Sunday, November 19 2017

VietNamNews

Electronics market faces tough year

Update: January, 04/2014 - 11:05
Customers shop for electronics at Pico supermarket in Ha Noi. Electronics retailers are expected to face challenges this year. — VNS Photo Truong Vi

HA NOI  (VNS) — Domestic electronics retailers are facing challenges this year because of a sharp decrease in consumer purchases and fierce competition.

Dinh Anh Huan, general director of dienmay.com told ictnews online newspaper that the market last year seemed to display little growth. The quiet market and competition had made the demand for electronic products in the local market fall by 30 per cent last year, compared to 2012.

Huan said some electronics products saw growth, such as smartphones with a 30 per cent increase and tablet computers, with sales that were three times higher than in 2012.

He added that despite promotions and sale programmes of even 30-50 per cent off, electronics stores still found it difficult to attract customers.

Nguyen Thanh Hai, marketing director of MediaMart, told the newspaper that the nation's northern market, especially Ha Noi, is faced with an over-demand of products.

Several retailers have worked to overcome during this difficult period or risk bankruptcy, while others continue to expand.

Meanwhile, a report from the Ministry of Planning and Investment last month forecast that the economy would continue to recover, but would not see a high growth rate this year.

Of note, Huan said consumers would continue adding to their savings, thus keeping their purchasing power at lower levels.

The Viet Nam Retailers Association said the electronics market was considered to have high potential, since no one company accounted for more than 10 per cent of the domestic market share.

However, experts said the greatest challenge facing electronics retailers this year would be competition from both domestic companies and integration into the global economy.

By the beginning of next year, under the World Trade Organisation's commitment, Viet Nam would see foreign retailers entering the local market. Domestic firms, therefore, would have to be prepared to compete with foreign companies, which have much capital and years of experience.

They said electronics retailers should create a road map to develop their internal resources, stabilise long-term finances and strengthen supply chain models.

In addition, they should better manage customers and have an experienced staff to ensure sustainable development and effective competition. — VNS


Send Us Your Comments:

See also: