to the smallholding exchange of cassava, maize, chickens and pigs. This is a persistent limit for trading enterprises here. However, Dao Van Phong does not think so; he wants to find a new way to build a multilevel trading model for Dien Bien province.
He was born into a family with a long tradition in trade. His family ran a retail store in Dien Bien Phu City; thus, he was exposed to commercial activities since his childhood. Before he founded his company, he was responsible for managing 200 retail stores. His time with this job provided him experience valuable for his later career. He realised he needed to build a professional distributor model in the province.
In 2005, Dao Van Phong set up Cat Loi Trading Service Co., Ltd, paving the way for a new style of business thinking. But, the current success required the company to get through numerous difficulties and challenges. The company had only six employees, a 1.5-tonne truck, and a limited financial capacity. A quick reaction to new changes was necessary to overcome multiple difficulties. But to do so, the company had to boost operating specialisation and governance.
Building trust
To realise his business plans, Director Dao Van Phong mapped out staff recruitment and training basing on following criteria: activeness, dedication and bravery. Hence, the company has quickly expanded its workforce to 60 staff and five trucks. Computers and accounting software have been installed in administrative offices. Systematic investment helped Cat Loi build its reputation among customers and demonstrate its capacity to leading producers. Many companies have named Cat Loi as their sole distributor in the province.
To increase the trust of manufacturers, Cat Loi is committed to building a province-wide distribution network from the capital city to the most remote district of Muong Nhe.
To date, the company is running more than 500 retail outlets in Dien Bien province. The firm has set check-up dates and updates information to have quick response to market developments. It also applies a one-price mechanism in the province to ensure fairness for all customers.
Cat Loi Trading Service Co., Ltd has asserted its superiority in the distribution sector in Dien Bien province. Despite operating with numerous difficulties, the company still manages annual growth of 150 - 180 percent. Last year, its revenues reached nearly VND50 billion (US$2.5 million). Every year, Cat Loi is invited by the Dien Bien Department of Industry and Trade to attend major trade events like border trade fairs and village vendor programmes. New successes provide a foundation for Cat Loi to realise a new strategy: Trading in new products like paper, water filters, agricultural and forest products to harness market demand and build a modern retailing centre model in Dien Bien province.
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