'Clothing' for OCOP products in Nghe An

“GOOD WOOD” NEEDS “GOOD PAINT”

A lantern production stage at Duc Phong Company Limited. Photo: Thanh Phuc

As a unit with many OCOP products, of which, there is 1 product that has the potential to be rated 5 stars and is being submitted to the Central level for consideration and approval to recognize the product as reaching the national OCOP level,Duc Phong Company Limited (Nghi Phu Industrial Park, Vinh City)In addition to focusing on product quality and design, we also pay great attention to packaging, labeling, and traceability of products.

Mr. Thai Dai Phong - Director of Duc Phong Company Limited said: “The company's products are mostly exported to Japan, Korea and Western countries. The market is mainly abroad, so the products are required to have standard quality, full stamps, labels, QR codes... according to the prescribed standards. In particular, for products with OCOP stars, we have invested in OCOP labeling, this is also a way for us to promote the quality and brand of the product, considering it as a "passport" for the product to affirm its brand and reputation in the market, especially in the current context, the company is both exporting and promoting the exploitation of the domestic market".

Lantern products of Duc Phong Company Limited are being submitted for recognition as meeting National OCOP standards (5 stars). Photo: Thanh Phuc

ProductLuong Son rice paperof Luong Son Food Production and Trading Company Limited (Nhan Son Commune, Do Luong District) was recognized as 3 OCOP stars in 2020. After being "starred", Mr. Nguyen Ngoc Phuong - Director of the company was very concerned about building a brand, investing in designs and packaging for rice paper products. Because he clearly determined that when being "starred", in addition to the recognized quality, the product must also have something different, worthy, creating a brand and cannot be "equated" with similar products on the market.

Luong Son rice paper products with 3 OCOP stars are now available in supermarkets thanks to investment in standard designs and labels. Photo: Thanh Phuc

In particular, to enter supermarkets, clean food chains, so that consumers know about Luong Son rice paper, at least there must be a name, an address, and a stamp to trace the origin. Understanding the importance of building a brand and labels, Mr. Phuong came up with the idea of ​​designing a logo, spending money to print packaging, labels, and applying for barcodes... Luong Son rice paper is packaged in a layer of cellophane, has a beautiful paper box and a label with full ingredients, instructions for use, expiration date, place of manufacture... This is what creates the brand and reputation of the product.

Mr. Nguyen Ngoc Phuong - Director of Luong Son Food Production and Trading Company Limited said: "A box of 10 rice paper pieces costs only 30,000-35,000 VND, the cost of packaging and labeling is 3,000 VND, the cost increases, the profit decreases, while we cannot increase the price of the cake. But in return, thanks to the packaging and labeling, the Luong Son rice paper brand is known by many people, the product has entered the supermarket system, clean food stores. Many people who bought or received the cake once, found the cake delicious, went to the address and phone number on the packaging to order.

Thanks to that, Luong Son rice paper products are "famous" throughout the country and exported to Laos, Cambodia, Thailand, and Japan. Currently, the company has linked up with 2,000 large and small agents, 350 collaborators nationwide, stably consuming about 1,300,000 products/year, with revenue of 2.6 billion VND, creating jobs for hundreds of workers.

Many small-scale producers have also paid attention to product labeling. Photo: Thanh Phuc

While large-scale, export-oriented producers invest in packaging and labels in a systematic, scientific and professional manner, many small, family-based, and mainly retail establishments have also paid attention to investing in product labels. Because they are aware that consumers today are very interested in the origin, provenance and expiry date of products; moreover, labeling is also a way to promote products and connect consumers with manufacturers.

Evaluate the role of branding, stamps, labels, and packaging in promoting, advertising, and expanding the market for OCOP products, especially putting products on e-commerce platforms.

“Up to now, the whole province has 31 subjects granted collective trademark protection certificates, most of which are OCOP products. These products have beautiful labels and packaging, initially creating trust for consumers and being accepted by the market. Thanks to that, the selling price has increased by 10-30%, profits have increased and have found a place in large distribution, retail and export systems.”

Mr. Hoang Nghia Nhac - Deputy Director of Department of Science and Technology

DIVERSE FORMS OF SUPPORT

Taiwanese guava and red dragon fruit products of Tu Hanh organic farm are recognized as 3-star OCOP but are only labeled when participating in fairs, seminars or when customers request. Photo: Thanh Phuc

Although the effectiveness is obvious, in reality, many OCOP product manufacturers are not really interested in building brands, packaging, and labels. Because not only does it cost more to print packaging, stamps, labels, and barcodes, but packaging and labeling also takes time and labor. Meanwhile, their products are still mainly sold retail on the market.

Mr. Dam Duy Tu (Quynh Tam commune, Quynh Luu district) is the owner of 2 winning products.3 star OCOPred dragon fruit and guava said: "Actually, I only label when participating in fairs, seminars, trade promotions and at the request of customers. Because 1 kg of guava, when labeled, will cost an additional 2,000 VND/kg, accounting for 1/2 of the profit, while if the selling price difference is 2,000 VND/kg, customers will not accept it."

If sold at retail markets, labels cannot be affixed because it will increase the cost of the product, making it difficult to compete in the market. Photo: Thanh Phuc

Mr. Tu also said that although stamps and labels will help consumers distinguish his organic guava and dragon fruit products from other floating products on the market, he currently has to compete on price so he cannot invest more in stamps and labels.

Stamping, packaging, and labeling will increase input costs, increase product prices, and reduce profits.

Meanwhile, OCOP products are currently competing fiercely with other products on the market, especially in terms of price. Therefore, the investment in costs for OCOP products to be "dressed" has not yet been of interest to producers. Another limitation is that many producers have paid attention to "dressing" the product, but it has only stopped at "doing it for the sake of it"; packaging and labels have not been invested in, have not shown their own characteristics and are not in line with commercial standards.

Grilled mackerel products from Cua Lo are vacuum-packed, with standard packaging and labels. Photo: Thanh Phuc

Mr. Vo Van Ly - Head of Economic Department (Cua Lo Town) said: "Implementing the "One Commune One Product" (OCOP) Program, up to now, the whole town has had 10 products recognized as OCOP products. Of which, 2 products have achieved 4 stars and 8 products have achieved 3 stars. Of those 10 products, all have been protected by trademarks. In addition to the support policy of the Provincial People's Committee, the town also supports 1 processed product with a trademark certificate granted by the Department of Intellectual Property for 10 million VND. The goal by 2025 is that 70-80% of products of craft villages must have labels. However, besides products with standard labels, many packaging and labeling products have been available but only at the level of having all the elements, lacking creativity and unique characteristics."

In addition to the support policy of the Provincial People's Committee, Cua Lo Town also supports 1 processed product with a trademark certificate granted by the Department of Intellectual Property for 10 million VND. Photo: Thanh Phuc

This is also a common limitation in terms of packaging and labeling of current OCOP products. To overcome this shortcoming, recently, the Department of Rural Development has issued an official dispatch guiding districts, towns and cities to direct economic entities to continue to improve and upgrade products, focusing on the redesign of packaging and labels. At the same time, coordinate with relevant departments, branches and units to support economic entities in the design of packaging and printing of labels to further improve product packaging and labels.

Most of the labels and logos have not been invested in, are not highly commercial, and do not show the unique characteristics of the product. Photo: Thanh Phuc

To support OCOP producers to invest in brands, packaging, and labels, the Provincial People's Council issued Resolution No. 25/2020/NQ-HDND on "Regulations on a number of policies to support the implementation of the "One Commune One Product" (OCOP) Program in Nghe An province, period 2021-2025", effective from January 1, 2021. Accordingly, 50% of the cost of design, purchase of commercial packaging, and product labels will be supported, but not exceeding VND 50 million/product and will be supported for each star upgrade.

Each OCOP product needs to be "identified" by its own quality, brand, packaging, labels, etc. These are necessary and sufficient factors to move towards "digitalization", expand the market and affirm the position of OCOP products.