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Reducing profits, increasing incentives
In response to customers' tendency to tighten their spending and prioritize purchasing only essential products or items on promotion, many businesses have proactively lowered their profits and added incentives to share the difficulties with their customers. For instance, Saigon Co.op, with nearly 800 outlets, is implementing the "Happy Birthday - Gifts for everyone" program until May 10, offering discounts and gifts on over 27,000 items, with a total promotion value of hundreds of billions of Vietnamese dong. Moreover, Co.opmart is also providing deeper discounts on weekends, launching a program that rewards customers with more discounts for buying more and offering high reward points.
The MM Mega Market chain pledges to accompany and share with consumers by launching two price stabilization programs: "Wholesale Price" and "Price Lock". The "Wholesale Price" program offers stable prices for over 40 fresh products, including pork, chicken, beef, seafood, vegetables, and fruits, with preferential prices similar to those found in wholesale markets. The list of "Wholesale Price" items will be updated regularly, giving customers a wider range of choices for their family meals. "We are committed to providing safe, high-quality, and affordable products, even in the face of market fluctuations," said Bruno Jousselin, CEO of MM Mega Market Vietnam.
A new Ribeto Gyomu Japan supermarket chain (third branch) was recently opened on Cach Mang Thang Tam Street, District 3, by Ribeto Group Joint Stock Company and Hoa Lam Group. The supermarket offers thousands of Japanese products, including dry and fresh foods, condiments, confectionery, beverages, and noodles, at reasonable prices, along with many promotions for customers. It is regarded as one of the supermarkets with the widest range of Japanese products. "In the past, I used to have to order hand goods or buy through unofficial channels, but now I can buy Japanese products directly in HCMC," said Ngo Thi Lan Phuong, living in District 3.
Efforts to overcome difficulties
After the Lunar New Year in 2023, there has been a decline in the purchasing power of the market, according to reports from some supermarkets and businesses in HCMC. Xuan Nguyen Group Joint Stock Company's Chairman of the Board of Directors, Mr. Lu Nguyen Xuan Vu, has stated that the company's sales in the first quarter of 2023 experienced a significant decrease compared to previous years. Moreover, small traders in markets such as Ben Thanh (District 1) and Binh Tay (District 6) have also reported a drop in purchasing power ranging from 30-60 percent compared to the pre-Covid-19 pandemic period. While goods remain plentiful and prices stable in wholesale markets such as Binh Dien, Thu Duc, and Hoc Mon, many items have been slow-moving, reflecting weak purchasing power compared to before the 2023 Lunar New Year.
As the Hung Kings’ Commemoration Day, Reunification Day, and International Workers’ Day approach, many businesses are seizing the opportunity to promote their brands, offer discounts, and engage in marketing campaigns to maintain their market share and stimulate purchasing power. "Our focus is on selling high-quality products, sharing profits with customers, and continuing to provide both online and in-person sales to retain our loyal customers," said Ung Thi Kim Lien, a small trader at Binh Tay Market (District 6). Some small traders in wholesale markets are also willing to lower their profits to retain their customers, hoping to hold out until the market warms up.
In response to the market's declining purchasing power, the HCMC Department of Industry and Trade is working to support businesses in overcoming their difficulties. Mr. Nguyen Nguyen Phuong, Deputy Director of the Department of Industry and Trade, has announced that a promotional plan has been recently launched during the upcoming holidays, aiming at boosting consumption at chain stores, restaurants, supermarkets, trade centers, and e-commerce platforms. In addition to this, the department is collaborating with the HCMC Department of Tourism to implement promotional programs with discounts of up to 100 percent.
