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Businesses embrace everyday consumers
Instead of making high quality, expensive products for export, many companies have focused on producing popular products for everyday consumers. It’s been a wise move as these companies require only small budgets for marketing and their prices attract many consumers.
Domestic opportunities
Producers have recently realized that they have overlooked a very large market – the domestic market. Due to the narrowed export markets, they have to bring their products to rural areas to sell. Popular market sales have been going so well that many domestic producers have reallocated resources to make products for everyday customers.
Vissan, a food processor, in mid-August 2009, launched products into the popular market under the “Ba Bong Mai” brand name -- mostly low-priced canned food and sterilized sausage.
According to Van Duc Muoi, Deputy Director of Vissan, the products of the new series have good quality and prices lower by 20 percent than the company’s traditional products. The goods have been selling very well over the last two months, especially in rural areas and Hanoi, with sales revenues of 20 billion dong a month.
As for Bibica, their popular low-cost products are now providing 50 percent of the total sales revenue of the company. Bibica’s candies, cookies and breads are now selling at 2,000-10,000 dong per product, fitting the budgets of low-income earners and rural residents.
Vinamilk, My Hao cosmetics, Kinh Don Confectionary and Casumina (the rubber tire producer), have also been successful in conquering the domestic market. Minh Long, well known for high-quality and expensive china products worth several million dong per set, has also been making products for everyday consumers. A set of 23 dinner dishes now sells at 330,000 dong, affordable for the majority of customers.
A source said that Viet Tien Garment Company, a well-known brand for shirts for export, is also planning to launch a series of products for everyday consumers by the end of the year.
Supermarkets prefer selling popular products
Retailers have also been trying to attract customers not only by offering continued sale promotion programs, but also by selling popular products.
Vinatex, the apparel retailer, has ordered 100 companies and garment workshops to make jeans, trousers, T-shirts and shirts with reasonable sale prices to be sold through the Vinatex chain.
Saigon Co-op Mart now has some 200 products, including fashions, cosmetics, dried foods and household goods with the Co-op Mart brand name, that are priced 3-20 percent lower than comparable products.
Big C has 150 products with brand names that, according to Public Relations Director Duong Thi Quynh Trang target the everyday consumer.
Trang said that low-cost products have always led in terms of sales and growth rates compared to other products. As for Co-op Mart, the sales revenue of brand name products has increased by 100 percent over the same period of 2008.
vietnamnet, nld
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