Kit Loong Group is turning 90 this year. CEO Jacob Chen shares their story of growth with The Tyreman.
Kit Loong Group Celebrates 90 Years of Excellence
2021 marks the 90th anniversary of Kit Loong Group, a company known for being one of the pioneers of the tyre distribution and retreading industry in Malaysia. However, with the outbreak of Covid-19, commemoration has taken precedent over any celebration. Therefore, instead of shying away from being 90, the Group is embracing its anniversary by sharing its story with The Tyreman on how they come so far, as well as the power of persistence they have demonstrated over the years to propel the company towards its centennial year.
Jacob Chen took the helm as Kit Loong Group Chief Executive Officer at Kit Loong’s 70th Anniversary gala in 2001. He received the baton from his father, Chen Jet How and officially ushered in a new era for the third generation to take over that has led to the development and growth of the Group to what it is today.
“In 2002, Kit Loong plunged into a crisis when Michelin restructured and ended our sole Michelin truck tyre distributorship partnership. Subsequently, in 2007, after 40 years of successful cooperation, our Michelin passenger car tyre distributorship also came to an end. This was a great challenge for me as a new CEO as I had been in the position for a year at that point. It was also a challenge for Kit Loong as it had to tide over this noticeable business gap in the tyre business,” explained Jacob.
‘In the midst of every crisis, lies great opportunity’ is the famous adage of Albert Einstein. Of course, turning a crisis into an opportunity often requires thinking out of the box.
“We viewed it as an important turning point for us. It led to the splitting off of our passenger car tyres and commercial tyres businesses into two different groups, including in our retreading operations. With the change in direction, the commercial tyres and retreading division became its own entity with a new name – Kit Loong Tyre Commercial Group, which is now owned and managed by Managing Director Kenneth Teh. The two separate entities allowed us to be more focused on putting more emphasis on our specific market segments, creating value not only for our stakeholders but also serving our customers better,” Jacob added.
The Covid-19 impact is unprecedented. Loss of life, business closures, trade disruption, reduced demand and productivity have resulted in weak financial results. “We have had to streamline our organisation by maintaining the section of business that is profitable, fortifying our company structure and optimising existing staff performance as well as looking for young and talented personnel to join us. Companies that are resilient and adaptable succeed more often than those rigid and unwilling to change. Therefore, we have demonstrated our strength in resilience and adaptability amidst the pandemic. For instance, we adopted a more flexible rebate system to align our interests with our dealers to weather the impact of the current pandemic.”
For Jacob, these challenging times are also a period of intense preparation for the Group. “As we are paving our ways toward our dream of becoming a century-old enterprise, it is important that we keep up the fighting spirit to stay relevant during the pandemic.”
Digitalisation is reshaping many businesses across all industries. Like it or not, E-commerce will be an important part of the marketing strategy for tyre manufactures and suppliers. The pandemic has accelerated the digital transformation, and Kit Loong certainly cannot afford to be left behind.
Jacob revealed that Kit Loong has introduced a mobile app called Tayaria TOP (Tayaria Tyre Ordering Programme), which is designed to help dealers access the most recent product information, stock availability, and prices of the tyre range that the Group carries.
Commenting on the app, he said, “It allows our dealers to order conveniently from any place at any time, instead of through phone orders or have to wait for our sales personnel to attend to them. It saves time by streamlining the action of ordering – processing and delivery, as well as increasing transparency in pricing.”
The Art of Focus
Apart from that, Jacob said they will continue to invest in equipment and physical facilities to improve productivity. “We have acquired a piece of land and have also applied for the license to build a logistic centre, which is expected to begin construction in 2022. The new warehousing and logistics facility will not only enhance our efficiency in logistics planning and management but also enable us to provide a seamless online-to-offline (O2O) system for the convenience of our dealers.”
Equally important, he stressed is the management team and employees. “By upholding the principle of the ‘right hiring practice policy, cultivating talent and retaining those staff’, we can hold on to highly qualified talents who are our most valuable asset. We need a balance of experienced old hands and newcomers with fresh perspectives to move forward. Bringing in new creative blood into our organisation is not mainly for succession planning, but to introduce fresh minds and perspectives to our team. As we advance toward our 100th anniversary and beyond, besides goals and targets, persistence and responsibility, it requires not only inheritance but also innovation.”
Over the years, Jacob said, Kit Loong Group has gone through its ups and downs. He noted that the Group cannot rest on its laurels and rely on its previous advantages in the ever-changing market conditions.
In 2016, Autobac Seven (AB7) acquired a 20 per cent stake in Kit Loong Tayaria (KLT). This was an important milestone for Kit Loong Group as it showed that KLT’s potential has been recognised by one of Japan’s largest suppliers of aftermarket automotive parts and services, including tyre related services and car accessories, Jacob added.
Currently, KLT has more than 100 Tayaria alliance outlets. Jacob explained that partnering with AB7 allowed for KLT to leverage AB7 experience and its range of products. KLT can also successfully replicate their success model in Japan for the local market. Therefore, he is confident of achieving their target of 120 outlets.
“With much appreciation and gratitude, we would like to take this opportunity to thank our international brand vendors for their unwavering support, our valued customers for their loyalty, our employees for their hard work and dedication, as well as their understanding during this difficult period. My grandfather Teh Kim Hye, the founder of Kit Loong, has passed down Kit Loong to us with a brand legacy of trustworthiness and honesty, while my dad Chen Jet How has taught me the art of staying focused in our expertise, doing what we specialise in and have the willingness to work hard. All these factors have contributed to what we are today, and will continue to inspire us, leading up to our centenary celebration in 10 years.”
吉隆集团：坚持百年企业的梦想
大马轮胎分销和翻新行业先锋之一的吉隆集团，在2021年迎来成立90周的日子。然而随着冠病的爆发，纪念活动显然优先于各种庆祝。吉隆集团自然不能让它的90周年如此静悄悄地度过，于是该集团接受了《轮胎世界》的专访，与读者分享他们如何从过去走到今天的故事，他们多年来为推动公司迈向百年诞辰所展现的强大坚持。
2001年，郑家国在吉隆70周年的庆祝晚宴上，正式成为吉隆集团的首席执行员。他从父亲郑捷浩手中接过接力棒，开启了第三代接班人的新时代，使该集团发展壮大到今天的规模。
郑家国解释说：“米其林在2002年重组时，终止了吉隆的米其林卡车轮胎独家分销权，让吉隆陷入危机。2007年，米其林又中断了我们在全马的米其林轿车轮胎独家分销权，我们与米其林长达40年的良好合作关系也自此正式画上句号。这对走马上任才一年的我来说无疑个巨大的挑战，对吉隆也一样，它必须克服轮胎业务中这一明显的业务缺口。”
爱因斯坦有这样的一句名言：‘在每一个危机中都蕴藏着巨大的机遇’。然而，唯有打破常规思考，才能将危机转化为机遇。
郑家国补充说：“我们把这个危机当成一个重要的转折点。它导致我们的轿车轮胎和商业轮胎业务，包括我们的翻新业务的彻底分家。我们将商业轮胎和翻新部门从吉隆集团拆分出来，成为一个名为吉隆轮胎商业集团的独立实体，由董事经理郑日勤管理和持有。拆分为两家独立公司后，我们能够更专注于各自的特定细分市场，使我们在为利益相关者创造价值的同时，也能更好地服务客户。”
冠病带来前所未有的影响。生命陨落、企业倒闭、贸易中断、需求和生产力下降导致财务业绩疲软。 “我们不得不精简我们的组织，维持有利可图的业务部门、强化公司结构、优化现有员工绩效以及寻找年轻有为的人才加入我们。相比之下，灵活和具有高适应能力的公司比那些僵化和不愿改变的公司更容易成功。因此，我们在冠病大流行中展示了我们的韧性和适应能力。例如，我们采用了更灵活的回扣制度，使我们的利益与代理商保持一致，以抵御冠病大流行的影响。”
对郑家国来说，这个充满挑战的时期也正是吉隆集团必须认真做好准备的阶段。 “当我们在为百年企业的梦想铺平道路的同时，保持斗志也非常重要，以便我们能够在大流行期间维持相关性。”
数字化正在重塑各行各业的格局。不管你喜不喜欢，电子商务将成为轮胎制造商和供应商营销策略的重要组成部分。冠病的大流行加速了数字化的转型，吉隆当然不能被抛在后头。
郑家国透露，吉隆推出了一款名为胎雅乐“TOP” (胎雅乐轮胎订购计划）的手机应用程序，旨在帮助代理商获取吉隆集团所分销的轮胎系列的最新信息、库存情况和价格。
他在评论该应用程序时说：“它为我们的代理商提供便利，使他们可以随时随地下订单，无需通过电话或等待我们的销售人员来处理。该应用程序简化了订购操作、处理和交付，在节省时间之余，还提高了价格的透明度。”
专注做内行生意
除此之外，郑家国表示，他们将继续投资于提高生产力的设备和设施。 “我们购买了一块土地，并申请了兴建造物流中心的许可证，预计可在 2022 年动工。新的仓储和物流设施不仅可提高我们在物流规划和管理方面的效率，也让我们得以为客户提供无缝的在线到离线 (O2O) 系统的便利。”
他强调，管理团队和员工也同样重要。 “通过‘求才、育才、用才、留才’的原则，我们可以留住高素质的人才，因为他们就是我们最宝贵的资产。集团要继续前进，我们需要在经验丰富的老员工和具有全新视角的新人之间取得平衡。然而，为我们的组织注入新创意不仅仅为了接班与传承，也是为了将新思想和观点引入我们的团队。除了明确的目标，锲而不舍的坚持和责任，更要有传承和创新，才能稳步迈向100 周年和更远的未来。”
多年来，郑家国说，吉隆集团经历了起起落落。他指出，在瞬息万变的市场环境中，吉隆集团不能依靠过去的优势，固步自封。
2016 年，Autobac Seven (AB7) 收购了吉隆胎雅乐（Kit Loong Tayaria）20% 的股份。 郑家国补充说，这对吉隆集团来说是一个重要的里程碑，因为这证明了吉隆胎雅乐的潜力已获得日本最大售后汽车零部件和服务，包括轮胎相关服务和汽车配件供应商之一的AB7 的认可。
目前，吉隆胎雅乐拥有100多家胎雅乐联盟门店。 郑家国解释说，与 AB7的合作使吉隆胎雅乐能够运用AB7的经验和销售其产品系列，吉隆胎雅乐还可以将AB7在日本的成功运营模式复制到本地市场，进一步拓展事业版图。因此，他对实现120家胎雅乐的门店目标充满信心。
“这一路走来，有国际品牌供应商的坚定支持，有忠诚客户的爱戴，有献身员工的幸勤付出和他们在这个困难时期对的公司的理解，让我们倍感荣幸，我们在此向他们致以万二分的谢意。我的祖父郑锦海是吉隆的创办人，他将吉隆求实诚信的品牌精神传承给了我们，而我父亲郑捷浩教会了我专注本业，只做内行生意，努力不懈地精益求精。这些关键因素不仅造就了今天的我们，也将在未来激励和引领我们稳步走向百年企业目标，并在10年后的今天落实吉隆百年庆典。”
