Entering a new market is a challenging endeavor that requires thorough preparation and strategic planning. Market research services can provide invaluable insights and a competitive edge, especially in a dynamic and rapidly growing market like Vietnam. This article explores the importance of market research services, with examples of companies that successfully entered the Vietnam market through comprehensive research and those that faced losses due to inadequate research.
Market research is crucial for understanding the local market environment, consumer behavior, competitive landscape, and regulatory framework. It helps businesses make informed decisions, identify opportunities, and mitigate risks. In Vietnam, a country with a rapidly growing economy and diverse consumer base, market research is particularly essential.
When Starbucks decided to enter the Vietnamese market, they conducted extensive market research to understand local consumer preferences, cultural nuances, and the competitive landscape. Their research revealed a strong preference for coffee among Vietnamese consumers, but also highlighted the importance of adapting their offerings to local tastes. As a result, Starbucks introduced beverages tailored to Vietnamese preferences and strategically located their stores in high-traffic areas. This research-driven approach has helped Starbucks establish a strong presence in Vietnam.
Lazada, an e-commerce giant, entered the Vietnamese market with a comprehensive understanding of the local e-commerce ecosystem. Through market research, Lazada identified key consumer pain points, such as trust in online shopping and payment methods. They addressed these issues by introducing cash-on-delivery options and investing in robust customer service. This strategic move, guided by market research insights, allowed Lazada to gain a significant market share and become a leading e-commerce platform in Vietnam.
eBay’s entry into the Vietnamese market was less successful, primarily due to insufficient market research. The company underestimated the importance of localized strategies and the dominance of existing local competitors. eBay’s standard global approach did not resonate with Vietnamese consumers, who had different buying behaviors and preferences. As a result, eBay struggled to gain traction and eventually had to scale back its operations in Vietnam.
Best Buy, a global electronics retailer, also faced challenges when entering the Vietnamese market. The company did not adequately research local consumer preferences and competitive dynamics. Best Buy’s traditional retail model and product offerings did not align with the needs of Vietnamese consumers, who favored different brands and shopping experiences. The lack of market understanding led to poor sales performance and ultimately, Best Buy’s exit from the market.
Market research services are essential for any business looking to enter the Vietnamese market. The success stories of Starbucks and Lazada highlight the benefits of thorough market research, while the experiences of eBay and Best Buy underscore the risks of inadequate research. By leveraging market research, businesses can gain a competitive edge, make informed decisions, and achieve sustainable success in Vietnam. Here’s where ASEAN Business Partners can come in place. ASEAN Business market research services are designed to provide businesses with the comprehensive information and analysis needed to succeed. ABP’s market research services equip businesses with the insights and strategies needed to successfully enter and compete in the Vietnamese market. By understanding local preferences, analyzing the competitive landscape, mitigating risks, and ensuring regulatory compliance, ABP helps businesses achieve sustainable success.
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