SUNHOUSE: Vietnamese Household Appliances Cross the Border to American Kitchens

11:19:00 AM | 9/8/2022

SUNHOUSE has lived and breathed with the lifestyle revolution of millions of Vietnamese households as a pioneer in the home appliances and kitchen equipment market in Vietnam for more than 20 years. Currently, SUNHOUSE is expanding their horizons by taking advantage of cross-border e-commerce.

Twenty years ago, when foreign manufacturers dominated the domestic consuming electronics market in Vietnam, SUNHOUSE's adventure began. At that time, there were only two options for Vietnamese families: buying products with unknown origin or paying a high price to purchase products from Japan, Korea, Thailand or Europe despite the functional incompatibility with local usage. Regardless of the presence of local manufacturers on the market, there was a lack of promotional activities as well as investment in research and product development that could not bring a significant leap for Vietnamese household appliances. As a result, competing with international products is extremely challenging.

The pioneer in the Vietnamese household market - SUNHOUSE, expanded their worldwide reach by launching cross-border e-commerce

In addition to business growth, the desire to create "Happy Kitchens for Vietnamese families" has driven SUNHOUSE to evolve into a producer of high-quality household appliances and kitchen equipment with cutting-edge technology and aesthetically stunning designs; yet gradually build up  the reputation for Made-in-Vietnam products in the country and aim to reach out to the global market.

Made-in-Vietnam kitchens for Vietnamese people: Two decades of establishment

SUNHOUSE started as a household and biscuits importer. They realized that the limited resource prevents the brand from entering the market and building up their position. In 2004, the company formed a strategic partnership with a Korean partner to employ the most advanced anodized aluminum pot production lines and build a sizable facility in Vietnam. They wanted to bring a "new dawn" for a Vietnamese brand with a wide range of products and technology.

SUNHOUSE, which stands for "The House of Sun" embodies the spirit of renewal and bold innovation. By acquiring the top technology from a Korean joint venture partner and catering to Vietnamese customers' needs, SUNHOUSE continually innovates their products while still optimizing features based on people's interests and local living conditions. In addition to concentrating on vertical development, SUNHOUSE is continuously expanding its product line horizontally in order to fully improve the quality of life for the Vietnamese people. Nowadays, Sunhouse’s products are varied from rice cookers, blenders, and steam fans, to other kitchen appliance products, and the most recent addition, water purification, has quickly garnered the delight of customers.

SUNHOUSE embodies the energy of innovation and powerful pioneering by investing in technology and aggressively extending the development plans

The persistence and foresight of SUNHOUSE have led to successes that are far beyond expectations. After two decades, SUNHOUSE has solidified a position in the Vietnam market with many segment products accounting for almost 40%-50% of the market share. SUNHOUSE products have soon been available in neighboring Southeast Asian countries such as Myanmar, Malaysia, and Indonesia. SUNHOUSE is also a Vietnamese enterprise that owns the largest household appliance factory chain in the country with 10 facilities now in operation and two more under construction.

The new “passport” to Go Global for Made-in-Vietnam manufacturing

The first watershed moment in the company's history happened in 2019 when Sunhouse officially launched the manufacture of LED lights built in the United States, followed by the air fryer facility in 2021. Sunhouse's products are directly shipped to the United States, where they are supplied to customers in other stringent Europe and Americas regions via a network of partners.

Confident in their research and manufacturing capabilities to fulfill the highest regulations in the United States, Europe, and Japan, SUNHOUSE decided it was time to bring its products directly to the global E-commerce playground. This decision was motivated by the desire to establish a global Vietnamese brand. Additionally, SUNHOUSE chose Amazon as the initial companion for the process of "reaching out" in the US since, if its products are enthusiastically adopted by customers in this market, it suggests a chance to approach foreign markets. Thence, even if COVID-19 continued to have an impact on many firms, SUNHOUSE chose to surf the wave and make a breakthrough in cross-border e-commerce.

Nevertheless, conquering a local market is far easier compared to breaking into a worldwide play yard. SUNHOUSE needs a well-defined plan to boost the competitiveness of Vietnamese goods. “It will take a corporation several years to learn about a market on their own. On the other hand, your path to globalization would be greatly hastened if they join international e-commerce websites like Amazon. It serves as a “go-global passport” for local brands like SUNHOUSE.”, saidChief Marketing Officer of SUNHOUSE, Mr. Lê Tùng. The team-up with Amazon allows SUNHOUSE to directly reach to international customers, and remove the need for export or retail intermediaries.

Amazon facilitates the pursuit to capture worldwide customers and enables SUNHOUSE to firmly stand in its three-year sustainable growth plan

Mr. Lê Tùng remarked Amazon as a well-known website appropriate for a variety of business approaches. The technology provided by Amazon enables companies to enhance their import-export procedures and better comprehend the needs of international customers. The company may invest in product quality and brand recognition thanks to this benefit. Despite the pandemic's difficulties, SUNHOUSE managed to list and sell their first products on Amazon's website in 2021. "SUNHOUSE has limited expertise and skill in sales on digital platforms because it was established primarily with the strengths of traditional trade channels. SUNHOUSE has swiftly listed the products on the e-commerce platform and completed the necessary documentation without too much difficulty thanks to the close collaboration of the Amazon Global Selling team.", said Mr. Lê Tùng.

Learning about a market on one's own may be time-consuming; but, if a newcomer  partners with a worldwide E-commerce website, such as Amazon, they can confidently transport their products overseas in a short time. SUNHOUSE, for instance, goal, is to not introduce all items to market at once but to choose the products with the best compatibility rate in order to meet consumer wants while also researching market taste. Respectively, despite the fact that SUNHOUSE has only been with Amazon since early of this year 2022, the company's growth pace has surpassed expectations. SUNHOUSE's sales increase by an average of 160 - 200% every month, particularly in the North American market. With this potential, SUNHOUSE has the intention of product portfolio expansion on the e-commerce platform in the near future. “Amazon makes the way to attract global customers come to light and helps us believe in the goal of continuous growth over the next three years.", Mr. Lê Tùng said.

After 20 years of revolutionizing the Vietnamese kitchen, SUNHOUSE bravely changed their strategy, becoming one of the first Vietnamese home brands to embrace international e-commerce. SUNHOUSE's success consequently fosters trust and opens up new opportunities for Vietnamese businesses looking to establish themselves in the global supply chain.

T.H (Vietnam Business Forum)