Saturday, April 14, 2007

[Buy Cambodian] Small entrepreneurs: Ean Thavy and her vitamin juice

Ean Thavy produces aloe vera juice which has medicinal value (Photo: PS, Cambodghe Soir)

11 April 2007
By Sarah Oliveira
Cambodge Soir

Unofficial translation from French by Luc Sâr

Click here to read Cambodge Soir’s original article in French

Thailand produces an aloe juice, so why not Cambodia? That was what Ean Theary decided to do by creating the Tornado brand. But, one year after its creation, her family business is moving at a so-so pace.

She was already in her 50s when she decided to try her luck. Ean Thavy, a native of Battambang, sold second-hand clothes at a Thai market located beyond the Poipet border post. In the neighboring country, she tasted one day an aloe vera juice. “It is known among the Khmer people as a medicinal plant, and it tastes very good. Why not producing it in Cambodia?” she asked herself.

Through a friend, she was able to take a tour of the Thai factory which produces fruit juices. In Poipet, Ean Thavy then started to produce homemade juices from aloe vera and pnov (aegla marmelos, according to the dictionary of plants used in Cambodia published by Dy Phon Pauline), a fruit known for its nutrition and curative property. “I have them tasted by my neighbors and my family, it was a success. They encouraged me to sell it, so I decided to start my company.” At the beginning of 2006, she gathered all her savings, about $20,000 including the money belonging to her sister, who is a believer in her project. Ean Thavy used the funds to buy a small property and install there a production plant.

The entire family is involved

In the process, six of her children and nephews are also getting involved, while at the same time pursuing their studies. Cutting aloe vera leaves – which look like “crocodile tails” and that is in fact its name in Khmer – extracting the gel from the leaves, boiling it, surveying the hygiene according to the standards set by the Ministry of Industry, bottling… tasks which are not always exciting. Nevertheless, they don’t lack enthusiasm since their contribution to the Best Choice Production (BCP) Company will look good on their job resumes later on.

For their practical exercise, two young company employees – one student in computer science and one student in English – concocted a company brochure, both in English and Cambodian, touting the health benefits of the two plants. The information in the brochure was gleaned from the Internet and from library publications. However, BCP does not have the budget to advertise its products. “Almost all my savings went into buying the property and the installation of the factory,” Ean Thavy deplored.

One year after its creation, the small family enterprise moves at a so-so pace. Last weekend, curious people of all ages were seduced to taste the Tornado aloe vera and pnov juices produced by BCP at the “Buy Cambodian” fair held in Phnom Penh. But the company has a hard time finding a distributor. Only 30 to 40 cases of 24 bottles each are sold each month, and Ean Thavy is quite happy to earn some money through sending clothes to sell from Poipet.

A matter of relationships

The Tornado fruit juices, displayed in a svelte-looking bottle, are only available in a small number of restaurants and supermarkets in the capital. “We cannot yet place our products in all the supermarkets because we lack relationships,” Ean Thavy explained. She does not dare asking a bank loan. “I don’t have relationships with banks,” she said with regret. “And I’m afraid that I cannot pay back on time.” For lack of good contacts or initiative, the company counts on words-of-mouth to sell its products. It also counts on its price which is more attractive that the aloe juice imported from Thailand. Furthermore, the “pnov” juice has no competitor yet on the Cambodian market, however, its special flavor and its high sugar content could turn off some consumers.

Ean Thavy already realized her dream, but can her company last long? The next step depends on Cambodian people, her son answered. “If they buy our products, we will continue. But if the sales are not taking off, and if we have too much loss, we have to stop it.”

12 comments:

Anonymous said...

Wow, no doubt it going to have
a happy ending, and you corrupted
people better lay off this womam,
or else.

God blesses you, Ean Thavy!

Anonymous said...

And oh, if you want cheap labors
and low taxes for your bussiness,
vote CPP in the 2008's election.
Okay sweetie (Ean Thavy)?

Anonymous said...

Cambodia need more of entrepreneurial spirit like Ean Thavy!!!

It won't be long soon more Cambodian people will copy her success!!!!!

Anonymous said...

Agreed!

Anonymous said...

This is a good example of khmer entrepreneurship. It inspires me now that we should start producing things on our own. Good luck to Tornado Brand !!!

Anonymous said...

Yes, and I can see, in just a few
short years, the product will
be available throughout SE Asia
and beyond. I will keep my finger
cross for her.

Anonymous said...

Good on her. I will buy her products for sure.

Anonymous said...

You got class, my friend.

Anonymous said...

Thanks Mrs. Ean Thavy for her confidence on producing aloe vera juice. As what I have read from the article I think her business is not taking off yet (even though it was produce and took off since last year). So no body can't assure will it be success or not. However, from my point of view if we analyze by 4Ps strategy she still lack of the two Ps significantly, Placement and Promotion. Therefore, she has to strengthen these two.

Keep It Up :-)

Anonymous said...

True, and the tough part of
bussiness is always the initial
investments. Lot of people went
under for not having enough to
survice while the promotion and
advertising is spreading out, not
to mention other factors that
stoped 95% of new bussinesses.

I don't understand what "Placement"
you are referring to. Do you mean
the location of the bussiness?

Anonymous said...

Placement here is referring to the Distribution Channel. Since, her sales outlets are very limited therefore, the chances for the real consumers to buy the product are really difficult. She should looking at the pure drinking water business distribution as a model. I would strongly recommend to study how did Hi-Tech distribute their products at the beginning stage? They both gone through the same stage which Hi-Tech entered the market when there is a few competitions while the Ozone water dropped out the market.
I wish she could hear my comments.

Thanks

Anonymous said...

Ahh, ..., yes, that is also what
I thought you meant. True, and I
am sure there will be plenty of
people who's willing to be the
middlemen. The product should sell
by itself, since so many people
have vitamin deficiency. Plus, I
believe there is a chance that
Coca-Cola or others will make her
an offer also, that is if they
haven't already got the product
... .