Friday, December 15 2017

VietNamNews

Domestic candy brands draw more business

Update: January, 03/2015 - 09:56
Customers shop for confectionery products at the Big C Supermarket in Ha Noi. They are showing a preference for Vietnamese brands as the quality and design of local products improve and prices remain reasonable. — VNS Photo Thai Ha
HA NOI (VNS)— Customers are buying more Vietnamese confectionery products as the quality and design have gotten increasingly better and it remains reasonably priced.

Many Vietnamese confectionery producers had done well with brand promotions that turned them into household names, Ho Quoc Nguyen, public relations director of Big C Viet Nam told Phap Luat TP HCM (The HCM City Law) newspaper.

Domestic confectionery products accounted for 90 per cent of the products sold in Big C supermarket systems, he said.

Nguyen Thanh Nhan, deputy general director of Sai Gon Co-op, noted that supermarkets were selling some 600 candy products from 25 domestic companies, accounting for 95 per cent of their total inventory.

The reasonable price, good quality and clear origins of domestic products had won the trust of buyers, Nhan said.

A representative of Lotte Mart pointed out that in its supermarkets, Vietnamese sweet products accounted for 56.75 per cent, while imported products accounted for 43.25 per cent. The advantage held by Vietnamese products lied in their reasonable price.

Another reason for the popularity of Vietnamese confectionary items is that customers are buying fewer sweet products from China due to concerns about their alleged low quality and unclear origins.

Domestic confectionery producers should focus on improving and innovating technology and quality, which will make them stronger competitors, remarked Luu Huynh, marketing director at Pham Nguyen Confectionery Corp.

Huynh said foreign products were better than domestic products in terms of technology and design. However, in terms of quality, domestic confectionery products were doing well.

Since mergers and acquisitions had recently become a popular trend, Vietnamese producers had the opportunity to re-evaluate their competitiveness and could redesign their plans for the future. By investing more heavily in key products, rather than in advertising, they could boost their product value and increase added value, according to Huynh.

Phan Van Thien, deputy general director of confectionery maker Bibica, claimed that in terms of capital, the finances and marketing strategy of foreign companies surpass those in Viet Nam. Therefore, for greater success in the domestic market, firms should introduce unique products. Bibica was set to introduce a traditional line of products, named Lac Viet, for the upcoming Lunar New Year holiday to reinforce its image as a Vietnamese brand.

Producers agreed that non-tariff barriers were necessary to protect domestic producers and prevent the sale of low-quality products.

According to a report from the Business Monitor International, revenue earned by Vietnamese confectionery producers is expected to reach VND40 trillion (nearly US$1.9 billion) in 2018. — VNS


Send Us Your Comments:

See also: