🇻🇳 MyStorage 📦: How an American brought the storage business to Saigon

00:00:00: The nice thing about this business is it's ridiculously scalable.

00:00:04: You need capital at the beginning because you needed to build these facilities, right?

00:00:07: But once you've built a facility your running costs are minimal.

00:00:11: and Vietnam came together in many ways from an opportunity end of timing standpoint so huge population urbanization rate GDP growth all these types of things.

00:00:23: So just seemed like This is the right place for look for new opportunities And that was one of the original reasons I came here, it's this energy you have.

00:00:31: Having these relationships and building these networks is really a critical part in making

00:00:39: all work.

00:00:49: Hi Five Guys!

00:01:00: This is Schoell & welcome to another Money Monday.

00:01:02: as always try to understand what makes company grow.

00:01:06: So, and today a special edition.

00:01:08: as you can tell we're here in the middle of Vietnam in Saigon to be exact Ho Chi Minh City because Eric Austin is my guest.

00:01:14: Today And I'm really curious about him Because he built business here has quite an international Yeah way off living.

00:01:20: i would say He was born In The US grew up in Germany went back To the us went Back To Germany and now Is it Vietnam.

00:01:26: so?

00:01:27: Here Seem Quite A bit and i guess i'm going to learn a lot Of Him from him and his Company.

00:01:32: My Storage.

00:01:32: right

00:01:33: that's Right.

00:01:34: It's really interesting as you will see.

00:01:36: So Eric, first of all very nice to have you here and What a great place?

00:01:40: You live in

00:01:41: thanks.

00:01:43: No it was good to be here.

00:01:44: I'm really looking forward to chatting.

00:01:46: so You know Vietnam.

00:01:49: you've been here for a few days.

00:01:51: i think he said its your second visit.

00:01:52: yeah my second that's.

00:01:54: Its always like a rush.

00:01:55: it's Always Like wow when you come Here I always say And well That Was one Of the original reasons I came here was this energy that you Have.

00:02:03: I always say when you get out of your plane, and you're just riding from the airport to wherever you are going... You immediately feel it.

00:02:11: And that's really why i'm here!

00:02:13: Yeah..i am saying you need to drive on a Vespa through Saigon once in your life?

00:02:17: Exactly!

00:02:18: This is one of those things on the bucket list.

00:02:19: so yeah okay awesome.

00:02:22: So i already got an idea what made me come.

00:02:24: but let us dive into this.

00:02:27: Was there a master plan, some kind of milestones that you know edit up each other when you look at your CV?

00:02:33: Sure.

00:02:33: I mean so my master plan... So i was born and raised overseas.

00:02:39: like you mentioned it's actually born in Spain.

00:02:41: um And uh..so I've always said When You're Born and Raised Overseas It Stays In Your Blood!

00:02:47: Its Not Something That Goes

00:02:48: Away!!

00:02:49: So When I moved back to the USA and went To High School & University There felt like I need to go again.

00:02:55: So, i started traveling and I taught English in Japan... ...and did all these other things.... And then I said okay how can I continue my education internationally?

00:03:04: so..I didn't MBA in the Netherlands.

00:03:07: Then I just sort of started my international career!

00:03:11: That was a lovely German expression.

00:03:14: The Red Thread that runs through it is is the international side of it and looking for interesting opportunities in that.

00:03:21: So basically, just always pursuing an international site of things and looking at opportunity that way And... In the end That's what brought me over here as well because I hadn't worked with you yet.

00:03:31: What were your parents doing?

00:03:32: As a profession

00:03:33: My father worked from US government.

00:03:35: Back on day there was lots of Americans in Germany.

00:03:40: We were over there.

00:03:44: He was over their capacity And then when we so We went to USA.

00:03:51: I went studied again, I got a great job working in MTV in Europe and London.

00:03:59: actually I belong to a Facebook group that's called.

00:04:03: I used to work for MTV when MTV was still cool.

00:04:07: That was back in the late nineties right?

00:04:10: It was a great experience.

00:04:11: So I continued working in media in advertising TV advertising to online advertising, that was in the two thousands.

00:04:19: And I worked on media for about twenty years and then after doing media for a long time it didn't get as exciting anymore because all of the ad budgets were going through Google & Facebook.

00:04:29: It's just like not the same... ...and In That Time while i was living into UK and Germany so-on.. ..I had visited Asia A few times.

00:04:38: My brother is living here.

00:04:40: he lived her for a Long Time.

00:04:42: Everytime I came Here its back what we said right at the beginning I got that buzz, that vibe.

00:04:47: That feeling of like wow it's amazing here.

00:04:50: so that was sort of that click moment back let's say twenty years ago when the timing is right i want to come to Asia.

00:04:57: and so that happened about ten years ago When I exited a company in Germany And said okay The Timing Is Right I Want To Look Around See What The Best Place In Asia For Me.

00:05:08: Okay, so I've got one thing already here One learning.

00:05:11: I would say timing is everything because i witnessed this in any entrepreneurial undertaking.

00:05:15: basically that if the Timing Is wrong your idea and your team can be as good As they want.

00:05:19: yeah doesn't help at all.

00:05:20: So Your timing was right to go for a new step.

00:05:23: And then you said To yourself okay?

00:05:24: Let's let's check out Asia.

00:05:25: Yeah Vietnam as i already learned Because of This vibe That's going around The town Here.

00:05:29: um what Would You do Then?

00:05:31: What Was the start?

00:05:32: so So the timing from a personal standpoint was okay, I exited a company.

00:05:38: Now i can look around and look for new opportunities.

00:05:41: so I Took some time off And I traveled around Southeast Asia and I looked at different countries in Vietnam came together In many ways From an opportunity end of timing standpoints huge population urbanization rate, GDP growth.

00:05:58: All these types of things.

00:05:59: so it just seemed like this is the right place to look for new opportunities.

00:06:04: So I knew what was going to be a Vietnam and What i wanted To do Is leverage my entrepreneurial background?

00:06:10: So I didn't want to necessarily stay in media.

00:06:12: Maybe maybe not so as really vietnam has The opportunity.

00:06:16: you can smell It here You Can feel it Here.

00:06:19: um...I've got the skills And Background As an entrepreneur.

00:06:24: I will go and look for the right thing.

00:06:25: So that's sort of how it came together.

00:06:27: so when i got here When, I came Here?

00:06:54: And actually, I mean what happens then is that you usually...I guess so to tell me if i'm wrong.

00:06:59: That you tend to build on business models that are rather work intensive from a people perspective?

00:07:05: Yeah yeah

00:07:05: right!

00:07:07: I've never thought about it in the way you said in terms of efficiency or sorry called

00:07:13: it co-efficient.

00:07:14: Genie coefficient I'm not familiar with that expression.

00:07:18: I'm no totally as well to be honest.

00:07:21: But but the concept is.

00:07:23: you explained it just now Absolutely, and i'll give you an example.

00:07:27: so Let me back up And i'll Give You An Example.

00:07:31: So we opened Up a storage business self-storage right?

00:07:35: and Self-Storage Is um and i will give you.

00:07:39: Well let Me let me Back up and give you The story of how i came To self-Storage.

00:07:42: then i can tell you about your question.

00:07:45: So when I got here, I was looking at different business sectors and as an American we all know self-storage.

00:07:51: It's very common.

00:07:52: it is really growing in Germany as well And i needed to store my things while moving from Berlin.

00:07:58: so I talked with the Airbnb hostess where can you put your stuff?

00:08:02: She looked like she had no clue!

00:08:05: So started researching this sector.

00:08:08: It's arrived in Malaysia, it's arrived and Thailand.

00:08:13: In the Philippines Singapore Hong Kong... ...it is inevitable to come here.

00:08:17: I might as well be first.

00:08:19: so that was sort of the genesis of this idea right?

00:08:22: And then when we built a business We build two types of self-storage.

00:08:27: We built traditional self storage where people just put their stuff into locker.

00:08:30: its a self service business.

00:08:32: they pick things up but also have something called valet storage and valet storage is where we come to you, pick everything up.

00:08:39: We put it in a warehouse when bring back.

00:08:44: that's super convenient.

00:08:46: people can just sit at home they book the storage do everything packing.

00:08:49: all of this too.

00:08:51: now there have been couple examples on that states.

00:08:54: those one called make space another call clutter.

00:08:59: neither them succeeded.

00:09:01: biggest problem exactly what your talking about labor costs astronomical Especially in places like New York and so on.

00:09:09: Why has Valet worked very well?

00:09:11: for my storage is because of exactly what you talked about, right?

00:09:15: And there are three factors that I've talked about to make it successful.

00:09:18: So number one is the city.

00:09:20: here's very dense Right.

00:09:22: Number two The infrastructure stinks In terms of people owning their own cars or subways and things Like That.

00:09:29: And number Three What You Talked About The labor Is Cheap.

00:09:32: So you can throw people manpower at this valet problem and make it work here.

00:09:38: But does this mean that your business model would die off over time if Vietnam becomes more successful, and labor gets more expensive?

00:09:48: Overtime is pretty vague of course!

00:09:53: Yeah maybe overtime but I think we're a long way from that right...a long-long away from that you know, so many factories here making all-news products and things like that.

00:10:05: So yeah there may come a day but I don't think i'll be doing self storage when the day comes.

00:10:10: Yeah

00:10:11: maybe we should tell people who are listening right now do not have an idea because basically going from airport to your hotel by taxi costs about One dollar or so, oh you could have lunch or dinner for one dollar thirty something like this right?

00:10:24: So This is the amount of buying power.

00:10:27: You have here.

00:10:28: Yeah I can totally imagine that this isn't as a factor in your case and give me an idea.

00:10:33: What does your company look like right now?

00:10:35: how many cities do you write to this

00:10:38: show we launched at The end of two thousand nineteen.

00:10:42: We bootstrap the Company So we started out, you know with my own money investing that and growing.

00:10:50: And then fortunately we had chosen storage not F&B because COVID came along.

00:10:55: so uh... We just continued to sort of grow slowly as the business-as.

00:11:00: that time went by.

00:11:02: Then we got friends & family And we continue to grow.

00:11:07: I call that semi organically until about a year ago We got our first institutional investor and so we're super excited about that because right now what?

00:11:16: We're doing is were really accelerating the growth.

00:11:19: So Semi organically for about five years, and now institutional money which is helping us Expand all across Ho Chi Minh City.

00:11:27: So that's our plan over the next few years.

00:11:29: and it's just Ho Chi Min city We're focusing on right now cuz It's such a big city really its fourteen million people.

00:11:35: So we really want to focus on that and do it really, really well rather than say okay.

00:11:41: We have to go to Hanoi or Danang.

00:11:43: just be honest I think you know people who do not everyone of course but sometimes due because its sounds good or ego thing where all over Vietnam But were going to focus Ho Chi Minh City in dominating this city.

00:11:57: Love the sentence Focus!

00:11:58: Focus!

00:11:58: Keep The Focus There you go.

00:12:00: That's what we're

00:12:01: going to do.

00:12:01: Okay, so fourteen million people is the size of the market in a way and give me an idea.

00:12:06: How much does it cost?

00:12:07: To buy storage In your case like self-storage whether that's the valet?

00:12:11: So um The valet Is probably about Thirty to forty percent less expensive for the storage itself.

00:12:18: right You have to pay extra For the transportation but the storage Itself is About thirty or forty percent cheaper.

00:12:24: if you We are pricing this by cubic meter Traditional self-storage operators do it by square foot or square meter, but if you're selling space I always thought cubic meters makes a bit more sense.

00:12:36: right.

00:12:36: and valet You can't really sell by square meters of square feet.

00:12:39: So we do it all by cubic meters.

00:12:41: And our cheapest product for the self storage It's about twenty five dollars per month For one cubic meter which holds about eight side moving size boxes to store that In non AC.

00:12:56: We also have air-conditioned storage and one other product we have is wine storage.

00:13:00: So but yeah, so the pricing to answer your question about twenty five dollars for a cubic meter.

00:13:06: But it gets a lot cheaper.

00:13:07: if you store twenty cubic meters It's not gonna be twenty times twenty five.

00:13:10: of course You'll be

00:13:12: a lot less.

00:13:12: so you have discounts.

00:13:13: when when the amount?

00:13:14: Yeah

00:13:14: The cubic meter rate goes way down as I get higher volume exactly.

00:13:19: And then I guess the nice aspect about the valet storage is that you could store this stuff wherever You want.

00:13:25: You can do it in some kind of rural areas around The city.

00:13:28: well,

00:13:28: that's what we do.

00:13:29: our warehouse Is way outside of town?

00:13:31: It's on the road to the new airport actually and We have a massive Warehouse out there at several thousand square meters with you know racks That are about six meters high cool.

00:13:42: And so we pick up we take it out There and we bring it back.

00:13:45: So the customers aren't allowed In their from A privacy and security standpoint Because we have two types of customers.

00:13:51: one type of customer They need to put their stuff somewhere, but they don't eat access.

00:13:55: you're out-of-town You're renovating your home or there are documents?

00:13:58: You know things.

00:13:59: You just need to Put Somewhere.

00:14:01: and then you have the other type of Customer who needs Access.

00:14:04: you Know Their business files Or their inventory or Things like that.

00:14:09: Then they Have The Self-Serve They Have The Lockers And Those Are Closer Into Town.

00:14:13: And That's Where our investment Money Is Going is Building These New Facilities all over Ho Chi Minh City.

00:14:18: What'S the strategy There?

00:14:19: Do really build these buildings?

00:14:21: So we have a unique way of building.

00:14:27: The self-storage business in most developed markets is a property play, so the operators they buy the property sometimes even joke that the self storage part as almost secondary.

00:14:38: and if I had to buy their property They built self storage or made it and so on but A lot of the value was locked up in the property.

00:14:44: In Southeast Asia two-thirds to three quarters of the businesses are leaseholds, so they lease the property just because of price issues transparency lead times and so on.

00:14:56: So we're leaseholded...so we lease properties.

00:14:59: but the key difference for us is that we have built our facility out of containers.

00:15:04: now when I say container it's not the traditional.

00:15:06: you think of a container cuz actually you walk in and we have corridors once your inside feel like you're building right?

00:15:13: But that's sort of, I call it our secret sauce.

00:15:15: because what we can do then is... We buy the containers.

00:15:19: We build a building.

00:15:20: We own the building and if you have to move-we can pick up and move right?

00:15:24: So were not beholden into the whims some landlord where lot more flexible in terms properties we lease so on.

00:15:32: That reminds me of Picnic, actually.

00:15:34: Do you know it?

00:15:34: No I don't.

00:15:35: Picnic is a European company... ...I think that comes from the Netherlands.

00:15:39: and what they're doing?

00:15:40: there's a grocery store an online grocery store And What They did Is they invented these special boxes and also built cars so that they could put These Boxes inside Of The Cars From The Side Okay, and then They Could Easily Optimize Basically The Amount Of Drop-Offs Per drive.

00:15:59: Okay, so what they do is?

00:16:00: They do a lot of route planning obviously and the second part Is that it's pretty much optimized.

00:16:05: how to use this space in these cars?

00:16:07: okay their warehouses

00:16:08: interesting And I'll have to look at own up.

00:16:10: i've not heard them

00:16:11: So kind off.

00:16:12: What I just thought is your game as a logistics game in the way that you need to optimize space and where use that space.

00:16:18: Exactly, exactly!

00:16:20: And we were talking earlier about how you're from Berlin... ...and i see a lot of similarities here at Ho Chi Minh.

00:16:26: One of the similarities is unlike most large developed cities there's still a lot empty open spaces downtown.

00:16:36: Can't imagine, yeah?

00:16:37: All over the place and they're not being built because of a million different reasons legal reasons.

00:16:42: people are fighting about it whatever-whatever.

00:16:45: since I moved here eight years ago there's some prime real estate properties right downtown in The Central Business District that you've been using parking lots But those can also be used for self-storage, right?

00:16:55: So that's what we're doing is leveraging the fact you've got this weird dynamic going on here.

00:17:01: We are putting our self storage containers in really some prime locations super visible and hopefully more people will go to those blue containers as my storage ends.

00:17:14: Make that association.

00:17:15: That makes me think about marketing.

00:17:16: What's the way you guys get known by your customers?

00:17:19: Is it like they walk across one of these container buildings and say, oh look I need to store my stuff as well.

00:17:25: so we are fortunate enough To want my founding partner.

00:17:31: he.

00:17:32: she is also German Her name Stephanie And She's a real digital Marketing Expert.

00:17:38: she actually worked with Rocket Internet companies in Berlin.

00:17:42: Right, you know what I'm talking about?

00:17:43: We wrote a book about these guys exactly.

00:17:45: so You know it's the great training school for that skill set right.

00:17:50: and So when we came in we did a lot of let's say initially PR And stuff like that because we were able to leverage The fact that we're new right.

00:18:01: so a lot Of press wanted to just come and write About us.

00:18:03: but that was Just sort of a little bit nice To have at the beginning.

00:18:06: so we started out with A traditional SEA, Facebook advertising all of that type a thing.

00:18:12: You know Google course and so on.

00:18:15: And also when we started out I would say eighty percent of our audience was foreigners Because they knew the concept but they were looking for storage.

00:18:23: So they found this very quickly very easily and we were the only ones right?

00:18:27: So then we started building more and more.

00:18:31: More and more locals started learning about us.

00:18:34: And then they, you know, start seeing our billboards or starting to see ads on Facebook and saw the press and so on... ...and now we're up to about sixty percent local.

00:18:44: So over five years we've made a real transition just by being really sort of aggressive in terms every aspect of marketing The traditional digital PR, outdoor advertising myself getting out there and doing interviews, talking to people.

00:19:02: But also as you just pointed out one of the key success factors for self-charge is being very visible.

00:19:09: so our first location right on a major highway And we expand top criteria looking at new space visibility.

00:19:17: We're not going build locations that are hidden unless it's satellite or something I

00:19:26: see, and what does your perfect customer look like?

00:19:29: Because this is where marketing comes into play.

00:19:32: Who am i addressing?

00:19:33: who

00:19:33: you're dressing?

00:19:34: You know it's It's...I get that question a lot.

00:19:37: Who's your customer?

00:19:39: Storage Is A weird one.

00:19:40: why is it weird?

00:19:41: because Everyone needs storage at some point in their life right?

00:19:47: the use cases are so broad So broad!You've got so many different reasons for people needing storage That we really You know, it sounds horrible saying this but we really address just about everyone in terms of saying hey We're my storage.

00:20:05: When you need storage?

00:20:06: We're here.

00:20:07: It's

00:20:07: addressing every one.

00:20:08: that's a good question of timing actually when you will need me.

00:20:11: That's exactly right.

00:20:12: so I was planting that seed is making people aware to explaining the benefits and so on.

00:20:17: and so now Now that Is Let's say only part of the story.

00:20:24: But what's happening?

00:20:24: and the transition were seeing a move from need-based storage, like I'm renovating and i need storage or something to lifestyle based.

00:20:37: And now we're getting more into the targeting young urban sort of middle class vietnamese.

00:20:48: they're moving into the city in small apartments their making money there buying stuff.

00:20:54: it's this dynamic that happens in every country around the world when they start making more money, right?

00:21:00: And then want to have just a better quality life.

00:21:04: On our storage facility on The Flagship it says and very big letter of space is the ultimate luxury.

00:21:11: so getting people... So we're targeting this audience more closely and showing them they can have just a nicer living environment, or a nicer office environment when they get rid of all the boxes that are piled up in the hallway.

00:21:26: Or as you probably know unlike Europe where there's states You don't have a storage area for your apartment so people often have their extra room.

00:21:37: So educating those people and moving away from this event-based to lifestyle based.

00:21:44: then we're targeting.

00:21:49: I was just thinking about this, there's the TV series with Marie Kondo.

00:21:55: Do you know it?

00:21:55: Yeah yeah exactly where she helps people clean up stuff and actually You should produce such stuff for Instagram or so Exactly

00:22:01: we are.

00:22:01: Actually that's great That you say that.

00:22:03: So We Are.

00:22:04: Actually I Mean With Our Investment.

00:22:07: We Really Increased our Marketing Team Personnel And Songed.

00:22:13: We Have One Girl Who Is Focused On Social.

00:22:15: Now Right and one of her let'S Say Projects is creating a channel with exactly that.

00:22:21: Yeah, right?

00:22:22: So it's gonna be a my storage Channel.

00:22:25: My storage will not be in the foreground.

00:22:27: It's a for ground as a channel in Vietnamese on How to have that better life how to have a higher quality life Not a bunch of cluttered out about junk.

00:22:36: so it is playing all that condo.

00:22:39: I thought

00:22:40: exactly right nice nice.

00:22:43: And by the way, are there any risks in that business model?

00:22:46: Because I was just imagining one of your warehouses and then a big pipe full of water breaks down or all this stuff is ruined.

00:22:52: Is this irrelevant risk you have when doing these

00:22:55: businesses?".

00:22:57: The good thing about this business?

00:22:59: it's relatively low-risk but things like what you described can happen.

00:23:07: One of our competitors thankfully not us they had a water leak where their warehouse was leaking.

00:23:13: Um, fire is always a risk.

00:23:15: It's very low-risk though because there are no electricity allowed in the facilities.

00:23:20: so you know that usually its primary cause of things like that.

00:23:25: So yes!

00:23:26: There IS risk.

00:23:27: Now one thing thats interesting.

00:23:28: most people we make our customers aware of Is the insurance question right?

00:23:34: We can't insure customer items Because we don't know their value.

00:23:39: You have to know the value of something, you know?

00:23:41: People put things in boxes and so on.

00:23:43: And the business would break down.

00:23:44: if you asked people to itemize everything that they're storing forget it!

00:23:48: So if people want to insure They can go to a third party.

00:23:51: we work with someone else.

00:23:53: Um...so they ensure things but from a risk standpoint and responsible.

00:23:58: The only risk that we have is our reputation If something like that happened.

00:24:01: right But from financial risks standpoint It's not very high.

00:24:07: Do you see any adjacent businesses going around your core business because we just mentioned insurance?

00:24:11: Yeah, that might be one thing.

00:24:13: I was thinking when you were talking about the business guys who have all their stuff or they're papers in big boxes and your storage.

00:24:20: You may think of some kind off co-working Because he said the locations are pretty central.

00:24:26: yeah

00:24:26: Are there any?

00:24:27: or is it again a question of focus?

00:24:30: focus keep the focus.

00:24:31: i mean There are certainly services that We offer around our core business of storage.

00:24:37: About twenty percent of our revenue, twenty-twenty five percent is non-storage.

00:24:42: but the biggest ones are that are um... The transportation and packing which directly related to the valet storage right?

00:24:51: And there some other things like insurance or materials.

00:24:54: uh we have started wine storage so thats a different type of storage But we really are focused on that, the co-working.

00:25:04: We thought about that and said look you know it's just not going to be enough critical mass for that... ...we did think of there a lot online sellers here.

00:25:18: It is huge massive market but most still want do their thing at home And have stuff stored with us.

00:25:28: However, just a big.

00:25:30: however we do offer a really nice what we call the workspace.

00:25:35: So it's not for permanent co-working but if someone wants to come in and organize their stock or do a little bit of work on the side We do have a nice space like that which is unlike most storage companies say they don't have.

00:25:46: Yeah, I was just thinking of some kind of café inside these storages as well.

00:25:50: Because you might say hey let's grab a coffee there and then i need to get my stuff out the storage drive home.

00:25:55: We've

00:25:56: thought about it.

00:25:57: There is place in Singapore called Work & Store Where they actually have exactly that right?

00:26:02: They had work area And so on.

00:26:05: we've thought abut it maybe down the road.

00:26:07: But if theres any business thats could be closely related.

00:26:11: It would something like offering people.

00:26:15: I mean, this podcast obviously is about growth.

00:26:18: How fast are you able to grow this business?

00:26:21: So that's the nice thing about this business.

00:26:25: it's ridiculously scalable.

00:26:27: You need capital at the beginning because we needed build these facilities right.

00:26:32: But once you built a facility Okay, CAPEX done Your running costs are minimal.

00:26:38: We have one staff member in whole facility who was just there to welcome some new customers and so on.

00:26:45: And then so you've got your rent and utilities, whatever.

00:26:48: Then let's say our one-third full... ...and it is immediately profit.

00:26:53: The only blocker therein are how many of these facilities can be built?

00:27:00: How quickly do they fill them up?

00:27:01: That really what its all about.

00:27:03: but if we look around globally the business margins are ridiculous.

00:27:11: This was two or three years ago But this company, it was a cash deal in the UK.

00:27:16: I can't remember which company it was but it was big one and they were sold to another company for... The multiples are something like ten X revenue And the EBITDA number is like fifty six percent EBITTA.

00:27:30: When you get to scale there not many businesses that could even compare with this.

00:27:35: It's getting their that challenging right?

00:27:37: In terms of building so on

00:27:41: What does a typical filling rate of such building looks like?

00:27:43: It depends on how big it is, I always say.

00:27:48: So we have our flagship.

00:27:52: We just built an expansion for our flagship.

00:27:56: It has one hundred fifty five lockers.

00:27:59: In the first month there are sixteen new customers.

00:28:04: so in this case they will be able to fill about a year.

00:28:08: That's pretty fast.

00:28:12: We have one of the best problems.

00:28:14: for about a year we've been sold out.

00:28:16: So, uh...we were just dying to build this new facility and I posted on LinkedIn that already construction is next new facility.

00:28:28: so when you build them with great visibility they'll fill up relatively quickly.

00:28:35: What's your company size in terms employees revenue?

00:28:39: So when we expanded just now, from a headcount standpoint.

00:28:49: We went from fifteen to close to thirty so really built out some areas.

00:28:55: our investor they're called EMIA Emerging Markets Investment Associates.

00:29:01: their LPs are European government's very ESG focused as well which is sort of cool.

00:29:07: So we hired a full-time ESG staff member to help us with let's say, green transition.

00:29:16: And I will answer your question what is very interesting as the fact that just nature of our buildings repurposed shipping containers which was an extremely green way building unlike a brand new building, right?

00:29:28: So we've really stocked up and built in different areas.

00:29:33: And things like yield management and so on.

00:29:36: from revenue standpoint We're now at the low seven figures.

00:29:39: I'm happy to say that we have reached another milestone there.

00:29:46: Let's face it our goal is to build up a company that's really attractive To one of the big international players in let's say five or six years, right?

00:29:55: The biggest ones off-the-top on my head.

00:29:57: They're out of Singapore.

00:29:59: One called extra space another one called store hub.

00:30:02: they're big and Asia there huge And to me at some point There's gonna be no way around Vietnam.

00:30:08: when it comes these companies are going to say we want to come into Vietnam We're Gonna Say Hey Here We Are

00:30:13: So kind of a make-or-buy decision these guys have to make then.

00:30:16: That's

00:30:16: exactly right.

00:30:17: I

00:30:19: mean you talked also about competition.

00:30:20: what happened since your start?

00:30:21: where?

00:30:22: You said okay, it was the first guy doing it.

00:30:24: But now you obviously have competitors.

00:30:25: how is the market evolving?

00:30:27: so we The first competitor started at the beginning of twenty two and Since that time We've had.

00:30:35: if we have about three or four competitors total It's Because of the competition, it's actually a good thing because it shows as market.

00:30:48: I think to be honest with you if there were no competitors right now then people who are thinking about coming to Vietnam would like what is going on.

00:30:55: so from that perspective its' good.

00:30:57: they're also helping us educate the marketplace.

00:31:01: From our perspective taking away some customers Of course we do that but other things offset the fact that take some market share and Talking about the fact that we're sold out.

00:31:14: We're filling up The other one pretty quickly.

00:31:16: I think speaks volumes to the demand, right?

00:31:18: There's no doubt in my mind.

00:31:20: the need is here but the awareness will drive.

00:31:26: Then the demands when they figure out.

00:31:28: okay Wow i mean One of my favorite stories this back a few years ago A guy was renovating his place and he said Wow, I wish i'd known about you earlier.

00:31:35: Last time I did this... ...I rented a hotel room and put my stuff in it!

00:31:40: So the need's there but people are using other solutions.

00:31:43: Ah storage that is even an option for me right?

00:31:47: Yeah, I was thinking about the fact that marketplaces usually tend to be winner-takes at all markets.

00:31:51: And then you have offer and demand.

00:31:53: but in your case... The special part of this marketplace is that build up for offerings really slow because we need to build places with buildings.

00:32:03: So actually i can understand it totally makes sense.

00:32:06: as said You were fully booked.

00:32:09: It does make sense build up the market from a knowledge perspective, awareness.

00:32:14: And at the same time building your facilities so that when the awareness goes up thanks to your competition you're there.

00:32:21: basically get these guys.

00:32:22: Get these guys.

00:32:23: yeah it's fun.

00:32:24: Interestingly enough and I mean obviously quite a few people are now interested in what it feels like to have found a company in Vietnam coming from abroad.

00:32:33: What was it like?

00:32:34: Pain In The Ass from bureaucracy perspective.

00:32:38: Was It Alright?

00:32:38: How did go about?

00:32:40: It was actually not bad at all.

00:32:46: I didn't need twenty five thousand euros like i need in Germany.

00:32:51: The bureaucracy, l'd say level is probably about the same.

00:32:57: They're getting... they were pretty friendly towards me In terms of making it easier for foreigners.

00:33:04: Some sectors can be a hundred percent foreign owned some cannot So storage isn't problem.

00:33:09: So that's one thing I looked into.

00:33:10: But, That being said the most important thing was really surrounding myself with people i can trust who speak Vietnamese Who know whom to talk too and that type of things.

00:33:23: And thats where I spent lets say The first year-and a half since I got here Establishing those relationships in networking Not running out on the first month and opening company Right?

00:33:34: Thats...that break or sort research time was critical to making sure it works.

00:33:42: Moving too fast, I think would have been a big mistake.

00:33:44: So is also legal game because you need good lawyer who tells about certain regulations or laws that apply here?

00:33:52: Yeah!

00:33:53: It's illegal game... Yes and no You do need know the law so we can help out but our business not rocket science right?

00:34:05: Storage isn't super complicated It was pretty basic.

00:34:11: What's more interesting here is the fact that, again knowing whom to talk to and where their right contacts are on whether permissions or you know one of things I often talked about as a fact that very frequently depending upon who we're talking too The law can be little bit interpreted differently.

00:34:33: let me say it in that way there will been more variability than what might used And so knowing that is really key.

00:34:42: We were actually very, very fortunate because we are partnered with a great local company.

00:34:48: They're called Tantan.

00:34:49: I'm probably pronouncing it completely wrong!

00:34:51: They've been an amazing partner for us An amazing partner and they're the ones who build the containers For Us.

00:34:59: So they supply the containers then fit them out as well.

00:35:04: So they know the government.

00:35:10: They know the wards, they know all of people there.

00:35:12: so when it comes to building permits and so on... ...they can smooth away for us right?

00:35:18: Having these relationships in building this networks I would say is really a critical part making them work.

00:35:26: Well then let's do some kind of math at the very end or some sort of listicle.

00:35:30: Sure What do i need to grow?

00:35:33: First of All I learn timing.

00:35:35: Second Of All I Learn Network Knowledge you're

00:35:38: talking about here in Vietnam, right?

00:35:39: Yes

00:35:41: Yeah I mean You could also depth.

00:35:42: is there anything like you see?

00:35:43: that's different Here and comparison to the other places.

00:35:46: You've been Japan Germany.

00:35:48: well Like i say That's The thing.

00:35:51: Is the so timing?

00:35:53: i think it universal

00:35:54: yes

00:35:56: But Establishing this network of Local people you can trust And know who to talk Tois a vietnam Thing.

00:36:06: It's not uh...it's Not more developed markets thing, right?

00:36:12: Tantan could really smooth the way for us that a lawyer who's not in that space would have had a lot more difficult time even though that person is a lawyer.

00:36:20: Right so thats sort of a key difference I would say In terms developing marketer and then also from just language and cultural standpoint.

00:36:30: So yeah i don't speak the language That where it circles back to trust things And

00:36:38: it's quite different.

00:36:39: We were just you know, we had a tour guide yesterday and we're teaching her German Yeah, and she was teaching us Vietnamese yeah, and I realized It's rather easy if your a vietnamese who is able to speak English to learn german because you have certain ways of.

00:36:52: You know sounds.

00:36:54: in comparison?

00:36:54: We are like mom mom.

00:36:56: now what's up mom?

00:36:56: It's mom

00:36:58: Vietnamese.

00:36:59: i mean i feel Like i'm pretty good with languages myself right.

00:37:02: um...and..i When I taught English in Japan a long time ago, I studied Japanese really hard.

00:37:11: And I studied Vietnamese quite a bit and sometimes i feel like my japanese is still better than my vietnamese.

00:37:17: the words are so short... ...and these tones are such killer!

00:37:20: Just as you said.. ..I will say something.... ....and then I'll be corrected and they'll say no it's this but that exactly what I just said!

00:37:28: It was really

00:37:30: frustrating!!

00:37:31: So my Vietnamese is Pretty basic.

00:37:35: But it's so cool, right?

00:37:36: Like every country in the world now The young people are all speaking English.

00:37:41: It is just more and even in a short time Eight years that I've been here... ...I have seen a change In terms of number of people who can actually speak English.

00:37:49: That was amazing.

00:37:51: Okay!

00:37:51: Cool.

00:37:51: As summary as i said What other factors come to your mind you needed to grow

00:37:58: To grow business or for myself?

00:37:59: Maybe both?

00:38:02: So There was a Presentation that I did last year and it's um, I thought a lot about because again my international background And you go to different places?

00:38:21: And you have your lens.

00:38:22: That you look at things right and You say ah its difference.

00:38:27: and there is A photograph i had of an little girl six-year old Girl Here in Vietnam you often see people walking around what looks to the western eye like pajamas, please I don't know if you've noticed that and as a westerner.

00:38:45: You're like why is she in her pajamas?

00:38:47: Walking around at the market or something like that?

00:38:50: um And When you see that It's not just saying it's different but you have to remind yourself actively That you are looking at it differently, right?

00:39:04: You're costly.

00:39:05: So... It's not just a passive thing.

00:39:07: It is an active thing.

00:39:08: every day I am Western and going to look at things differently And i have to reframe it actively.

00:39:15: Its so easy for me to come over here and say passively Okay thats different Thats different.

00:39:19: But really try and actively reframe that and think about what is different.

00:39:25: That´s why I think its bigger challenge To do this on very regular basis.

00:39:31: No, that might sound a bit fuzzy.

00:39:33: But

00:39:34: no I do not understand.

00:39:35: and also to not devaluate it you say okay It's not correct doing in this way?

00:39:40: It's just different.

00:39:41: yeah

00:39:42: exactly Exactly so.

00:39:44: i think coming over here To A new place like That You have to Actively Remind Yourself That You're A little Bit on the outside And You're Looking at it a Little bit differently Rather Than Just sort of let it Flow Over You all The Time

00:39:56: brutally Opens the Head to be Honest.

00:39:58: i can Remember that traffic Here.

00:40:00: It's really interesting, because what you see is all these motor scooters and cars like swarms of fish going through the streets.

00:40:07: And they go beeping their horns all the time.

00:40:09: Beep beep beep beep!

00:40:10: And I realized in Germany when we use your horn it says... You're an asshole or did something wrong?

00:40:18: Impressive

00:40:19: right?!

00:40:20: Here it is.

00:40:20: hey i'm here watch out look to the left and then realize this say an aspect of how they understand society.

00:40:28: They are a societal culture in the way, thinking as we.

00:40:32: and the western part where I come from is rather think in individual ways... ...as i. And just one example when you realize totally different way of approaching it if you would think of WE instead of

00:40:44: AI.

00:40:45: Yeah for sure Most Asia's very much like that In Vietnam.

00:40:51: you can definitely feel To your point, I don't they have ever experienced road rage here.

00:40:57: Ever true?

00:40:58: which people yelling at someone else or something like that?

00:41:00: Never never experienced

00:41:02: it.

00:41:02: fascinating part is the talk quite quiet Silently yeah across all the noise but still understand each other with a helmet on their ear.

00:41:10: Exactly

00:41:11: Yeah, true.

00:41:11: Yeah shows amazing experience

00:41:14: Eric.

00:41:14: there was really a pleasure and i'm really curious how this going to develop.

00:41:18: Maybe I should.

00:41:19: By the way, these storages do you have a lot of robots there?

00:41:22: Is it like in modern warehouse... I

00:41:24: think automated yet!

00:41:25: I was here looking at the robots upstairs and thinking about myself.

00:41:29: that'd be pretty cool.

00:41:30: but right back to your first question labor's still so cheap here.

00:41:34: we don't have to do that.

00:41:35: okay maybe in the future.

00:41:37: So i'm really curious how you will develop when I return here next year or other year after next.

00:41:41: And good luck.

00:41:42: thanks a lot.

00:41:43: Thanks so much.

00:41:43: It has been a pleasure.

00:41:44: Take care.

00:41:46: Wow!

00:41:46: That was an inspiring conversation, right?

00:41:48: Remember to subscribe to the podcast so you don't miss any episodes and share them with your friends or colleagues.

00:41:55: Until next time, stay inspired and curious – your Joel.