The "battle" in the electronics market.

(Baonghean) - The recent entry of many big names into the electronics market in Vinh City has given consumers more choices. However, in this competition, some supermarkets have had to give up, while others are struggling to find ways to attract customers.

Who wins, who loses?

In Vinh City, over the past six months, in addition to supermarkets like Hoa Binh, Son Ha, and BigC, several large electronics supermarkets such as Tran Anh and HC Homecenter have emerged. The appearance of numerous electronics stores and supermarkets in the area allows consumers to visit, compare, and choose their favorite products at different locations, thereby changing their shopping perceptions and helping them decide which brand is best and offers competitive prices.

In this competitive environment, consumers benefit from frequent access to promotions and discounts. Many supermarkets introduce new products at good prices, applying special offers during peak shopping seasons such as "Total Discounts - Beat the Summer Heat" or "Hot Season - Golden Hour Deals". Electronics supermarkets now focus not only on sales but also on after-sales service, warranty, and maintenance.

Household products are constantly on sale, but customers are still scarce.

However, because supply exceeds demand, the demand is almost saturated, so electronics and home appliance supermarkets are generally experiencing low customer traffic. It's easy to see that most are only busy during the initial opening period, after which the number of customers gradually decreases.

Arriving at Tran Anh supermarket at 10 am, the parking lot was quite large and more than half empty. Inside, the supermarket was still quite deserted. A cashier said that in the summer, fewer customers come to the supermarket to shop and more to browse and enjoy the cool air. Sales receipts are usually only a few hundred thousand dong, with very few receipts exceeding a million dong.

Several other supermarkets were in a similar situation, with hot weather, and from 9 am to around 4 pm, there were more staff than customers. At Big C supermarket, there were many customers at essential goods counters, while other counters such as electronics, home appliances, and household goods were deserted.

Introducing new products to customers at HC supermarket.

Despite a sluggish market, unsold goods, and low sales, many supermarkets are still opening new locations to compete for market share. This race among large electronics retailers is forcing smaller, less financially strong dealers and supermarkets to give up. Smaller retailers are now only able to sell to regular customers; some stores importing products without clear origins, creating difficulties for consumers in making choices, are also struggling in this competition.

Currently, several small shops on Quang Trung Street have had to close down; Son Ha electronics supermarket, which previously had two locations (one on Le Loi Street and one on Thai Phien Street), is facing difficulties and has now downsized to just one location on Le Loi Street. Similarly, Intimex supermarket, after a period of ineffective operation, opened another location on Le Nin Street to expand its market share, but has since also exited the market…

According to a Big C supermarket employee, businesses in general are currently facing difficulties. For Big C Vinh, sales of food and essential consumer goods are still steadily increasing, but the household appliances and electronics sectors are experiencing low growth due to competition and the emergence of many electronics supermarkets in the area.

The competition among electronics supermarkets is becoming increasingly fierce, with many businesses struggling to compete. Ms. Nguyen Thi Tu, Director of CK Vietnam Investment Joint Stock Company, stated that intense market competition coupled with a difficult economic situation has led to reduced purchasing power. Currently, profits are at their lowest in many years. Previously, each product sold yielded a high profit margin, potentially over 10%, but now it only reaches 2-3%. After-sales service is also being improved by supermarkets. For example, at CK Hoa Binh, customers requesting transportation, installation, and usage instructions receive additional after-sales costs that are not included in the price.

Customers browse goods at Big C Vinh supermarket.

Solutions for survival

A number of well-known electronics retailers are seeking to penetrate the Nghe An market, vying for market share. In this competitive environment, businesses must choose their own path to survival, with many offering discounts and other attractive strategies to attract customers.

CK Vietnam Investment Joint Stock Company is determined to continue expanding its market share in districts, increasing the number of medium-sized systems serving a large customer base. HC Electronics Supermarket, a newcomer to the Nghe An market, has recognized the market's large geographical area and the fact that customers come not only from Vinh City but also from neighboring districts. With a 60% market share in the city and 40% in the districts, this demonstrates the significant potential of consumers in remote areas. Therefore, free delivery and home installation support are key factors in differentiating the service style of these electronics supermarkets.

Ms. Vo Thi An, Deputy Director of the Department of Industry and Trade, shared: It is predicted that in the coming years, people's purchasing power will fluctuate significantly due to population growth, population distribution planning, economic growth, people's income, and the increase in tourism. Calculations show that modern forms of commerce will change consumer habits by reducing the frequency of purchases and increasing the value of purchases. It is projected that goods sold through this system will account for approximately 30% and 35% of the total retail turnover in 2015 and 2020, respectively. However, small stores and supermarkets that do not change their service methods and compete on price will find it very difficult to survive. A significant portion of low-income residents in the province will not be able to access these products if prices are too high; therefore, businesses must have appropriate policies and development strategies for each market segment to thrive.

Businesses are engaged in fierce competition, resorting to unethical tactics and lacking coordination, leading to losses. This is particularly concerning as more foreign companies enter the market. Therefore, in addition to proactively developing specific strategies to capture market share, businesses need to continuously innovate their management and business practices, find their own unique path, and establish their position and standing.

Thu Huyen