>> Imported milk prices on the rise in anticipation of new law
Consumer awareness when Vietnamese choose milk products may help prevent unreasonable milk price hikes.
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| It’s very difficult for mothers to choose the right milk products for their children among plenty of brands |
Six years ago, although Dumex milk brand was not popular among Vietnamese mothers, Linh, who works for the Ministry of Education & Training, chose to use it for her children.
By that time, with the same net and targeted users, imported milk companies had huge differences in their price tags.
For example, a 400 gram tin of powdered milk for infants made by Mead Johnson, or Abbott cost about VND80,000-90,000 ($4.1-4.6) while the same kind of product made by Dumex cost only about VND65,000-67,000 ($3.3-3.4).
Over two years later, with intensive advertising campaigns, the prices of Dumex products were increased unexpectedly and continued rising sharply.
According to investigation results provided by Vietnam’s functional authority in 2008, Dumex was one of the firms whose prices rose most in Vietnam, even higher than in other countries.
Given the price change, Linh decided to buy Dutch Lady’s products instead of Dumex. Now, she chooses to buy Nuvita milk from Nutifood for her children.
The prices of Dutch Lady and Nutifood products are very reasonable at only about VND130,000 ($6.7) per 900 gram tin. Linh feels satisfied with the intellectual development and growth of her children.
However, not every woman makes the choice like Linh did. There is a fact that despite a remarkable increase in prices, with intensive advertising strategies of imported milk firms in general, Dumex’s products are often chosen by parents.
Even this milk firm has entered Vietnamese market later than others and its products have much higher prices, but it still has better business results.
One salesman at a large milk company said that sales results of milk products which are sold at medium prices, especially in Hanoi and Ho Chi Minh City, had gone down gradually because of the low demand. This made some companies stop offering products with low prices.
Consumer mentality towards domestic milk
At present, many parents do not fully trust the quality of domestic milk products so they still prefer imported milk brands.
Consumers often assume that a difference in price automatically means a difference in quality. They are under the impression that because the price of an imported milk tin is 3 times higher than a domestic tin, it must be of a higher quality.
Having this opinion is certainly understandable. However, take Dutch Lady’s products as an example. According to a survey conducted by the Competition Administration Department under the Ministry of Industry & Trade in 2009, the price of Dutch Lady’s Friso milk sold in Vietnam was 50-60% higher than in Malaysia. The price was even 80% higher in some shops. Meanwhile, Friso was an imported product in Malaysia and in Vietnam it was manufactured in two plants located in Ha Nam and Binh Duong provinces.
On the other hand, exclusive distribution of products from Abbott and Mead Johnson made by two Vietnamese companies also attributed to dramatic price changes.
Eventually, the price of milk products depended much on advertising campaigns and the psychology of parents who just like imported milk.
According to experts, the number of nutrients and vitamins consisted in powdered milk products for infants are basically the same.
The question remains how to convince parents of these facts.
Perhaps, it’s necessary to remove all their concerns by ensuring quality of locally manufactured milk, inviting reputable quality assessment agencies to evaluate the quality and enhancing brand broadcasting on mass media.
In addition, people also need to have appropriate awareness when choosing milk products for their children. Consumers need quality milk products regardless of where they are from and price does not necessarily reflect quality.