Amidst the global economic recession, the FMCG market also faces significant impacts. Nevertheless, as a leading Market Expansion Services provider, DKSH continues to achieve sustainable growth alongside its partners in Vietnam.
Challenging Market Still Observes Growth of Many Brands
The FMCG market is always known as the "battlefield" of immense potential, demanding that firms are steadfast in asserting their positions, or even survive amidst the constant market fluctuations. This challenge is even more pronounced for global brands expanding or penetrating markets like Vietnam. Together with DKSH, the world's leading Market Expansion Services provider, many brands have dealt with these challenges and therefore achieved remarkable success and sustainable growth.
With nearly 160 years of global presence and over 30 years in the Vietnamese market, DKSH guarantees brands market penetration and ascendancy to leading positions. For instance, the national brand JUMBO VAPE by Fumakilla has conquered the market to become the top insecticide throughout 19 years of collaboration with DKSH, with revenues exceeding trillions of Vietnamese dong. Similarly, Babi Mild, the leading brand in Thailand for baby shower and laundry detergent by Osotspa, has also gradually expanded its business in Vietnam together with DKSH with remarkable growth, achieving over 100% revenue growth in the first quarter of 2024 compared to the same period in 2023. In the past years, strategic partnerships with DKSH Vietnam have also driven positive business results for other brands such as Nestlé Kitkat, Unilever International, Ovaltine, Banana Boat, Mars Petcare, and several others.
Besides these clients, DKSH continually attracts additional major partners, including globally renowned brands across various industries such as Lipton, Garuda Foods, Glico Icreo, and Noumi. aRight from their entry into the market DKSH creates positive values. DKSH has consistently affirmed its expertise through clear development strategies guided by consultation from team of experts, thereby driving growth for brands in the FMCG market. Kim Le Huy, Vice President, Business Unit Consumer Goods, DKSH Vietnam commented: "The unique nature of the consumer goods industry and the potential of Vietnam’s market can elevate business development. In particular, leveraging the strengths of a market expansion partner like DKSH presents an optimal solution for efficient market penetration and brand development".
It can be observed that, despite the challenges in market such as economic fluctuations and the aftermath of the Covid pandemic, many brands distributed by DKSH Vietnam have experienced positive and consistent growth throughout.
DKSH Vietnam Achieves Sustainably Double-Digit Growth
In January 2024, The Ministry of Planning and Investment announced an increase of 40.2% in total foreign investment registered in Vietnam. Furthermore, with a population of over 100 million people, of which 20% belongs to the middle class, Vietnam offers enormous potential for consumer goods and retail services. Hence, it is understandable that the market is capable of Foreign Direct Investment (FDI) attraction, especially in the FMCG industry.
On the one hand, Vietnam possesses favorable conditions such as time and location for FDI. On the other hand, the “partner” factor is also crucial. This is because a “knowledgeable and ready partner” will assist FDI investors in gradual market penetration and sustainable growth. In such circumstances, DKSHrepresents a suitable choice.
Recognized as a "trusted partner" for thousands of global brands across various fields, DKSH's footprint in the fast-moving consumer goods market is profound. Thanks to frequent growth in line with overall business performance, DKSH Vietnam Business Unit Consumer Goods has maintained its momentum over the years. Specifically, during the post-pandemic period from 2020 till 2023 DKSH Vietnam Business Unit Consumer Goods had mantained strong financial performance.
About the success, Mr. Huy shared: "We always prioritize the brands of our clients and position ourselves as the partner in their market development journey. Our services embody the essence of human, a core element contributing to the stable growth of the company in the past years. Furthermore, by leveraging the 'glocalization' strategy, DKSH Vietnam Business Unit Consumer Goods will continue to ensure the creation of superior and sustainable value for partners in the Vietnamese market.”
The "glocalization" strategy serves as DKSH's guiding principle, successfully integrating "globalization" and "localization". Drawing upon nearly 160 years of experience across 36 markets, DKSH offers a portfolio of internationally standardized services. This advantage facilitates the exchange of expertise among markets in which the corporation serves, ensuring the delivery of the best and most suitable services to each partner business.
Through its high-quality local workforce, DKSH has strengthened its invaluable resource: in-depth local market understanding and insights. The significant regional differences within the consumer goods industry in Vietnam underscores the urge for DKSH to implement in-depth localization. Bringing together seasoned experts from multinational FMCG corporations in the local level is one of the major reasons for the company's success in market domination.
With this strategy, DKSH increasingly asserts its profound role among existing and potential clients. "The 'Glocalization' strategy is the key factor that helps us provide suitable development direction for each partner, in different markets. As a result, the growth of our clients is also our success," shared Mr. Huy.
The global experience, extensive network, along with market insight and high-quality workforce have helped DKSH to achieve the invaluable competitiveness of a partner, opening doors for FDI enterprises to penetrate a market with full of opportunities and challenges like Vietnam. DKSH's contribution to the sustainable growth of various brands has also contributed to the positive outlook for the FMCG market in the near future.
