Made-in-Vietnam PCs have been available on the market for nearly 10 years and their presence made an initial quake. However, such brand names as Thanh Giong, VTB, CMS, Green Mekong and FPT Elead have faded in consumers’ heads as foreign brands with high quality and reasonable prices are enlarging the market share.
Three market segments
For many years, the domestic PC market was divided into three segments. The first is world-acclaimed brands like Dell, HP, IBM and Sony. Previously, foreign brands were luxury as their prices were very high and only affordable for high income earners. In recent years, with price policies, promotions and lending from banks, foreign PCs are no longer expensive for middle income earners. Foreigners have raised their market shares from 15 % to 30 %.
The second is unregistered PCs. They are usually assembled at customers’ requests. Individuals are keen on this line because of its soft prices. Sometimes, this segment made up 80-90 % of the total market share.
The third line made present in 2001. Green Mekong, FPT Elead and CMS are the very made-in-Vietnam PCs. This line together with unregistered PCs overwhelmingly dominated the Vietnamese market and pushing back foreign brands. However, Vietnamese-trademarked PCs weakened due to lack of R&D activities, marketing and professional demand stimulus. Mr Tran Hai Nam, Director of FPT Elead, said this line of products now accounts for 15 % - 30 % from 65 % - 70 % previously.
However, according to experts, Vietnamese consumers tend to buy more foreign-branded products. They seem to turn their back on unregistered products. Many experts envisage no room for unregistered and unbranded PCs in Vietnam. There will be a struggle between Vietnamese and foreign brands.
Discretion in production and sales
In fact, domestic brands are much weaker than foreigner as the latter possess incomparable strengths. In addition to their already-affirmed trademarks, they also operate very professional systems. All activities from product R&D activities to sales and after-sales are supported by strong financial capacities, advanced technologies and professional networks. Foreigner guests like HP, IBM and Acer have held the upper hand over Vietnamese hosts like FPT Elead or CMS. Meanwhile, domestic brands like Green Mekong, FPT Elead and CMS lack everything. After several years on the market, they turn discreet in production, sales and marketing.
Foreign brands have certain weaknesses. The first is the price. Several years ago, a HP, especially a laptop, is a luxury item for many people. However, in one or two years, price cuts and promotion policies have boosted their sales considerably.
Another weakness of foreigners is the strength of Vietnamese producers. That is the understanding of the Vietnamese market. Domestic companies know habits, demands and incomes of Vietnamese consumers. However, with a long enough time, they will deactivate this advantage of Vietnamese companies.
Made-in-Vietnam PCs are the main suppliers for key products in the nation. Nonetheless, after FPT agreed to assemble PCs for HP or NEC, the doors to big projects are opened to both. Under the umbrella of “made in Vietnam” PCs, HP or NEC can completely take big projects. This actually hurts other Vietnamese PC producers.
Small scale, narrow popularity and unattractive prices are weakening Vietnamese-trademarked PCs in a combat with strengthening foreign rivals.
Kim Phuong
Vietnamese
