Enterprises and their "position" in the domestic market

(Baonghean) - Building a brand and developing the domestic market is one of the vital issues for businesses, but many businesses have not paid attention to this issue, especially small and medium enterprises. This is a challenging issue in the upcoming period of deep economic integration.

In Nghe An, the product brand that is trusted by the market is Trung Do Granite tiles. Determining the product brand and developing the domestic market are extremely important factors for the existence of the enterprise. In 2008, the Trung Do Granite tile brand was registered, through each stage, the company's granite tiles and ceramic tiles are evaluated by customers as having good quality.

Mr. Nguyen Ba Hoan, Director of Trung Do Joint Stock Company shared: “Despite facing fierce competition, Trung Do Granite products have their own path, with a diverse product line, affordable prices, and guaranteed after-sales service, depending on each market to have its own products and policies. Up to now, Trung Do Granite tiles have a place in the hearts of consumers, present in many markets, from Hanoi to Ho Chi Minh City, especially Nghe An and Ha Tinh markets are developing strongly. We build and strengthen our brand through many channels, in which, the product consumption system in the domestic market is focused on”.

Digital printed tiles - new product of Trung Do Granite Brick Factory.

Similarly, Austdoor Nghe An Joint Stock Company is also one of the enterprises interested in building brands and developing the domestic market. Enterprises determine that in order to survive and develop, they must protect themselves. Currently, Austdoor builds a unified brand identity system nationwide, from colors, logos...

Over the years, a number of prestigious brands have appeared in the area, known to domestic consumers such as TH True Milk, Van Phan fish sauce... Along with building brands, these enterprises are very interested in output, expanding and taking care of the domestic market. However, the number of enterprises taking care of developing the domestic market and building brands compared to the number of more than 9,000 enterprises operating in the area is too small. Many enterprises do not take care of the domestic market, typically there are products produced in the province of low quality, monotonous designs, facing competition from many competitors, losing right at home.

Let's review some of the products that are the province's export strengths to see that the "home field" has not been given much attention by businesses. Textiles and garments are an example. This industry is considered one of Nghe An's development strengths, with 13 garment factory projects making impressive contributions to the growth rate of the industry as well as the province's export turnover to demanding markets such as the US, Europe, Japan... In 2014, the province's textile and garment export turnover reached 70 million USD, accounting for approximately 19.4% of the total export turnover of goods. In the first 6 months of 2015, textiles and garments increased by 52.13% compared to the same period...

This is considered a breakthrough in the textile and garment sector in investing in export production, bringing in foreign currency and creating jobs for workers. However, in the domestic market, textile and garment products have no place and are subject to fierce competition from Chinese goods. The biggest difficulty of the domestic textile and garment industry is still the story of heavy dependence on imported raw materials and weak design. In addition, the amount of smuggled goods or goods imported through unofficial channels are flooding the market at low prices, making it difficult for domestic products to compete. Therefore, it is not easy to find and use textile and garment products of businesses located in the area.

Talking to us, the leader of a large textile and garment enterprise said that because the products are difficult to compete due to monotonous designs, although the enterprise has many years of experience in the textile and garment industry, it focuses on yarn products, and its business direction is export. He also admitted that the enterprise's garment products are very difficult to compete in the domestic market. Ms. Hung, owner of Son Hung ready-made garment store in Hung Dung market (Vinh city), said that there are very few domestic goods, in the past they also took a few but customers did not like them. It must be admitted that our enterprises lack the research on consumer tastes and lack suitable designers. Most of the goods are imported from other provinces and originate from China.

Or for wood chips, the product has been at the top of the province's export turnover for many years. Every year, people exploit about 518,000 m3 of raw wood, mainly for wood chip processing. Along with that, a number of enterprises have organized forest planting, purchasing, and processing large volumes of wood chips in other provinces for export. Nghe An has only 2 enterprises planting forests, processing, and exporting wood chips (Thanh Thanh Dat Co., Ltd. and LD Company planting and producing paper materials), but every year they have brought in large export turnover for the province. The increasing output of exported wood chips has created confidence for people and enterprises to boldly invest in developing the profession of planting raw materials. However, although wood chips from Nghe An's acacia trees are highly appreciated by foreign importers, despite the abundant source of raw materials, there is not a single factory in the province that uses the local raw materials for production and processing.

While our businesses have not paid much attention to the domestic market, foreign corporations and companies have increased their investment in promoting their brands, creating great competitive pressure with domestic enterprises. The most obvious competitive concern is agricultural products. Mr. Nguyen Van Lap, Deputy Director of the Department of Agriculture and Rural Development, said: In the future, according to the tax reduction process that our country committed to when participating in free trade agreements, even the domestic market will find it difficult to stand firm. Supermarkets are now flooded with chicken, pork, beef from Australia, Korea... with competitive prices. Therefore, tariff reductions can increase the flow of good quality, affordable imported goods into our country. It is inevitable that the domestic market share will be fiercely competitive. "Agriculture and rural areas of Nghe An province are being developed in the direction of increasing concentrated production with strong products such as aquatic products, vegetables, fruit trees...

These products are not only for consumption in the province but also for supply to the markets of provinces in the region. Therefore, the trade sector needs to focus on developing goods distribution systems associated with specialized production areas, developing professional logistics distribution services to serve the process of concentrating and distributing goods, ensuring fast consumption and increasing the value of agricultural products" - Mr. Lap shared.

Recently, the campaign "Vietnamese people prioritize using Vietnamese goods" is creating many opportunities for domestic enterprises, increasing the consumption of enterprise products. However, in the long term, enterprises need to have a medium and long-term production and business strategy with the orientation of maximizing the domestic market, improving the position and competitiveness of goods; gradually forming a joint venture and production - distribution - consumption association with large scale and high productivity, bringing products to consumers in the province and outside the province in the shortest way, fastest time and lowest cost.

Thu Huyen