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Local businesses find it hard to get their products on shelves at supermarkets

By DA NANG Today / DA NANG Today
July 02, 2019, 17:03 [GMT+7]

Da Nang is considered as the most vibrant and largest market in the central region and highlands. The city is now home to about 10 supermarkets and trade centres, plus hundreds of convenience stores, but few locally-made products are available there.

There are few locally-made products in supermarkets
There are few locally-made products in supermarkets

For instance, thousands of products from more than 700 distributors nationwide are being displayed at the Co.opmart supermarket, and Vietnamese products account for more than 95% of the total. However, locally-made products are still modest with 2 items of Di Can (salted fish) products and Ba Ngoc ‘cha bo’ (grilled meat roll).

According to Mr Phan Thong, Director of the Co.opmart supermarket, over the past time, his supermarket has focused on expanding its consumer markets and seeking its partners, especially production establishments in Da Nang.

He, added, after conducting actual surveys, most of production establishments citywide do not meet his supermarket’s requirements about food safety and hygiene certification, prices, and goods delivery time.

“Besides, many of production establishments in the city are small in size so they have yet to supply products in a stable manner, Mr Thong noted.

Similarly, although the Big C Mall is selling more than 40,000 items in total, shoppers find it very difficult to find locally-made products there.

Ms Vu Huong Giang, a representative from the Mall’s media agency, said in recent years, her supermarket has been actively involved in attracting even more locally-made products but no local production establishment has satisfied her supermarket’s requirements about supplying products in large volume for long time.

On the contrary, many businesses and production facilities are not interested in this distribution channel like supermarkets because they have to cover costs of advertising activities, promotion programmes, and shelf rental fees.

In attempting to display their goods in supermarkets, production establishments have to meet supermarkets' strict criteria.
In attempting to display their goods in supermarkets, production establishments have to meet supermarkets' strict criteria.

Mr Tran Van Hoang, the Director of the La Huong vegetable growing area in Cam Le District, said that his area is currently providing a daily average of around one ton of different types of vegetables to local residents through organic vegetable and fruit shops.

He added his unit has sought cooperation opportunities with some supermarkets in the city but this distribution channel has not been established. He explained the main reason that supermarkets required his unit to sign a commitment to continuously supply products within 12 months of the year. However, his production area covers only 5ha so it cannot produce in 3 months in the rainy season. Therefore, it cannot ensure the sufficient supplies of vegetable and fruits to supermarkets.

The Director of the municipal Industrial and Trade Promotion Centre, Mr Le Thanh Ha, said his agency has recently given a helping hand to local production establishments to enhance their production capacity, change their designs and packages, and register trademarks for their products.

Also, through the selection of typical rural industrial products every year, many locally-made products have been advertised across the city, plus other localities nationwide.

Such activities have contributed to encouraging local businesses to enhance the quality and design of their products in order to bring their goods to new markets, including supermarkets.

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