10:51 | 15/04/2015 Trade
(VEN) - In light of the existing difficulties in exports, the domestic market – especially in rural areas – has become a great potential market for Vietnamese businesses. Many have now turned to this market segment after conducting market research and producing products to meet specific consumer demands.
Focusing on price policy
Textile products of the March 29 Textile Garment Joint Stock Company (HACHIBA) in Da Nang City have been favored by the local consumers. Deputy Director of HACHIBA Tran Xuan Hoe said, “It’s an obsolete conception nowadays to regard the rural market as an unpromising area. The reality showed that with growing incomes and better awareness, this area has relatively good purchasing power. In the context of current difficulties in exports, the domestic market, especially rural areas, has become a ‘big pie’ for Vietnamese businesses.”
To corner the rural market, HACHIBA has recently carried out market research to make the most suitable products for this market section. The products are not only of good quality, they’re also very competitively priced to best serve the demand and affordability of local consumers. Five years after the implementation of the Buy Vietnamese Goods campaign, the company’s revenues from the domestic market have gradually increased, helping HACHIBA pull through the recent period of economic difficulty.
Another Vietnamese product that is relatively familiar to rural consumers is Hai Chau confectionery and spices. Deputy Director of Hai Chau Confectionery JSC Pham Thi Mai Huong said the company surveyed the rural market and grasped the market demand. Its products with reasonable prices and good quality have penetrated the rural market quite easily. In addition, Hai Chau Confectionery JSC also actively responded to the Bringing Vietnamese Goods to the Countryside Program by providing its goods through mobile sale channels, so that the goods could reach consumers in remote areas. By adopting these solutions, its products have been favored by consumers and this was a favorable factor for the company to open more points of sale. So far, Hai Chau has branches in many provinces including Nghe An, Ha Nam, and Hai Duong, and its products are now available even in the most difficult to reach regions.
More investment in rural areas
Based on these positive results, rural areas will continue to attract attention from domestic enterprises. However, due to limitations in terms of consumers’ incomes, such enterprises will need to tailor their product’s prices accordingly.
Director of the Hanoi branch of Dien Quang Lamp JSC, Nguyen Thai Nga said, being aware of the potential in rural areas, the company has produced specific products for this market such as the waterproof compact lamps in agriculture and fluorescent lamps in schools. The company also adopted support policies such as reducing 30 percent of its product prices, and providing instructions so that the products can be used in the most efficient way for greater durability.
As for Hai Chau Confectionery JSC, in the time to come, it will step up its goods transportation by bringing its products directly to consumers to reduce transport costs and cut part of its sale prices for consumers.
Accounting for 70 percent of the domestic market, rural areas are very promising markets for Vietnamese goods. The switch to these areas not only helps domestic goods get a foothold in a large market, it also offers excellent quality products to consumers.
By Bao Ngoc