Consumer goods market: Abundant supply, stable prices.

(Baonghean) - In the first nine months of 2014, the consumer price index increased by 3.45% compared to the same period last year. There are many reasons for this low index, but mainly it is due to the insignificant price increases of many essential consumer goods groups, and market prices have been quite stable in recent months.

Walking around some central markets in Vinh City, it's easy to see that the supply of consumer goods is quite abundant, the pace of trade is basically stable, and there is little price fluctuation. Currently, wholesale and retail prices of vegetables and fruits are decreasing compared to the beginning of September; the prices of fresh food and groceries have also remained unchanged compared to the beginning of the year. According to the Vinh Market Management Board, since the beginning of the year, the flow of goods from provinces and cities to the market has been consistent and uninterrupted, so prices have not fluctuated erratically like in previous years. In particular, the price increases of essential goods such as gasoline, gas, and electricity at the beginning of the year have not significantly affected prices or the business of traders. In the supermarket system, in addition to stabilizing prices of essential goods, they also organize many promotional programs for customers worth hundreds of millions of dong. With three simultaneous promotional programs in September – “Loving Family”, “Joy in the Kitchen”, and “Warm Mid-Autumn Festival” – Big C Nghe An supermarket attracts customers throughout the day with a large selection of discounted products and reward points on shopping cards.

Customers shopping at BigC Vinh supermarket. Photo: Thanh Le

To stimulate the market and boost purchasing power, fashion clothing stores are simultaneously displaying discount advertisements to clear their inventory. For technology products, promotional programs, discounts, and gift giveaways are run regularly, without needing to wait for holidays, grand openings, or seasonal changes. Service industries are also bustling with many customer appreciation activities. Mr. Le Xuan Thang, in charge of sales at FPT Shop, said: “For products imported more than 3 months ago, our store will offer a 10% discount on each product…” According to statistics from the Trade Management Department of the Department of Industry and Trade, from the beginning of 2014 to the present, the department has approved 32 lottery-based promotional programs (a 30% increase compared to 2013), with prizes worth over 1.8 billion VND; and received over 3,700 notifications of promotional activities, with a total prize value of over 30 billion VND.

In addition, to stimulate consumption, many business strategies have been implemented by relevant agencies and enterprises. Ms. Nguyen Hong Lam, owner of Huy Lam Private Enterprise, which specializes in distributing cooking oil, instant noodles, beverage seasonings, and milk in Vinh City and Cua Lo, said: “To increase revenue, increase profits, and avoid unsold inventory, we chose to have our staff drive around to deliver goods directly to small retail stalls. This sales method helps businesses reduce costs and understand the actual demand for each product type, allowing for more appropriate service adjustments.”

Since the beginning of the year, the Nghe An Trade Promotion Center has organized four Vietnamese goods fairs in the districts of Quy Hop, Quy Chau, Que Phong, and Thanh Chuong, with more than 20 businesses from within and outside the province participating. Each fair has about 30 stalls with a diverse range of goods, such as HacoPro household goods, An Thinh supermarket electronics, Cuong Ngan fish sauce, Nghi Duc wine, etc.; estimated to attract about 5,000 - 7,000 visitors and shoppers each day. In addition, at the beginning of September, the Trade Management Department of the Department of Industry and Trade also organized a trip to bring Vietnamese goods to Thai Hoa town with 6 businesses participating...

Mr. Nguyen Trong Hung, Director of the Trade Promotion Center, stated: “The fairs are organized to support the ‘Vietnamese people use Vietnamese goods’ campaign; to help people access affordable, high-quality Vietnamese goods and services, and to provide specific product information and advice. For businesses, participating in the fairs is an opportunity to promote and introduce their image and products to consumers, while also understanding the shopping habits of local people and their preferred products. This allows for a comprehensive and optimal assessment of the advantages of each region and locality, enabling them to develop appropriate plans for expanding their distribution network. Furthermore, through these fairs, businesses can sell a large quantity of goods because the demand for goods in rural and mountainous areas is very high.”

According to the Department of Industry and Trade's assessment, the commodity market in our province remained relatively stable during the first nine months of the year. Supply was abundant, consumer demand remained low, and purchasing power was weak. The Consumer Price Index (CPI) increased by 3.45% compared to the same period last year. Total retail sales of goods in the first nine months of 2014 were estimated at VND 25,742.2 billion, an increase of 11.32% compared to the same period last year. Broken down by retail product group, food and beverages accounted for the largest share with estimated revenue of VND 7,683 billion (accounting for 29.85% of the total), an increase of 12.92% compared to the same period last year; household goods, tools, and equipment reached VND 3,511.1 billion, an increase of 11.68%; and wood and construction materials reached VND 2,939.7 billion, an increase of 21.17%. Transportation costs amounted to 3,467.9 billion VND, an increase of 13.84%....

Typically, the demand for goods for production and consumption increases sharply in the last months of the year and before the Lunar New Year. Many projects and construction works accelerate their progress. People have a high demand for building and repairing houses and making purchases. Weather conditions and livestock diseases are also complex… These issues will strongly impact the supply-demand relationship, increasing overall and localized market demand. If supply is not met promptly, prices will be spontaneously pushed up, making it difficult to control and causing market instability. To ensure that the goods market in the last months of the year remains stable and that purchasing power improves sustainably, in addition to the directional solutions of state agencies, businesses must recognize their role, responsibility, and ethics in production and business. At the same time, they should actively participate in industry associations to support each other in production and consumption, ensuring a balance between supply and demand. Simultaneously, there is a focus on investing in and innovating production technology, improving product designs to enhance quality and reduce costs; emphasizing brand building to increase competitiveness in the market, and establishing a distribution system to expand the product distribution network to reach consumers directly. Relevant sectors and authorities need to strengthen market control, strictly punish acts of speculation, hoarding, unreasonable price increases, and commercial fraud. They must manage price listing and ensure sales are conducted at listed prices, while strictly controlling the quality and food safety of goods.

Ngoc Anh