Due to the sudden occurrence of the COVID-19 epidemic, it has had a strong impact on the segments of Vietnam’s wood processing and export industry. In order to maintain and stabilize production and business, wood industry experts recommend that the whole industry needs a more proactive strategy to help the wood industry overcome current obstacles and meet the export targets set for the whole year 2020. is 12 billion USD.
Exploiting the strengths of the yard
Experts in the wood processing industry, Vietnam commented, currently Vietnam may not be able to curb the COVID -19 disease, but other countries in the Americas and Europe are still making efforts to prevent the disease. this. Therefore, the wood industry has turned to exploit the domestic market.
According to Mr. Huynh Van Hanh, Vice Chairman of Ho Chi Minh City Association of Fine Arts and Wood Processing. In Ho Chi Minh City, consumption for wooden products of Vietnamese people is equivalent to 5-7 European countries combined. The scale of the domestic furniture consumption market is estimated to be worth about US $ 5 billion, nearly 50% of the total export turnover, but in fact, in recent years, Vietnam’s wood processing and furniture manufacturing enterprises have been new. focus on export but leave a large number of customers at home.
With the development of the real estate market today, especially the need to decorate small apartments, the demand for wooden furniture consumption increases. This is most noticeable because most young families in big cities choose to live in apartments. Each family can spend up to VND 300 – 400 million on interior finishing, in addition to single furniture products with different price segments ranging from several million to hundreds of millions VND / item, all have sales. good goods. With the strong development of real estate projects in recent years, the growth rate of interior products is reaching from 20-30% / year.
Sharing the same view, Mr. Nguyen Chien Thang, Chairman of the Member Council of Scansia Pacific said that the development of the economy and income have been improved, so Vietnamese people are starting to pay more attention to investing in the home and Willing to pay more for furniture to have the best living space.
It is estimated that Vietnam annually builds about 1 million m2 of hotels and restaurants with 3-5 star standards, resulting in the need to use large quantities of wooden products, mid-range furniture and heights. The segment of high-class furniture for hotels is also a large market share for domestic wood processing enterprises to exploit.
On the other hand, during this period, European wooden and fine art products are also slowing down, and their designs are not diversified to serve consumers’ tastes, due to European wood manufacturers and processors. disease response. Therefore, consumers in the domestic market will tend to explore domestic products. Thus, with only two segments using wood and furniture, the Vietnamese wood processing industry can be more proactive in the difficult period, Mr. Thang further analyzed.
Use digitization to develop
In addition to the strategy of exploiting the domestic market, consumer demand at home, wood processing and exporting enterprises have also diverted sales and marketing of wood products to make customers more convenient in shopping. , consumption. That is to exploit the strengths of digitization and e-commerce.
Mr. Tran Quy Hien, representative of Ecomstone Vietnam Joint Stock Company, said that the world has many e-commerce websites with outstanding sales compared to traditional sales, bringing huge sales like Alibaba. , Amazon, … Typically Amazon.com page of America.
According to statistics, Amazon’s revenue is still leading the furniture industry in the US market. Many furniture businesses sell on Amazon with sales of up to $ 6 million / month, and the lowest is several hundred thousand dollars / month. Especially sold on e-commerce sites, businesses can sell directly with their own brand. In addition, the growth rate of furniture in the US is about 8.4% per year, so this will be an opportunity for Vietnamese businesses to promote sales on e-commerce channels.
New technologies can help customers observe the indoor furniture layout. Therefore, multi-channel marketing from offline to online is a solution that many countries choose. Typically, in Singapore, businesses have applied “Virtual Reality” technology to help customers best experience wooden products in their residential spaces. From there, customers are free to choose the right products and models for their homes, said Shanw Xu – Vice President of Silver Sea Media Group (Singapore).
Representative of HCMC Handicraft and Wood Processing Association Ho Chi Minh acknowledged that digitalization in production and business is no longer new in current business development strategies. Although consumers always want to feel the actual product, but now, with the general trend of consumers, the wood manufacturing and processing industry is also choosing this new form.
Facing the common trend, Ho Chi Minh City Handicraft and Wood Processing Association. Ho Chi Minh also sought and coordinated with many electronic sales channels such as FPT, Silversea Media Group (Singapore), Vietnam E-Commerce Association (VECOM) to introduce the traditional offline sales model. Online sales, online. Accordingly, these electronic systems will coordinate with existing and traditional sales systems to create a new development motivation for businesses.
This is an effort of Ho Chi Minh City Handicraft and Wood Processing Association. Ho Chi Minh City, in order to give businesses in the industry a new solution for trade growth, at the same time, looking for the direction to develop a business model in the future, increase the value of wood products and ensure the goal of 20 billion USD of Government set for 2025.