Understanding consumer needs gives Lam Soon an edge
Lam Soon Edible Oils (LSEO) promotes wellness by ensuring a healthy composition in cooking, baking and salad oils that cater to the diverse palate of the multiracial Malaysian market. This ability to understand the varied needs of its market has turned the company's products into household names in Malaysia and Singapore. With the upcoming economic integration of Asean, LSEO aims to deepen the reach of its multiple brands throughout Southeast Asia.
Lam Soon Edible Oils (LSEO) promotes wellness by ensuring a healthy composition in cooking, baking and salad oils that cater to the diverse palate of the multiracial Malaysian market. This ability to understand the varied needs of its market has turned the company's products into household names in Malaysia and Singapore. With the upcoming economic integration of Asean, LSEO aims to deepen the reach of its multiple brands throughout Southeast Asia.
"Lam Soon has been doing business in Southeast Asia for more than 60 years," says Whang Shang Ying, executive chairman. "The key to success is our understanding of the local consumers."
Although the Malaysian population is not as huge as those of China, India or Indonesia, it is distinctive for being multiracial. When it comes to fast-moving consumer goods (FMCG), this translates into many different market segments. These include cultural attributes, such as Chinese, Malay and Indian, and in terms of socio-economics, whether the market is located in an urban or rural setting.
"To be a successful FMCG company, you really need to understand the aspirations and preferences across all the different segments," Whang says. "This is what we at Lam Soon try to do."
By pioneering the use of palm oil as edible oil in the 1970s, LSEO has contributed a high-value export industry to the Malaysian economy and to the consumers, a low-cost yet healthy alternative to coconut oil and animal fat. The company's continuous innovation has led to a wide variety of personal care products and the increasing use of other vegetable oils such as sunflower, corn and canola oil for baking.
Its latest innovation is the use of biodegradable and renewable plant-based active ingredients in dishwashing liquid. The eco-friendly product line, called bio-home, has received many global awards. It reduces water usage due to its low foam formula and comes in refreshing lemongrass and green tea, lavender and bergamot variants.
LSEO also has long-standing partnerships with Japan's Lion Corporation and Hong Kong's Lee Kum Kee.
"We look for partnerships that complement our strengths," Whang says. "Our strengths are our knowledge of the local consumer and our very strong sales and distribution network within Malaysia. One way we are seeking to grow is to have partnerships with other companies whereby we can carry their brands and distribute them in the local markets."
As a long-term player, LSEO promotes continuity and sustainability in its industry. It has been recognised for outstanding workplace practices and green building initiatives.
The company was among 15 winners of the 2011 AARP Best Employers for Workers Over 50 Award - International. AARP, a United States-based advocate for people who are approaching or have approached retirement age, noted LSEO's strategies to ensure an age-friendly workplace.
The company's commitment to mature employees is reflected in flexible working arrangements, continuous training and other opportunities to remain employed beyond the legal retirement age, among many industry-best practices.
LSEO's distribution centre in Bukit Minyak, Penang also became the first Green Building Index-certified industrial new construction in 2012. The company invested 35 million ringgit (HK$82.8 million) to build the new-generation distribution centre. It incorporates green design features such as natural ventilation, rainwater harvesting for landscape irrigation and sewage flushing, and the massive use of recyclable material in constructing the building. Potable water and power consumption are substantially reduced on account of these design features.
"We believe in doing business with integrity and being a reliable partner," Whang says. "If we do something, we always play our part as a responsible company. This is also why we have earned the trust and loyalty of consumers."
www.lamsoon.com.my
