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Middle-class market for local businesses
More and more businesses are focusing their attention on middle-income clients in the face of declining purchasing power in the upper-income market.
A number of companies have reported big gains in selling to middle-income earners.
Vissan, for example, had a turnover of more than 20 billion VND (1.17 million USD) after only two months of selling canned foodstuff and sausage products with cheap prices to Hanoi and rural markets.
Bibica said its earnings from cheap price commodities was half of its total turnover. The company is focusing on the production of confectionery for rural areas with prices from 2,000 to 10,000 VND (0.11-0.52 USD) per product.
Minh Long Pottery Company, which usually turns out expensive pottery, has begun offering products such as a 23-dish set for 330,000 VND, which have become popular.
The Viet Tien garment company plans to introduce middle-income product lines with highly competitive prices by the end of this year.
Many other corporations like Vinamilk, My Hao, Casumina and Kinh Do are also reaping high turnover in the middle-income market.
In addition, many super-market chains have also participated in the campaign to attract middle-income clients by introducing products under their own brand and launching promotion programmes.
Vinatex is working together with more than 100 domestic companies and facilities to produce ready-made, inexpensive clothes.
Co.op Mart has introduced more than 200 commodities with its own brand, including foodstuff and clothes. It said turnover from inexpensive goods under its own brand rose by 100 percent against the same period last year.
Duong Thi Quynh Trang, head of public relations of Big C supermarket, said the company would launch the slogan “Wow, Competitive Prices” to advertise its inexpensive brands. Big C will assume responsibility for the quality of the products. Trang said its exclusive inexpensive products had the highest turnover in the store, compared to similar products made by other companies.
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