Businesses seek markets for unsold products
By Hoang Phi - The Saigon Times Daily
HCMC - Many businesses are seeking ways to reduce their inventories by promoting and diversifying distribution channels from urban to rural areas, with a focus on traditional markets.
Speaking at a seminar held by the Association of High-Quality Vietnamese Goods Producers last Friday in HCMC, Nguyen Thi Hong Huong, general director of the Binh Duong-based TDM Company, said the demand for cheap products at industrial parks and rubber plantations is huge.
TDM has joined forces with a company with a 10,000-strong labor force at an industrial park to open an 80-square-meter convenience store nearby, which is now operating very effectively. Huong said on normal days the store gains at least VND20 million in revenues, which doubles on payday.
The company also shipped products to 11 rubber plantations in Binh Duong, and “all goods there sell well”.
To cope with 32,000 units of ready-made garments in stock since mid-2011, the private garment firm Phuc Long in HCMC has cooperated with a company in Binh Phuoc to deliver goods to traders at remote markets in Binh Phuoc, Dac Nong and Gia Lai provinces.
Producers of Chinsu fish sauce and My Hao dishwashing liquid have put their products on shelves at traditional markets. These two companies have the best-laid plans to bring their products to traditional markets, said experts
Meanwhile, Vissan is spending VND150 billion reforming its delivery system. Vissan general director Van Duc Muoi said 1,000 dealers nationwide are being turned into distributors.
Other enterprises like Nguyen Tam Foci and PNJ are promoting online sales, with higher discount rates and promotions for holidays.
The most applied methods are discounts, promotions, sharing profits and adding shelves.
Surveys show that up to 70% of products sold at traditional markets are of Chinese origin and unknown origin, but consumers no longer like Chinese goods and as such Vietnamese enterprises should seize opportunities to fill such a void.