The retail market in Vietnam is said to be occupied by small retailers, with MT (modern trade) ratio of approximately 15% and TT (traditional trade) ratio of approximately 85%. In Hanoi, Ho Chi Minh and other big cities, people believe that the ratio of MT has been increased and it is about 40%:60%, for foods, daily necessities, etc. TT ratio is high, but when it comes to home appliances, IT related products and other technological equipments; the MT ratio tends to be high, in the Vietnamese market. However, the presence of small-scale retailers is still outsized.
Of course, the influence of MT is becoming stronger even for the above-mentioned home electronics and IT related products, when we hear and investigate the motivation to purchase goods by TT shopkeepers, many people reply “Many things that are prominent at MT are purchased thinking that they are good products with a high degree of awareness”. Because TT generally works through cash purchasing and there are no cash purchase of goods that cannot be sold easily. TT prefers to buy bottom line of branded products with high awareness in the market at cheap price. Also, in general terms, the selling price is often set about 10% cheaper than the regular selling price set by MT.
When we surveyed to investigate about the purchase motivation of consumers who purchased goods at TT; many people say, “We purchase the products from the nearest TT with lower selling price that others want on MT at relatively higher price”. In other words, doing sales promotion activities exactly at MT is conceivably resulted in the influence of delivery rate to TT and sell-out at TT as well.
MAI INTERNATIONAL proposes sales support that sells your products by raising brand value most efficiently at each MT in the Vietnamese market. For sales support, there are “pay fee type” and “monthly type”. As for “monthly type”, we will arrange the work in advance and submit the quotation.