Market research aids consumption

HCM City (VNA) - Local manufacturers must craft new strategies to increase
consumption of home-made products, experts have said.

At a time when the global recession is affecting business, stimulating local
production is considered the best way to promote growth.

However, many companies do not pay attention to market research and analysis,
according to Pham Thi Thu Hang, director of the Vietnam Chamber of Commerce and
Industry's small- and medium-sized Enterprises Support Centre.

Hang said local companies were ignoring the consumer potential of the rural market.

The country now has a population of more than 86 million, with more than 70
percent living in rural areas.

Rural incomes have increased in recent years, especially in areas that are being
urbanised, which has led to higher consumption.

The rural market traditionally has been full of low-quality, fake or smuggled
goods.

Hanoi Supermarkets Association chairman Vu Vinh Phu said companies should conduct
their own surveys on the rural market.

The surveys should examine residents' demand for goods, consumption habits and
payment capacity.

Organising mobile teams to sell goods directly in rural regions would increase the
purchases of locally-made products, Phu said.

Vu Dinh Anh, deputy head of the Ministry of Finance's Price and Market Research
Institute, said: "Vietnamese still have high demand for consumer goods, but these
goods must be within their payment capacity".

He added that companies must identify products that can meet local consumer
demands.

Companies should reorganise local distribution systems, especially systems in
rural areas, to increase market share for locally-made products, Phu said.-Enditem