Hoap Phat bids farewell to the furniture sector
Before becoming the “steel king”, Furniture was one of Hoap Phat’s first two business sectors. In 1992, Hoap Phat Spare Parts Equipment Company was established, being the first company under the Hoap Phat brand. This enterprise was also the first at that time to engage in machinery and equipment business. In 1995, Hoap Phat established a furniture business initially named Son Thuy Trading Co., Ltd., specializing in distributing imported furniture products. Steel and steel pipes are two subsequent business sectors, established between 1996 and 2000.
However, on January 4, 2021, Hoap Phat Group signed a transfer of all of its shares in Hoa Phat Furniture JSC with a book value of VND 398.4 billion, equivalent to 99.6% of the share capital to Eden Vietnam Furniture JSC with a transfer value of VND 896.4 billion.
Sharing the reason for selling the furniture company, billionaire Tran Dinh Long stated: “In the group’s development strategy over the past 5 years, Hoap Phat focuses on industries with large volume and scale, avoiding competition with major players in the world market.
Furniture contributes to the foundation of Hoap Phat’s success. However, over time, the furniture industry faces two major issues. Firstly, it is suited for the household economy, which used to be good in the past but is now in debt. In the past 4-5 years, there was a tea shop for every 10 meters, but it’s different now. The furniture industry is the same; competing with household economy won’t work.
Secondly, the furniture company in Hoap Phat employs 2,000 people, generating VND 1.8 trillion in revenue and VND 200 billion in profit. Meanwhile, the steel pipe company in Hoap Phat employs 2,000 people, generating VND 20 trillion in revenue, ten times that of the furniture sector.”
Hoa Phat Furniture changes its brand identity
The company acquiring Hoa Phat Furniture, Eden Vietnam Furniture JSC, was established in 2015 with its headquarters located in Kênh Cầu Hamlet, Đồng Than Commune, Yen My District, Hung Yen Province, Vietnam.
The director of Eden Vietnam Furniture was Ms. Lai Nhu Loan, born in 1992. The company’s capital was increased from VND 8 billion to VND 300 billion right after the acquisition of Hoa Phat Furniture.
In December 2022, Eden Vietnam Furniture changed its name to Phoenix Construction Investment Development JSC. The company’s director also changed to Mr. Nguyen Minh Hoang, born in 1993. Notably, the main business sector changed from retailing household appliances, furniture, family utensils to real estate business, land use rights of the owner, user or lessee.
After being under new management, in early 2022, Hoa Phat Furniture JSC announced the repositioning of its brand and changed its name to The One Furniture with a new slogan to comprehensively convey its development direction in the future.
Along with the name change, the brand announced the slogan “Illuminate space, leading together” and the brand identity was inspired by the light of a lighthouse.
“Changing the brand identity is a strategic decision by the company’s leadership because changing when failing is inevitable, but changing when succeeding is something not every enterprise can do. Changing the name to The One Furniture is a major turning point for the brand after nearly 30 years of operation under a purely Vietnamese name,” shared Ms. Thu Huong – Representative of Communication of The One Furniture Trading and Production JSC.
Although Hoa Phat has divested, the legal representative and director of The One Furniture is still Mr. Doan Gia Cuong – Vice Chairman of Hoa Phat Group.
In 2023, The One Furniture is also introducing many new product lines such as ergonomic chairs, Bright office furniture collection, and Stellar collection.
