The Spectacular Comeback of Bong Bach Tuyet: From 10 Years of Struggling to Escape Bankruptcy to 10,000 Cleansing Cotton Pads Sold Out in 1 Month on TikTok.

Bach Tuyet Cotton, formerly known as Cobovina Bach Tuyet Factory, was established in 1960 and specialized in the production of medical cotton and sanitary pads. Upon its launch, Bach Tuyet Cotton’s products quickly gained popularity and established a strong reputation among consumers.

From 1975 to 1997, the nationalized Cobovina Bach Tuyet Factory underwent name changes to become Bach Tuyet Cotton Enterprise and then Bach Tuyet Cotton Company, excellently providing medical cotton solutions and essential products.

From Golden Years to the Brink of Bankruptcy

In 1990, Bach Tuyet Cotton was the first company in Vietnam to import a production line for adhesive sanitary pads. Just over a year later, this line alone accounted for about a third of the company’s revenue, in addition to its flagship medical cotton products.

Bach Tuyet Cotton’s golden era spanned from 1997 to 2002, with its medical cotton products capturing 90% of the domestic market share, while its feminine sanitary pads held a 30% market share.

In 2004, Bach Tuyet Cotton made its debut on the stock exchange, but five years later, it had to delist due to a decline in business performance. The company faced frequent shareholder conflicts, escalating raw material costs, and inadequate sales capacity to keep up with the surge in production. It also had to compete with a host of domestic and international sanitary pad brands such as Kotex and Diana.

In 2000, Bach Tuyet Cotton invested nearly VND 100 billion in a European-technology production line for medical cotton and sanitary pads, expecting to recoup its investment within five years. However, this plan failed. The primary reason was the company’s sole focus on production technology, neglecting market research, and falling behind competitors in marketing and sales.

As a result, Bach Tuyet Cotton’s products struggled to compete, leading to increased inventory. The company also employed financial leverage inappropriately, causing slow inventory turnover, liquidity shortages, and cash flow disruptions.

Bach Tuyet Cotton had to halt production from 2007 to August 2009 and was delisted from HoSE on August 7, 2009, due to failing to meet the securities regulator’s requirement of profitable operations. The company faced massive debt, with its market share declining to about 60% in the medical cotton sector and a mere 3% in the feminine sanitary pads segment.

For nearly a decade, the once-prominent brand’s primary goal was to avert bankruptcy. Bach Tuyet Cotton’s management shared plans for business diversification, but their ability to obtain bank loans was hindered by outstanding old debts.

The “Lifeblood” of Cotton Pads and 4,000 Livestream Sessions Contributing 50% of Total Revenue

With the collaboration of dedicated and visionary partners, Bach Tuyet Cotton returned to the UPCoM stock exchange in August 2018, almost a decade after its delisting. Its financial performance has been on an upward trajectory since then. By increasing owner’s equity and retained earnings, the company reduced its accumulated losses from over VND 75 billion at the beginning of 2017 to just over VND 1.4 billion as of December 31, 2022.

In addition to financial and production management reforms, Bach Tuyet Cotton’s first change was in its product portfolio. While its previous mainstay was medical cotton and gauze supplied to hospitals and pharmacies, the company expanded its offerings to include essential consumer goods such as masks, cotton swabs, and cotton pads after the restructuring.

The brand identity was updated in December 2020. While the logo retained the image of a young woman, the medical cotton image was replaced by cotton wool, reflecting the primary material used in their products.

Embracing the philosophy of “getting back up where you fall,” Bach Tuyet Cotton transformed its sales and customer engagement approach. Evolving from traditional channels, the brand ventured into modern avenues, especially e-commerce, attracting a growing number of young consumers. Their marketing campaigns were creative, trend-savvy, and multi-channeled.

Bach Tuyet Cotton’s success is evident on the TikTok platform. Catering to its youthful audience’s interest in beauty, the brand maximized TikTok Shop’s resources upon its launch, executing strategic moves that revolutionized its brand recognition and sales performance.

As part of its product strategy on TikTok, Bach Tuyet Cotton focused on building a system centered on cotton pads, ensuring a stable supply during peak shopping seasons. They proactively collaborated with Affiliate Creators and consistently conducted livestream sessions, taking full advantage of the tools provided by TikTok Shop.

During the 9/9 Super Shopping Day campaign, Bach Tuyet Cotton conducted over 4,000 livestream sessions in collaboration with Affiliate Creators, contributing nearly 50% of the company’s total revenue (from September 1 to September 9, 2024).

Previously, during the December 2023 Super Shopping Month, Bach Tuyet Cotton sold over 10,000 cotton pad products, witnessing a tenfold increase in revenue compared to the previous year. The brand also ranked second in the cotton pad category on TikTok Shop (from February to August 2024).