“Vinamilk changes its appearance” is a story that not only changes the external appearance but also affirms the brand’s heritage values ​​such as quality – reputation – sustainable development in a younger, fresher language.

Mr. Nguyen Quang Tri - Marketing Executive Director of Vinamilk (Photo: Quynh Tran)

Choose to do the hard work

Nowadays, it is not uncommon to see “made in Vietnam” products on supermarket shelves in many countries, but most of the products are under other brands. This is explained by the fact that most of Vietnam’s export products are manufactured under OEM (original equipment manufacturer). Vinamilk, in particular, has chosen a more difficult but sustainable path: exporting under its own brand.

“If you want to get output and revenue, exporting raw materials or processing for other brands is a very easy way. Enterprises only need to produce products according to the customer's specifications and standards. Partners will take care of building their own brands in the international market. But Vinamilk chooses its own path, exporting under its own brand” - quoted Mr. Nguyen Quang Tri - Marketing Executive Director of Vietnam Dairy Products Joint Stock Company (Vinamilk, HOSE: VNM).

According to Mr. Tri, building a brand abroad will certainly be much more difficult and arduous than domestically, due to differences in standards, language, and markets. But when successful, the values ​​brought to the brand will be much greater.

“Vinamilk believes that we must develop our products and brands strongly domestically before exporting them, because only then will our products be convincing enough for consumers in other countries to try and choose them. On the contrary, if consumers see that Vinamilk has products appearing in the Japanese, Korean, and American markets, their confidence in the domestic market will also increase. For example, Ông Thọ condensed milk - a long-standing brand of Vinamilk, in the early days of exporting, we focused on serving overseas Vietnamese, but now it has become very famous, spreading the habit of consuming condensed milk to local communities in other countries,” Mr. Tri shared.

Ong Tho condensed milk products appear on shelves in many countries.

Another problem in foreign markets is competition, when Vietnamese products are placed next to world brands that have more experience in product development and design. However, Mr. Tri is confident that Vinamilk is capable of competing fairly on the international stage.

As proof of the international class of Vinamilk products, he said that in 2023, the company has continuously entered its name in the world's top prestigious award lists such as Purity Award, Clean Label Project, Superior Taste Award, Monde Selection, The World Dairy Innovation Awards 2023... These are all leading international awards/certifications in the food and beverage industry, with strict standards and fierce competition from thousands of candidates around the world.

In 2023, Vinamilk products were continuously named at prestigious awards for product quality and flavor.

“The awards achieved in 2023 are a recognition of the outstanding quality of Vinamilk products. It is also a guarantee of Vinamilk's quality and international class to consumers," Vinamilk's marketing executive director emphasized.

Maintain leadership with quality

In 2023, Vinamilk attracted attention with a brand repositioning campaign that had a very good spread in the media as well as on social platforms. However, Mr. Nguyen Quang Tri said that changing the logo or product packaging is just an external form. Behind that, Vinamilk wants to inherit the cultural heritage of a 47-year-old brand and breathe into it a fresher, more youthful energy.

According to Vinamilk's representative, this brand identity change campaign is the dairy giant's solution to the problem of maintaining its leading position in the domestic market share in a market context that is filled with opportunities and challenges.

“There are bigger challenges when “changing clothes”. Vinamilk is leading the market with a market share 4 times larger than the second competitor. This gap is safe for many people, but Vinamilk does not think so. If we stop, one day soon our competitors will surpass us,” Mr. Tri assessed.

Vinamilk fresh milk products in "new colors".

The common challenge of the current market is that consumer demand is increasingly fragmented and inconsistent. For example, some people like sweets, but others avoid sugar; some people like fresh milk, while others prefer plant-based nutrition... This requires businesses to have a different approach to each group, following the trend of increasing personalization and differentiation.

Another short-term challenge is that the global economy is still under general downward pressure, affecting consumer purchasing power. With a product base that meets international standards and the advantage of a distribution system of more than 230,000 retail points, a chain of Vinamilk stores (Vietnamese Milk Dream) and a supply chain of 14 factories and 14 farms across the country, Vinamilk still maintains positive business results. But it is not without impact.

However, Mr. Tri said that Vinamilk still sees opportunities to exploit and expand the market when looking further at the development of the dairy industry, especially the average milk consumption per capita in Vietnam is still low compared to the region and the world. Specifically, according to Research and Markets, the current average milk consumption per capita in Vietnam is only 27 liters/person/year, while in Thailand it is 35 liters/person/year, and in Singapore it is 45 liters/person/year. It is forecasted that the average milk consumption per capita in Vietnam will increase rapidly by 2030, creating room for growth for businesses in the industry.

Low per capita milk consumption in Vietnam is a growth driver for the dairy industry in the future.

In addition, the gap in milk consumption between rural and urban areas is still large; each year Vietnam still has about 1.5 million children born; and the trend of people paying more and more attention to health... are also important driving forces for the dairy industry in the coming years.

“Although the pandemic has caused the market to decline, in return, after Covid-19, people tend to pay more attention to and use nutritional products that are beneficial to their health. The market has an additional group of adults with higher purchasing power, more stable income, and more health care. There is also a group of Gen Z consumers - young people who are currently interested in a clean, green lifestyle and sustainable development. Vinamilk will pioneer in exploring these segments. Those are opportunities. Once you see the opportunities, you will know how to take advantage of them, exploit them and grow,” Mr. Tri emphasized.

PV