Wood, furniture firms advised to take advantage of e-commerce
To increase brand recognition and to access more customers, Vietnamese wood, furniture, and handicraft businesses need to consider and invest systematically in online sales activities, diversifying sales channels in their business strategies, Vice Chairwoman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) Duong Minh Tue has said.
Speaking at a recent workshop themed “Cross-border e-commerce – global growth opportunity for Vietnam's furniture export” in Ho Chi Minh City, Tue emphasized that as one of the leading wood exporting countries globally, Vietnam's wood industry has expanded its market, penetrating deeper into key ones such as the US, the European Union (EU), the Republic of Korea (RoK), and Japan; and increasing its presence in emerging markets such as the UAE and India, he said.
With strengths in forestry development, incentives for businesses, and free trade agreements signed with foreign partners, Vietnam's wood and wooden product exports have recorded great success in the international market.
However, over recent times, the traditional export market segment has faced numerous challenges due to weak global consumption demand, increasing protectionist barriers, and countries continuing to maintain tight monetary policies, Hue said.
Meanwhile, the sales of furniture and handicrafts through e-commerce have continued to experience remarkable growth, she said, noting that participating in e-commerce platforms is a new direction for Vietnamese wood businesses.
To increase brand recognition and access more customers, businesses need to consider and invest systematically in online sales activities, diversifying sales channels in their business strategies, she said.
Senior Account Manager of Amazon Global Selling Vietnam Nguyen Thanh Yen My said that although global trade has not fully recovered, global e-commerce continues to grow steadily.
Cross-border e-commerce is a trend and a new form of export, which helps small- and medium-sized enterprises achieve strong growth, she added.
According to My, in the US - Vietnam's largest export market, e-commerce in the furniture industry is projected to grow strongly over the next four years and could reach 118.6 billion USD by 2027.
Wayfair Supplier Acquisition Senior Manager Jimmy Wang noted that through e-commerce platforms, Vietnamese businesses can directly access a wide range of customers from all over the world.
Recently, many Chinese suppliers have bought Vietnamese furniture and resold it globally through cross-border e-commerce. The question is why Vietnamese manufacturers don’t take advantage of cross-border e-commerce to sell their products.
Wang said that online shoppers usually hesitate to buy goods online as they cannot touch the products physically. Therefore, to sell online effectively, sellers must prioritise comfort and actively convince customers about the products they want to buy.
In addition, customer service and delivery are also issues of concern to buyers. Understanding the above reasons, e-commerce platforms currently provide many business support services from posting products online, packaging, shipping, and returning goods to bring the best shopping experience for customers.
