EXPORTING CANDY & CONFECTIONERY PRODUCTS FROM EUROPE TO VIETNAM
Why is candy?
The Vietnamese candy market has been widely referred to as a bittersweet chocolate bar in the eyes of many investors. This is due to a dramatic increase in demand from this potential market as well as a bunch of tough challenges it poses.
To be specific, the scaling revenue of the candy segment is forecasted to reach US$7,814m in 2022, with the market expected to grow annually by 11.50% (CAGR 2022-2027) (Statista).
This is easy to understand as the population of Vietnam is large and young, with consumption of confectionery per capita of well over 2 kilograms per person per year.
What’s more, Vietnamese consumption and spending habits have changed a lot in recent years. Those products of candy and confectionery are not only just for children with a sweet tooth but have evolved into every adult’s life as a way to spread care, love, and even sharing.
Therefore, the Vietnamese candy market seems lucrative as its potential is so massive yet not fully exploited. There are, however, many spikes and thorns in this sweets war among all the players.
One to mention is the problems of fake goods of poor quality when counterfeiting technology is increasingly sophisticated, making it difficult for consumers to distinguish which is real. Notably, smugglers took advantage of every chance to import goods of unknown origin into the country for huge profits, affecting genuine brands and consumer health safety.
According to many specialists’ warnings, counterfeit sweets frequently containing toxic substances or banned coloring chemicals and additives can put consumers at huge risks for obesity, diabetes, brain issues, and even cancer.
As a result, high demand for authentic candy and confectionery increases as consumers are constantly looking for products that are manufactured with the highest safety and quality standards and contain additional nutrients contributing to good health.
One proof is that even before the pandemic, nearly two-thirds of Vietnamese consumers (69%) were prepared to spend more for top-quality products, far exceeding the global average of 49%. This trend is expected to thrive, perhaps to a greater extent, as consumers are desperately seeking greater assurance after the pandemic.
In an attempt to grasp this opportunity, many local players are developing a firm position in the market with their products becoming both more qualified and appealing. However, they have to struggle with heavy dependence on imported ingredients, which seems to affect domestic product prices by the unstable supply outside.
Besides, many Vietnamese candy and confectionery producers mainly distribute their goods through fragmented small grocery retails and do not have a unified network. Consequently, they traditionally target low-income customers with a fairly limited budget, thus leaving an enormous potential market of high-quality products in the hands of international investors.
In other words, there is still vast room for foreign brands with an advantage in their technological advances and trusted reputation to target the customers with bigger pockets.
Out of VIEC’s endless efforts to understand not only the Vietnamese market trends but the underlying needs and concerns of customers, we do feel a need to provide them with the best confectionary from the Netherlands to satisfy their unmet desires. We are committed to delivering the most authentic sweets possible with a strong focus on nutrition, dietary requirements, flavor, and quality.
We then came up with an idea to connect Dutch manufacturers and Vietnamese distributors to have the first containers of candy and confectionery from the Netherlands enter Vietnamese borders. So, what values has VIEC created and how do our partners benefit from this deal?
Let’s find out here
What solutions does VIEC offer our partners to export candy from Europe?
Firstly, regarding the problem of poor-quality products of unknown origins, we ensure that Vietnamese wholesalers could order authentic Dutch candy and confectionery produced for domestic consumption with the highest European safety standards, so there is no worry about their specifications.
Secondly, it’s common for manufacturers from the Netherlands, as well as any other place in the world, to set their minimum order quantity (MOQ) to match what it’s worth for them to set up a production run both time and cost. And oftentimes, the fewest number of units to be purchased at one time varies from 20 to 22 pallets in a container of 40 feet.
But the problem here is that meeting that minimum quantity can be frustrating, not to say impossible for many Vietnamese retailers because they still seriously doubt whether those kinds of confectionery are a wise choice for their customers and such a big deal presents itself as a risk too big for them to handle, or in some cases, simply because they can not afford them.
Understanding their difficulties, VIEC offered our Vietnamese partners a far more favourable solution: lowering the MOQ down to just 01 pallet per time. This means that they can purchase products as and when they need them instead of buying lots of products upfront that they then have to struggle to find out how to sell such a big amount. That is to say, Vietnamese retailers can place small orders for sweets from the Netherlands both to keep costs down and lower the risks.
Besides, those wholesale buyers needn’t worry about the storage of a large amount of inventory at one time. Small orders can help them reduce reliance on warehouse space to enjoy lower inventory costs and improve their working capital turnover. Also, those purchasers can better control their profit margins because they can make firm orders in bulk when there are already certainly worthwhile profits in their marketplace.
Export candy to VietNam with VIEC’s support
During that important time in 2018, VIEC signed contracts to act as the exclusive distributor in the Vietnamese market for companies such as Swinkels Family Brewers; Créme de la Cream B.V.; OGFC; ELJO B.V.; Richard Tea; Tago; AGI and successfully brought their products from factories directly to Vietnamese wholesalers. These products are now present in many supermarkets convenience store chain all over the country. We take great pride in setting down these first footprints to promote bilateral trade between Vietnam and the Netherlands. Therefore we’ll keep moving forward on this path to connect more businesses since we know the greatest is yet to come.
It’s high time for you to take this golden opportunity, not just candy.
At VIEC, we believe that customers in every corner of this world, deserve the best products no matter where they are. Against all geographical obstacles, there is always room for improvement of supply chain management to lower all the costs and risks that emerge during the chain.
Therefore, we, as your commercial representative, will connect Dutch producers directly with wholesalers in Vietnam at both sides’ greatest favors.
If you are seeking ways to enter the Vietnamese potential market, do not hesitate to contact us right away!
We have over-11-year experiences to assist you in dealing with all the problems related to the market entry strategy and delivering the best products to end-consumers.