Journelism

Alex Siow, Founder of Fuego Living, Attributes Business Success to His Focus on Three Pillars: Design, Lifestyle and Innovation

After emigrating from Malaysia, Alex and his family worked to start up Zephyr Ventilation, a kitchen ventilation business, using the model of applying innovation to a stagnant industry. After 10 successful years, Zephyr was sold in 2007. Following the same business model, Alex went on to found Fuego Living. Specializing primarily in outdoor kitchens and grills, Fuego has sold 5000 units to date and continues to flourish.

In 1985, Alex came to the United States with his family. Their once-prosperous construction business in Malaysia had failed, and they essentially had nothing, forced to start from scratch in a new country. Fifteen years later, it is an understatement to say that they have achieved the American Dream. Zephyr Ventilation became the first and largest distributor of high-end kitchen ventilation hoods in the world, and Alex’s new venture, Fuego Living, promises similar success designing and marketing outdoor grills. The key to his success, he attributes, is in adding new innovation to old products; thanks to that business model, he is in the process of significantly shaking up that market.

After moving from Malaysia, Alex attended high school in the Bay Area. His father began doing the work he had known overseas, taking small construction jobs, and Alex helped him manage contracts and purchasing. He continued this work through college, establishing further contacts and business savvy. After graduation, he joined the family business, but as their market awareness grew, they began to see opportunity outside the construction industry. “We saw that the kitchen ventilation industry itself hadn’t changed for a while, and we were convinced that there was an opportunity for innovation.” Kitchen hoods—the fans that hang over stovetops and grills in homes and restaurants—were huge and noisy, and had been built the same way for half-a-century.  Alex believed he could work with designers to create a better product, and formed Zephyr Ventilation with his family.

Zephyr revolutionized ventilation systems, especially in high-end restaurants, and grew at least 60% each year the family owned it. During Zephyr’s 10 years of business, Alex acquired many contacts and built business relationships with factories overseas, while gaining the trust of designers and investors.

After Zephyr’s sale, Alex applied his innovation plan to a new field. Like ventilation systems, outdoor grills had come in two models—boxy propane and round charcoal—for decades. He teamed up with Robert Brunner, a former industrial designer for Apple Inc. and current CEO of top-notch firm Ammunition Group, to found Fuego, rebuilding the outdoor cooking system from the ground up.

Fuego designs grills for the luxury market. Each model is rethought on every style and functionality level; grills can easily be converted between multiple fuel options, have weatherproof storage drawers, and open more easily for better cleaning options. Most modern grills look like giant industrial spacecraft, deposited on a neighbor’s back porch as an eyesore, or are dainty and clean but offer little surface space on which to fit food.  Fuego grills look good and provide tangible space economy and attractiveness.

Of course, opening a high-end living business in this tough economy presents challenges, but Alex has used this as an opportunity to create further innovation  “Because of the downturn,” he says, “we are seeing luxury goods differently.” They are releasing a new product, the Element, which offers similar design as Fuego’s preceding models, but at a mass-market price.

The launch of the Element grill has helped Fuego reach profitability. “It’s really seeding and waiting for it to grow,” Alex says. It is clear that his patience and eternal optimism have contributed to the company’s success. “Despite the economic challenges, if you look around there are a lot of opportunities. Identifying them and executing quickly is still the best path to success.” This positive attitude has directly led to Alex’s success, and he believes its replication (preferably in a non-competing field) can lead to others.