Vietnamese goods increase market share, affirming position in domestic market

People shop at Hapro Kham Thien supermarket, Hanoi. Photo: Tran Viet/VNA

This is also a "two-legged" strategy to boost exports, increase coverage in modern retail distribution channels and traditional markets, and affirm its position right at home.

Conquering consumers

According to Mr. Phan Minh Thong, Chairman of the Board of Directors of Phuc Sinh Group, in the past two years, despite the complicated developments of the pandemic, the company has been most successful in the domestic consumption sector, with more customers knowing about it, and revenue from the consumer sector growing strongly, reaching a record since its establishment. Products have been put on the e-commerce site "K Phuc Sinh" and have been warmly received by customers.

Operating in the agricultural sector, Phuc Sinh's products are gradually becoming popular and familiar to domestic consumers. With the goal of conquering the domestic market, Mr. Phan Minh Thong said that in 2022, Phuc Sinh needs to expand its area and double its capacity to meet the growing consumer demand of the people.

“In the next 5-10 years, Phuc Sinh is expected to become a giant supermarket with a full range of essential food products both domestically and internationally. People can buy anything at Phuc Sinh. At the same time, K Phuc Sinh will be in the Top 10 e-commerce sites for providing food in general and coffee and pepper in particular,” said Mr. Phan Minh Thong.

Meanwhile, textile and garment enterprises have also been very successful in their strategy to conquer the domestic market. For example, the successful cases of May 10, Viet Tien, Duc Giang, Nha Be, Hoa Tho, Hanosimex, TNG… these enterprises have prestigious brands, winning the hearts of Vietnamese consumers and domestic revenue of each enterprise reaches hundreds of billions of VND/year.

Mr. Cao Huu Hieu, General Director of Vietnam Textile and Garment Group (Vinatex) shared that if 10 years ago, Vietnamese consumers preferred to use ready-made garments from foreign countries because of their low prices, now many people have switched to choosing Vietnamese garments to find better quality products.

With Vinatex, in addition to the Hanoi market, the group has planned to expand Vinatex fashion retail centers to other cities and provinces such as Ho Chi Minh City and Da Nang so that Vietnamese consumers can find domestically produced products.

“Vinatex has a policy of encouraging businesses in the group system to focus on developing the domestic market, orienting the strong development of old brands that already have advantages in the minds of Vietnamese consumers, while at the same time investing in design and marketing to develop new brands to suit current general consumption trends, promoting widespread distribution channels and investing more in information infrastructure for e-commerce channels,” said Mr. Cao Huu Hieu.

Improve quality, increase "coverage"

According to a recent study by Nielsen Global Measurement Company, after the COVID-19 pandemic, 76% of Vietnamese consumers prefer domestic products, especially branded products that are guaranteed to be of good quality and good for health.

Part of the reason for this is that Vietnamese goods are increasingly becoming more competitive thanks to their superior quality and reasonable prices. As a result, the proportion of Vietnamese goods in the distribution system has been increasing.

Statistics from the Ministry of Industry and Trade also show that Vietnamese goods in domestic supermarket systems always account for 90% or more. For traditional retail channels, the proportion of Vietnamese goods in markets and convenience stores accounts for 60% or more; in domestic supermarket systems, it remains high: Co.opmart (90-93%), Satra (90-95%), Vissan (95%), Vinmart (63% by product code)...

The growth rate of Vietnamese supermarket and convenience store systems is relatively fast: Saigon CoopMart has opened more than 113 supermarkets nationwide, bringing the total number of retail points of this brand to more than 600.

Vietnamese consumer goods account for a high market share in supermarkets. Photo: PV/Vietnam+

To achieve the above successes, Ms. Le Viet Nga, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade), said that the awareness of enterprises has strongly shifted to conquering consumers with product quality, applying science and technology, advanced management solutions to reduce costs, improve quality, design and after-sales service to serve people better and better.

In particular, there are businesses that have long focused on the export market and are now starting to pay more attention to the domestic market with goods that meet the standards of demanding countries. At the same time, they have developed a distribution network in the domestic market or successfully connected with other distribution businesses.

“Enterprises themselves have also realized the need to build and protect their brands; proactively participating in major events promoting Vietnamese goods to further promote domestic goods to domestic consumers as well as overseas Vietnamese,” Ms. Le Viet Nga emphasized.

The change in awareness of Vietnamese enterprises is also clearly demonstrated through their active participation in activities responding to the Campaign "Vietnamese people prioritize using Vietnamese goods."

To date, nearly 200 Vietnamese enterprises have won the award for typical Vietnamese branded products in response to the Campaign under the project. Vietnamese enterprises honored and awarded with awards for products and brands by ministries, branches and localities have continuously improved production criteria and service quality to maintain Vietnamese brands.

To continue to effectively support businesses, a representative of the Ministry of Industry and Trade said that in the coming time, the ministry's functional units will focus on effectively implementing programs and projects to promote trade, develop supporting industries, as well as enhance the application of science and technology to improve productivity and competitiveness for Vietnamese enterprises.

In particular, digital transformation through e-commerce applications to expand the market through modern distribution channels, combined with electronic payments and modern transportation will be a focus to help businesses take advantage of many market opportunities, thereby participating in domestic and foreign product distribution chains; supporting the building of national brands for high-quality Vietnamese goods and services, trusted by consumers, in accordance with international commitments and new-generation free trade agreements...

According to Vietnam+