Bringing OCOP Products to E-commerce Platforms

Bringing key, unique agricultural products onto e-commerce platforms will not only open a new door to expand sales for businesses, producers and cooperatives, but also create opportunities for consumers to approach products of high quality and clear origin. However, to be successful, businesses need thorough preparation and investment.

Matching supply and demand

Currently, e-commerce has become a popular trading mode in the world and is growing in Vietnam. Therefore, sending commodities and agricultural products to e-commerce platforms is a good opportunity for local businesses to promote and expand the market. This new approach helps businesses and small manufacturers reduce selling costs, improve product competitiveness and reach consumers effectively, and enables consumers to buy goods more conveniently and easily. They can purchase products from distant provinces without having to spend time going there.

Mr. Nguyen Minh Tien, Director General of the Central Coordinating Office for New Countryside, said, in Vietnam, agricultural restructuring has given a clear facelift to rural infrastructure. However, in the face of the general social development trend, it is essential to enrich information on local specialties for domestic and international tourism promotion programs to further enhance production connectivity and launch nationwide marketing.

Mr. Nguyen Thanh Tung, representative of the International Fund for Agricultural Development (IFAD) in Hanoi, said, the Project “Enhancing market access for rural people through a market information network based on information technology platform in new countryside construction” is conducting a survey and assessing the need for using technology platforms to trade OCOP products on the electronic medium which is engaged by small producers, cooperatives and businesses joining the OCOP Program in some localities. At the beginning of 2020, the program piloted the establishment of an e-commerce support channel for OCOP products under the Central Coordinating Office for New Countryside and Coordinating Offices of Ha Tinh, Bac Kan and Ben Tre provinces.

How to be successful?

Defining that e-commerce is a new approach to help agricultural products, including OCOP products, competition in the market and consumer connectivity, many businesses, producers and cooperatives in Ha Tinh province have actively sought exchanges to register and find outlets, enabling themselves to gain access to major distribution channels. Product categories recommended on the website include foodstuffs, fruits (oranges and grapefruits), local specialties (eel, salted eggplants, rice paper, bamboo shoot, salt and rice) and handicrafts. Businesses have given positive feedback on this.

Ms. Le Thi Khuong, Director of Phu Khuong Seafood Purchasing and Processing Cooperative (based in Ky Xuan commune, Ky Anh district), said, “The cooperative’s products like fish sauce, dried mussel, mussel with peanut and salted fish are stably sold via shops in Ha Tinh City, Ky Anh Town and Huong Son District. At the same time, the cooperative has also invested to open more distribution facilities in Ky Anh Town and Ky Anh District”. Bringing agricultural products onto e-commerce platforms enables producers and traders to promote and expand markets and adds more convenience for buyers. Not only sending to local e-commerce exchanges, many units have also actively approached other platforms such as Voso.vn, gcaeco.vn and postmart.vn. Ms. Luong Thi Trang (Tan Giang Ward, Ha Tinh City) said, “In the last two years, I have a strong interest in organic food shops selling the province’s products and I often visit them. Now, many products such as rice, fish sauce, peanut oil, dried fish and frozen seafood can be easily found there.”

Ms. Ton Thi Thu Trang, who is responsible for the e-commerce development division at the Ha Tinh Department of Industry and Trade, said, the department completed an online map of local goods distribution systems. This tool supports state management agencies to access information about points of sales and serves as a basis for adjusting planning and operation of province-wide distribution networks in accordance with market needs and development orientations. At the same time, businesses can find distribution networks of local goods to make the right investment when they choose business lines and locations for store construction.

Mr. Vo Ta Nghia, Deputy Director of the Ha Tinh Department of Industry and Trade, said, “The department will offer free store registration and product promotion to give priority and create motivation for traders, producers and cooperatives in Ha Tinh province to participate in the e-commerce platform of Ha Tinh. The department inspires businesses to approach, study and participate to bring products to customers in other provinces, support brand identity development for five key enterprises engaged to tap local strengths and give priority to local businesses participating in OCOP Program. At the same time, the department will build a trading floor for local agricultural products to connect localities in the North Central region and the whole country

In addition to supporting concerned agencies, cooperatives and businesses need specific strategies to value and utilize e-commerce benefits in marketing and advertising. Furthermore, the department pays attention to investing in models and modern equipment to improve production to keep their product brand and reliability.

Source: Vietnam Business Forum