Vietnam’s consumer electronics industry has been driven by the country’s strong economic growth and its technologically knowledgeable young population. In major cities like Hanoi and Ho Chi Minh, it is common for each person to own at least one mobile phone and one personal computer.
The revenue generated in the Consumer Electronics market is estimated to be US$7,873.00m in 2023, with an expected annual growth rate of 1.97% (CAGR 2023-2028). The steady increase in disposable incomes is anticipated to contribute to a consistent rise in the demand for electronics in the coming years.
Recognizing the growing potential for exports of consumer electronics in Vietnam, many foreign companies are tempted to conquer this market. GMA would like to share the keys to successfully launch your consumer electronics brand in Vietnam, consolidating from our experiences handling such brands.
I. ELECTRONICS SPECIALIST RETAILERS – THE PRIMARY SALES CHANNEL
Electronics specialist retailers play a crucial role as the key sales channel in the consumer electronics market, accounting for over 70% of the total retail volume. These specialized stores offer a wide range of brands and product categories, along with regular discount programs and technical support, including after-sales assistance, for their customers. With their extensive retail networks, specialist retailers are the preferred partners for foreign brands. In the specialized electronics sector, dominant players such as Dien May Xanh, Synnex FPT, and Nguyễn Kim hold a significant market share of up to 80%.
In addition to physical brick-and-mortar stores, large specialized retailers also cater to online orders. Online sales mainly take place through the official websites of these retailers, which often provide exclusive discounts for online purchases. Retailers utilize social media platforms like Facebook to promote their products, often redirecting customers to their online ordering platforms.
Consumers generally perceive the online stores of authorized specialized retailers as more reliable in terms of product quality and post-sale services compared to other online channels, such as e-commerce platforms or social networks. There is a sense of caution among consumers when dealing with sellers on e-commerce platforms like Lazada and Shopee, as not all of them are authorized retailers.
II. POTENTIAL DISTRIBUTION PARTNER FOR LOCAL SALES
Apart from well-known brands like Apple and Samsung, numerous foreign manufacturers and exporters collaborate with Vietnamese distributors to promote and sell their products across the country. Currently, Synnex FPT (formerly known as FPT Trading) and Digiworld are prominent distributors in the consumer electronics industry. These distributors not only sell imported goods through their own stores but also form partnerships with major retailers such as Mobile World Group, Nguyễn Kim, and Thiên Hòa.
In Vietnam, it is customary for electronics specialist retailers and supermarkets to expect discounts ranging from 10% to 20% on wholesale prices or commission rates.
III. CHOOSE YOUR WINNING MARKET ENTRY STRATEGY
Besides multinational manufacturers like Samsung and LG, who have established production facilities in Vietnam, larger and medium-sized foreign brands often choose to establish their own limited companies to import and distribute products within the country. This approach allows them to maintain better control over their brand names and offer comprehensive support services to customers.
Foreign brands also prefer to find local distributors to represent them in Vietnam, as it reduces the initial investment costs associated with operations and marketing. However, finding reliable and experienced distributors presents a significant challenge for foreign exporters. Many brands opt to collaborate with reputable distributors in Vietnam, such as Synnex FPT and Digiworld.
Well-known brands like Oppo, Asus, HP, Xiaomi, and Samsung have their own limited companies in Vietnam, with the parent company being the sole investor. From an operational standpoint, the subsidiary acts as the legal representative and brand owner in Vietnam, responsible for product imports and collaborating with retailers or third-party e-commerce platforms for distribution.
Moreover, selling through online platforms like Lazada, Shopee, and Tiki requires sellers to provide legal import documents, product information, and certification from the parent company, confirming their authorized representation in Vietnam.
IV. E-COMMERCE IS A CRUCIAL SALE CHANNEL
In recent times, online shopping platforms have experienced a surge in popularity as the preferred choice for purchasing electronics. Vietnamese consumers are attracted to these platforms due to their ability to easily compare prices among various suppliers and evaluate technical specifications across different models. When making online purchases, customers generally favor well-known brands and reputable retailers. However, it is important to acknowledge that industry sources have reported instances of substandard products being sold online, even on large platforms. This can be attributed to the presence of numerous sellers on these platforms, which may result in a potential lack of thorough product checks by platform operators.
While online channels are more prevalent in urban areas, consumers in Vietnam tend to show a greater inclination toward shopping in physical brick-and-mortar stores. These stores offer the advantage of sales personnel who can assist customers in selecting the most suitable products. Typically, buyers are more inclined to make online purchases when the products are low-cost, such as gadgets and accessories, when specific items, particularly newly released models, are unavailable in physical stores, or when significant discounts are offered.
Therefore, foreign suppliers should take note of a slight price difference between online and offline retail prices for consumer electronics in Vietnam. Usually, online prices are 5-10% lower than offline prices, as many electronics retailers, including The Gioi Di Dong, offer exclusive discounts for online orders.
V. ONLINE MARKETING – THE FASTEST WAY TO BUILD YOUR BRAND
1) A Brand Official Website Is The Most Trustful Place To Order
When there is a need to buy anything, consumers often search for products on Google, view information and reviews on sales websites, and order online instead of going around a shopping mall, market, or shopping mall. supermarket
This way of buying is considered to be much more convenient because just sitting at home, work or a coffee shop with an Internet connection can buy goods. Building a Website means that businesses are in tune with the general consumption trend of today’s society.
In addition, there are other specific benefits such as:
- Building a professional image in the eyes of customers: After building a website, the brand can start running ads and building SEO-standard content. This helps to increase brand recognition and credibility with customers in Vietnam.
- Create a competitive advantage over competitors: When most brands sell online, building a Web site will definitely help you increase your competitiveness with competitors. Build useful Website content and accurate product information. Attentive and enthusiastic customer care with good product quality. Will definitely help you attract more and more Vietnam buyers.
- Turn leads into customers: No matter what form of online advertising you use to attract potential customers. Their buying stop is your Website. A website is a place that contains full product information, features, and benefits that banner ads cannot convey. The task of the Marketing campaign is to attract as many customers to the Website. This is where you will receive and convince them to buy your product.
2) Social Media Marketing – Still The Fastest, Cheapest Way To Reach Targeted Audience
Electronic brands find social media marketing to be a valuable tool for connecting with customers, particularly due to Vietnam’s substantial social media penetration rate of 80%. Among the various social networks in Vietnam, Facebook emerges as the most widely used platform, with an impressive user base of over 43 million. It comes as no surprise that prominent brand names prioritize Facebook marketing in the country.
For instance, brands such as Asus, Oppo, Samsung, and LG actively participate in Facebook marketing, regularly sharing more than 70 posts per month. These posts often include interactive mini-games and promotional activities featuring lucky draws, enhancing customer engagement.
3) Short-Form Videos Need To Be Fully Utilized
According to Hubspot, video marketing is expected to be the marketing tool that brings the highest conversion rates in the near future. Especially for consumer electronics, big brands are also making full use of the accessibility of this type of content. Typically, such as Lock & Lock, The Gioi Di Dong, Toshiba, Dien May Xanh, …
For example, the advertisement of Dien May Xanh with the image of actors wearing tight clothes from head to toe and drawing “blue and green” faces with models of TVs, refrigerators, air conditioners, washing machines, etc. dancing strangely on the frame. blue background. The catchy melody is haunting, the lyrics are easy to remember, easy to memorize, and the phrase “Come to the green machine” is repeated up to 5 times in 30 seconds.
It can be said that the best thing is that Dien May Xanh does not make it as big as we feel, but only does a part, the rest is largely thanks to its rework everywhere. Thanks to that, this brand is spreading like a virus all over social networking sites
Although it is quite simple and entertaining on the surface, the TVC of Dien May Xanh has fulfilled its role of increasing brand awareness in just a short time with extremely fast and strong viral effects.
4) Use The Google Ads Tool
To convert customers in need may be: your Website is complete, you already have standard SEO content on your Website, but your brand is still too new. Very little or almost no customers know about you, so Website visits are always extremely low or almost none! This is the time when you consider using Google Ads tools to help promote your Website to customers.
The purpose of using Google Ads is to display products and items and reach customers in need. If you have an effective Google advertising strategy, your products will show up in the top search positions of users and automatically show up when users have a shopping need.
5) Influencer Marketing Becomes A Powerful Strategy
Influencer Marketing is an inevitable trend. In the modern era, it is not difficult to find articles, review videos about technology products on Social Networks. Influencers of Electronics – Household appliances are changing the buying behavior of consumers day by day. Brands need to actively adapt and follow the game so as not to be surpassed.
Leading electronic brands influence influential individuals, such as tech experts, lifestyle bloggers, and popular social media personalities, to endorse their products. These influencers create engaging content, including product reviews, unboxing videos, tutorials, and recommendations, which resonates with their followers and helps generate interest and trust in the brand.
By leveraging the influence and credibility of these individuals, consumer electronics companies can reach a wider audience, increase brand awareness, and drive product sales. Influencer marketing allows them to tap into the existing fan base of influencers, who are seen as trusted sources of information and recommendations in the consumer electronics space.
6) Be Careful With Price Promotion Strategies
Price strategy is one of the tools used by many electronics and refrigeration brands over the years. This is also one of the strategies most likely to attract and convert customers. However, promotions and discounts need to be monitored to ensure that they do not affect consumers’ perception of the quality and position of the brand.
7) Optimize The After-Sales Experience
Refrigeration electronic products have a relatively long life span and high product value, so consumers in the electronics and refrigeration industry pay great attention to after-sales policies. However, many electronics and refrigeration companies are now neglecting the after-sales experience.
Optimizing the customer experience after purchase helps the brand retain customers and maximize the long-term value of customers – Customer Lifetime Value.
Some effective post-purchase customer experience optimization strategies in the electronics and refrigeration industry include:
- Inform customers about important benefits such as The expiry date of warranty or additional products/services, etc.
- Collect customer feedback: Collecting reviews and comments helps businesses understand the status of the brand in the eyes of customers and make them feel valued.
- Build customer community: Building community is one of the useful measures to increase loyalty and shorten the distance between brands and customers.
Consumer electronic devices are gradually becoming versatile and playing a larger role in the kitchen of every Vietnamese family. Capturing current consumer trends will help you sell products and attract more customers.
Our team is here to help you identify potential business partners or distributors, allowing you to enter the Vietnamese consumer electronics market with minimal upfront investment. Reach out to us today and let us assist you in kickstarting your sales in Vietnam!