Local businesses have yet to tap the potential of the children's toy and healthcare market, according to experts.
With improved incomes and more than 1 million babies born every year, Vietnam is a promising market for this segment.
Accordingto a survey recently conducted by Nkind Service and Trading JSC, totalrevenue from products, educational and entertainment services and healthcare for children aged 0-12 was 5.2 billion USD a year in recent years.
Ofthat amount, products and services accounted for more than 3 billionUSD, including 1.2 billion USD for milk and nutrition products. Otherproducts such as toys, clothes and diapers accounted for 1.1 billionUSD. Entertainment services totalled 700 million USD a year.
Foreign brands still dominate the market for products such as cradles, cribs, baby walkers, strollers and feeding tools.
There are 80 foreign brands for powdered baby milk, accounting for 75 percent of market share.
AtBinh Tay and Tan Dinh markets, for example, many baby feeding bottles,nipples and mugs on sale are imported from Thailand, Taiwan, France, theUS, the Republic of Korea, Japan and Germany.
Most foreign brands have eye-catching designs and use high technology.
Forthe toy segment, Chinese toys dominate with 80 percent market share.For the baby toy segment, there are almost no domestic brands, withforeign brands such as Lamaze and Lalaloopsy dominating.
Domestic brands
Reputable toymakers in Vietnam include only six brands: Cho Lon Plastics, Duc Thanh Wood, Nam Hoa, Alpha, Thanh Loc, An Loc Phu.
ViThi Thu Nhi, Director of Duc Viet Co., which owns Nanakids, said therewere few high-quality products for children. Nanakids has six stores andstill cannot satisfy demand.
Chinese rivals and fake and imitation products are the biggest obstacles to local producers' success in this market segment.
Consumers still prefer products that are safe and have a quality stamp with an international brand.
TranNgoc Dung, Executive Director of the FTA market research company, saidits survey showed that domestic consumers were more aware of reportsabout hazardous substances in imported toys, thus opening opportunitiesfor domestic businesses in this segment.
Chiang Jiun ShiongKenny, Managing Director of Bornrich Company Ltd., said that domesticmanufacturers have been urged to take part in major exhibitions toaccess potential customers.
For the first time in Vietnam, achildren and family expo will be held on January 17-18 at the SaigonExhibition and Convention Centre by Born Rich Ltd. Co. in collaborationwith Oriental Destinations Co.
It is expected to attract 150 booths and 50,000-100,000 visitors.-VNA
With improved incomes and more than 1 million babies born every year, Vietnam is a promising market for this segment.
Accordingto a survey recently conducted by Nkind Service and Trading JSC, totalrevenue from products, educational and entertainment services and healthcare for children aged 0-12 was 5.2 billion USD a year in recent years.
Ofthat amount, products and services accounted for more than 3 billionUSD, including 1.2 billion USD for milk and nutrition products. Otherproducts such as toys, clothes and diapers accounted for 1.1 billionUSD. Entertainment services totalled 700 million USD a year.
Foreign brands still dominate the market for products such as cradles, cribs, baby walkers, strollers and feeding tools.
There are 80 foreign brands for powdered baby milk, accounting for 75 percent of market share.
AtBinh Tay and Tan Dinh markets, for example, many baby feeding bottles,nipples and mugs on sale are imported from Thailand, Taiwan, France, theUS, the Republic of Korea, Japan and Germany.
Most foreign brands have eye-catching designs and use high technology.
Forthe toy segment, Chinese toys dominate with 80 percent market share.For the baby toy segment, there are almost no domestic brands, withforeign brands such as Lamaze and Lalaloopsy dominating.
Domestic brands
Reputable toymakers in Vietnam include only six brands: Cho Lon Plastics, Duc Thanh Wood, Nam Hoa, Alpha, Thanh Loc, An Loc Phu.
ViThi Thu Nhi, Director of Duc Viet Co., which owns Nanakids, said therewere few high-quality products for children. Nanakids has six stores andstill cannot satisfy demand.
Chinese rivals and fake and imitation products are the biggest obstacles to local producers' success in this market segment.
Consumers still prefer products that are safe and have a quality stamp with an international brand.
TranNgoc Dung, Executive Director of the FTA market research company, saidits survey showed that domestic consumers were more aware of reportsabout hazardous substances in imported toys, thus opening opportunitiesfor domestic businesses in this segment.
Chiang Jiun ShiongKenny, Managing Director of Bornrich Company Ltd., said that domesticmanufacturers have been urged to take part in major exhibitions toaccess potential customers.
For the first time in Vietnam, achildren and family expo will be held on January 17-18 at the SaigonExhibition and Convention Centre by Born Rich Ltd. Co. in collaborationwith Oriental Destinations Co.
It is expected to attract 150 booths and 50,000-100,000 visitors.-VNA
