Korn Thiennukul builds the MyWaWa brand into the Alibaba of ASEAN.
Korn Thiennukul
Wawa Service and Marketing Group Company Limited
Building the MyWaWa brand
Become the Alibaba of ASEAN
“MyWaWa's strength is being the first mover into the B2B E-Marketplace market. This gives time to build a strong ecosystem. In addition, there are end to end services to support all business needs. With automation that reduces the cumbersome steps of the past Make all B2B buying and selling happen via online channels.”
The Digital Disruption wave has dramatically changed the traditional business world. The emergence of digital technology Sent to existing players who have been in the industry for a long time. Faced with start-up businesses that come with cutting-edge technology It has lower operating costs. At the same time, consumer behavior has completely changed to online. This trend causes business organizations to accelerate Digital Transformation. To adapt to the changes
But for a family business that has been in business for more than 65 years, like New Witek Printing House, the advent of Digital Disruption has completely changed some things. Because in the era of New Witek's 3rd generation heirs, they chose to walk on the start-up road. A path that conquers many new and energetic people. that comes with the goal of becoming a unicorn But in this interview Instead, there is no word "unicorn", only the intention to enable the family business to continue moving forward in the digital age.
“I didn't come from a garage. But I come from a printing house. Industries that are being hit by the digital disruption wave. At that time it was considered compulsory that we had to do and survive. I admit that I was under a lot of pressure. But you have to fight to prove yourself.”
Korn Thiennukul, son of Kriangkrai Thiennukul, chairman of the Federation of Thai Industries. Currently has a position of Chief Executive Officer, Wawa Service and Marketing Group Company Limited Open up about your feelings at that moment. This is when he had to prove himself to be accepted by his family. In addition, the situation is quite stressful. That made him never forget that moment.
Heir to the printing house "New Witek"
with a business path without printing ink
Korn, aged 32 years, recalled the past to Bank Finance, saying that when he was a new graduate The first thing he wanted to do was a "coffee shop", a popular business that most teenagers dream of owning at least once. But at that time the family already had a restaurant business. So we started at home to gain experience. Before preparing to continue studying But the plan had to be stopped. When the uncle who took care of a major customer at New Witek Printing House died. And he must come in and help with the business at home first.
Newwaitek Printing House has been open since 2500 and has been in business for more than 65 years, since Grandfather's generation. Coming in at that time gave experience in taking care of many large customers. New Witek is a commercial printing house that focuses on making user manuals, business cards, books, brochures, sampling packages, sample products. There are large customers such as FMCG businesses, factory businesses, and telecommunications businesses. During peak times, they used to do sampling, distributing product samples up to 2-3 million pieces per year.
“I remember having to meet a big customer. be indian At that time, it was the online era. When I said that we came to replace the uncle who had passed away. He told us that Company policy has changed. The marketing budget is the same. But the proportion has changed to become Offline 20% Online 80% because a lot of people have come into the online world. And we haven't encountered just one. But every customer is like this. At that time, I knew that we were facing Digital Disruption and that the printing business had already gone sunset.”
Korn said that the solution at that time had three options: 3. Adjust from the printing house business to a packaging factory (Packaging), 1. Adjust from Commercial Printing to focus on anti-counterfeiting printing (Security Printing), and 2. Exit the business. The printing house went into new business. After consulting with his family, he chose option 3 to step away from the printing business. The reason is because it is thought that in the end everything will go online.
“To be honest, I don't like the printing business at all. At the end of the day, I chose to work in a restaurant. I'm more into restaurants. I'm not a person who likes to walk around factories. But I came because I had to help at home. When we encountered Digital Disruption, I decided to leave the old business altogether because Packaging will certainly have a lot of competitors in the future. As for Security Printing, I consider it no different from Commercial Printing because eventually these things will go online.”
Stepping onto the startup path
with project MVP “WaWaPack”
Korn said that when he decided to leave the printing business Then the Soft Landing process began at New Witek Printing House. At present, more than 80% of the printers have been gradually sold out. At that time, he began to study about startup businesses. Until one day a friend called to inquire about packaging production, which made me wonder why I couldn't buy it online. And when you try to search on Google, you find that there is no packaging company that markets online. This gave rise to the idea of creating a packaging center that everyone can access online.
“I went straight to the house and asked if I could do it. Let me give it a try and invest a little first, until finally I went and bought a ready-made website to start the Minimum Viable Product (MVP) process by setting a simple first question: If I do packaging online, what will it do? Is anyone buying it? Ready to name the company WaWaPack.”
The 3rd generation heir to New Witek said that he started this business with a team of 1 person using a simple method by approaching a packaging factory to request products to be photographed and uploaded to the website. He was the one who ran the factory, while one team member was responsible for uploading pictures to the website. On the website there are no modern features, no E-Commerce system, only product images. If customers want to buy, they must call in. and transfer money He then uses that money to buy things at the factory and deliver them to customers. The method is simple. Because there is very little investment
When you can do it for a while Korn began to enjoy doing business online. and intends to expand the business But there is a problem that the family still doesn't accept. So he tried to find help. to confirm that his idea It can really become a business.
Korn revealed that he decided to go to the Pitching Day event organized by the Department of Industrial Promotion. This time he had to go secretly. By telling the house that he would go to see New Witek customers throughout the 3 days he was on the job. Made me learn about Business Model Canvas and Pitching, leading to working at the Pitch Desk and going on the pitching stage for the first time in my life.
“I went alone and went up on the pitching stage. I remember being very excited because it was my first event. In the end, he won 2nd place and returned home with a happy heart. Even if the prize money is only tens of thousands But what is more important is I have proven that What I'm doing is accepted by people. And there are people who believe that it can be turned into a real business.”
After winning 2nd place at the Pitching Day stage of the Department of Industrial Promotion The family began to accept and open up more opportunities. By having a team come in to help because they saw that the business was starting to move forward. He then used the award as a stepping stone to approaching various suppliers. Make business negotiations easier After that, there were many more stages to compete for innovative ideas. By presenting ideas to expand on the MVP project to become a real E-Marketplace with a payment system. There is an ordering system. Because buying and selling Unable to grow business And in the market there is still no competitor. That made him win many awards from the pitching stage.
“At that time there were as many as 3,000 SKUs, with almost every kind of packaging, and finally we received our first purchase. It's a steel can with tea leaves, priced at 54 baht. I was so happy that I brought this can to set up in the conference room. Then began to see more clear behavior of customers. Until I decided to start doing marketing that I had never done before.”
He admits that along the way there were some stumbling blocks. But the biggest challenge is family. What should be done to transform the organization? Because the original business had old people. different attitude causing the need to discuss with the home Make compromises with old people who have been around for a long time. Including the matter of having outsiders involved. From the beginning it was a cartel business. Must change to Professional Company
Opening a new era MyWaWa
Aiming to be Alibaba of ASEAN
Korn said that the important turning point was the Covid-19 outbreak where everyone wanted online services. This situation makes us realize that Customer needs are not just about packaging because there are other factories. Expressed a desire to sell products on the WaWaPack platform, especially for auto parts factories. That made him "think big" because today's packaging market is too small. His new goal is to become a B2B E-Marketplae platform.
“At that time I wanted to change, I wanted to think big, I didn't want to just have packaging. But I want it to cover every industry in Thailand. Using a model from Alibaba Because it's closest to what we want to be. Ready to set goals with the team that We will be the Alibaba of Southeast Asia. To the point of putting a picture of Jack Ma in the company elevator with a quote from Forest Gump that says Life was like a box of chocolates. You never know what you're gonna get. Because sometimes people's lives are like a box of chocolates. That we never know what we're going to get.”
Starting a new era with a Rebrand from WaWaPack to MyWaWa to make it feel easy to access. Set up a team of developers ready to upgrade the new platform. Complete the entire company structure. To support fundraising, an outside Co-Founder was added. Changed from being just one business unit in New Witek Set up a new company called WaWa Innovation Group to act as a holding company and rent space in the New Wai Tek building for use as an office. Additionally, it also set up a company, WaWa Service & Marketing Group, to develop an e-Commerce system and transfer customers. to a new platform
Korn said that the Covid-19 outbreak was considered an important catalyst that caused MyWaWa to grow rapidly by 1,000% as people's behavior shifted more to online. The results clearly show that we are on the right track. Because of buying and selling on the real platform It also indicates that the MVP project was initially created. And the hypothesis that was made was correct. Since opening for 1 year, MyWaWa has now accumulated sales and purchases of 1,700 million baht. The company's income comes from collecting an average usage fee of 3-5% per trading transaction.
WaWaPay is also being developed, its own B2B Payment Gateway system, developed to support transactions on the platform. We have joined hands with companies that develop digital banking technology. and Government Savings Bank Including developing the buying-selling system on the platform to be highly secure. Sending sales on the platform to increase rapidly Because it can support large transactions Million baht level The highest transaction value that occurs on the platform is as high as tens of millions of baht.
Currently, Thailand's GDP is 17-18 trillion baht, 60% of which is exports, of which 70% of these exports come from the manufacturing sector. Therefore, it is estimated that the market that MyWaWa is currently holding is worth 5 trillion baht, which is considered a large market and there is still a lot of opportunity for growth.
“MyWaWa's strength is being the first mover into the B2B E-Marketplace market. This gives time to build a strong ecosystem. In addition, there are end to end services to support all business needs. With automation that reduces the cumbersome steps of the past Make all B2B buying and selling happen via online channels.”
Currently, the MyWaWa platform has product categories for businesses to choose from in as many as 8 industry categories, starting with
- Printing, packaging and office supplies It is a category that has been transferred from WaWaPack. Nowadays, major suppliers are already on the platform.
- health and beauty There are already factories that produce cosmetics joining in. Currently looking for additional new suppliers.
- Automotive spare parts have major suppliers who are automobile tire manufacturers joining. Currently looking for additional new suppliers.
- Food and Drink It is an industry category that has been added. It targets food industry factories such as canned fish, crab sticks, meat, noodles, as well as various raw material manufacturers.
- Textbooks and educational equipment Major suppliers are already participating. In the process of expanding By looking at the school uniform College students Various learning equipment
- House and construction materials In the process of adding more suppliers. The goal is for this category to be everything related to construction.
- fashion clothing It is a category that will be launched in the future. under negotiation There are fashion brand clothes. until the uniform Including Covid-19 virus protection kit.
- Chemicals, Rubber and Plastics There are products such as liquids, oils, dyes, agricultural chemicals, chemicals in the textile industry, silicone glue. We are in the process of increasing the number of suppliers.
Prepare to open the Factoring function.
Set a goal for 5 years to go abroad
Korn revealed that MyWaWa's short-term goal is to develop a strong WaWaPay payment system. And next year, the Invoice Factoring loan function will be launched. Blockchain technology will be applied to solve the problem of Double Invoice or using 1 Invoice to apply for a loan from multiple banks. Currently, Smart Contract structures are being developed and prepared. There will also be financing available for buyers. It is currently under development and is applying for a license.
“Buyers and sellers can apply for loans on the MyWaWa platform and we will be the bridge that sends this request to banks for further consideration of loans. It is currently in the development stage before being opened for trial to see the response in the first quarter of 1.”
Another goal is Making the platform an end to end solution, MyWaWa will work with partners to add transportation services to the platform. So that buyers and sellers can choose which type of transportation they want. It is expected to open for service in October 2565.
For MyWaWa's 3-5 year goal is to become a B2B International Trade platform. At present, we can see the demand for its use. After CLMV countries began to contact us asking to buy products on the platform, at the same time, suppliers in Thailand also have a need to transport goods across the country. Within 3-5 years, MyWaWa will develop the platform to be strong. along with accelerating the development of infrastructure to support penetration into foreign markets
“We are already seeing opportunities overseas. But right now our infrastructure is not ready. Whether it's doing a story International Banking or international shipping This market is a big game with many stakeholders involved. But if you look at the way forward We want to make Thai suppliers Able to trade with foreigners using MyWaWa as a gateway. In the next 3-5 years, we therefore focus on strengthening the supporting infrastructure in the country first. Then it will begin to penetrate the international market. It will focus on CLMV countries.”
The heirs of Newwaitek, generation 3, open up about banking and finance. After being on the start-up path and dealing with pressure from home, Past experiences have taught him that Nothing that has been done will be perfect from the beginning. The important thing is to Fail Fast, Fail Cheap, Fail Forward. You can fall but you must quickly get back up. This is what he always says to the team.
And “Today's person” has gone through many challenges from the real business field. Until the purpose of doing business used to start from the need to solve family business problems. Want to prove yourself Development is a responsibility for the nation. Ready to support Thai SME entrepreneurs to grow by using the MyWaWa platform.
Follow and read the Young Millionaire column in the Finance and Banking Journal, October 2565 issue, issue 486, in digital format: https://goo.gl/U6OnIi
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