Vietnamese garment enterprises have yet to tap a huge potential for direct product sales to the European market through e-commerce giant amazon.com, a German e-commerce and marketing expert said.
"Currently, 76 per cent of people use mobile phones to shop online. 50 per cent of them buy products through e-commerce site Amazon,” Andre’ Åslund, CEO of Germany-based Performance Marketing Agency Vorwärts GmbH, said during a seminar on promoting trade with EU market via Amazone held by the Viet Nam Textile and Apparel Association in Ha Noi yesterday.
According to Åslund, the quality of Vietnamese textile and garment products completely meets the requirements of EU customers.
Traditionally, many Vietnamese businesses and Asian businesses often sell products through intermediaries or agents to the EU market. This middle stage can be abolished if they sell their products through Amazon, cutting costs and improving the competitiveness of Vietnamese textile and garment products in the EU market.
Consumer behavior is transforming rapidly. Previously, they purchased goods based on the prestige of the brand, but lately, instead of relying only on brand credibility, they often assess products through a variety of tools such as online reviews, descriptions or user product ratings, Åslund said.
With those changes, businesses should focus on enhancing quality products with beautiful, eye-catching designs that generate good evaluations from customers. EU consumers are, for sure, willing to buy a product that is durable, well-designed and affordable, he added.
However, Andre Åslund also noted some of the challenges that Vietnamese businesses should be aware of when selling products through Amazon.
If firms want to bring their products into the EU market, they must first comply with regulations within the EU market framework, including tax policies. They should satisfy customers’ needs with products specially tailored to the EU’s palate. If customers are pleased, they will introduce the products to other people, which creates a spillover effect, Åslund said.
Le Thi Nhat Linh, Export Sales Manager of Ban Mai Co, Ltd based in the northern province of Hung Yen said, through the seminar, enterprises now know the online shopping trend of customers, their habits and behaviors. They can now make timely and appropriate adjustments in their sales strategies to Amazon.