Kunjek's Success on Amazon - Testament to Vietnam's Production Potential

"Expanding to Amazon was a game-changing decision. Looking back at our achievements, taking this bold step was entirely justified," said Tony Lee and Robert Đặng, representatives of Kunjek, highlight the journey of one of Vietnam's leading home and metalware manufacturers making waves on Amazon. Today, Kunjek's HomeStead brand on Amazon has reached international consumers, offering more than 100 product listings across 10 categories, with four key market segments ranking in the top 10 of the US market.

Reflecting on their continuous development, the company credits its success to two primary factors: leveraging existing B2B resources and strengths to transition into B2C, and selecting an appropriate cross-border e-commerce launchpad to realize their ambitious goals.

“Harvesting the fruits” of operational excellence and strategic product development

Kunjek started as a B2B supplier, catering to major brands in demanding markets. In 2020, the company ventured into global B2C sales on Amazon under the HomeStead brand. While the four-year journey was relatively short, it came with significant challenges, particularly during the initial phase of navigating uncharted B2C territory.

Despite these hurdles, Kunjek was no novice. Its extensive B2B experience laid the foundation for its B2C foray. Their primary advantage in entering the B2C market stemmed from their experience as a large B2B manufacturer that had already collaborated with prominent brands in major markets like North America. Equipped with rich local raw materials and a skilled, young workforce in Vietnam, Kunjek excelled in researching consumer demands to produce high-quality, competitively priced products tailored to market preferences.

Kunjek's comprehensive control over its manufacturing processes became a pivotal advantage. Leveraging their extensive B2B manufacturing experience, Kunjek also gained operational and cost structure advantages through high internal production capabilities. The company produces 99–100% of its Amazon-listed products in its Southeast Asian factories, primarily in Vietnam. This end-to-end supply chain management ensures exceptional quality and cost competitiveness, persuading customers to hit the "Add to Cart" button.

Despite entering the B2C market with significant product cost advantages, the enterprise initially proceeded with extremely cautious steps to explore the market. They concentrated on R&D investments, not only maintaining and improving existing product categories but also developing new products aligned with continuously evolving customer demands.

Utilizing Amazon's comprehensive resources and appropriate support tools proved crucial in expanding cross-border business. Specifically, the FBA (Fulfillment by Amazon) solution not only standardized operational processes but also reduced logistics pressures. For larger, bulkier items, Kunjek implemented the MFN (Merchant Fulfilment Network) solution to maintain operational autonomy.

The final component completing Kunjek's comprehensive B2C model on Amazon is an effective P&L (Profit and Loss) management strategy. Amazon’s tools help determine profitability, providing the company with a comprehensive view of revenue, costs, and profits, enabling more efficient cost management, maintaining brand presence on Amazon, and creating momentum for sustainable development.

"Take the bold step to start selling on Amazon. The next success story could be yours!"

After four years of serious pursuit in the B2C direction through systematic investment in finance, human resources, and infrastructure, HomeStead and Kunjek have become familiar names to consumers and established a solid market position. Their animal trap products have achieved impressive sales figures by meeting the specific needs of American homeowners with gardens and yards.

"We can confidently say that Kunjek is experiencing fast growth on Amazon stores, with significant return on investment. Through its comprehensive tools, services and programs, and support network, Amazon Global Selling has established a systematic mechanism that serves as a launchpad for businesses and sellers to reach global consumers," emphasized Robert Dang, Amazon Project Manager at Kunjek.

These milestones of success have transformed into motivation for Kunjek to envision broader plans. Among these, developing brand identity through a systematic branding strategy represents one of the core values the company aims to achieve in their B2C business model, particularly through their Amazon sales channel.

Specifically, the company has leveraged Amazon's Brand Registry solution to protect their brand and enhance professional recognition, aligning with target customer preferences and bringing the brand image closer to users. Additionally, the company utilizes A+ Content tools to provide comprehensive, clear product information, helping to boost conversion rates, increase traffic, and drive sales.

Beyond enhancing their own brand recognition, Kunjek has been contributing to building the reputation of Vietnamese products in the international arena.

"Today, 'Made-in-Vietnam' products are increasingly gaining widespread acceptance on Amazon. This acceptance stems from verified quality, reasonable pricing, and convenient shipping. We take pride in helping bring 'Made-in-Vietnam' to international users as a guarantee of the reliability and quality of products manufactured in Vietnam. Take the bold step to start selling on Amazon. The next success story could be yours!" affirmed Tony Lee, Vice President of Global Business Development at Kunjek.

Kunjek's expansion to B2C model represents more than just adapting to trends; it exemplifies a strategic expansion and exploration of new market potential, building upon the company's core strengths in product development and manufacturing. Kunjek's story reflects the promising future of combining Vietnamese manufacturing prowess with cross-border e-commerce opportunties, enabling "high-quality Vietnamese products" to get popular among global customers.

T.H (Vietnam Business Forum)