Vietnam Laminate Floorboard Industry: Brand Anarchy

The competition in various global industries experiences unprecedented level of competition due to globalization. The competition has increased due to the increase in number of competitor for a given market that strives to seize higher market share and margin. Hebronstar has participated in many different projects related to different industries, and we believe Vietnamese laminate floorboard market is experiencing true survival battle.

There are easily more than 500 laminate floor brands in Vietnamese market. Many distributors imports foreign brands as needed and only some major distributors have recently integrated manufacturing capability to capture more market share. In addition, each company creates its own brand by either obtaining OEM products from foreign manufacturers and creating new product with as advanced technology as needed.

This phenomenon is solely because Vietnamese laminate floorboard market is at the introduction stage; there have not been any dominant brands and suppliers that usually, in more mature market, set the standard for the quality and client expectation. Rather, in Vietnam, all market participants take actions based on their margin, import, creation of new brand and/or production.

The survival strategy for this chaotic market is simple: build a solid relationship with the end users. This market, by the nature, is highly dependent on the interior and construction industry, and the project type offer bigger chance for the participants to take. Within this circumstances, each participants has already established a “good,” not necessarily a transparent, relationship with contractors, developers, and the government. For a new comer for this industry, they will need to borrow the network by connecting those parties who already has established the network.

 

Hebronstar Insight, Seoul

Kim, Dong Wook / Principle