Convinced that the media industry had more to offer beyond the normal commercial and advertising campaigns, an innovative entrepreneur decided to start a business to focus on adding value to its advertisers through a unique marketing strategy.
RedHot Media (HR Media) was established in 2004 as a subsidiary of the Chinese media company Nanyang HOLDINGS BHD, where its founder was working Cheong Chia Chieh.
The company’s merchandise trade customers through online sales and outlets, and uses the return from these sales to buy media space for them.
Not surprisingly, Cheong says he had a difficult time convincing his superiors and the Nanyang Holdings Board to adopt innovative marketing concept. “In my philosophy, nothing comes from heaven. I spent 1 ½ years to start media RedHot as had to convince my boss and later, the board,” he says.
Cheong later made a purchase of directors in 2005 and in 2006, renamed the company RH Media Group Sdn Bhd. He also ventured into China recently. “We expect China will grow fast and become a major contributor in terms of revenue,” he says. RH Media has three companies in China that were acquired last year, which is located in Beijing, Shanghai and Guangzhou. Although competition in the China market, Cheong believes RH Media has an advantage over other media players.
“We are more internationalized. Our key competitive advantage is having the same culture and same language. As you find your niche, you can survive,” he says.
Although the economy has yet to see a strong recovery, the company will continue its acquisition strategy, and points to a poster (outdoor advertising), the Malaysian company.
The idea is to keep the value in the group. While posters used to advertise on behalf of its clients, owning a billboard company will generate more revenue and reduce costs.
In the future, the company sees many opportunities to exploit. Cheong considers that there is one industry that can break the tools of the media to grow your business.
“All [the industry] need media. It is a platform for communicating information and knowledge to convey. My vision is to grow the company achieve a market capitalization of U.S. $ 1 billion (RM3.5 billion dollars). “
RH Media Group is a subsidiary of RedHot Media International Ltd, Cheong listed on the London Stock Exchange in September 2008 with a market capitalization of £ 31.9 million (RM180 million).
Before venturing into the media and advertising industry, Cheong, had worked at several fast food restaurants and retail stores, then decided to be his own boss. It started with a business computer trading in 1992, but after four years, decided to venture into something more than the margins were too thin.
Cheong believes that management of staff responsibilities is important, because you know the authority they have. “The organizational structure should be clear, only then, everything is correct,” he says.
Abides by the principles which, Cheong, 38, says he loves reading stories of Mao Zedong, who managed to unite China, and really believes in the three principles of Mao embraced – optimism, determination and strategy.
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