Domestic businesses struggling on home turf
(VOV) - The successful operation of multinational corporations in Vietnam’s supply chain has caused difficulties for domestic businesses to build their own trademarks.
Vietnam High Quality Goods Enterprise Association President Vu Kim Hanh says many businesses are finding it difficult to promote their goods on the local market. Every month, the association organizes two rural tours for 50 businesses including Vinamilk and Kim Hang Aluminium & S. Steel Corporation to expand their distribution networks and promote their trademarks.
In recent times, the rural demand for consumer goods has declined since farmers in some provinces are unable to sell their products.
Another reason is that there is a fierce competition between multinational companies who wish to corner the consumer market by offering reduced price goods.
Hanh suggests domestic businesses should work with supermarket managers to gain a leg to stand on home turf.
It seems ASEAN’s international integration and trade liberalisation would rather invite more foreign partners. Thirty six respondents in a survey of the Vietnam High Quality Goods Enterprise Association confirmed their interest in seeking cooperation with innovative technology providers.
Kantar Worldpanel‘s May market research rankings revealed international brands already dominate healthcare, beauty and cosmetics, and beverages areas in Vietnam. Unilever’s trademark encompasses popular brands like P/S, Clear, and Lifebuoy. Other successful brands like Kimberly Clark’s Kotex and Palmolive’s Colgate are also foreign.
Unilever accounts for three fifths of home cleaning products like Omo washing powder, Sunlight dishwashing liquid, and Comfort fabric softener.
Vietnam only has My Hao’s washing powder and dishwashing liquid products listed at the bottom of the top five.
Sabeco’s beer brand 333 is placed third after international beverage powerhouses like Nestle’s Nescafe and Sting’s Pepsico. As a rare highlight, Vinamilk tops the list of food trademarks and is followed by Chinsu while Tuong An Vegetable Oil rounded out the top five consumer good brands.
Against this backdrop, businesses need co-ordinated efforts to ensure that consumers stick to the local trademarks in the long run.