With the positive feedbacks from MBA students of HEC (November 23, 2009), Chia-Yi is invited to animate two classes in March 2010 at HEC: ” Analyse sectorielle et occasions d’affaires” by Jean-François Lalonde; and “Stratégies d’affaires et marchés émergents” by Jean-Paul Thiéblot.Read More
The President and founder of Orchimedia, Chia-Yi Tung, will host a session on the importance of branding in Asia for the “Business Strategies and Emerging Markets” class, which is offered to MBA students at HEC.Read More
Throughout Vietnam, recent economic growth has benefited a certain portion of the population who has actually seen their purchasing power increase. Indeed consumers are becoming more open to novelties and diversity, especially those under the age of 30 who represent more than 50% of the population. Foreign brands, perceived to be of better quality, are warmly welcomed by wealthier people. In order to benefit from these opportunities, it is important to take into consideration certain idiosyncrasies of the Vietnamese market.
Also, recent economic growth has contributed to the emergence of a bigger class of wealthy people. This wealth is concentrated in urban areas: the GDP there is six to eight times higher than in rural areas. More than a third of the urban population (Hanoi / Ho Chi Minh) are now a part of the upper-middle class.
Furthermore, it is necessary to geographically divide the market into parts according to the product or service that is to be offered. It is in Ho Chi Minh that consumers are most fond of foreign brands. In fact, more than half of foreign consumer goods are bought there. On the other hand, foreign companies specialized in infrastructure development (energy, environment, aviation, telecoms, etc.) should be looking more towards Hanoi, as it is where the majority of state company’s headquarters are located, which are responsible for a significant proportion of total imports.
Attitudes towards brands differ from man to woman. Women shall choose products based on efficiency (perceived), whereas men choose certain brands in order to project an image of success and social achievement.
In all cases, it is important to remember that although brands influence the decision-making process of the Vietnamese consumer, he remains very sensitive to the price. It is still the number one criteria when it comes to making a purchase decision.
Source:U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2008.Read More
In 1986, the Vietnamese communist party undertook a reform process (renovation policy “Doi Moi”) aimed at progressive market liberalisation to favour an increase in productivity and the growth of exports. Since then, Vietnam has developed itself in a phenomenal fashion and has achieved enormous progress in the eradication of poverty. The country has switched from survival agriculture to export agriculture. 52% of the active population works in this sector. Its economy has also become more diversified. The part of GDP generated by the agricultural sector has reduced from 42% in 1989 to less than 20% in 2008. Although the private sector is expanding, state companies still oversee the majority of industrial production, which represents over 40% of GDP.
There is still a lot of progress left to be made before Vietnam catches up with the more developed ASEAN countries. Nevertheless, its membership of the ASEAN free-trade agreement (AFTA) since 1995 and more recently of the WTO shows the willingness of the authorities to stabilise its economy.
Source: Economist Intelligence UnitRead More
Estimated at 50 million people in 2008, India’s middle class should reach 583 million in 2025. Global consumption is expected to quadruple within the next 20 years. Hence, this hike would allow India to become the fifth largest consumer market in 2025, behind the United States, Japan, China and the United Kingdom (India is currently in 12th position). This increase will be mostly due to the growth in revenue.Read More
The world’s largest democracy
With its 1.15 billion inhabitants, the Republic of India is the second most populated country in the world after China. Hindi, the official language, is spoken by approximately 40% of the population*. In addition, the Constitution officially recognises 22 other languages, and it has been estimated that 844 dialects are used all over the country. English is the business language and is used in varying degrees by 40% of the population, which is composed of around 2,000 different ethnic groups. India established a democratic system of government following its declaration of independence in 1947, which survives paradoxically with the economic and social disparities. The federalist system consolidates this cultural plurality and makes India “unified in its diversity”.
* The various dialects are included.Read More