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‘Vinamilk is capable of meeting all market needs’25/04/2022
According to Mr. Nguyen Quang Tri – Marketing Executive Director of Vinamilk, the company holds the leading position in the market thanks to its flexible strategy in investment and product development.
- What was the mark of Vinamilk’s business activities last year, sir?
- By the end of 2021, in the context of consumer demand and supply chain in Vietnam as well as globally affected by Covid-19, Vinamilk still achieved a record consolidated revenue of VND 61,012 billion. However, we do not only evaluate achievements by revenue and profit figures. During the 45 years since its establishment, what Vinamilk really appreciates is the trust and affection of Vietnamese and international users.
In 2021, Vinamilk leads the ranking of “Most chosen brands” of the Dairy and Dairy Products industry (according to the Brand Footprint – Kantar WordPanel report). This is also the 10th year in a row that we are honored at this position. 10 years with a business is not too long, but maintaining the number one position in the hearts of consumers for a decade is not an easy task.
It can be said that 9 out of 10 Vietnamese families use at least one Vinamilk product. Many product lines are familiar to many generations of Vietnamese people such as Ong Tho condensed milk, yogurt, Vinamilk fresh milk. Those are our successes, our greatest pride.
Why do businesses have products that are decades old, but also have brands that are constantly changing?
- The change of products depends much on the needs of consumers. For example, the taste of Ong Tho condensed milk is quite typical and popular, so we stick to the original recipe. Familiar but still innovative, today’s products have more modern packaging, launch more new lines to meet the needs of mixing, baking…
For products such as yogurt, ice cream, juice, etc., especially, the customer base is younger, so the changing needs are always present. To be successful, manufacturers must catch the flow of demand, refresh the product. This is the reason why we spend a lot of budget on R&D activities to develop more advanced formulas and technologies, detect new needs of consumers to proactively launch new products.
There is a story I also want to share more. More than 10 years ago, Vietnamese people mostly preferred to use foreign and imported formula milk products. At this time, our problem is: to make products of international standards, suitable for Vietnamese children’s condition, at reasonable prices. Currently, Vinamilk has almost full product lines and applies many of the world’s most advanced scientific formulas and achievements. These efforts of ours are well received by users when over the years, Vinamilk baby milk powder has always led the Vietnamese market in terms of output.
- What is Vinamilk’s general orientation in product development?
- The characteristics of the FMCG industry are constantly changing. Our approach is the same: product development, continuous improvement to meet consumer needs; while the brand identity is maintained thanks to the core values revolving around quality and prestige.
Taking the lead and creating a trend is also the criterion that we are loyal to. Vinamilk does not ignore any needs of consumers. Why choose only one when we can do it all well? Vinamilk has the capacity to meet the most advanced nutritional segments, needs and trends to bring Vietnamese health care products.
From the popular group to the high-end customer, what can businesses do to harmonize these different needs?
- With the K-economic model during and after the pandemic, consumer needs are increasingly differentiated. Besides a significant part with unstable income and declining purchasing power, there is also a large group of consumers with high income who demand products and services with higher value, leading to The trend of luxury taking place is getting stronger and stronger.
The rich product portfolio with 250 categories is Vinamilk’s strength. We are still continuing to research and develop to bring consumers comprehensive nutritional solutions, improve both physical and mental health, and apply world scientific achievements.
I also emphasize the message stated above, Vinamilk expanding the high-end segment does not mean launching expensive or profit-oriented products. Instead, we want to put a lot of “additional value” into each product.
Vinamilk’s high-end products that have been on the market recently have been positively received by consumers. This product group includes Green Farm fresh milk, Organic fresh milk and milk powder, fresh milk containing bird’s nest, Love Yogurt, Yoko Gold baby milk powder and nutritional drinks for children, nutritional products medical care for the elderly and people who need to restore health Kenko Haru…
Occupying a large market share in Vietnam is considered an advantage or obstacle by Vinamilk?
- We are well aware of the fact that businesses in the same industry compete more and more fiercely. If you stand still and do not move, the risk of falling behind and losing market share is inevitable. Innovation and creativity are our unremitting efforts to help us grow dramatically, not only maintaining our leading position in the dairy industry, but also contributing to the development of Vietnam’s dairy industry in a modern direction, bringing value to our customers. higher and higher for consumers. The continuous introduction of a series of new products is the result of those efforts.
- On what platforms does this innovation take place?
Vinamilk currently owns extremely large production and supply capacity. Since many years ago, Vinamilk has followed the orientation of international standards, for farms, factories and at all stages related to product quality. For example, in 2007, we had the first Global G.A.P standard farm, or in 2017 Vinamilk opened Vietnam’s first European Organic farm.
The Group has also built a system of 13 dairy farms and 13 factories across the country to meet the strictest standards in the world… In parallel, we invest in R&D activities, cooperate with other companies. Scientists, the world’s leading nutrition research institute aim to offer high-quality nutritional products that meet the needs of comprehensive development and are suitable for the taste and condition of the Vietnamese people.
Another advantage of us is the understanding of Vietnamese consumers with more than 45 years of attachment, which is an “invaluable asset” of Vinamilk.
- What is your forecast about the demand of the dairy market in the coming time?
- The growth rate of the dairy market in recent years has slowed down due to a number of objective factors, but it will develop sustainably again. Vietnam’s dairy market still has a lot of room for growth as per capita consumption is still far from neighboring countries (23.2 kg per person annually compared to 31.7 kg in Thailand and 43 ,7 kg in Korea).
Approximately one million babies are born each year. In addition, the increasing awareness of health care and protection, especially among middle-aged and older people – who are more stable economically is also a big growth driver for the dairy industry.
One of the hottest trends right now is convenience. In addition to the development of convenient shopping channels such as supermarkets and online sales pages, product formats must also be more convenient for users. For example, the explosive growth of ready-to-drink infant formula increasingly encroaching on infant formula is a prime example of the convenience trend in the dairy industry.
Another perspective on the young generation (Gen Z), who is deciding future consumption trends with the characteristics of being well-educated, promoting a green lifestyle, actively interacting socially on public platforms. High-tech… Serving this audience requires dairy businesses to be more dynamic, sophisticated and sincere when bringing to the market nutritional solutions that are really good for health, derived from nature, friendly environmentally friendly and with highly interactive communication activities.