Ho Chi Minh City-based firms are looking to offload unsold stock on the back of sinking consumption.
To drain unsold stock, Ho Chi Minh City-based big meat processor Vissan has pumped VND150 billion ($7 million) to turn its 1,000 sales agents across the country into its specific distribution channel.
Accordingly, besides diverse promotions to fuel demand, these outlets helped the company procure inputs from customers which were later forwarded to its research and development centre, paving the way for the company to roll out products to fit market tastes at different points of time, said company director Van Duc Muoi.
For smaller firms without cash to expand distribution networks, joining hands with retail shops in diverse locations appears to be a smart choice.
Lien Thanh deputy director Ngo Hoang Mai said the company has opened a string of showrooms to quickly get its products to customers to raise sales. It has hooked up with 100 such shops, which helped the company maintain stable sales figures.
In the luxurious product segment, director Ngo Thi Bau at Nguyen Tam Company - which promotes Foci-brand garments, said the company had shifted to selling products online to save space leasing costs.
In fact, online trading is a wise move when space leasing remains costly, but its success heavily relies on a brand pervasion.
According to a Ho Chi Minh City-based Phu Nhuan Jewelry Company (PNJ) source, sales figures at the company’s online shops were almost the same as with traditional shops. Since the company offers online shops higher discount rates than traditional shops, sales at online shops often hike sharply during festive occasions when consumers have less time for direct purchases.
“When sales at traditional marketplaces get stuck, firms need to open convenience shops as in the long haul traditional markets shall be upgraded into modern markets,” said Vissan chief Van Duc Muoi, adding that firms should also mull over opening retail outlets in rural and remote areas to gradually replace traditional markets.
“Making use of other firms’ sales systems is also an option for smaller firms to boost sales,” said rubber-maker Casumina’s deputy general director Le Van Tri.
“We resorted to lubricant retail outlets to sell our tire products and that proves effective,” said Tri.