Hanoi (VNS/VNA) - Supermarkets have started ordering businesses todevelop products under their own brand, and companies and consumers are reapingthe rewards.

NguyenMai Ngoc, Director of the Hanoi-based An Thanh Production and Trading Co, Ltd,one of the enterprises making products for supermarkets, said the biggestbenefit was optimising the capacity of machines, equipment and factories,without worrying about demand. This has encouraged the enterprises to scale upproduction, Ngoc said.

DeputyDirector of the Ministry of Industry and Trade’s Domestic Market Department Le VietNga said the supermarkets provide their own brand products,making customers enjoy cheap goods and manufacturing companies have moreorders.

Chairwomanof the Vietnam Retail Association Dinh Thi My Loan said mostsupermarket-branded products are low or medium-grade products sothey mainly compete with small companies’ ones.

Thecompetition has encouraged small-sized companies to innovate in their designsand diversify products as well as to improve product quality forattracting consumers, Loan said.

DeputyGeneral Director of the Hanoi Trade Corporation (Hapro) Nguyen Tien Vuong wasquoted by the Kinh te do thi (Economicand Urban Affairs) newspaper as saying that thedevelopment of supermarket-branded products is direct co-operation betweenmanufacturers with retailers to cut out the middle man and give more optionsto consumers.

Haprosupermarkets sell own brand ham, sausage and wine made by Hapromember enterprises, he said. This helps enterprises develop their productioncapacity, protects them from competition and increases profits as they don'thave to give discounts to suppliers.

Theseproducts have attracted the attention of consumers because the selling price islower while the quality is similar with the same products.

Directorof Ha Dong Co.opmart Nguyen Thi Kim Dung said the supermarket-brandedproducts are cheap because supermarkets have distribution channels and don'tspend much on advertisement.

The cheapprices allow consumers more options, while the retailers know the tastes,trends and spending levels of customers so they know the products that need tobe invested in.

In Hanoi,most major supermarkets such as Vinmart, Co.opmart, Hapro and Big C sell manysupermarket-branded products.

Co.opmartstarted offering products with its brand in 2007 and so far, it has introducednearly 500 goods to its supermarket system, focusing on essential consumergoods from food to household appliances.

FromDecember 2018, Saigon Co.op introduced its supermarket-branded products toserve customers, from popular to high-end.

In 2015,Vingroup invested in the agricultural sector with VinEco producingagricultural products according to VietGAP and Global GAP standards.

So far,VinEco has produced thousands of tonnes of clean agricultural products tosell at VinMart supermarkets and VinMart stores.

Big Csells some supermarket-branded products such as confectionery, writing paperand washing powder.

Meanwhile,since 2016, Lotte Mart supermarket system has started to providesupermarket-branded products as Choice L with more than 1,000 items rangingfrom household items, fashion and electronics to essential goods.-VNS/VNA