Enterprises need "push" to change their market strategy

VCN - The market strategy associated with specific products for businesses must have a change with the socio-economic context also changing. To do this, businesses need efforts to strongly restructure and perfect business strategies to meet market needs.
Market still opens for organic agricultural exports Market still opens for organic agricultural exports
M&A market has cooled down during Covid-19 period M&A market has cooled down during Covid-19 period
Businesses diversify products to enter EU market Businesses diversify products to enter EU market
1819-3936-12-4923-img-1677
E-commerce and digital transformation. will help change the strategy of many businesses. Photo: H. Diu

Diversification strategy

To overcome difficulties during the pandemic and at the same time capture customers' needs, the business strategy of Mobile World Investment Corporation (MWG) has changed, especially in the model of stores to match better suited to consumer needs.

With two new store models, MWG has actively implemented solutions to increase competitiveness such as testing a model of Dien May XanhSupermini with an area of ​​120-150m2 in the western, eastern and south-central regions. At the same time, promoting new industries such as watches and laptops. Thanks to that, in nine months of 2020, MWG's revenue reached 81,352 billion dong, up 6% over the same period.

For the banking industry, Covid-19 slowed credit growth, but right before that, banks tried to restructure to avoid dependence on credit revenues and to switch to revenue from services.

For example, VietinBank has built a strategy to focus on developing comprehensive financial solutions and modern payments, helping revenue from payment service fees grow significantly. At the same time, control of service costs is also a reason for VietinBank to improve the rate of net interest growth from service activities in the first nine months of 2020, with an increase of 3.2%.

In addition to traditional spot products and services, VietinBank aims to diversify itsportfolio of products and services by promoting the provision of derivative products to provide customers with billions of exchange rate hedging tools, bringing maximum benefit to customers.

The above are just a few examples of the changes of enterprises, because businesses always come up with new business strategies to suit market demand. The leader of a confectionery manufacturing enterprise shared the habits of customers have changed, so the company must also meet the requirements of the market, product packaging must be environmentally friendly, consistent with display location, regardless of any space. Or An PhatXanh Plastic Joint Stock Company (An PhatBioplastics) has invested in the field of completely biodegradable products and materials AnBio.

The good news is there has been a clear change in the commodity industry's strategy in theeconomy. A report on the implementation of the socio-economic development plans for the year 2020 and five years 2016-2020; the proposed plan for 2021 and directions and tasks for the 5 years 2021-2025 of the Government at the National Assembly recently showed the structure between branches and internal sector continued to shift positively.

The proportion of the mining industry decreased, the processing and manufacturing industry increased rapidly and the proportion of processed exports will increase from 65% in 2016 to 85% in 2020. Agricultural fields with high technology application, clean and organic agriculture are developed; many service industries have potentials, advantages, high science and technology content such as information technology, communication, transportation, logistics, finance andbanking to develop rapidly.

Risk of lagging behind

The current context that requires businesses to change and Covid-19 is a necessary "push" for this work.

Talking about market trends, according to Nguyen ThiBich Chung, representative of market research company Kantar, confidence in an economic recovery of enterprises in Vietnam is quite positive.

However, people's thinking and lifestyles have changed significantly such as being more prepared for the future with 18% planning to buy life insurance. Along with that is the trend of living online with 36% of people subscribing to more video channels andTV channels for different purposes.

People are willing to spend money on products that protect health and have less impact on the environment, but they are also more conservative in spending and only addressing urgent needs. Therefore, according to Chung, businesses need to consider product-service solutions that are beneficial to health and the environment, helping customers see value for money when spending is limited.

Experts and businesses both emphasise the help of digital transformation with the development of businesses.Online travel, online media and online car bookingare the trend of technology consumption and a good direction for many businesses. Although digital conversion is not easy, if businesses do not convert, they run the risk of falling behind. This is an opportunity but also a big challenge for businesses.

Experts say that in order for a successful transformation, businesses need to change their thinking and vision and find the right strategy. For example, in e-commerce, Hoang QuocQuyen, representative of Tiki in the north shared, e-commerce is still mainly usedin big cities and cities, accounting for only about 20% of population, but accounts for nearly 90% of revenue of businesses. Therefore, e-commerce firms are focusing on exploiting potential rural markets, not only helping rural people have more access to cheap Vietnamese brand products but also helping branding enterprises are increasingly solid, not subject to much competition pressure.

In all circumstances, especially in the current economic difficult situation, each industry and enterprise must look at themselves to implement strong restructuring. This is the time when businesses need to promote more and more substantially implement the policy of multilateralisation, diversification, restructuring markets, partners to reduce their dependence on just one or a few key products and markets.

By Diu Huong/ HuuTuc

Related News

Expected to catch up with the recovery of wood and furniture exports from trade promotion activities

Expected to catch up with the recovery of wood and furniture exports from trade promotion activities

VCN - With great interest from manufacturing businesses as well as international buyers, VIFA EXPO 2024 is expected to open opportunities for businesses to capture the ongoing recovery in the wooden furniture market, world furniture.
Enterprises kick off exports in the new year

Enterprises kick off exports in the new year

VCN - Since the 10th day of the lunar calendar, many enterprises have officially resumed operations after the Tet holiday and commenced exporting goods.
Binh Duong export growth hopes to bounce back

Binh Duong export growth hopes to bounce back

VCN - Thanks to positive signals from the recovery of export orders, Binh Duong is expected to regain growth momentum in 2024.

Latest News

Packaging among sectors with highest growth in Vietnam: insiders

Packaging among sectors with highest growth in Vietnam: insiders

The packaging industry, which is projected to expand 15-20% in the next few years, is among sectors posting highest growth rate in the country, experts said at a press conference held in Ho Chi Minh City on February 29 to introduce the 17th International Processing and Packaging Exhibition and Conference for Vietnam (ProPak Vietnam 2024.)
US extends investigations into wooden cabinets from Vietnam

US extends investigations into wooden cabinets from Vietnam

The US Department of Commerce (DOC) has announced the extension of the deadline to issue the final conclusion on the investigation of the product scope of wooden cabinets imported from Vietnam, according to the Trade Remedies Authority of Vietnam (TRAV).
Will Vietnam

Will Vietnam's seafood pass the IUU inspection in April 2024?

VCN - The 5th inspection on combating illegal, unreported, and unregulated (IUU) fishing in Vietnam by the EC is scheduled for April 2024. Localities are focusing on conclusively addressing existing limitations and restrictions, with an emphasis on implementing urgent tasks and solutions, particularly by April 30, 2024.
Fruit, vegetable exports see green shoots, targeting 7 billion USD

Fruit, vegetable exports see green shoots, targeting 7 billion USD

Vietnam’s fruit and vegetable exports in the first two months of this year surged 38% to about 749.7 million USD, which is expected to peak at nearly 7 billion USD this year.

More News

Tra fish leads Vietnam’s seafood exports to strong January growth

Tra fish leads Vietnam’s seafood exports to strong January growth

Vietnam's aquatic product exports saw a strong start to the year, recording a 60.8% annual increase to reach 730 million USD in January, reported the Ministry of Agriculture and Rural Development.
Agro-forestry-fishery trade surplus up nearly 2.9-fold

Agro-forestry-fishery trade surplus up nearly 2.9-fold

Vietnam earned some 9.84 billion USD from agro-forestry-fishery exports in the first two months of this year, representing a year-on-year rise of 50.3%, and a trade surplus of 2.68 billion USD, up nearly 2.9-fold, the Ministry of Agriculture and Rural Development reported.
3 recommendations of seafood businesses were promptly answered by the Ministry of Finance

3 recommendations of seafood businesses were promptly answered by the Ministry of Finance

VCN - Recommendations of seafood enterprises on declaring, calculating and paying Value Added Tax (VAT) at the commercial business stage for scrap and discarded products; Invoicing for returned goods; VAT refund, has been specifically answered by the Ministry of Finance.
Falling rice price is only short-term, upward trend to continue: Experts

Falling rice price is only short-term, upward trend to continue: Experts

The recent falls in rice prices are only short-term and the upward trend will continue in 2024 on limited supply, providing significant opportunities for Vietnam’s rice export, analysts have said.
Businesses urged to seize opportunities to boost rice exports to Indonesia

Businesses urged to seize opportunities to boost rice exports to Indonesia

Vietnamese enterprises should seize the opportunities to increase rice exports to Indonesia which has allocated an additional rice import quota of 1.6 million tonnes for 2024 as dryness linked to the El Nino delayed harvest in the country, according to the Vietnam Trade Office in Indonesia.
Vietnam eyes semiconductor powerhouse status with new workforce scheme

Vietnam eyes semiconductor powerhouse status with new workforce scheme

By 2045, Vietnam will become an important link in the global semiconductor industry value chain with a contingent of engineers and experts capable of meeting the industry requirements in both quality and quantity, said Minister of Planning and Investment Nguyen Chi Dung.
Vietnam’s FDI inflow surges nearly 39% in two months

Vietnam’s FDI inflow surges nearly 39% in two months

Vietnam has attracted more than 4.29 billion USD in foreign direct investment (FDI) in the first two months of 2024, a year-on-year increase of 38.6%, according to the Ministry of Industry and Trade (MoIT)’s Foreign Trade Agency.
Busy export shipments in early spring at southern seaports

Busy export shipments in early spring at southern seaports

VCN - Thousands of containers of export goods left Vietnamese seaports in the early days of Giap Thin spring have marked prosperity and expectations for a successful year.
Export orders spring back

Export orders spring back

Goods consumption in big markets such as the US and the EU is showing brighter signs, creating a driving force for orders for Vietnamese key exports such as garment and textile, packaging, footwear, wood processing, and particularly electronics, with many enterprises have received orders until mid-year.
Read More

Your care

Latest Most read
Packaging among sectors with highest growth in Vietnam: insiders

Packaging among sectors with highest growth in Vietnam: insiders

The packaging industry, which is projected to expand 15-20% in the next few years, is among sectors posting highest growth rate in the country, experts said at a press conference held in Ho Chi Minh City on February 29 to introduce the 17th International Processing and Packaging Exhibition and Conference for Vietnam (ProPak Vietnam 2024.)
US extends investigations into wooden cabinets from Vietnam

US extends investigations into wooden cabinets from Vietnam

The US Department of Commerce (DOC) has announced the extension of the deadline to issue the final conclusion on the investigation of the product scope of wooden cabinets imported from Vietnam, according to the Trade Remedies Authority of Vietnam (TRAV).
Will Vietnam

Will Vietnam's seafood pass the IUU inspection in April 2024?

The 5th inspection on combating illegal, unreported, and unregulated (IUU) fishing in Vietnam by the EC is scheduled for April 2024
Fruit, vegetable exports see green shoots, targeting 7 billion USD

Fruit, vegetable exports see green shoots, targeting 7 billion USD

Vietnam’s fruit and vegetable exports in the first two months of this year surged 38% to about 749.7 million USD, which is expected to peak at nearly 7 billion USD this year.
Tra fish leads Vietnam’s seafood exports to strong January growth

Tra fish leads Vietnam’s seafood exports to strong January growth

Vietnam's aquatic product exports saw a strong start to the year, recording a 60.8% annual increase to reach 730 million USD in January, reported the Ministry of Agriculture and Rural Development.
Mobile Version