Coolmate, once a typical startup after the Shark Tank wave, has also experienced a turbulent 2023. Even the CEO admitted that there were times when he was very uncertain about the future of the business and knew that he did not have the capacity to solve the larger-scale textile problems.
“2023 is not an easy year for businesses, and Coolmate is no exception. The difficulties of Coolmate come not only from external factors but also from internal factors.”
, CEO Pham Chi Nhu wrote in a New Year letter to the company’s employees for 2024, which is also the 5th New Year for this startup.
The leadership admits that they lack the capacity to solve large-scale textile problems.
When the workforce at Coolmate exceeded 100, the CEO felt that something was not right. The lack of clear organizational structure, offices in 2 different locations, overlapping departments in their work, weaknesses in some management positions, too many projects but no breakthrough projects, lack of focus in product expansion, problems in managing the production and supply chain… have put Coolmate in a lot of tense situations.
As a result, from Q2/2023 onwards, Coolmate’s sales no longer grew as expected, profits were very low, and they even incurred losses in some months. Internal conflicts increased, and the rate at which employees left Coolmate also increased. New products did not bring much success, and large projects could not demonstrate their role, sometimes even becoming a burden. The core products of Coolmate were constantly flawed, complaints and returns increased.
“You may not believe it, but I, myself, read all the reviews and comments from you on various channels. I am also the head of the troubleshooting team and directly provide solutions for many product errors/mistakes and team issues with customers.”
“It was truly a period when I felt unsure about the future direction of Coolmate. If things continue like this, it’s really not okay, but if we move forward, I myself don’t know how. I realize that the core problem lies in Coolmate’s product development. The problem of producing garments at a large scale is much more challenging than I imagined, and our current team and I do not have the capacity to carry out that. Coolmate needs a ‘breath of fresh air.'”
, Mr. Nhu said.
Photo: In 2023, Coolmate’s core products were constantly flawed, complaints and returns increased.
“A breath of fresh air” at Coolmate: Ultilizing management experience in large global brands, unexpectedly joining Coolmate with a “survival wage”
Worried about this, Coolmate’s CEO went to Ho Chi Minh City and sought advice from a woman he knew, who used to be a production manager for large brands around the world. Coolmate’s conclusions afterwards were numerous, including “making things wrong, not the right way, not the right process, and not the right people.”
The CEO was also surprised that when he invited this woman to come and advise, she accepted, even with a “survival wage.” This is also the “breath of fresh air” at Coolmate. 4 months later, Coolmate, according to the head of the team, had changed a lot in terms of product development.
“We learned how the ‘professionals’ do product development, got in touch with factories and partners at an international level, and Coolmate has new team members who are much better than us in the past. If I were to describe the story of Coolmate’s product development, the term ‘transformed’ would not be an exaggeration.”
, Mr. Nhu said enthusiastically.
The bravest decision for Coolmate’s “transformation,” according to him, was that Coolmate accepted opinions to immediately stop producing certain products, stopped working with some suppliers, and even stopped working with some employees; they accepted to break the supply chain for a period of time (about 3 months). As a result, although they did not achieve the annual sales target as planned, in 2023 the company still achieved 90% of the set KPIs, with nearly 30% growth compared to the previous year.
According to the CEO, what is important is that Coolmate has acquired a new, more methodical, and more professional production capacity, something it has never had before. This is also like building a foundation and a framework for a house. Until now, Coolmate has established a brand development department. In terms of sales channels, Coolmate has also joined the TikTok Shop platform and is experiencing good growth.
In 2024, a tough year for the economy in general, Coolmate sees it as an opportunity. In Vietnam, shopping on online platforms is still developing, which will be an advantage for Coolmate. In 2024, the CEO promises to bring many new things to Coolmate in terms of products, marketing campaigns, branding, and operations.
