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.
Marketing support cases for Modern Trade
PC Accessories manufacturer
Although the company has the top share in the Japanese market, it has not yet sold products in the Vietnamese market, so it has started matching with a distributor who imports and sells multiple IT accessories and has begun to expand in Vietnam.
The distributor had already sold major European and American accessory brands. However, most of them were proposed as single items and had no experience of making proposals for Japanese-style sales by space. MAI International sales staff and distributors engaged in business talks with major consumer electronics mass chains and proposed sales floors.
After the introduction to each chain, display support was provided with consideration of application functions and color size. In addition, a rounder was deployed to maintain the sales floor.
FMCG manufacturer B
In the Japanese market, the main was sales to drugstore chains. Since sales were not yet done in Vietnam, matching with major distributors in Vietnam started and introduction into the Vietnamese market began.
After the introduction, in order to promote sell-in to the store, we conducted sales to distributors and major supermarket chains, keep sales floors, place promoters in various supermarket stores to increase awareness and sellout, and a sampling campaign was conducted.