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Retail industry: Sale price now most important factor
The most important factor in the retail market now in Vietnam as well as all over the world is attractive sale price. The retailers who have better prices will dominate the market.
The above was said by Big C’s General Director Pascal Billaud, and actually reflects the changes in the retail market.
Good sale prices better than ad campaigns
Pham Thi Thanh Tuyen, Marketing Director of Co-op mart chain, said that at present, big advertisement campaigns or promotion programmes which offer big prizes are less welcome than those that offer low prices.
“Consumers now prove to be very ‘sensitive’ to prices, therefore, the producers and distributors who can help consumers ease their worries about expenses will be able to sell products,” Tuyen said.
Pepsi Vietnam, which has been known to spend several billion VND on promotion campaigns, has also changed its mind. It has launched a promotion campaign for this summer in which winners will get cash instead of products. Winners will get VND1-10mil which they can spend on whatever they want, not cars, motorbikes and similar prizes like previously.
Big C supermart chain has launched a promotion campaign to ‘reduce the summer’s heat’ by offering price discounts of 7-50% on 250 items.
Advertisements launched recently by home appliance centres like Thien Hoa, Nguyen Kim, Cho Lon and Ideas, or by computer and mobile phone distribution chains, all stress that they are offering the best prices for products.
Analysts also say that it would be unadvisable now to offer travels in summer, valuable products, or services like skin care or meal consultancy to housewives.
Accepting lower profit – the wise move of distributors
Changing the modes of promotion campaigns, turning valuable gifts into cash prove to be wise moves to lure more customers to shops and supermarts.
Meanwhile, supermarts have been trying to offer the best prices to customers by negotiating with suppliers on prices.
Nguyen Thi Ha, Director of Fivimart Supermart, said that to have competitive sale prices, supermarts have had to pressure suppliers and accept lower profit. Pork, for example, is not 10-14% more expensive than in traditional markets anymore as suppliers accept lower prices, while supermarts accept the modest profit of 1% only on products.
vietnamnet, sgtt
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