Founder's know-how and executives' expertise synergize well <br>Expanding exports beyond Korea to the Middle East and Africa <br> <br> Located in the Hwaseong Smart Valley in Dokjeong-ri, Jangan-myeon, Dongbang B&H (Co-CEO Kim Tae-hee and Lee Sang-up) is a household goods manufacturing company that supplies beauty soap, baby soap, eco-friendly detergents and softeners, dish soap, and hand wash as OEM/ODM, and sells some of its exports under its own brand. <br> <br>The company has been supplying beauty soap to Amorepacific as an ODM (original equipment manufacturer) for more than 18 years, and its U-ZA soap, which is being supplied to Hanmi Pharmaceutical's baby company in China, is ranked second among Korean soap products sold in China and is steadily gaining popularity among consumers. <br> <br>Chairman Kim Tae-hee, 71, who founded Dongbang Industries in 1986, has been a soap artisan who has specialized in eco-friendly soaps since the company's inception. On the 31st anniversary of the company's founding in 2017, when growth was stagnant, Kim decided to take a second leap forward and recruited Lee Sang-up, 53, as co-president. Based on his experience as a marketing team leader at Hanwha Distribution, an executive in the fashion and household goods division at Boryeong Pharmaceutical Group Mediance, and a vice president at Wooil C&T, he initiated changes for a new leap forward. First, the company changed its name to ''Dongbang B&H'' to transform its image. It also set R&D and quality competitiveness as the company's growth strategy, and began to implement strategies such as diversifying its main product, household goods, entering the cosmetics business, and expanding overseas export routes. <br> <br>First, the company moved away from passive marketing activities in the past and transformed itself into an R&D marketing company that competitors could not provide through customized product proposals tailored to the customer's situation. To make this change, Lee himself writes marketing proposals for major customers and conducts briefings. Lee's nickname is "Mr. Lee" because of his hands-on work. <br> <br>Second, the company improved the manufacturing environment by increasing R&D personnel, renovating and investing in facilities, and changing routes to obtain international cosmetics GMP (ISO22716) certification for shampoo and soap items, preparing for the environment where cosmetic soap will be managed under the Cosmetics Act. <br> <br>Third, we promoted diversification of exports and overseas marketing. In addition to China, which was its main trading partner, the company has been knocking on the doors of new countries such as the CIS (Ukraine, Uzbekistan), the Middle East (Egypt, Dubai), Africa, and India. As a result, it has signed an MOU with Uzbekistan to establish a local joint venture and is actively conducting market research, and this month, it decided to export beauty soap to Africa. In the process, Lee expressed his gratitude for the active support of the corporate support staff at Hwaseong City Hall, who actively helped SMEs explore overseas markets. <br> <br>Since 2017, the company has launched more than 15 brands, including eco-friendly detergents and beauty soaps through OEM/ODM for major companies such as Happyland, Gyowon the Orm, and Leaders Cosmetics. In 2019, the company passed Lotte Mart's rigorous due diligence and started supplying PB products to Lotte Mart with excellent results. <br> <br>In addition to these tangible achievements, the company is making pleasant changes to build a corporate culture of "Dongbang Shin Ki," which means "strong and full of corporate Dongbang. To build a culture of record, Mr. Lee takes minutes at meetings on his PC and shares them with all attendees within 12 hours. He also organizes a CEO Chef Day event once a year, where he becomes a chef himself and hosts a barbecue party for employees with vegetables from his garden and meat that he carefully prepares. He and the plant manager not only grill the meat, but also clean up afterward. For Christmas and New Year's celebrations, the company has changed the traditional events, such as gift-giving and movie viewing, to be more employee-centered. <br> <br>In 2018, Dongbang B&H had 29 employees and generated 10 billion won in sales. In January, the company recorded its highest monthly sales since its founding and is targeting 13 billion won in sales in 2019. Despite the domestic and international economic downturn, Dongbang B&H's achievements are attributed to the fusion of Chairman Kim Tae-hee's know-how and management philosophy with CEO Lee Sang-il's R&D and marketing-oriented expertise, and the establishment of a management system to more proactively reflect market needs and consumer trends. <br> <br>How could a 71-year-old founder and a 53-year-old professional executive, two people with completely different mindsets, generational differences, experiences, and personalities, create synergy? Chairman Kim Tae-hee and CEO Lee Sang-up have found a way: a daily one-hour "Tea Meeting" before work. Every day at 7:00, they have a tea meeting. During this time, they review current issues, make decisions, ask each other questions, and talk about what's going on in the world. The principle is "listen to everything they have to say," and even though it sometimes lasts over an hour, they always end with a smile on their faces because they have listened to each other enough to come to a conclusion. <br>We are looking forward to the future of Dongbang B&H, which is becoming a true beauty and health company by challenging existing household products to cosmetics, showing the wonderful synergy between founders and professional managers. <br> <br>&nbsp; <br> <br>&nbsp;&nbsp; <br> <br>By Hoyeon Shin(<a href="mailto:news@ihsnews.com" rel="nofollow">news@ihsnews.com</a>)