V-KOOLing The World

SINGAPORE – The Edge Singapore – May 28, 2007 - W hen the sun beats down mercilessly, the interior of a car, with its windows rolled up and not parked in the shade, is likely to become hotter than a sauna.

More commonly known as the greenhouse effect, the heat can be minimised, however, if the cars' windows have a layer of V-KOOL film, which is marketed by V-KOOL International Pte Ltd (VKI). The company is backed by Novomatrix Pte Ltd, which has a paid-up capital of $22 million and specialises in marketing and franchising high-performance thin films for the automotive and architectural segments.

“V-KOOL is the undisputed leader in the hi-tech, high-performance, premium window-film market for the automotive industry,” says director of VKI, Colonel Wee Hian Woon, in an

email interview with The Edge Singapore .

“Known for its unprecedented record in delivering performance and professionalism, the V-KOOL brand is internationally acclaimed. It can be found in almost 30 countries, with

more than 500 locations.”

On top of focusing on the automotive industry, VKI made a strategic move to increase its focus on the architectural window film business two years ago. It ventured into this segment through a new range of products customised to meet the needs of the architectural market, under the endorsed brand IQue. “The world market for flat glass in 2005 was about five billion sq m and this market is growing in volume terms at nearly 4.8% a year, versus glass usage of 2.3% in the automotive segment,” says Wee. So, it made sense for VKI to turn its attention to the architectural market.

Early this year, VKI appointed A-Nest Co Ltd, a Japanese company with its head office in Fukuoka, as the exclusive master franchisee for the marketing and franchising of IQue in Japan. A-Nest oversees the distribution, marketing and retailing of window films for automotive and architectural applications. It has a network base of over 200 distributors in the Japan market.

Wee says the potential of Japan's automotive and architectural markets is attractive. “In 2005, more than 10 million automotives were produced and sold — 5.85 million sold locally; five million exported,” he says. “The Japanese flat-glass market was about 150 million sq m in 2005. Given the growing need for energy efficiency in Japan, [contractors have been] encouraged to switch from single- to double-glazing glass units.

“As well as being a higher-value product, a double-glazing unit consumes more than twice as much glass to fill the same hole in a building's wall [thus providing better insulation from the sun's heat]. “This has been taken a stage further [through the effect of] the Kyoto Protocol. [The Protocol's] carbon dioxide targets have driven tougher legislation for energy-saving glass, or value-added window films, to enhance the glass attributes of buildings and achieve energy-efficient coated glasses.

“Buildings in Japan now have strict regulation in terms of consumption of air-conditioning to reduce global warming. Our energy-saving IQue coating reduces carbon-dioxide emissions and yet keeps the ambient temperature comfortable for the occupants.” Wee explains that the key to doing well in Japan is to find the right partner to work with and the right person to drive the development of the business. In VKI's case, it is A-Nest. Once the right team is in place, differences in business practices can easily be ironed out. He says: “Each deal may take longer to complete, as the Japanese are very cautious in their approach. To close a deal, time and patience are of the essence.

The nemawashi process [group consensus or negotiation] is longer than usual but, once the group consensus on a general business direction is achieved, they accelerate like a breeze.” Wee cautions that companies should do their research before they“go to the battlefield”.” One can also explore assistance and support from IE Singapore's Japanese desk or the Japan External Trade Organisation [Jetro]. I believe we already have the resources in place to help Singapore companies venturing into the Japanese market. The other way is to speak to companies who have established themselves there, to minimise their learning curve,” he adds.