You are in a rush to expand the business and beat those competitors, but the ‘new normal’ happened and added new challenges to market entry decisions? Plot twist: the new normal is actually not-so-new at all. In fact, changing consumer behaviors and speedy technology transformation could benefit new businesses to promote their products. Read the following analysis to clear up your concerns over market entry to Vietnam in the new normal! This is a more in-depth analysis based on my video released last week.
Making entry decisions in the confusing ‘new normal’!
The ‘new normal’ hype is making us overwhelmed. Nevertheless, whereas it is the ‘new normal’ or the ‘old normal’, market entry decision is always made based on rational analysis while looking at the potential of the new market. The ‘new normal’ does not mean that everything has changed. Of course, there are some new aspects, but the essence of doing business is the same.
In this case, the ‘need and demand’ have always been the main reason for market entry, regardless of COVID-19. Every entry decision must be based on thorough market research on local demand and rational analysis. If you are looking into a new market, be sure to find the answer the following questions:
1. Does the company’s product or service solve a specific problem for a specific set of people?
2. How competitive is the market and is there room for more businesses?
3. What are the costs associated with the new business set-up?
4. How long will it take for the business to gain profit in the new market?
Even if consumer behavior and the normal way of doing business has changed, the demand should be still there.
Moreover, finding the right Vietnamese local partners contribute significantly to the success of the business entry. The best partners are the ones that have both industry expertise and international experience, having worked with other cultures and business approaches.
Then what are the changes that associate with market entry in the new normal context? Working with a partner who has experience dealing with crises and business disruptions would be a huge bonus (like EloQ Communications, for example!). Doing market entry in the new normal requires flexibility. If there is one lesson from COVID-19, it is the need for businesses to be open and flexible. Those who were quick to adapt and adjust their market offerings during the pandemic increased their reputation significantly among local consumers.
Choosing Vietnam as the destination in your business expansion
With words going around that Vietnam is doing really well to control the pandemic, how’s the local market actually doing in the new normal?
In 2019, Vietnam was ranked 8th among the 29 best economies to invest in by World Bank. The country’s economy relies heavily on export activities to generate jobs for local people, with its export equivalent to its GDP (Vietnam GDP in 2019: 244.9 billion USD). And then COVID-19 happened. In this age of globalization, COVID-19 hit hard not only on Vietnam, but on every country, as we all engage in an interdependent relationship. With international borders and commercial flights now shut down, Vietnam trade-dependent economy is suffering from financial loss.
However, in this new normal, there are two rising features of Vietnam economy that one can easily recognize: the pandemic control, and the new consumer behavior and technology transformation.
The local government has made different initiatives to put the pandemic under control successfully. With all social distancing restrictions lifted, the country now focuses on increasing domestic demands. Many multinational companies that already have their presence in the market win the advantage to take part in these domestic activities.
Another change from the COVID-19, people are now more open-minded to new consumer behaviors and new technologies. For example, in the communication industry, new working methods are emerging, including virtual events, online seminars, working from home, etc. Vietnamese people are no exception. We are adapting to this new normal era with the vast adoption of new behaviors and technologies, opening new opportunities for a new mode of working, new products, and new services. With the pandemic almost over, well, we think that it is high time to get started.
As the frontier market in Southeast Asia, Vietnam has been growing firmly and steadily in recent years as one of the world’s most attractive destinations for foreign investors. Well-aware of the nation’s immense potential, EloQ wishes to be the middleman of choice for partners to approach their new markets, both foreign and local. Whether it is getting familiarized with the country’s market particularities or expanding business to another city/area, EloQ is happy to provide well-rounded services that make sure customers’ venture into the Vietnam market is a worthwhile and fruitful investment.
Cross-posted from EloQ’s blog.