SOVINA

Africa, America, and Middle East can be seen goodl “niche markets” for Vietnamese export companies to do business in some economic crisis periods. However, many businesspersons have changed this opinion.

According to a tourism business man who knows very well Pareto or 80-20 Principle invented by a Italian economist, in which the economist  has discovered that 20% of the Italian population own 80% of the asset and vice versa. and applied in business, 80%of revenue will come from 20% of customers, “while other tourism companies compete each other by reducing services price to meet demand of popular customers, my company specializes in good high quality services and the most suitable price to meet demand of rich customers.,” explains for his success.

Some days ago, a similar experience was shared by SOVINA Chairman and Managing Director Vu Tuan Giang. “Even big markets,in crisis periods, also need many vital items. For example, consumer goods are exported significantly to Japanese super markets by us”, said Mr Giang.

With years experience in exporting vital items from handicraft to consumer goods to Japanese supermarkets, "Japan is only like other countries, providing exactly what they want is ok.” concluded Mr. Giang.

His experience of doing business seems to be simple and popular with each export company, in which providing what customers need, but not what sellers have. However, it is easier to say than to do.

It is the experience from the failures of business strategy, which lead to inventory, reducing product quality , outstanding debts. “In the past, I used to advertise and purchase products my company had” said Mr Giang. Now, he has changed the business strategy by purchasing whatever customers need.

To export, one of the key elements is that export companies have to find out  what products are suitable for the market. “Now, although we sit in the office, thanks to the Internet we can identify demand of customers” shared Mr Giang.

Sovina became the export representative for many high quality brands in Vietnam. “Providing items customers needs is the way to meet foreign customer’s demand.” said Mr Giang.

Mr Giang‘s opinion about “niche market” is similar with other Vietnamese business man‘s. According to him, it is not necessary to export hi-tech products, but simple ones because every country also needs food and food staff.

“For example, foreign customers are not interested in Chinese confectionery, but Vietnamese one. Therefore, why don’t we invest in this product?” said Mr Giang.

Success of SOVINA in exporting Vietnamese confectionery to Korean market is a typical success  example for other company when approaching  to “niche market”.

A difference between Korea and Vietnam is that E102-contained confectionery is not allowed to import to Korea . However SOVINA can do because only E102-free confectionery with right packing requirement is exported by SOVINA.

“We provide what customers need and when we can change products to meet customer‘s demand and universal standards, we can do export business.” said Mr Giang.

With only 20 employees, revenue of VND  100 billion in the first 9 months of the year is the success of SOVINA. According to Mr Giang, in any situation, appropriate products can be exported, because any country in the world also need daily consumer goods.

“Next week, a Thailand customer will visit our company and place order of one-time bamboo chopsticks products. They want to import to Bangkok market due to the historical flood. ” shared Mr Giang. Thailand was immersed in water so they cannot wash dishes. Therefore exporting one-time bamboo chopsticks is a good business for Mr Giang.