(VOVWORLD) - Since the beginning of the year, Vietnam’s online sales have grown steadily. However, an influx of cheap imported goods is causing Vietnamese businesses to work hard to improve their competitiveness and market share.
 (illustrative image/ tapchitaichinh.vn) |
The Natural House Company in Ho Chi Minh City has used indigenous raw materials to develop a cosmetics line with Vietnamese characteristics. It has trimmed production costs and optimized its use of e-commerce platforms to deliver lower prices for consumers.
Tran Lam, the company’s Director, said: “Sales and marketing costs account for 30-40% of the selling price. On e-commerce platforms, we can reduce that cost, which helps increase our competitive advantage."
Last year more than 300 million products were imported into Vietnam. E-commerce platforms are doing more now to protect customers who buy goods from abroad, such as offering a return policy. Domestic businesses have to optimize their products and pricing strategies to compete with foreign brands.
Dong Thanh Son, co-founder of the Abera cosmetics brand, said: “We must collaborate with delivery services to optimize logistics. That will boost sales and strengthen the domestic market.”
Nguyen Minh Duc, Deputy Secretary General of the Vietnam E-commerce Association, said: "It’s essential to keep up with technology trends, especially AI, to automate operations. This will help businesses reduce their costs, increase their competitiveness, meet consumer demand, and offer the best prices."
Amid fierce competition against imported goods and frequent changes in consumer habits, domestic businesses need to innovate more to optimize their costs and product quality in order to maintain a foothold in the e-commerce market.