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Supermarkets hit pay dirt with own brands

Update: April, 04/2014 - 08:46
Many supermarkets in HCM City told Viet Nam News that they keep around 10 per cent of their space for such products, which include home appliances, beverages, food, and even cloth.— VNS Photo

HCM CITY (VNS) — Whenever she shops at a supermarket, Pham Thu Phuong of District 7, HCM City, goes straight to shelves stocking the supermarket's own products.

Here, she buys stuff like soaps, shampoos, beverages, and noodles.

She has had the habit of buying supermarkets' own brands for nearly a year now after being tipped off by a friend that they are cheap and as good as other brands.

These are made by producers for a supermarket and sold under the latter's own labels and are the rising stars on the market at a time of economic gloom since they offer customers alternatives at low prices and good quality. Many supermarkets in HCM City told Viet Nam News that they keep around 10 per cent of their space for such products, which include home appliances, beverages, food, and even cloth.

Khuat Quang Hung, head of general affairs and corporate communications for Metro Cash & Carry Viet Nam, said the German wholesaler owns seven brands, including Aro, Fine Food, H Line, and Horeca Select, which account for 10 per cent of its stocks.

Customers are increasingly turning to its brands as they tighten their purse strings, he said, adding Metro plans to double their volume to 20 per cent by 2015. A source from Big C said at the French supermarket around 5 per cent, equivalent to 1,000 products, are its own. Other supermarkets like Co-op Mart and Lotte Mart also sell hundreds of such products.

Hung said: "The price is often 5-20 per cent lower than normal products because there is no need to pay for distribution and advertisement.

"More importantly, the quality is comparable because the supermarket's partners are strong and experienced producers. When they tie up with supermarkets, producers can take their products to many provinces around the nation and even abroad."

Huynh Ngoc Diep, marketing director of 584 Nha Trang Fishery JSC, said supermarkets' own-brand products help producers diversify their customer base as well as make use of their redundant capacities. — VNS

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