In-depth understanding and analysis report of the Vietnamese electrician industry (Figure)
At present, there are few successful cases of Chinese electrician enterprises in the process of globalization, and Vietnam is one of the countries with more active performance of Chinese electrician brands. Therefore, the author has made in-depth understanding and analysis report on the operating environment and distribution brand of channel distributors in Vietnam in the past five years, and hopes to provide reference for many Chinese electrician brands to enter the Vietnamese market.
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According to the author's investigation, the building materials stores in Hanoi and Ho Chi Minh City are relatively intensive street operations. Due to the relatively high architectural style and rent, international brand agents with a larger business area than the school have a small exhibition hall in the building materials street. It is worth noting that no matter whether it is Hanoi or Ho Chi Minh City, there are not many agents with strength. In Vietnam, all electrical and lighting products (including commercial lighting) are distributed in the form of a general agent. The retail price is generally 20% of the contract price, while the first-level distributor purchase price is about 50% of the contract price. Gross margin is generally 30%, which is more favorable for engineering distributors. Vietnamese dealers are generally loyal to the brand, they pay more attention to product profits, which products are better sold or higher gross profit. In terms of product promotion, price discounts are still the mainstay, and other hybrid promotions are less used. In addition to samples, panels and promotional materials, other outdoor advertisements are also evident.
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During the visit, Deng Guoyan, general manager of Vietnam COMET (transliteration) and various agents agreed that the Vietnamese electrician market will gradually develop in depth. Because almost all electrical products are produced by OEMs in China, only switch panels are produced in Vietnam. In order to reduce costs, manufacturers will further fight the price war. At present, most of the measures adopted by the brand are mainly to expand the terminal occupancy rate, supplemented by engineering orders, which is very similar to the promotion methods of China's current market development. Although the manufacturing methods and design have restricted the entry of some high-end brands in China, due to the low capacity of the Vietnamese market, some high-end Chinese brands will not notice her development or concentrate on developing this “virgin landâ€. At the same time, due to the adoption of the French system, it has also restricted the entry of some brands to some extent. However, there are still certain market opportunities for border goods and some second-tier brands. Since the design and style of the products in the Vietnamese market are not high, the key to product sales lies in the distribution ability of the general agents, the strength of brand promotion and after-sales service have become the focus of the Vietnamese market.
Deng Weiwen, general manager of Vietnam TCL, believes that it is good to use and integrate local resources and adopt appropriate marketing strategies. In fact, operating the Vietnamese market is not as difficult as the legend. The key is whether brand manufacturers can seize opportunities, plan for cost inputs, and formulate long-term market strategies during the incubation period or development period of the market. Vietnam is a practice and practical base and opportunity for Chinese brands to learn international marketing. Moreover, companies can also understand the practice of international marketing, thus accelerating the pace of development of Chinese electrical brands to overseas markets.
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According to the author's investigation, the building materials stores in Hanoi and Ho Chi Minh City are relatively intensive street operations. Due to the relatively high architectural style and rent, international brand agents with a larger business area than the school have a small exhibition hall in the building materials street. It is worth noting that no matter whether it is Hanoi or Ho Chi Minh City, there are not many agents with strength. In Vietnam, all electrical and lighting products (including commercial lighting) are distributed in the form of a general agent. The retail price is generally 20% of the contract price, while the first-level distributor purchase price is about 50% of the contract price. Gross margin is generally 30%, which is more favorable for engineering distributors. Vietnamese dealers are generally loyal to the brand, they pay more attention to product profits, which products are better sold or higher gross profit. In terms of product promotion, price discounts are still the mainstay, and other hybrid promotions are less used. In addition to samples, panels and promotional materials, other outdoor advertisements are also evident.
During the visit, Deng Guoyan, general manager of Vietnam COMET (transliteration) and various agents agreed that the Vietnamese electrician market will gradually develop in depth. Because almost all electrical products are produced by OEMs in China, only switch panels are produced in Vietnam. In order to reduce costs, manufacturers will further fight the price war. At present, most of the measures adopted by the brand are mainly to expand the terminal occupancy rate, supplemented by engineering orders, which is very similar to the promotion methods of China's current market development. Although the manufacturing methods and design have restricted the entry of some high-end brands in China, due to the low capacity of the Vietnamese market, some high-end Chinese brands will not notice her development or concentrate on developing this “virgin landâ€. At the same time, due to the adoption of the French system, it has also restricted the entry of some brands to some extent. However, there are still certain market opportunities for border goods and some second-tier brands. Since the design and style of the products in the Vietnamese market are not high, the key to product sales lies in the distribution ability of the general agents, the strength of brand promotion and after-sales service have become the focus of the Vietnamese market.
Deng Weiwen, general manager of Vietnam TCL, believes that it is good to use and integrate local resources and adopt appropriate marketing strategies. In fact, operating the Vietnamese market is not as difficult as the legend. The key is whether brand manufacturers can seize opportunities, plan for cost inputs, and formulate long-term market strategies during the incubation period or development period of the market. Vietnam is a practice and practical base and opportunity for Chinese brands to learn international marketing. Moreover, companies can also understand the practice of international marketing, thus accelerating the pace of development of Chinese electrical brands to overseas markets.
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