Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Large kitchen appliances; Small electrical appliances
Executive summary
Domestic Electrical Appliances Market Still Has a Lot of Potential in Vietnam
Many durable appliances, such as fridge freezers, freezers, hair care
appliances, air conditioners, vacuum cleaners or dishwashers, still had very
low household penetration rates in 2006. What is obvious here is that these
figures are very likely to rise in the years ahead as demand will increase not
only in terms of needs but also in terms of comfort and convenience. As the
economy strengthens, household budgets may have a little bit left over and
people will then look to make life easier by purchasing modern domestic
electrical appliances to help them with the housework against a backdrop of
life becoming busier and more stressful.
International Integration Can Lead to a More Competitive Environment
Becoming the 150th official member of the World Trade Organisation (WTO) in
November 2006 was a big event for Vietnam. The market in Vietnam has been very
open, offering great potential, since the moment Vietnam became a member of
the WTO. This event offered Vietnam a chance to expand relations with other
countries in the region and the rest of the world. This means that consumers
should benefit from a wider range of products, including domestic electrical
appliances, with higher quality and at cheaper prices. However, manufacturers
and suppliers are also facing more threats and challenges. New technologies,
innovation and sensitivity to consumer needs are all needed to help a company
remain competitive.
Expansion by Merging is a Way to Compete in the New Open Environment
There are three possible forms of mergers - horizontal mergers, vertical
mergers and diversification. Vertical mergers seem to be the most popular
format, as this shows a combination of two companies participating in
different stages of the same industry, which is a kind of specialisation. In
Vietnam, Goldsun is an example of this merging format between two companies in
the kitchenware business - one of which is in charge of manufacturing and
the other responsible for distribution.
Lack of Advertising for Domestic Electrical Appliances in Vietnam
Unlike food, drinks, OTC products or television sets, domestic electrical
appliances are rarely advertised in media like television or newspapers. Only
three major domestic electrical appliances - refrigeration appliances,
washing machines and air conditioners - sometimes appear on television or in
the advertising and marketing columns of newspapers. With regard to websites,
advertising windows for domestic electrical appliances are seldom seen in
Vietnamese electronic newspapers. Consumers can seek information on companies'
websites, but going to showrooms or specialist retailers for more details is
still the best and most popular way. However, this happens only when people
actually need the product. Producers should also create demand by advertising.
Japanese and Korean Brands Popular With Vietnamese Consumers
Local consumers have long been aware of the quality of Japanese electronic
appliances, such as cassettes and cameras, with Japanese cooking appliances,
especially rice cookers, also having becoming popular over time. Today, apart
from rice cookers, people also opt for gas stoves and electrical hoods from
Japanese players. However, Korean products have also become popular, as many
people like Korean movies. In almost every household there are major
electrical appliances, such as refrigeration appliances and washing machines,
from well-known brands like Hitachi, Samsung, LG and Sanyo.
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