Expanding Your Business to Asian Markets: Insights from Ankomn's Success Story

Expanding Your Business to Asian Markets: Insights from Ankomn's Success Story
 
In today's episode, we explore how you can successfully expand into Asian markets through the lens of Ankomn, an innovative food storage company that built significant success in Asia before expanding to North America. We dive into the crucial differences between Asian and North American business practices, and how understanding these differences can lead to successful market expansion and growth.

Joining us on the podcast is Tom Hsieh, founder of Ankomn, who shares his journey from mechanical engineer to successful entrepreneur. His company's innovative vacuum-seal containers, which preserve food freshness through a unique mechanism, have gained significant traction among consumers.
 
Tom reveals how face-to-face relationships and trust-building are crucial elements of Asian business culture, and how these factors have contributed to Ankomn’s success. Listen in to learn how your business can navigate the unique challenges and opportunities of Asian markets.
 
In today's episode of the Harvest Growth Podcast, we cover:

●      The key differences between Asian and North American distribution models

●      How to find and build relationships with reliable distributors in Asian markets

●      Tips for overcoming language barriers and cultural differences

●      The importance of attending industry exhibitions in Asia

●      Critical lessons about maintaining business integrity and building trust

Visit ankomn.com to learn more about their cutting-edge food storage containers and how they preserve freshness and aroma longer than other containers. You can also find and order their products on Amazon here.


To be a guest on our next podcast, contact us today!

Do you have a brand that you’d like to launch or grow? Do you want help from a partner that has successfully launched hundreds of brands totaling over $2 billion in revenues? Visit HarvestGrowth.com and set up a free consultation with us today!

Transcript

Jon LaClare [00:00:00]:
Have you ever thought about expanding your business to Asian markets? It may not be as hard as you think and it can be a great way to exponentially grow by adding a completely new market. Today's guest started his business in Taiwan, grew to several other Asian countries, and only recently expanded to North America. He shares his on the ground experience and some great advice on how to quickly succeed in Asia.

Announcer [00:00:24]:
Are you looking for new ways to make your sales grow? You've tried other podcasts, but they don't seem to know. Harvest the growth potential of your product or service as we share stories and strategies that'll make your competitors nervous. Now here's the host of the Harvest growth podcast, Jon LaClare.

Jon LaClare [00:00:44]:
Welcome back to the show. I'm excited to have Tom Shih. He's the founder of ANKOMN, A N K O M N as in nancy at the end.com ANKOMN.com you can see it in the show notes. He has developed a really cool line of containers. He's going to talk about the product, explain it more, but he's got a really interesting business story behind it and I want to dive into the conversation. But first of all, Tom, thanks for joining our show today.

Tom Hsieh [00:01:08]:
Thanks for having me.

Jon LaClare [00:01:10]:
Absolutely. So, Tom, before we jump into your background, I want to describe for our audience what are ANKOMN products, your containers. Could you talk a little bit about the technology of what you've developed?

Tom Hsieh [00:01:23]:
Oh, yeah, sure. So our product is actually really simple. We create the very simple mechanism. So you just twist the lid like three to five times and during the process you take out the air inside and become vacuum. That that's how easy, how easy it is.

Jon LaClare [00:01:45]:
So, you know, I think of a lot of storage containers that people might buy on Amazon or in retail stores, et cetera, and it sort of locks in freshness. They'll say, but yours, can you describe the difference, just so everyone understands between just a lid and the true vacuum seal? So what's that? What does vacuum mean?

Tom Hsieh [00:02:04]:
The vacuum, I would say some people like use vacuum seal actually just airtight. But actually the vacuum as it says it should be, take out the air inside and reduce the air, the oxygen inside. That could harm the food, whatever. In storage. Yeah. And right now the market, yeah, there is some electronic vacuum and there is some like pump vacuum container. But ours is very simple. You don't have, you don't need electricity, you don't need like extra pump.

Tom Hsieh [00:02:41]:
You just simply twist it and it gets all done. Yeah.

Jon LaClare [00:02:46]:
And just to compare, I guess, to think about if I'VE got an airtight seal, a lid that works really well. I've still got air in with my food that I put into my fridge. Fridge to store food for example. It's better than having an open air container that has all the air around it, but you still have some. Right. And that's the benefit of a true vacuum that pulls out that air and makes food last or be fresher for a longer period of time. What are some of the most common uses for anchorman containers that really benefit from this vacuum seal?

Tom Hsieh [00:03:19]:
We started from some foods that are really fragile but common to everyone in daily life, which is coffee. So coffee is the first niche when we start promoting this product to the world. So as a coffee it afraid oxygen dies and it afraid sunlight and it afraid humid. So our container is perfectly fixed the problem and solve it. So we actually been praised by coffee industry people. Really. Some experts, some like brewing champion. They start using our container and we just like everyone know us immediately.

Tom Hsieh [00:04:08]:
Yeah.

Jon LaClare [00:04:10]:
And have you done a difference? Like if you store coffee in just a regular container versus storing it in a vacuum sealed container like yours from enkement, how much longer does it tend to last?

Tom Hsieh [00:04:21]:
Okay, so based on the Q grader, which is one of our affiliate, he's testing like very hardly. Let's say if we use the regular coffee bag and our container, after 7 days you will start testing difference. After 2 weeks you will feel significant difference on the flavor on the like, how it tastes and like amounts of product. Yes, of course we still get a little bit degrees but it just slow down everything average. We are extending the like coffee, we stand it three to four times longer than what it was. Yeah.

Jon LaClare [00:05:07]:
And it's great, you know, because a lot of people purchase expensive coffee. Right. It could be some sort of fine coffees, etc. And to be able to extend that life because you're not drinking it typically all at once. Right. These are big containers of coffee often that are. That are used for a long period of time. So it's to have that useful life.

Jon LaClare [00:05:23]:
It really brings back some great value but improved experience too. I think as you mentioned, some people just live with it where their coffee might get worse and worse just if they're not stored correctly. Right. Because the flavor profile or flavor goes away. So it gives you a better either a longer experience before you throw away or a better experience of taste if you're going to keep it long. I guess either way. Not just from a safety perspective, but from a pure quality and taste perspective. So how did you let's talk about your background.

Jon LaClare [00:05:52]:
How did you get into this business before? You haven't always been launching products. Can you talk a little bit about what you used to do before launching this company?

Tom Hsieh [00:06:00]:
Sure. I was a mechanical engineering degree. But after I graduated I actually joined a trading company and doing as a sales job because my language skill I start selling help the company selling their product which was some memory card. That was an old time that our cell phone still have to use the memory cards to pull in and get some extra memory. And we trace memory cards and letters. IPhone came up. We started doing accessory for iPhone3 iPhone3s and we do like letter case for iPad when jobs still alive. And we really earn a lot of money at that moment.

Tom Hsieh [00:06:51]:
And I get promoted really quickly because I helped the company expanding their business so quickly. And we probably like doing four or five millions every year. That's how we work. And yeah, so I was actually start from trading business but our company has some litigation, patented issues with the other company and start making a lawsuit and burn out some energy and money. And after that outcome we just decide to stop this and the founder of that company just like close the company and take the cash aways and like it's already like somehow like work out and he really make a lot of money so he can live with. Yeah. So but yeah and but in in my. I still like I'm 25 at that time.

Tom Hsieh [00:07:58]:
So I was seeking for the next project for my life. And yeah I mean this. So I noticed that because I bought. I bought a product from a big brand. They're doing the pump vacuum container. And I just noticed that their product has really had some problem. It's not because the pump I mean is okay, but they can really not keep the container sealed for over three days. I mean which is after three days the container is just like usual container.

Tom Hsieh [00:08:39]:
So the vacuum what they claim is like actually a false claim. And I think I can definitely do something better than them. And yeah, that's where the things start. Yeah.

Jon LaClare [00:08:52]:
And I know your next step for your business is to bring in a bigger way your line of products from Asia, from Taiwan and the surrounding areas over to the North American market to help expand and continue your growth. And you've got some sales. First of all, let me for the benefit of our audience, how can they currently buy your product here? Most of our audience is in North America. What's the best way to buy or to search out your products?

Tom Hsieh [00:09:19]:
I mean in our website, encom.com or Amazon. Yeah, we always also Sell right there.

Jon LaClare [00:09:27]:
Absolutely. So and again we'll put those in the show notes for everyone to connect to. It's a-k o m n.com and of course you can search that same. Yep, correct. And I'll. We'll add that to. You can find it on Amazon by searching the same. The same letters as well.

Jon LaClare [00:09:42]:
So let's talk about your current success. You've had a lot of sales in Asia where you're. So you're currently in Taiwan and you sell in several countries around you in the sort of Asia and Asia Pacific area. What are some of the differences? So benefit if our audience is thinking about maybe they've got a successful business here in North America and they want to expand to Asia, what are some of the learnings I guess or some of the recommendations you would have strategically for them to succeed in Asia?

Tom Hsieh [00:10:10]:
I think in I didn't succeed in North America but I did get some succeed in Asia market. So in Asia market I think the more you are doing is working with people. It's like the old days. I mean you go to retailer, you talk to them and you go distributor talk to them and you, you spend a lot of time with people and to like they then convince that your product is really works and they help you carrying actually the distributor in Taiwan or Japan, Korea, they carry the product, they will help you promote it. That's the first big difference when I first enter in North America because North America the distribution is like they bring a product in and that's it. And they don't do any like advertise promotion for you. But in Asia market actually the distributor do help you advertise your product. So what if I have any suggestion to your audience that you already got successful business in North America and you want to expand your business in like Japan, Taiwan or Singapore, Thailand.

Tom Hsieh [00:11:32]:
The most important things you have to do is like you have to find the right person. You can focus in on one or two distributor and talk with them several times even fly here to discuss with them the detailed strategy and see how their office and where they sell to. Once you establish the connection with them, they will help you to promote the product locally and they will help you to solve the problem here. Because I think yeah, I mean different culture people think different customers think differently.

Jon LaClare [00:12:09]:
So.

Tom Hsieh [00:12:09]:
So a good distributor will help you to make it localized and make it convened by the people here in Asia. So finding a good distributor is very important.

Jon LaClare [00:12:26]:
I want to talk about the language a little bit because some of our audience may think well I don't speak any of the languages from Asia. Well, I haven't asked you this question, but I'm assuming you don't speak all the languages for the markets that you sell to. You know, selling to Thailand, to Japan, is that, is that correct? So you know, it's I guess how do you communicate? Is it best to work find a distributor in each local market that you work with? Maybe if from coming from North America might be, you know, speed that speaks English or you know, I guess I don't know. What's your, what's your advice on that? If not knowing the language or the customs and cultures is just going to an individual distributor in each of the markets the best approach?

Tom Hsieh [00:13:03]:
I think most of Asia country they speak English very well, especially someone distribute the product. They certainly have some people with a good English skill that can communicate with you. But that Japan is a total different story. Japan has their own culture, has their own language. They don't speak English so much. But so in Japan business is really comparatively hard to break into. Mostly you have to find some Japanese that with very overseas skill. But it's hard to find compared to other countries to be honest.

Tom Hsieh [00:13:50]:
Yeah.

Jon LaClare [00:13:51]:
And, and you've had some success in finding distributors in most of these countries. You know, how do you go about doing that? Like it just where do you even get started going into a new market in Asia to find good distributors.

Tom Hsieh [00:14:04]:
All right, so in Asia I do exhibition still the old way. We do exhibition in Taiwan, Thailand, Japan, South Korea and during the exhibition that some local distributor will get interesting about your product and you can book waste time with them. So you like there's four days exhibition so you will stay like six days. So you can use the rest of two days to visit some distributor that you met at the show and you can visit their place then discuss the potential opportunity right there. Yeah. So in Asia is really like face to face business. I mean people here like they trust the people they saw and they meet and that really makes business much more easier in Asia. So I encourage you if you want to expand your business to Asia, come here and join some like relate to your industry, the exhibition and I'm sure you'll find get some interested.

Jon LaClare [00:15:15]:
Yeah and you know you can maybe confirm this better than I but Asia when you're coming from North America it's far right. It's far away. But once you're there a lot of the market, a lot of the markets are relatively close. Like there can be short haul flights between each market. So you know, turning one trip into Visiting multiple countries is much easier and less daunting than thinking about, you know, a flight to just one country and then you know, a month later going to another one. But try to plan your trips and they can be much closer than you think. Coming from the U.S. you know, from us is so big, right? Going from one side of the country to the next is a big flight generally.

Jon LaClare [00:15:53]:
And you know that same distance or time in the air can get you to one or two other countries within the Asian market. So planning ahead like you said, getting face to face, finding these opportunities. Obviously start online to find the right people, the right distributors, et cetera. But build relationships in person. This has all been really helpful. Well, Tom, is there any other thought or piece of advice you have for our audience?

Tom Hsieh [00:16:19]:
I would say that during the I really write down some notes that what I have been failure because I mean for people who succeed it's really have some like luckies inside. But for some failures that we always can learn a lot of things from the failure things. And first of all I just talked to you is like if I can start it once again I will change my brand name to more familiar words to people and easy to recognize and better to have some meaning with it. But right now we just we pick up this name so we just like stick to it. But yeah, I mean if you are trying to start a new business, think a good memorable names for it and that's really important. And secondly I would say is like being integrity with your business. I mean yeah, make money is really important but I really get a lot of time that short of cash flow and have a lot of problem and I'm being very honest to my customer, being very honest to my supplier. And it just like everyone start trust you more or they start helping you once you start talking to them the truth that what you have been encountering.

Tom Hsieh [00:18:04]:
I think the most difficult time for me is like I actually developed the first type of vacuum container and that type is so expensive and I really make a lot of mistake in that models and I have to invent the second generation but I don't have time and I don't have money with it. Pretty like going to bankrupt in the next few months. But that time I talked to the supplier and I'm being very, very honest to him what the situation is and what I've been encountered. And later he decided to be an angel investor and help me do the funding. And other than that he helped me to create a second molding and help and let me pay afterwards. So I. I think for that thing I just really being honest to everyone, to my staff and to myself, to my family. I know sometimes you get failure but if you've been honest to the things and people is willing to help you, I mean everyone gets some problem, everyone have long period of time, but we all get that.

Tom Hsieh [00:19:25]:
So like even for me, I help some startup in Taiwan and trying to teach them some information that I've been learned in past few years and that's all the things I keep mentioning about like being honest to people and you will get a lot of reward for that. Yeah, that's what I thought.

Jon LaClare [00:19:52]:
No, I'm so glad you shared that. That's great advice. You know there's I believe nothing more important than integrity in running a business. And when you have that, as you said, you can, once people know they can trust you, you build a relationship with them that they know they can count on. And it may be as you mentioned, a supplier that you're having trouble paying for a period of time. And you know, businesses, they're run by people and people have been through hardship, they understand as well. And as long as you're honest, open and upfront and working with them to work through issues, whatever they might be, you know, financial or, or potentially something else, be open. Don't avoid sharing problems that you might be going through again with trusted parties, with relationships, build that relationship a solid foundation first through integrity, through honesty and through relationships and especially face-to-face.

Jon LaClare [00:20:41]:
That's a great piece of advice in general and working through business with all that working together, it really does help you to succeed. Well, I do want to encourage our audience. Go check out Tom's products, his line of products at either on Amazon by searching ANK o m n containers or anything like that. Or you can go to ANKOMN.com Again it's in the show notes. If you're driving, go check it out later. But it's a great line of products, a really cool technology and you got to see it to fully understand it. Tom showed us a quick example. If you're watching the video of the podcast in the beginning but go check out the website, you'll get the full story and see what they've done.

Jon LaClare [00:21:23]:
Built a really successful and fun business. Also did you know you can meet with a member of my team absolutely free for a 30 minute strategy consultation. We've launched and grown hundreds of products since 2007 and learned some of our strategies while growing Oxiclean back in the Billy Mays days. We're here to help. So please go to harvestgrowth.com and set up a call if you'd like to discuss further.