Viet Sin company shares the ‘Catching’ … Covid-19 epidemic season

In addition to “catching” consumer behavior, the important lesson for Vietnamese manufacturers after Covid-19 epidemic is to develop a strategy to accompany and cooperate with key retailers.

▶️Business Times article: visit https://thoibaokinhdoanh.vn/viet-nam/bat-song-hanh-vi-tieu-dung-hau-covid-19-1069811.html

According to a recent review by Kantar Vietnam Market Research Company, the change in consumer shopping behavior has brought remarkable growth for many retailers during the Covid-19 season, and can “create a springboard” to maintain and continue to grow in the long term.

Partnering with key retailers

In terms of Top 3 retailers in Vietnam impressive growth in the last season based on the percentage of market share in terms of transaction volume, such as Kantar’s survey of supermarkets and hypersyn supermarkets, there is Big C (with a growth rate of 67%), Vinmart system (30%), Coop system (16%).

For the mini-supermarket group, there is Green Bach (with a growth rate of 70%), Vinmart (86%), Satra Food (10%).

In the face of impressive growth from these retail channels, Kantar said, “The lesson for manufacturers after this period is to develop a strategy to accompany and cooperate with key retailers”.

From the perspective of a fast food enterprise, Mr. Le Duc Duy, Deputy General Director of Viet Sin Food Technology JSC, said that distribution channels through supermarkets now account for 70% of the company’s sales. This comes from long-term close cooperation with major supermarkets before, during and after the Covid-19 epidemic.

In addition, according to Mr. Duy, the company has a relatively stable number of young consumers, which prefer Fast food, very suitable for the Trend chain is now convenient, compact, fast consumption … That can be seen in milk tea shops, snack shops are being opened everywhere, especially near schools. And the company is following that trend, too.

With FMCG, Ms. Nguyen Phuong Nga, Kantar’s Chief Market Development Officer, forecasts a change in the growth model, depending on the nature of the brand and industry, as well as geographical and demographic differences.

Accordingly, after Covid-19 epidemic, in the four main groups of FMCG, the group of health and hygiene items (such as hand washing water, surface hygiene products, nutritional supplements, dairy products) will have the demand continue to increase.

Cooking and snacking (spices, junk food, packaged & frozen foods, alternative meals) will be less in demand.

Meanwhile, the FMCG group returned to normal needs as long-term necessities (such as laundry, shampoo, toothpaste, dishwashing liquid, non-alcoholic beverages).

The rest are the group of slow recovery items that are not frequently used such as cosmetics, alcoholic beverages, perfumes and deodorant rollers.

Pigsclose to the movement of shopping channels

Discussing different recovery directions for brands and industries, Ms. Nga noted that this depends on the impact of the Covid-19 epidemic as well as how consumer demand changes in the future.

“Businesses need to wait patiently, consumers will return. Only when consumers come back, they choose which product, whether to choose their company’s products or not is the problem that businesses have to solve,” Ms. Nga said.

Accordingly, businesses need to update regularly on the buyer data. Especially learn monthly or weekly about changing consumer behavior as the epidemic improves.

Businesses should also forecast demand. Especially it is necessary to understand the needs of post-Covid-19 consumers and solutions to compensate for lost use.

On the other side, according to Kantar’s advice, businesses can find growth motivation from marketing activities. It should be questioned what elements of marketing activities will help accelerate post-epidemic growth. Such as advertising, promotions, in-store activities, delivery systems with different roles and importance.

Or businesses should aim for new uses. Specifically, finding new uses arising during and after the outbreak is necessary in developing new products to meet consumers in the future.

And it is important that businesses “follow the movement of shopping channels”. Especially emerging channels such as small supermarkets, specialized stores, online shopping and booths will be important channels post-Covid-19. Thereby, businesses should learn about changes in consumer habits, thereby exploring new growth opportunities.

According to experts, if businesses are only used to selling through traditional consumption channels, the post-Covid-19 time is an opportunity for businesses to learn and cooperate with emerging channels, modern retail channels and online channels.

If the enterprises are mainly concentrated in the supermarket channel, it should be remembered that the consumer market in Vietnam is still up to 80% in the traditional channel so that businesses should choose the retail distribution model suitable for them for the post-Covid-19 period.

▶️Business Times article: visit https://thoibaokinhdoanh.vn/viet-nam/bat-song-hanh-vi-tieu-dung-hau-covid-19-1069811.html

▶️Visit http://vietsin.vn/niem-tin-hang-viet-cong-ty-cp-ky-nghe-th…/

Ông Lê Dức Duy-P.TGĐ_Công ty Việt Sin nhận danh hiệu HVNCLC 2020-2021.