UNI-SQUARE

Challenges of UNP Healthcare Vietnam
Building the Future with the Power of Women

The November issue of UNI-SQUARE features UNP Healthcare Vietnam (UNPHC), which celebrated its first anniversary in November. There was a reason why Naturally Plus Vietnam (NPVN) opened its new business as UNP Healthcare Vietnam in November 2022. That is because NPVN was unable to renew its MLM license in 2020, forcing it to change its business model to an agency business. UNPHC was born out of a strong desire to "lead Vietnamese people to health in a different way, even if the MLM business model is not possible.” In this interview, we asked Yoshie Ishikawa, the director of UNPHC, about UNPHC's one-year history and the future of UNPHC.
Thank you very much, Ms. Ishikawa.

From MLM to Agency Business

Multi-Level-Marketing (MLM) legal affairs vary widely from country to country. In Vietnam, the regulations became very strict starting in 2018, and this tightening of regulations resulted in about 90% of industry companies, including local Vietnamese companies, being unable to obtain licenses in line with the new law. NPVN was also unable to renew its license.

We have changed our business model to an agency system and opened UNPHC in November 2022 to continue to lead the Vietnamese people to good health. Yoshie Ishikawa, then GM of Naturally Plus Thailand, was put in charge of the project. What is the real change from being an MLM to an agency business?

Ms. Ishikawa
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“Everything is different. MLM businesses have a pyramid-shaped revenue structure, where members earn sales not only by selling products, but also by enticing new members. The agency business is a company-to-person business, where the company pays a commission on the products purchased by the customer. For top members, the income is much less than in MLM. Naturally, they become dissatisfied. We are in the process of building a new business system while listening to the voices of such members.

98% of our current agents are members from the NPVN days. We have a meeting once a month with the current agents, who were the top members in the NPVN era, to hear their frank opinions on what kind of system would eliminate dissatisfaction and what kind of consideration would make them happy. We aim to acquire new agents by building a business system that benefits both the person making the referral and the person being referred.”

To "get known" by a company with zero name recognition

Another challenge UNPHC faces is zero recognition. Therefore, They work energetically to promote the company's presence to as many people as possible by holding events, exhibiting at booths, and attending meetings. Events and exhibitions that UNPHC has participated in during the past year include:

November 2022: Opening and OPENING events
December 2022: Participation in MOH-sponsored meetings
January 2023: Booth at Ho Chi Minh Marathon
March 2023: Tet Party held
April 2023: Gold Award at the VIETNAM LEADING BRAND AWARDS 2023
August 2023: OLEMIO booth at Danang International

“In terms of advertising and promotion, the sense of speed has grown tremendously since there was no need to apply to the government, which was necessary at the time of MLM. In June, we were able to launch the long-awaited OLEMIO, which boosted employee morale.”

In addition to promotional activities, advertising, social networking, and other public relations activities have also been successful, and inquiries have been increasing.

“We were able to gain credibility by using TV ads as well as web ads. It was quite effective for UNPHC, which is not well known.”

Women's Power for a Healthier Vietnam

Currently, UNPHC has 10 employees, all of whom are women. The top agents are all women, and most of the other clients are also women.

"Except for me and one other person, they have been working continuously since their days at NPVN. Vietnamese women are very strong and hardworking. In fact, the employment rate of women is on the rise. There are many cafes in Vietnam, but only men are drinking coffee slowly. That's just my opinion."(laughs)

Ishikawa has lived in Southeast Asia for 14 years in Singapore, Malaysia, Indonesia, Thailand, and Vietnam. Despite the disadvantage of Vietnam's inconvenient transportation infrastructure, she is enjoying a comfortable Vietnamese life by living a 5-minute walk from the office. She quickly got used to her new workplace and job, but in fact, is it difficult to work in a women-only workplace?

"Now, all the employees get along well, but when I first came to Vietnam, they didn't get along very well. There were a few times when I thought they might start fighting during meetings (laughs)."

Currently, UNPHC consists of two accounting, one human resources and general affairs, one legal, three operations, and one planning/design. Before, there was no communication at all among employees, and many requests were made to Ishikawa as if she was a messenger pigeon.

"The main reason for the improvement in employee communication is the morning meeting. Before, I used to speak one-sidedly at the monthly morning meeting. We changed it to every Monday so that each department shares with all employees the progress of their work and schedules, etc. This has greatly deepened understanding among employees."

In addition to this, the company also provides opportunities for communication, such as by actively inviting employees who like to drink to dinner.

“Vietnamese people are basically very friendly. So I thought that with just a little chance, we could become friends. In addition to that, thanks to the efforts of individuals, we have the at-home atmosphere we have today.”

The Future of UNPHC

Why do you still organize incentive tours even though you are no longer an MLM?

“In MLM, incentive tours are an essential measure to motivate members. Since our current distributors are almost all old members, it would be difficult to eliminate this tradition all together. But we will no longer be able to participate in any of the 'FESTA' or world-class events that we used to attend as Naturally Plus. We are planning incentive tours three times a year as UNPHC, and although the conditions for achievement are different from those at MLM, we are planning tours with high achievement requirements throughout the year and semi-annual campaigns that will take us to Japan and Taiwan, which the agencies are looking forward to. We are looking forward to the next campaigns. We hope to continue to plan campaigns that will please them in the future.”

As UNPHC celebrates its first anniversary and enters its second term, what are your most recent goals?

"Our first priority is to change our business system and increase the number of new distributors. Then we aim to launch new products by the end of the year. 'IZUMIO' and 'OLEMIO' are Naturally Plus products, but this new product is UNPHC's first original product. It is a supplement, but we are confident that it will improve the moisture content of the skin and the intestinal environment. I can't wait to deliver it to Vietnamese women."

With the incentive tour payments from the NPVN era over, UNPHC is now in a position to make a profit. The sales target for this fiscal year is to return to profitability at 110% of the previous year's level. Finally, we also asked Ishikawa about their mid- to long-term goals.

"We are committed to providing high quality products that the people of Vietnam will enjoy and that will lead them to good health. As a result, we aim to be a company that is loved by Vietnamese people and that takes root in Vietnam for a long time."

Thank you very much, Ms. Ishikawa.
Congratulations to UNPHC on your first anniversary!

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