DKSH Alexander Kliegl: Operating in Vietnam

Switzerland-born specialists in Market Expansion Services, DKSH, have over 150 years of experience in market expansion services and employ over 27,600 employees in over 35 countries which in turn, service a whopping 5,500 clients. The range of businesses they are able to assist are wide, varied, and include consumer goods such as gourmet food and cosmetics; healthcare such as medical devices and pharmaceuticals; performance materials like specialty chemicals and personal care; and technology such as precision machinery, agricultural equipment, Scientific Instrumentation, or Hospitality equipment

DKSH pride themselves on their strong presence in Asia and in the region, they have a footprint in countries such as China, Indonesia, Laos, Thailand, Philippines, Malaysia, Hong Kong, Vietnam, and Japan just to name a few.

Earlier this month, the company showcased their partnership with American machine tooling veterans, Hurco, at the opening of Hurco's showroom in Hanoi. DKSH's Ho Chi Minh-based Managing Director of Technology, Alexander Kliegl, was in town and sat down with INTERNATIONAL METALWORKING NEWS FOR ASIA to discuss this strategic partnership with Hurco, what it's like to do business in Vietnam, and what he thinks Asian manufacturers really want and need.

Partnership with Hurco

DKSH is no stranger to Hurco. The Swiss company has been the official distributer of Hurco products in Vietnam for several years now. However their relationship was taken to the next level with the opening of the Hurco showroom in Hanoi. Vietnamese company and one of Hurco's largest customers in the north of Vietnam, PMTT, also revealed their three-way partnership at the event.

“The background is that no voice to the market is more powerful than a customer using many Hurco products at the highest level sf productivity for many years. PMTT approached us and we discussed over the past few months about the opportunity to use the facilities, the people, and resources to project the Hurco brand further into potential and actual customers in Hanoi,” says Kliegl. “So it's a three way partnership where we are using the facilities here to demonstrate, test, and train customers on Hurco products.”

Kliegl believes that Hurco is on par, if not superior to many competing brands from Korea, Japan, and China and in brand-conscious Asia, Hurco's strong brand identity is a crucial asset. More than that, what makes this brand unique is the control system which is entirely owned, and developed by Hurco. The control system, Kliegl explains, adds a lot of value especially for the production of smaller batches because of its unique and intuitive user interface.

DKSH technology’s operations in Vietnam include the business line of precision machinery which includes metal forming & cutting, Testing & Measuring, Additive manufacturing and wire harnessing.. Kliegl says that Hurco is a key component of this business line, covering the entire applications of milling, high precision milling and turning.

However, the issue of making Hurco's products unique enough to stand out in the competitive market is not lost on Kliegl. Machines, such as these, are complex and an investment.

“In the case of the precision machinery business as we see with Hurco, it is all about understanding customer’s needs, creating solutions and selling solutions,” says Kliegl. “This involves pre-sales such as understanding the needs of the customers in detail and actually coming up with the solution in hardware and software. There's also the whole after market end of it which covers keeping the machinery running as best as possible and for as long as possible with all the products involved - namely training, installation, corrective maintenance, preventive maintenance. It's all about solutions in this business.”

Why Vietnam

Like most countries that DKSH has a presence in, the challenges of operating in Vietnam include: handling growth, achieving coverage, and identifying opportunities to create more business. Kliegl believes not only that Vietnam is an important country for the future of Asia's manufacturing, but that Hanoi is increasing its industrial footprint, especially in the wake of businesses moving their manufacturing from China to the north of Vietnam.

“In Vietnam it is essential to have a presence both in the north and in the south – so that's why we're here,” says Kliegl. “Our marketing strategy hinges on coverage. We believe that in order to project brands like Hurco, we need to achieve high levels of presence which basically means coverage to customers through physical presence, regular ongoing contact with existing and new customers, and making the right decisions about which new industries to enter and develop the business around the solutions we offer.”