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Volvik make it, It's different
"We've hit rock bottom and everything is ready to go. We spent the last year focusing on getting the company back on track, and we've seen some results this year. I'm looking forward to seeing if we can blossom next year."
"The No. 1 factory in Eumseong, Chungcheongbuk-do, which caught fire in November last year, has been rebuilt and will be producing full-scale products at full capacity around the clock," said Hong Seung-seok, 58, who I recently met at Volvik's headquarters in Gangnam-gu, Seoul.
Volvik, South Korea's leading golf-related goods company, is preparing for a "second leap forward" by restarting its Eumseong Factory 1. The company received a 22 billion won investment from TS Investment early last year when it was struggling for funds due to the COVID-19 pandemic. Mr. Hong joins Volvic as a professional executive. A graduate of Seoul National University's Department of Economics, he is a financial management expert who has served as the CEO of Long Term Credit Bank, Solbrain Savings Bank, and Deputy CEO of Genic. Since joining Volvik, he has been working to create a company where employees enjoy working with the belief that "a good company produces a good product." He thinks that a good product from a good company creates a brand and enhances productivity.
The reality is not so easy. "The golf industry has grown, but the real players are foreign companies," Hong said. "Anyway, the base of demand has expanded, so green fees should be realized so that golfers can go out on the field more. I hope the day will come when companies like ours, who have been calmly preparing, will get their wings."
Volvik sees the second half of next year as the inflection point for its second leap forward. "Next year will be the real test," says Mr. Hong. "The first factory with dual-core technology has been rebuilt. We are virtually the only company in the world to incorporate dual-core technology into golf balls. It's more modern and has more advanced equipment than the previous factory, which allows us to diversify our simulations. We don't have a set specification, but we can make a lot of changes."
Mr. Hong's plan is to add strong product technology to Volvik's existing innovative image. Volvik has gained worldwide recognition for its matte-colored balls, known as "Vivid". It also has an established customer base. "We can take full advantage of our unique features and advantages that other companies don't have," he says. "Not only our product, but also our DNA, which is the number one in the world in glossy and matte balls. It's the ability to read and lead the youth, and that's ahead of any other company."
"Dual core" is the key to product differentiation. "The core of a golf ball is the core," said Mr. Hong. With dual-core technology, we can make the 'inner core' harder and the 'outer core' softer," said Mr. Hong. "We can make various combinations of shapes, so we can create products that can push the limits." For example, an iron shot requires a lot of spin, so the out-core can cover that. When the driver hits the ball, the resilient rubber will naturally travel farther than the plastic. The dual core is more resilient and flexible than plastic.
Volvik also has a long-term plan to become a premium brand. "It's true that Volvik has a negative image of being a low-cost product compared to its popularity," says Hong, "so we need to establish it as a premium brand to overcome that." A byproduct of this effort is the Condor ball, which is considered a premium product. "We encourage golfers to try Condor balls and compare them," says Mr. Hong. "They feel different. In our tests, our Condor outperformed even the most premium competitors' balls."
Mr. Hong is focused on developing new products that will make people say, "That's new," or "That's Volvik." "One of my mottos is 'Awesome'," he says. "The average person has an emotional approach. Next year, we will continue to introduce new Volvik products that will make people exclaim."
Volvik is looking to recreate its glory in overseas markets such as the United States. "In August of this year, we hired a U.S. corporate president, and we scouted and recruited a large number of marketing staff," said Hong. "We will rebuild our sales force, including U.S. sales, which were somewhat neglected. We haven't finalized the business plan yet, but we expect the US subsidiary to grow into a bigger company than the Korean headquarters. We will start with the U.S., which is a big market, next year, and establish a foothold overseas, including Japan and China."
"If we become a better Volvik in the U.S., we can also do reverse marketing," said Hong. "We are thinking about marketing that can actually work with consumers and communities. For example, a charity golf tournament in honor of Women's Breast Cancer Awareness Day, or something that can be a social contribution."
In conclusion, Hong, who has been playing golf for 23 years, said, "Golf is like life: don't look back. In the past, I wasn't able to do that, but now I'm enjoying my work and loving golf," he smiled.