Finding The Needle In Vietnam’S Traditional Trade Haystack: Where To Focus – The Shopper Or The Retailer?

 In International
With more than 1.3 million traditional trade stores in Vietnam, getting products into stores and in front of the consumer can be a big challenge for manufacturers. In fact, until recently, many manufacturers had shifted their focus away from the traditional trade channel in Vietnam, opting instead to set their sights on the expanding modern trade format.
Last year, however, traditional trade in Vietnam grew faster than modern trade for the first time in the last decade. Today, traditional trade accounts for more than 85{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of sales in the fast moving consumer goods (FMCG) sector, representing nearly $USD 10 billion. This trend has manufacturers taking a step back to once again review the opportunity that lies in the vast and fragmented traditional trade channel.
The reality for most manufacturers is that servicing 1.3 million outlets in Vietnam’s traditional trade channel is not realistic. Even large manufacturers with extensive sales teams only service approximately 30{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of outlets directly. Given the complexity in navigating the dynamics of the traditional trade environment and the fact that consumers don’t typically even enter traditional trade outlets (instead opting to rely on the shopkeeper), a number of companies have shifted their focus to understanding how the consumer shops this channel to drive sales in traditional trade. Nielsen – Read more…

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