Tran Anh Digital World Joint Stock Company is one of leading traders and distributors of IT, electronics and electric products in Vietnam. The success of the company will give a helping hand to the planning and development of supermarkets and trade centres in Hanoi, the capital of Vietnam. Reporter Trong Dat interviewed Mr Nghiem Xuan Thang, Managing Director of Tran Anh Digital World Joint Stock Company, on this matter.
The success in Tran Anh’s business activities is accrued from its guarantee of customer interests. Could you tell what Tran Anh needs to prepare to put its commitments into action?
It is the consensus and determination of the board of directors, management personnel as well as all other employees of Tran Anh Digital World Joint Stock Company. The customer-oriented target is always a top priority as it is a motivation for the existence and development of the company. Tran Anh’s culture is to promote the initiative of officials and employees. All business and service ideas are appreciated, discussed and defended. When an idea is formed and defined, unified action, message transmission, lesson evaluation and experience learning are always valued. Therefore, after nine years of operation, Tran Anh’s service policies have always been welcomed by customers as their benefits are guaranteed.
What do you think about advantages and disadvantages of supermarket and trade centre operators?
Currently, consumer preferences have gradually changed. They tend to go to supermarkets and trade centres where they trust more in sellers and spend the same amount of time to buy more products. Sellers at supermarkets or commercial centres are more easily building up their brands.
However, retailing (including supermarkets or commercial centres) remains a new model for us. Retailers lack long-term development strategies. Business premises and operating costs are also a big problem, while weak human resources and management systems are also major challenges for them.
What is your opinion about the professionalism of supermarket and trading centre operators in Hanoi today?
There are very few trading centres in Hanoi at present, and supermarkets are not many. In my opinion, we need to honour investors of this business model as they have created a new trend in consumer behaviour. At supermarkets or trade centres, consumers will have more options and have more favourable conditions to exercise their rights.
For Tran Anh, the development journey is an effort aimed at professionalism, which is expressed by administration system; business space planning, business performance per area unit; human resources planning for current and future development; and service quality. I am sure that customers will find comfort and trust when they buy and use products and services provided by Tran Anh.
Facing more competition from foreign distributors and retailers, Vietnamese retailers are urged to unite. Do you think this is a workable solution to difficulties facing Vietnamese retailers?
Foreign distributors have experienced the period of setting up supply chains and distribution channels in the Vietnamese market. As regards fast-moving consumer goods, electronic and electric products, and telephones, foreign traders and distributors have gradually revoked representative rights granted to Vietnamese agents to directly distribute to consumers; and they consequently have full rights in this game. Likewise, foreign giant retailers are wielding their advantages to subdue Vietnamese domestic retailers. Therefore, linkage will offer a guarantee of survival and development.
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An effective customer care policy has helped Tran Anh effectively develop the brand and win the trust of consumers. In addition to the current enormous supermarkets at 1174 Lang Road and 292 Tay Son Street (Hanoi), Tran Anh plans to open more in the capital city of Hanoi. The company will open a new supermarket at Savico Trade Centre, Long Bien district by the end of 2011 and a new one at the Ho Guom - Mo Lao Trade Centre in 2012. These new presences reaffirm the business scale of Tran Anh.
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But how to unite is a macro issue. Retailers really need a flagship to take the initiative. And above all, all stakeholders need to get rid of narcissism - an inherent weakness of domestic enterprises in general.
Domestic retailers cannot rely on trade remedies as the WTO principle requires fair competition. Probably, they will receive more favourable conditions from the Ministry of Industry and Trade and the Hanoi City’s People’s Committee for reaching business cooperation agreements with foreign retailers. Besides, joint venture, business cooperation and franchising are also good solutions for Vietnamese retailers in the process of international integration.