Vua Nem: A Story of Market Turnaround and Conquest

This story was shared by Ms. Huyen, CEO of Vua Nem.

Ms. Nguyen Thi Thanh Huyen – CEO of Vua Nem

Vua Nem Gia Tot – Redirecting Strategy to Expand Market Reach

In early 2024, I noticed a huge gap in Vua Nem’s market presence: we were missing out on millions of potential customers in the mid-range and affordable segments. This segment, which accounts for the majority of Vietnamese consumer demand, seemed to be out of Vua Nem’s reach with its mid-to-high-end product positioning.

This story began when Vua Nem stores consistently reported negative business results over several months of operation. The post-pandemic economic challenges leading to increased unemployment and consumer spending restraint had significantly impacted Vua Nem’s revenue. However, a candid market survey revealed that pricing was the biggest barrier causing many people to hesitate and overlook the Vua Nem brand.

Recognizing the core issue, my team and I were determined not to stand idle while revenue continued to decline. We discussed and made a pivotal decision: to change direction, expand our customer segments and product range. This was a bold idea from me, but I believed it would open an exciting new chapter for Vua Nem.

I presented the idea to the Board, and we held several discussions to decide on the name. This led to the birth of “Vua Nem Gia Tot” – a sub-brand with a name that says it all. This directness helped customers immediately dismiss the “Vua Nem is expensive” preconception. We also changed store layouts, creating more friendly and accessible spaces for mid-range and budget customers. These were the first steps in this new strategy.

During a two-week trial at our three lowest-performing stores, we displayed prominent red promotional decals with clear price messaging: “Mattresses starting from 1.9 million, 2.9 million, 3.9 million VND”. Why such specific numbers? We wanted to emphasize transparency and honesty. This was the first step in breaking down price barriers in buyers’ minds, creating opportunities for them to enter our stores – completing the first step toward product engagement.

The results after two weeks of testing exceeded expectations: sales grew impressively by 300%, and in less than a month, we turned from negative to positive figures at the chosen stores. This was a positive signal, a great opportunity for Vua Nem to grow stronger. We decided to quickly expand the “Vua Nem Gia Tot” model to more stores.

Vua Nem Gia Tot store

However, to achieve this impressive revenue growth, changing store layouts or marketing tactics was only a small part. The key factor lay in the quality and competitive pricing of “Vua Nem Gia Tot” products. We understood that merely changing the exterior while keeping the same premium mattress lines would be misleading to customers.

The biggest challenge our team faced was the race against time to research, develop, and produce quality mattresses that met mid-range and budget price points. Typically, this process could take five to six months. But with strong determination, the sourcing director and I were working tirelessly to make it happen, dividing tasks to search for and negotiate with suppliers and manufacturers to ensure the best prices while maintaining Vua Nem’s high quality standards.

Within just two to three months, the “Vua Nem Gia Tot” products were completed as expected and officially launched in June 2024**.** The initial results were very encouraging. By the end of 2024, Vua Nem returned to profitability, ending three consecutive years of losses since 2021. Currently, we have 50 effectively operating “Vua Nem Gia Tot” stores nationwide.

Vua Nem’s market conquest journey hasn’t stopped. My team and I continue to research and develop products, from design to details and packaging, with a single goal: to deliver the best experiences for all customers, across all price segments.

Goodnight: A Journey of Brand Transformation, Conquering Gen Z

Alongside the success of “Vua Nem Gia Tot”, we’ve been nurturing another exciting strategy: repositioning the Goodnight brand, a Vua Nem’s house brand for over a decade. Currently, our team has decided to breathe new life into Goodnight, targeting young, dynamic customers – Generation Z, who are increasingly becoming a significant consumer force in the market.

Why Gen Z, and why now?

Recent surveys show a clear trend: mattress buyers are getting younger. The number of buyers aged 25 and above is growing strongly, gradually balancing with the customer group aged 35 and above – those who have achieved economic and career stability. This proves that today’s young people are able to earn and achieve financial stability earlier, leading them to care about and willingly spend money to improve their personal quality of life, including sleep. This represents a potential market that Vua Nem hasn’t fully tapped into.

The Goodnight repositioning strategy was initiated in late 2024 and officially launched in January 2025. As a first step, Goodnight will be removed from Vua Nem’s physical stores and focus solely on development through Vietnam’s leading e-commerce platforms – a move aligned with young people’s online shopping habits.

Additionally, Goodnight will undergo a comprehensive makeover, from logo, typography, and brand colors to packaging design featuring exciting unboxing experiences, and even product lines. This entire process is executed by a talented Gen Z team who truly understand and can connect with this target customer base. Besides, we spent time thoroughly researching direct competitors, grasping key elements to make Goodnight more distinctive and competitive in the market.

The Goodnight Hybrid product integrates the world’s latest technology, featuring Kikoo for the first time in Vietnam. Kikoo is a pioneering technology in sleep temperature regulation and control, helping users enjoy a cooler, deeper sleep for over 12 hours.

The new Goodnight mattress with high technology

The initial results are impressive: by the end of Q1 2025, after repositioning, Goodnight’s sales have doubled compared to the same period in 2024, showing positive market reception.

Key lesson:

The story of “Vua Nem Gia Tot” and Goodnight’s repositioning strategy isn’t just about business transformation. It’s also a profound learning journey of Ms. Huyen and Vua Nem about listening to the market, understanding customers, and continuously innovating to meet changing needs.