Stimulating consumption: Solution to remove "bottlenecks" for the market

(Baonghean) - It can be said that never before have discount and promotion programs been as diverse, rich and flexible as they are today. If in previous years, promotional products were only applied at certain times and only to a few items to attract customers, now promotions and discounts take place regularly; there is no need to wait for holidays, New Year, openings or wait for the transitional season, "low season", but promotions and discounts take place all year round, continuously, even lasting the whole year.

Customers shop at Metro Supermarket (Vinh City).

Walking around any street in Vinh City, you will be dazzled by all the signs displayed at fashion stores: “Sale off 30-50%”, “Clearance of all items”, “Same price 100k - 150k for all items”… The most popular are on Dang Thai Than and Nguyen Van Cu streets, where up to 80% of the fashion stores here apply promotional tricks. Similarly, along Minh Khai Street - considered a street specializing in digital devices and mobile phones - there are also many signs of discounts and promotions.

Essential items for daily life such as household appliances and necessities, which are a dynamic and potential market with great purchasing power like in Vinh city, are also actively and widely promoted. Representatives of retail supermarkets said that recently, customers have minimized the purchase of expensive items and prioritized the most essential household items, suitable for their financial capacity in difficult times. Grasping that situation, supermarkets Big C, Metro, Intimex ... have continuously implemented attractive promotional programs and gifts to stimulate shopping for these items. Ms. Bich Van - from Da Lat visiting relatives in Vinh city exclaimed when seeing these types of advertising signs: "What a big discount, is it real? A 30% discount is already a lot, a 50% discount, where is the profit, is the business really taking a loss or is this just a price reduction trick to "attract" customers?, or is it fake, poor quality goods?". Decoding this question, Mr. Le Anh Duc, owner of Donafoods level I agent, explained: Promotional discounts are a very normal issue, businesses want to reduce inventory or want to launch products that are about to expire, this type of promotion is both to stimulate consumption and to clear inventory, then launch new products.

According to statistics of the Department of Industry and Trade, trade and service activities in the first 6 months of 2014 maintained growth and achieved the set targets and plans. Of which, the total retail sales of goods and revenue from social consumer services is estimated at 26,500 billion VND, up 9.21% over the same period in 2013. In addition, the distribution network of goods in the province is increasingly expanded, diversified and flexible, creating convenience for goods circulation and stabilizing market prices. The consumer price index (CPI) in the province in the first 6 months increased by 3.43% over the same period; of the 11 groups of goods used to calculate CPI, 10 groups had increased CPI, specifically: other goods and services increased by 8.91%; education increased by 8.63%; Housing, electricity, water, fuel increased by 6.3%, transportation increased by 4.91%... This is considered the lowest increase compared to the same period of previous years. One of the important reasons for the low CPI increase is that consumer demand is lower than last year, people spend more calculatingly, economically, effectively and intelligently. In addition, the psychological reason is that consumers are no longer afraid of inflation, so they do not buy goods to stockpile. However, the sharp decrease in CPI is also an optimistic signal for the goal of stabilizing and controlling inflation this year. On the other hand, the decrease in CPI is the basis for banks to continue to reduce lending rates, helping businesses reduce input costs, reduce prices and thereby stimulate consumer demand.

Assessing the overall business situation, Ms. Tran Thi My Ha, Head of Trade Management Department - Department of Industry and Trade said: “The stable commodity market is a positive sign, showing that trade and service activities in the province are being strictly controlled. In the first 6 months of the year, the department has approved 20 lucky promotion programs, with prizes worth more than 1,212 million VND; received over 2,500 notices of promotion, with prizes worth over 20 billion VND... Promotion is one of the effective forms of stimulating the consumption of goods and services. When the promotion is right, both sellers and buyers benefit. However, due to the market being always rich and vibrant while management and control work is still limited, many businesses take advantage of the promotion form to mix in fake, counterfeit, poor quality goods... affecting the rights of consumers and the interests of legitimate businesses. Therefore, in parallel with receiving registration procedures, information In order to promptly handle and rectify units that intentionally violate the contents of registration and promotional announcements at competent authorities. Therefore, promotional activities in our province in recent times have mostly complied with the provisions of the Commercial Law and related regulations. Most of the promotional programs organized in the area have the coordination of suppliers and distributors of products such as technology products; household goods; electrical, electronic, refrigeration products; motorbikes; banking and telecommunications services, etc.

The objectives and effectiveness of promotional strategies have different answers. However, to some extent, this is not only an opportunity for businesses but also a great opportunity for customers. And the promotion being organized simultaneously as it is now is also the most practical form of profit sharing of businesses with consumers... In order to continue to put the promotional activities of businesses into order, contribute to stabilizing the market, ensuring the rights of consumers, State management agencies need to strengthen coordination in inspecting and supervising the implementation of promotions; strictly and promptly handle violations. Strengthen the organization of activities to disseminate and propagate legal regulations in the field of promotion to relevant subjects to raise awareness and understanding of the law when implementing promotional activities. At the same time, encourage consumers to actively and proactively participate with state management agencies in monitoring and detecting violations in promotional activities.

Ngoc Anh