Consumers spend big on electronics
Despite the economic slowdown, four out of seven sectors in Viet Nam's technical consumer goods market generated double-digit sales growth in the fourth quarter of last year.
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| Vietnamese consumers spent US$1.45 billion on technical consumer goods in the fourth quarter of 2013, up 21.6 per cent compared to the corresponding period in 2012.— File Photo |
According to GIK, a market research company, Vietnamese consumers spent VND30.5 trillion (US$1.45 billion) on technical consumer goods in the fourth quarter of 2013, up 21.6 per cent compared to the corresponding period in 2012.
The company's technical market index for the year showed that the rise in sales for the whole of 2013 brought revenue for technical consumer goods to VND113 trillion ($5.38 billion), up 22.1 per cent year-on-year.
Growth in the quarter was backed by increased growth in most sectors, including telecommunications with a revenue of VND11.2 trillion, up 47 per cent; major domestic appliances with a revenue of VND5 trillion, up 22.5 per cent; consumer electronics with VND5.1 trillion revenue, up 21.2 per cent; and small domestic appliances (SDA) with VND779 billion revenue, up 18 per cent.
Meanwhile, photo and office equipment and consumables sectors recorded poor revenues of VND451 billion and VND396 billion, down 16.9 per cent and 20 per cent, respectively.
Earlier this year, the Viet Nam Retailers Association said that electronics had great potential, since no single company accounted for more than 10 per cent of domestic market share.
Experts believe that the greatest challenge that electronics retailers will face this year is stiff competition from domestic companies and integration into the global economy.
By the beginning of next year, under its commitment to the World Trade Organisation, Viet Nam will open its market to foreign retailers.
Domestic firms will have to gear up to compete with foreign companies, which have significant capital and years of experience.
Electronics retailers have been advised to create a road map to develop their internal resources, stabilise long-term finances, and strengthen supply chain models.
In addition, they should focus on improving customer service and have an experienced staff to ensure sustainable development and effective competition. — VNS
