My Global Hustle » Archive » YG Chats w/ Dan Kim

YG Chats w/ Dan Kim – CEO of Red Mango

YG: Hey Dan! Thanks again 4 taking time out of your busy schedule to meet with me. I’m sure you are still on cloud 9 with the successful Grand Opening of your 14th St. location in NYC. I definitely took the opportunity 2 try out your fro-yo. How has the response been so far in NYC with the Village & 14th locations?

DAN: THE RESPONSE HAS BEEN FANTASTIC! NEIGHBORHOODS SUCH AS THE VILLAGE AND UNION SQUARE WEST HAVE DISCRIMINATING CUSTOMERS WHO DEMAND QUALITY IN BOTH THE FOODS THEY EAT AND THE TOTAL RETAIL EXPERIENCE. RED MANGO IS FOCUSED ON PROVIDING CUSTOMERS WITH THE BEST-TASTING YOGURT IN AN INVITING AND COMFORTABLE ENVIRONMENT, WHICH I BELIEVE IS WHY THE RESPONSE TO ALL OF OUR NY RED MANGO STORES HAS BEEN INCREDIBLY POSITIVE.

YG: Well lets give the folks out there a little background about Red Mango. You are the original fro-yo company! Additionally, you actually launched in Seoul 2002. What inspired you to start this venture?

DAN: RED MANGO WAS STARTED WITH THE BELIEF THAT CUSTOMERS WANT FOODS THAT NOT ONLY TASTE GOOD, BUT ARE GOOD FOR YOU. HEALTHY EATING IS A PASSION OF MINE, AND I’VE ALWAYS WANTED TO INTRODUCE HEALTHY EATING TO DESSERTS AND MEAL REPLACEMENTS. DOING SO WITH YOGURT — WHICH HAPPENS TO BE ONE OF THE HEALTHIEST FOODS IN THE WORLD — WAS A CHALLENGE I WANTED TO TAKE ON BECAUSE YOGURT IS A NATURALLY DELICIOUS FOOD, BUT TASTES EVEN BETTER WHEN SERVED FROZEN WITH FRESH TOPPINGS.

YG: You mentioned that you are passionate about healthy eating. Why leave finance to start your own business? What was attractive to you about the yogurt sector from an economic stand point?

DAN: BUILDING BUSINESSES HAS ALWAYS BEEN A PASSION OF MINE. INVESTMENT BANKING IS GREAT BECAUSE YOU GET TO WORK WITH DIFFERENT CLIENTS IN A VARIETY OF INDUSTRIES, BUT AS A BANKER, YOUâ€™RE NEVER REALLY SETTING THE COURSE AND DIRECTION OF THE COMPANY. RUNNING YOUR OWN BUSINESS REALLY ALLOWS YOU TO DO THIS, WHICH I REALLY ENJOY DOING.

THE ECONOMICS OF FROZEN YOGURT ARE REALLY SIMPLE TO UNDERSTAND, AND THE BUSINESS IS NOT EXTREMELY COMPLICATED. THEREFORE, IT REALLY GIVES ME AN OPPORTUNITY TO FOCUS ON THINGS ABOUT THE BUSINESS THAT REALLY EXCITE ME — MARKETING, BRANDING, AND PRODUCT DEVELOPMENT.

YG: Why did it take so long for you guys to “touchdown” in the states?

DAN: EVEN THOUGH WE ORIGINATED AND PIONEERED THE CONCEPT OF TART AND HEALTHY FROZEN YOGURT OVER 5 YEARS AGO, WE SPENT MOST OF THAT TIME GROWING FROM JUST ONE STORE TO OVER 100 STORES. WE ALWAYS WANTED TO COME TO THE UNITED STATES, BUT NEVER HAD THE TIME TO PLAN AND ENTER THIS MARKET. WE ALSO WERE UNSURE IF U.S. CONSUMERS WOULD ACCEPT THE NATURALLY TART FLAVOR PROFILE OF OUR YOGURT. THE SUCCESS OF PINKBERRY CONFIRMED TO US THAT U.S. CONSUMERS WERE READY FOR TART FROZEN YOGURT, SO WE DECIDED TO MOVE INTO THIS MARKET WITH FULL SPEED.

YG: What was appealing about the U.S. market as opposed to continuing to grow in Asia? The growth potential in China (for example) seems much more robust in comparison to the U.S.

DAN: OTHER ASIAN COUNTRIES SUCH AS CHINA DO HAVE SIGNIFICANT GROWTH POTENTIAL. HOWEVER, THE UNITED STATES REPRESENTS THE GREATEST CONSUMER SPENDING POWER. MOREOVER, IT IS IMPORTANT FOR A BRAND TO BUILD CREDIBILITY IN THE UNTIED STATES BEFORE IT IS ABLE TO GROW SUCCESSFULLY AS A RETAIL CONCEPT IN OTHER PARTS OF THE WORLD.

YG: What challenges did you face with taking your company international? Did you have to account for cultural differences with regards to your branding strategy in the U.S. market?

DAN: YES. WE HAD TO ADAPT NEARLY EVERY PORTION OF OUR COMPANY, INCLUDING THE MANNER IN WHICH WE COMMUNICATE OUR VALUE PROPOSITION, TO THE INTERIOR DESIGN AND COLOR SCHEME OF OUR STORES. WE ALSO HAD TO ADJUST OUR RECIPE TO MAKE SURE THAT IT IS ALIGNED WITH THE AMERICAN PALETTE AND HEALTH-CONSCIOUS EATING.

YG: Pinkberry! They were first to market in the U.S., what is Red Mango’s point of difference (besides being authentic & healthy)?

DAN: ACTUALLY, THE AUTHENTIC AND HEALTHY NATURE OF OUR FROZEN YOGURT IS OUR BIGGEST POINT OF DIFFERENCE. WE AIM TO PROVIDE FOODS THAT TASTE GOOD AND ARE GOOD FOR YOU. ALSO, WE OFFER CUSTOMERS A COMPLETELY DIFFERENT RETAIL EXPERIENCE. WHILE PINKBERRY HAS DEFINED ITS BRAND WITH ITS UNIQUE STORE DESIGN (WHICH ACTUALLY LOOKS LIKE RED MANGO STORES IN KOREA) AND CELEBRITY, RED MANGO IS DEFINING ITSELF WITH AN UPSCALE YET COMFORTABLE RETAIL EXPERIENCE WHICH WE BELIEVE IS SUSTAINABLE OVER TIME AND IN DIFFERENT LOCATIONS THROUGHOUT THE U.S.

[youtube=http://www.youtube.com/watch?v=dcZelYU86V4&eurl=http://thedailykimchi.blogspot.com/2007/09/ordering-red-mango-frozen-yogurt-in.html]

YG: Is there a plan to expand your fro-yo offerings beyond original & green tea? I went to Pinkberry the other day & they are now offering a coffee flavor. It wasn’t that good…… 🙁

DAN: I DIDN’T ENJOY THE COFFEE EITHER. I DON’T THINK THE FLAVOR OF COFFEE BLENDS WELL WITH PINKBERRY’S CITRUS NOTES. I CAN’T COMMENT ON OUR UPCOMING OFFERINGS, BUT I WILL TELL YOU THAT ORIGINAL AND GREEN TEA WON’T BE THE ONLY FLAVORS THAT DEFINE RED MANGO. 😉

YG: I noticed that you are taking a national approach towards expansions as opposed to just focusing on NY & Cali. What was the strategy behind this decision?

DAN: WE ARE TARGETING MARKETS THAT HAVE CUSTOMERS WHO WE BELIEVE ENJOY EATING FOODS THAT ARE BOTH DELICIOUS AND GOOD FOR YOU. MARKETS IN WHICH WE HAVE SUCCESSFULLY EXPANDED INTO INCLUDE SEATTLE, SALT LAKE CITY, AND SAN DIEGO. OUR GOAL IS TO BECOME A NATIONAL BRAND — AND NOT JUST POPULAR IN LOS ANGELES AND NEW YORK.

YG: How do you know that fro-yo is not a fad? Looking at the markets that you are entering, although there is a focus on healthy living, they are very seasonal. (Washington State, Utah, Oregon). Why not focus on expanding into warmer climates that would be conducive to yogurt consumption? (Florida, Arizona)

DAN: WE WILL BE EXPANDING IN STATES WITH BOTH COLDER AND WARMER CLIMATES. IT IS REALLY A FUNCTION OF CONSUMERS ADOPTING OUR TASTE OF OUR PRODUCT AND THE RETAIL EXPERIENCE WE OFFER. FRO-YO IS NOT A FAD UNLESS YOU BELIEVE HEALTHY EATING IS NOT A SUSTAINABLE CONCEPT.

YG: I’m sure that you have read in the news the issues that companies like Starbucks are having. Do you think that your product will be able to endure a slowing economy? Will people want to spend $5 for fro-yo in a recession?

DAN: I BELIEVE ALL BUSINESSES WILL BE IMPACTED BY A SLOWING ECONOMY. HOWEVER, I ALSO BELIEVE THAT OUR PRICE POINTS ARE SUCH THAT CUSTOMERS WHO ARE SEEKING DELICIOUS FOODS WILL STILL BE WILLING TO INVEST $5 INTO FOODS THAT ARE ALSO GOOD FOR YOUR HEALTH. I BELIEVE THE PROBLEM THAT STARBUCKS IS HAVING IS MORE RELATED TO THE LARGE NUMBER OF STORES THEY HAVE IN A CERTAIN AREA.

YG: To take this discussion in a different direction. How has the transition from the financial sector been for you both personally and professionally?

DAN: PERSONALLY, IT’S BEEN A VERY REWARDING TRANSITION (I LOVE IT WHEN I SEE CUSTOMERS SMILING AFTER THEY’VE TAKEN A TASTE OF RED MANGO). I’VE ALWAYS WORKED VERY HARD IN EVERY ONE OF MY ENTREPRENEURIAL ENDEAVORS, AND IT’S BEEN AN AMAZING EXPERIENCE HELPING TO BUILD A BRAND THAT REPRESENTS HEALTHY AND DELICIOUS EATING.

PROFESSIONALLY, IT HAS BEEN EQUALLY REWARDING. I’VE BEEN ABLE TO MEET LEADERS AND INNOVATORS IN THE FOOD AND RETAIL INDUSTRIES WHO HAVE BEEN A SOURCE OF INSPIRATION AND MOTIVATION FOR ME.

YG: What was your biggest failure and how did you learn from that situation?

DAN: OPENING TOO LATE IN THE US. THIS HAS MOTIVATED US TO MOVE QUICKLY INTO MARKETS WHERE WEâ€™VE ALWAYS WANTED A PRESENCE.

YG:What advice would you give to someone seeking to start their own business?

DAN: TAKE RISKS, FOLLOW YOUR HEART, LEARN FROM YOUR EXPERIENCES, AND DONâ€™T BE AFRAID OF FAILURE.

YG: What can we expect from Red Mango in 2008?

DAN: 3 THINGS:
1. MORE STORES
2. MORE PRODUCTS THAT PROMOTE HEALTHY INDULGENCE
3. MORE BRAND BUILDING TO HELP CUSTOMERS UNDERSTAND THE BENEFITS OF NATURAL FROZEN YOGURT AND HEALTHY EATING!