Sign up | Log in



Home  >>   Daily News  >>   Vietnam News  >>   Retail  >>   “Own brands” rattle Vietnamese markets
NEWS UPDATES Asean Affairs           26   July  2011

“Own brands” rattle Vietnamese markets

Related Stories

February 12, 2011
Foreign retailers avoid Vietnam

December 29, 2010
Vietnamese retailers lose competitive edge

October 9,2010
Vietnam investment target for Malaysia

August 25,2010
Carrefour leaving Malaysia

July 9, 2009
Business as usual, says Carrefour

July 28, 2008
Indonesia Retail Market:
Matahari, Hero buoyant despite high inflation

A new supermarket strategy based on producing goods under in-house labels, pose several challenges to domestic manufacturers in providing low priced, high quality products.

As part of the new strategy, supermarkets aim to cooperate with local manufacturers in producing goods such as home appliances and food, attaching in-house labels for distribution via their own systems upon completion.

Cutting down on costs associated with advertising and distribution, the new strategy aims to ensure high quality while affording an opportunity for supermarket prices to be lowered by 10-30 percent.

One manufacturing director admitted that his company faced a number of difficulties due to the introduction of cheaper products, which would make their own products less competitive.

For example, supermarket notebooks are sold at VND3,900 each, while the price for the same product was usually double that at other retail outlets.

During May, a supermarket introduced a new type of soap, branded with its own label, the price of which was around 30 percent cheaper than that of its competitors.

Due to lowered prices, manufacturers are set to become weaker, possibly even turning into outsourcing units for supermarkets, according to a market expert.

However, some believe that new supermarket products could do little harm to already established brands. They are only being distributed through a modern system that helps manufacturers innovate, operate at full capacity and earn higher profits while avoiding direct competition.

According to a report, drawn up by the Centre of Business Studies and Assistance (BSA), around 50 domestic manufacturers have been producing goods for supermarkets.

The BSA report cites the Saigon Coop as an example of a supermarket which has cooperated with 45 domestic producers, including Kinh Do corporation, the Sai Gon Paper Company and Phong Phu Garments, in producing products.

According to the report, the trend is nothing new, led by Metro Cash & Carry who introduced many of its own products upon first entering the Vietnamese market.

Since 2007, Big C has also started producing in-house labeled products, with many additional domestic supermarkets following in the footsteps of their foreign counterparts.

The Saigon Co-op currently sells 150 in-house labeled products while Vinatex Systems, run by the Viet Nam Garment and Textile Group, has been selling in-house labeled products under its Vinatex Fashion trademark.

Vinatex is set to announce three new trademarks during the course of the year, to be distributed at over 60 of its stores nationwide.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    26  July  2011 Subsribe Now !
• China growth overly investment-dependent
Subcribe: Asean Affairs Global Magazine
• SBY warns of subsidy cuts to infrastructure Asean Affairs Premium
• AirAsia remains in Malaysia
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• The Philippine Department of Trade and Industry (DTI) wants to create more jobs in the countryside
• 3G service in Thailand still stumbles
• Dairy Queen and Burger King speed expansion
• Vietnamese inflation rises dramatically
• “Own brands” rattle Vietnamese markets p

Asean Analysis    26  July  2011

Advertise Your Brand
• Asia watches US “circus” Sponsor Our Events

Asean Stock Watch    26  July  2011 

• Asean Stock Watch-June 26 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand