Vietnamese distributors are an essential part of the supply chain in Vietnam. They serve as intermediaries between manufacturers and retailers, connecting products with consumers across various industries. As Vietnam continues to experience rapid economic growth, the role of distributors is becoming increasingly important, particularly to non-native companies who do business in Vietnam. Therefore, when seeking Vietnamese distributors, they must understand the 5 key things that every domestic distributor wants from foreign suppliers, which are listed down below:
1. Reliable and consistent supply chain
Reliable and consistent supply chains help Vietnamese distributors to ensure that they can meet the demand for products and services. This includes working with suppliers who can provide high-quality goods and services at competitive prices, as well as ensuring that there are no disruptions in the supply chain.
2. Access to new technologies
Vietnamese distributors are increasingly looking to adopt new technologies to enhance their operations and remain competitive. This includes digital tools and platforms for inventory management, logistics, and communication. If your businesses can offer new technologies to assist Vietnamese distributors, chances are that they will join forces with you in the long run.
3. Strong partnerships with manufacturers and suppliers
Having strong partnerships with manufacturers and suppliers who are willing to provide support and assistance in areas such as marketing, training, and product development will definitely be a valuable asset to any distributors.
It is true that distributors in Vietnam always seek quality products and services. By partnering with reputable manufacturers and suppliers, not only can distributors have access to quality products but also expand their product offerings and increase their market share, by offering a wider range of products to their customers. Besides, working closely with their partners to identify emerging trends and opportunities in the market can help distributors stay ahead of the curve in terms of product innovation and development.
4. Deep understanding of market trends and consumer preferences
Distributors in Vietnam value global suppliers who have a good understanding of the local market and can take part in providing insights into consumer preferences, market trends, and regulatory requirements. Not only can this knowledge help non-native businesses make informed decisions but also build solid trust within local distributors, encouraging them to collaborate in the long run. So what do foreign businesses need to do in order to grasp a deeper understanding of market trends in Vietnam?
Conduct market research
Foreign distributors can conduct market research to understand consumer preferences, buying habits, and trends in their target market. They can collect data through surveys, focus groups, interviews, and other methods.
Once businesses have collected data, they can analyze it to identify patterns and trends. They can use software tools like data analytics and business intelligence to make sense of the data.
Monitor social media
Social media can be a valuable source of information about consumer preferences and trends. Therefore, even businesses from different countries can monitor social media platforms to track customer feedback, complaints, and preferences in Vietnam
Attend industry events
Foreign companies can attend industry events like trade shows and conferences to network with peers, learn about new products and services, and stay up-to-date on industry trends.
Follow industry publications
Industry publications like magazines, newsletters, and blogs can provide foreign companies with valuable insights into market trends, consumer preferences, and industry news.
5. Transparent communication
Communication is essential when foreign suppliers work with Vietnamese distributors. Effective communication helps to ensure that both parties understand each other’s needs, expectations, and requirements. It can also help to prevent misunderstandings, delays, and other issues that can impact the business relationship. Below are some of the most remarkable things that foreign companies can do to gain a plus point:
Remove the language and cultural barriers
Language may prevent Vietnamese distributors from working together with foreign brands. As a result, when doing business in Vietnam, overseas suppliers should ensure that they have staff who can speak Vietnamese, or provide translation services if necessary. Besides, suppliers should be sensitive to Vietnamese culture and customs, which can impact the way business is conducted. For example, Vietnamese people often value personal relationships and face-to-face meetings more than online meetings.
Create clarity and regular communication
Regular communication is important to keep Vietnamese distributors informed about product availability, delivery schedules, and any other issues that may impact their business. Furthermore, foreign companies should be clear in their communications, avoiding technical jargon or complicated language that may be difficult for local distributors to understand.
Active listening and responsiveness
Non-native suppliers when entering Vietnam’s market should be responsive to local distributors’ needs, answering their questions and concerns in a timely manner. This helps to build trust and confidence in the relationship, which will eventually build establish trust and mutual respect and help to ensure the success of both parties.
Overall, Vietnamese distributors are seeking to expand their business and enhance their competitiveness by developing strong partnerships with manufacturers and suppliers, adopting new technologies, and staying up-to-date with market trends and consumer preferences. While there are some challenges, such as intense competition and the need to meet sustainability requirements, Vietnamese distributors have many opportunities to grow and succeed in both the domestic and international markets. Learn more about distribution channels in Vietnam with us!
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