Few dents for local ICT market
The local ICT distribution market is expected to remain unchanged once foreign producers arrive through online transactions and fully-owned distribution outlet chains from this year.
International Data Company general director Nguyen Lam said the information and communications technology market would also remain unchanged during the first half or all of 2009, when under the country’s World Trade Organization commitments, foreign-invested companies engaged in distribution services can engage in commission agent, wholesale and retail businesses. The establishment of retail service outlets shall be allowed on the basis of an economic needs test.
“There are some US producers of desktops, laptops, consumption electronics, mobile equipment and peripheral devices considering to deploy their strategies to further penetrate the market along with current its traditional distribution methods through online transactions and their owned outlet chains,” said Lam.
In general, a foreign producer will appoint a local distributor to scatter products in the domestic market in parallel with distribution systems to access end-users.
“After discussions, we realised that those companies did not want to cause any disorder in the market at this time, but set up their own networks smoothly and gradually,” said Lam. Pham Thien Nghe, chairman of ICT Retailers Club, said retail companies still had space to survive as end-users still needed after-sale services. “The club will boost cooperation among retailers and provide numerous services to customers,” said Nghe.
Many retail companies in Ho Chi Minh City have also prepared well via recruiting talented workers, boasting infrastructure and market strategies.
“Companies need to set up good connections with producers and leading corporations to learn experiences to have proper price policies and services investment,” said Nguyen Minh Thu, marketing manager of Thien Nam Hoa Joint Stock Company, or Thien Hoa Electric.
Thien Hoa Electric has signed strategic agreements with 10 corporations during five years to ensure the market stability amid competition with foreign retailers.
“Learning lessons from Chinese retailers to survive, Vietnam retailers need to have services and product strategies based on their understanding of customer behaviour, on marketing and advertisements, on business model and talents as well as their ability for e-commerce deployment,” said Lam. (Dau Tu)
