Connecting supply and demand creates momentum for economic development

Consumers are not only looking for "good products" but also for many financial benefits as well as uses. Photo: T.D

Connecting supply and demand helps encourage innovation

Mr. Vu Quang Hung, Deputy Director of the Institute for Industry and Trade Strategy and Policy Research, said that in the recent period, our country's total retail sales of goods and consumer service revenue have had high growth rates. In 2022, total retail sales of goods and consumer service revenue will increase by 19.8%, in the first 6 months of 2023, total retail sales of goods and consumer service revenue will also increase impressively, reaching 2 numbers (nearly 11% over the same period last year). The growth shows that the domestic market has been developing well and has become a foundation for production and supply of essential goods for the economy.

Mr. Vu Quang Hung added that in a situation which the world is facing many changes and challenges, promoting the connection between supply and demand is not only a way to promote economic development but also a necessary direction to build a strong economy that meets market needs and ensures sustainable prosperity for the future. Connecting supply and demand helps optimize resources, encourage innovation and product development as well as creating opportunities for collaboration and increased competition.

According to Ms. Dang Thuy Ha, Director of Nielsen North, BASES's recent consumer survey in 14 Asian markets, including Vietnam, shows that consumers are not only looking for "good products" but there are many financial and functional benefits. For example, cosmetic products must have anti-aging active ingredients (retinol, AHA/BHA, HA...); baby care products they claim are safe to use and contain natural ingredients; Packaged food products must have reasonable prices, quality ingredients, and be good for health; Confectionery products, beer and alcohol must be low in calories...

The survey results also show that about 40% of Vietnamese consumers are careful in spending, so price is the first concern, and then the product must be environmentally friendly. Therefore, price - value poses more problems for businesses. That is the reason why many businesses and business households currently have large inventories because the products are not consumed as expected, and the products are only sold in some areas. “Consumers always demand new products and new experiences. They especially care about their health," Ms. Ha said.

Therefore, Ms. Dang Thuy Ha said that businesses need to find answers to the questions: Which products need to be developed according to consumption trends? What are the opportunities to grow revenue for your business's products? How to find domestic and foreign partners? How to approach and sell effectively? Regarding branding, businesses need to answer the question: Do they need a brand differentiation strategy? How to build a brand story?

Use e-commerce as leverage

Also according to Ms. Dang Thuy Ha, connecting trade requires the cooperation of departments and businesses to sit down and discuss, connecting domestic and foreign markets through which channels are suitable for each industry and business. Karma. This is not the time to talk about quantity but need to go deeper into quality. In particular, businesses should take advantage of opportunities from e-commerce; because this is a rapidly growing trend, consumers are and will be shifting to online consumption, large spending on this channel will create opportunity for sellers.

Giving specific examples, Ms. Ha said that recently, OCOP Markets on Tiktok have promoted and introduced agricultural specialties and typical OCOP products of localities on digital platforms. Livestream sessions are held periodically every Saturday. This is the premise to pave the way for a new economic model in rural areas, bringing Vietnamese agricultural products and quality OCOP products closer to consumers. At the same time, form the habit of buying high-quality OCOP products for consumers on Tiktok. Introducing and promoting agricultural products and regional specialties on digital platforms, supporting and solving e-commerce problems for agricultural products.

However, according to Mr. Doan Manh Truong, local Department of Industry and Trade (Ministry of Industry and Trade), besides the results achieved, the connection between manufacturers and distributors still has difficulties. Bringing products to large distributors such as supermarkets still faces certain obstacles, especially small manufacturing establishments. Some businesses have not been proactive in learning about and connecting with manufacturers and distributors participating in the conference; have not proactively researched partners and markets of the locality holding the conference to cooperate or raise cooperation issues.

In particular, the goods distribution system, especially for essential goods, has not been paid attention to synchronous development; The majority of markets are temporary markets, degraded markets but have not been invested in new construction, the number of markets that have converted their management model is still low, especially markets in rural, mountainous and highland areas. Lack of advanced commercial business models in the provincial center and district and town centers.

Notably, counterfeit goods, fake brands, and poor quality goods are still mixed in the market. The management of price listing and selling at listed prices is mainly done in supermarkets, while in markets, the situation of listing prices but not selling at listed prices is still common. “Consumers are greatly affected by advertising through electronic platforms, cross-border electronics cause confusion, making it easy for businesses and consumers to get confused about the quality and brand of products, causing loss of trust, do harm to the health of consumers," Mr. Doan Manh Truong said.

Planning to promote the connection between supply and demand in the coming time, Head of Market Forecasting Research Department (Institute of Industry and Trade Strategy and Policy Research) Vuong Quang Luong said that manufacturing enterprises need to proactively focus on production and trading products and fields in which the unit has advantages. At the same time, strengthen links between businesses in the same industry and field to supplement resources. In addition, it is necessary to innovate, improve product quality and design, and learn to choose appropriate distribution channels according to response capacity.

To promote activities connecting supply and demand of goods and develop the market, promoting local strengths, Mr. Doan Manh Truong said that state management agencies need to innovate and promote trade promotion trade; Consulting and supporting businesses and production facilities in branding, packaging, brand development, product promotion; combining with the development trend of e-commerce.

From a business perspective, according to Mr. Doan Manh Truong, it is also necessary to focus on production and sales of products and fields in which businesses have advantages. Applying science and technology in production and business to increase labor productivity, improve quality and lower product costs. In particular, businesses need to closely associate with manufacturers to create a stable source of goods and control the quality of input materials...