Dong An Shoe's Path to Conquer Domestic Market

4:18:30 PM | 6/20/2011

Since its birth in 2005, with reasonable investment strategies, Dong An Economic Development and Investment Co. Ltd has asserted the upper hand in its export market. Its two factories with 5 production lines and a system of workshops have created conditions for the company to become the top supplier of famous shoe brands in the world such as: Kappa, Lee cooper, Docker, Tommy, Umbro, Next, and Zara, gaining export turnover of US$15 million per year. In order to create development advantages during integration, Dong An is making efforts to complete its nationwide distribution channel.
To meet partners’ needs, the company has established a Design Development Centre and a laboratory in a textile and garment factory in former Ha Tay (now Hanoi) with a staff of qualified and skilled developers creating the latest designs to launch on the market. The company’s European standard organization and production management systems are evaluated and observed by international institutes such as ITS, SGR, and BVQI. At the moment, the company is building a quality control system according to standard ISO 9000:2000 and environmental management system ISO 14000:2000.
Not only strong in the export market, at present, canvas shoes of brand D&A of Dong An are gradually conquering the domestic market. According to Manager Nguyen Duc Chinh, domestic customers are changing their minds and seeking products of high quality. Dong An’s target customers are dynamic youngsters catching the trend of canvas shoes. At the same time, the company also provides protective shoes for enterprises and farmers planting coffee in the Central Highlands.
Despite being a newcomer in the domestic market, Dong An Company has taken methodical steps. Market research is given priority, plus efforts to build retail channels, such as participating in fairs, introducing products in supermarkets and establishing retail stores directly supervised by the company. So far, the company has formed a distribution network in big cities such as Hanoi, Ho Chi Minh City and Vinh City. Meanwhile, the company has trained its sales staff, promoted the brand and conducted several promotional programmes.
After one year in domestic market development, the company has succeeded in its canvas shoes branded D&A, which have gradually won consumers’ trust. Poisonous chemicals are removed from materials so finished products are totally safe for customers’ health. Before leaving the shop, product quality is strictly verified by modern experimental machines which can detect all mechanical and chemical features.
 
Its initial achievements have encouraged the company continue to invest more to renovate manufacturing equipment. The company plans to concentrate more on developing designs of product lines with fashionable models serving export and domestic market. It always tasks itself with ensuring products of high quality and fashionable design at the most competitive price. The designs are continuously updated to reflect domestic and international fashion. The company is trying to complete the distribution channel by promoting general agents in provinces all over the country, targeting domestic turnover of VND10 – 15 billion in 2011.