Development potentials of the Vietnamese retail market, Vietnam Economic News
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Director of a candy company whose products have just been okayed for being sold in the supermarket said, “It is difficult for the company to pass the supermarket’s requirements, including the limited number of products. I am worried that we cannot sell many products at the supermarket as they are imposed a high tax. As a result, prices of our products will be thousands of VND higher than rivals’ products”.
Supermarkets’ retail prices are often 25 – 30 % higher than the suppliers’ prices. Only companies which earn high profit want to have products sold at supermarkets. Nguyen added: “Supermarkets B. or M. asked businesses to pay VND5 million for each code of goods. Therefore, enterprises have to pay several tens of millions of VND for bringing their products for the sales at supermarkets. If the products do not sell well, they will be removed from the list of supermarket’s goods. Thus, companies will lose the fees for the sales and they have to continue paying VND5 million for each code of goods”.
Nguyen Thi Hai, Director of Hanoi Supermarket, said consumer staples like sugar, milk and monosodium glutamate sell well at supermarkets. However, shoppers were not there for “high-end” clothes, she said. New food products find it difficult to enter supermarkets which often get goods from big and popular firms. Consumers are also careful with trying the new food.
Vietnam Business And Financial News Network. Source [vibforum.vcci.com.vn]
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