In the Vietnamese market, there have been many different forms of distribution. Businesses can choose either indirect distribution channels through distributors and agents or direct distribution by opening its own retail system. Distribution can also be classified into traditional channels (general trade – GT) such as markets, kiosks, and shops; modern trade channels (MT) such as supermarkets, trade centers, and convenience stores; and e-commerce, etc.
However, distributing through a local partner is the most popular since brands can take advantage of their inventory, sales force, and existing Customers. So what do foreign businesses need to do to attract such distributors? How can you make your brand desirable to them?
In this article aims, GMA will offer valuable suggestions to impress your potential partners in Vietnam.
1. Leveraging Trend Products
In the ever-evolving and fiercely competitive business landscape, distribution companies in Vietnam remain consistently attentive to and endeavor to capitalize on trending products—a pivotal element for the sustenance and advancement of their enterprises.
A primary rationale behind Vietnamese distribution companies’ keen interest in trending products is their commitment to fulfilling customer needs. Customers perpetually seek access to novel, contemporary, and captivating offerings. By delivering products that are currently in vogue, distribution companies cater to these aspirations, thereby upholding customer contentment.
Trending products often come hand-in-hand with promising business prospects. The provision of such products can yield substantial profits for distributors. Vietnamese consumers frequently exhibit a willingness to invest more in distinctive and innovative merchandise. This dynamic lays the groundwork for optimizing sales figures and fostering financial expansion.
Furthermore, the landscape of business competition is perpetually intense and subject to constant transformation. Trending products frequently signify a distinctive edge and competitive leverage. For foreign brands, it’s imperative to stay abreast of these emerging trends, ensuring they remain at the forefront and retain their stance in the face of rival contenders
2. Profitable Margin Items
In the ever-changing and highly competitive business environment, distribution companies in Vietnam maintain a vigilant focus on harnessing the potential of trending products—an essential factor driving the growth and continuity of their operations.
A central reason driving the avid interest of Vietnamese distribution companies in trending products is their unwavering commitment to meeting customer demands. Customers are consistently on the lookout for access to fresh, modern, and captivating offerings. By supplying products that are currently in vogue, distribution companies cater to these aspirations, thereby upholding customer satisfaction.
Trending products often bring with them promising business opportunities. The availability of such products can yield substantial profits for distributors. Vietnamese consumers often display a readiness to invest more in distinctive and innovative merchandise. This dynamism sets the stage for optimizing sales figures and fostering financial expansion.
Moreover, the business landscape is in a state of perpetual intensity, undergoing constant transformation. Trending products frequently represent a unique advantage and competitive edge. For foreign brands, staying well-informed about these emerging trends is imperative to ensure they remain at the forefront and maintain their position amidst rival contenders.
3. Showcase Reliability & Quality
Vietnamese distributors prioritize reliability and quality. Highlight your company’s track record of delivering consistent and high-quality products or services.
- Consistent Track Record
Highlight your company’s consistent track record of delivering reliable and high-quality products or services. Provide evidence of your long-standing relationships with customers and repeat business. Share testimonials, case studies, or success stories that exemplify your commitment to meeting and exceeding customer expectations. This establishes your reputation for reliability and quality in the eyes of Vietnamese distributors.
- Certifications & Standards
Showcase any certifications, quality control processes, or adherence to international standards that validate your commitment to reliability and quality. For example, certifications like ISO 9001 for quality management systems or ISO 14001 for environmental management demonstrate your dedication to maintaining high standards. Communicate your compliance with relevant regulations and industry best practices.
- Product Samples & Specifications
Provide Vietnamese distributors with samples of your products whenever possible. This allows them to assess the quality firsthand and gain confidence in your offerings.
Accompany the samples with detailed specifications, highlighting the materials used, manufacturing processes, and any unique features or advantages.
Transparency and clarity in product specifications reinforce your commitment to providing reliable and high-quality products.
- Quality Control Measures
Discuss your robust quality control measures and processes. Explain how you ensure consistency and reliability throughout the production or service delivery process.
Detail your quality assurance protocols, inspections, and testing procedures.
If applicable, share information about any investments you have made in advanced technology or quality control systems. This demonstrates your commitment to maintaining stringent quality standards at every stage.
- Customer Support & After-Sales Service
Emphasize your customer support and after-sales service capabilities. Discuss how you provide timely assistance, handle customer inquiries or complaints, and offer warranty or maintenance services.
Vietnamese distributors value reliable support and reassurance that you stand behind your products or services. Providing excellent customer support and after-sales service showcases your commitment to long-term satisfaction and builds trust.
5. Adapt To Local Practices
Vietnamese business practices may differ from those in other countries. Be flexible and willing to adapt to their way of doing business.
- Patience & Relationship Building
Vietnamese business culture emphasizes building personal connections and trust before diving into business discussions.
Be patient and invest time in establishing rapport with your Vietnamese counterparts.
Engage in small talk and show genuine interest in their lives and culture.
Avoid rushing or pushing for immediate outcomes during negotiations.
Building relationships takes time, and patience is key.
- Indirect Communication Style
Vietnamese communication tends to be indirect and polite, focusing on maintaining harmony. Avoid being overly assertive or confrontational during negotiations, as it can be seen as disrespectful. Practice active listening and pay attention to non-verbal cues. Be mindful of your tone and choose your words carefully to ensure a respectful and diplomatic approach.
- Building Consensus
Decision-making in Vietnam often involves multiple stakeholders and a consensus-based approach. Be prepared for negotiations to involve multiple rounds of discussions and consultations. Seek to understand the decision-making process and the roles of various individuals or departments within the distributor’s organization. Be patient and work towards finding common ground that satisfies all parties involved.
- Negotiation Style
Vietnamese negotiation style often involves patience, persistence, and a willingness to compromise. Be prepared for lengthy negotiations and avoid applying pressure tactics or aggressive bargaining. Instead, emphasize finding mutually beneficial solutions and compromises that align with Vietnamese cultural norms.
- Flexibility and Adaptability
Be open to adapting your business practices and strategies to align with the local context. This includes adjusting your marketing approach, packaging, pricing, or distribution methods to cater to the Vietnamese market.
By demonstrating flexibility and a willingness to adapt, you show respect for the local business practices and increase your chances of success.
6. Conclusion
Collaborating with local distributors presents a valuable opportunity for international brands to establish a presence in the Vietnamese market. This approach offers advantages such as minimizing upfront investments, mitigating compliance risks, and sidestepping the need to establish an independent local operation and sales team.
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