Manufacturers target popular consumers
11-06-2012 12:57:44+07:00
Manufacturers target popular consumers
A lot of manufacturers have shifted to make low cost products, targeting popular consumers, which is commented as a wise move in the current context of the low demand.
Wooden furniture manufacturers have big inventory volumes because the export has been slowing down in recent months. They would accept to sell products at a loss to get money for re-investment.
In general, the manufacturers, when fulfilling export orders, always make some certain additional products to replace the error exports. Besides, a lot of products cannot be exported because they do not fit the taste of consumers any longer. Therefore, Asia Door understands that these could be the good supply sources and sees the great opportunities from trading the products.
The consumers, who have the demand for just one or two sets of products, cannot access the big manufacturers, who only accept wholesale purchase orders. And that is the big chance for Asia Door: it buys the products to retail to clients.
“Low-cost” does not mean “low quality.” The products need to satisfy the requirements of the majority of consumers. Our technicians always consider the quality and the design of products carefully before collecting them for reselling,” said Nguyen Minh Dong, Director of Asia Door.
The director of a company, specializing in distributing wooden furniture products on Ngo Gia Tu Street in HCM City said previously, he distributed high end branded products in the city. However, the sales of the products have dropped dramatically by 70 percent in comparison with the same period of the last year, since consumers have cut down spending.
“The demand has weakened, while the manufacturers were not flexible with their pricing policies. Therefore, we have stopped distributing the products,” the director said.
His company now distributes popular products and targets low and medium income earners. It has called on manufacturers to focus on making more popular products in order to boost sales.
Besides, the company has also placed specific orders to manufacturers. Some manufacturers, for example, specialize in making chairs which can fit different kinds of tables, wardrobes or beds. After receiving chairs from one manufacturer, tables from another and wardrobes from the third manufacturer, the company would match them to create different sets of products before selling to clients.
The specialization in production phases allows the company to save up money. The manufacturers would accept low unit prices when the company places big orders.
The director said that with the new business strategy, the company can sell high quality products to clients at the prices lower by 50 percent than the market prices. A set of dining table and chairs, for example, is selling at 2-3 million dong, much cheaper than the branded products, though the products have similar designs and they are made of the same materials.
Meanwhile, Dang Quoc Hung, Director of Kim Boi Fine Arts and Handicrafts Company, has revealed that his company now targets the domestic market, trying to make the products with more functions. Instead of making pictures or campaign medals, Kim Boi now makes sets of bowls and chopsticks with coconut materials or flower vases and card boxes.
In the past, Kim Boi mainly made the products only for decoration purpose. However, nowadays, the company tries to make the products with multi functions and with lower prices.
“With the new products, the company not only can maintain production and jobs for workers, but can also make money to offset the decreases in exports,” Hung said.
vietnamnet
