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Electronics dealers sell directly from warehouses to cut costs

Update: February, 04/2013 - 15:51


People shop for electronics at the Satra-Bau Cat Supermarket. Some retailers now offer discounts for customers for direct purchases at their warehouses. — VNA/VNS Photo Hoang Hai
HCM CITY (VNS)— Some retailers of electrical and electronics products in Ha Noi and Da Nang are adopting a new marketing strategy: direct sales at their warehouses at discounts.

The model offers them the advantage of reducing spending on attractive showrooms and scores of salespeople, while consumers get the products 10-20 per cent cheaper.

The model has for long been popular abroad, but is only now catching on in Viet Nam.

Ebest Outlet Da Nang adopted it last October.

A spokesperson for the electronics store said it helps cut rental, salary, and advertising expenses to the tune of 20-30 per cent of cost.

TopCare, a Ha Noi-based electronics retail chain, adopted the model last month.

Le Tung, its marketing director, said: “TopCare has the motto of delivering product to consumers at cheaper than market prices.”

He said a Sanyo 140l refrigerator costs VND3.99 million at the company’s showrooms, but only VND3.69 million at its warehouse. For a 7.2kg LG washing machine, the rates are VND3.99 million and VND3.79 million.

Ha Noi-based BTM International Trade Company sells interior-decoration items, mats, and other products imported from Italy, Malaysia, and Thailand at a 20 per cent discount at its warehouse.

In 2009, when Pico Electronic began to sell products directly at its warehouse, turnover doubled from the previous year.

It offered them at 10-15 per cent cheaper than at its’ showrooms. — VNS

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