Domestic products which are often blocked from the narrow buying corridors of local supermarkets have begun looking back at the traditional markets and local shops.

A large number of domestic businesses are lining up to have their products sell at supermarkets, which have been enjoying annual growth of up to 40 percent.

But many businesses are finding it tough to find space on the supermarket shelves.

“I tried getting my products into a supermarket chain six times but had no success, not even once,” Nguyen, a local cosmetic producer, told Sai Gon Tiep Thi (Sai Gon Marketing) newspaper.

“I’m completely confident that my products can compete with other goods of the same type on sale at the supermarket chain, in terms of price, quality and design,” she said.

“It’s really difficult to enter the door to supermarkets,” a cookie and candy producer whose goods have just been granted access to a supermarket, said.

“Besides the limited number of items allowed to enter the venue, my biggest concern is that I won’t be able to sell many of my products as the supermarket operator has raised the selling prices of my products, making them more expensive than those of the rival companies by VND1, 000 per package,” he said.

The producer added that outside the supermarket, his products are often sold for lower prices compared to other brands.

Supermarket items are often sold for prices 25 to 30 percent higher than the rates offered by suppliers, which means the venues are only suitable for suppliers which sell goods in large quantity or products offering high profit margins.

The modern venues have proved they are not the profit playground for all types of producers.

Nguyen Thi Hai, director of the Hanoi Supermarket, said consumer goods, such as sugar, diary products, cosmetics and beverages, are the most sought-after items at the venues.

But she said well-known, expensive clothing brands and food products of lesser-known brands would have fewer buyers.

The director suggested the businesses should take into consideration which groups of customers they are aiming for.

Most frequent visitors to supermarkets are white-collar workers and students who want to avoid bargaining and shoddy goods, she said.

Children clothes maker Da Gia, owner of the Youth Fashion brand, gained a foothold in the domestic market when the company turned their attention to local clothing shops and traditional wet markets.

“The procedures to allow our products into supermarkets were too troublesome,” Dao Van Dung, owner of the company, said. “We had to introduce our goods to the supermarket operators many times and had to wait for their permission.”

The sellers at local markets also provided Da Gia with quick feedback on the products prices, quality and design, he added.

Businesses whose products sold at supermarkets can face possible financial losses caused by customers spoiling products and surplus goods while they can negotiate with local shop owners and booth owners to share part of the loss, according to Ho Chi Minh City-based footwear producer Asia Shoes Pte.

Modern venues, such as supermarkets, conveniences stores and trade centers, only account for 25 percent of the market share compared to 75 percent owned by traditional markets, grocery stores and local shops, according to Le Van Loc, deputy director of food producer Dong Tam Nutrition Food Joint Stock Company.

Vietnam currently has more than 1,000 convenience stores, 250 supermarkets and trade centers compared to more than 9,000 traditional markets and about 250,000 retail venues of other types.

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