"It is not because they have money that they buy it. They buy it out of necessity."
When asked about business performance in Vietnam, Jeon Woo-eun, general manager of Seram Vietnam., whom we met at the company's office in Ho Chi Minh City, cited "necessity."
In Vietnam, where the average monthly salary of employed workers is approximately 480,000 won and a credit card installment culture has not yet developed, the fact that a Korean-made spinal care medical device priced at 4.5 million won per unit is being sold is because consumers themselves feel the necessity of the product.
Seram's business in Vietnam begins with enabling consumers to experience the necessity of the product. Senior customers, who are the main clientele, visit stores to try out the devices, and satisfaction with the products spreads through word of mouth, leading to purchases.
The core of sales is providing ample opportunities for experience rather than aggressive promotion or coercion. According to Jeon, approximately 20% of all visitors who try the product proceed to purchase.
Since entering the Vietnamese market in 2008, Seram currently operates 81 experience-based stores. Although many predicted that selling high-priced healthcare appliances locally would not be easy, Seram established itself in the local market by leveraging standardized 'experience marketing.' Seram's local revenue in Vietnam has continued to grow at double digits since 2023, following the COVID-19 pandemic.
Of course, Seram's business expansion in Vietnam has not been entirely smooth. The company faced various difficulties, from the process of adapting locally in the early stages of the business to the COVID-19 pandemic and concerns from administrative institutional investors regarding store operations.
Jeon said, "As dozens of senior visitors flocked in from the morning, local administrative institutional investors also expressed concerns about safety accidents," adding, "We received Class II medical device approval from Vietnamese health authorities and demonstrated that we are operating safely, thereby alleviating the authorities' concerns."
In addition to product quality, after-sales service (AS) is also cited as a factor in gaining the trust of local consumers. Jeon said, "It is virtually difficult to find a competitor locally that can be compared equally with Seram," emphasizing, "Local consumers are showing trust because we block withdrawal risks through a structure where headquarters manages dealers and guarantee thorough AS, in addition to excellent product competitiveness."
Having solidified its position based on Ho Chi Minh City in southern Vietnam, Seram is now accelerating expansion into the northern region centered on Hanoi. Jeon said, "For the northern region, we set a goal of opening approximately 20 stores centered on Hanoi and have currently opened three stores," adding, "We will gradually expand the experience model by carefully considering regional consumption habits and customer characteristics."
The company is also pursuing diversification of its product portfolio. "If we built a tower of trust with Master V4 so far, we will now unveil a lineup that can accommodate both existing customers numbering 50,000 and new demand," said Jeon. "We will take deeper roots as a true No. 1 healthcare company that gifts 'health and trust' to the Vietnamese people."
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