When I noticed the Smart home in Vietnam, I found out that there are three main suppliers in Vietnam which are BKAV, Acis and Lumi. I noticed that most of the Smart Home products in Vietnam are labeled with the term Smart but did we notice the behaviors of Vietnamese people’s buying behaviors?
Firstly, most Viet people will not intentionally find the term Smart when they decide to buy a furniture applicant. For example, they would intentionally find out a curtain rather than a SMART curtain, and the way of adding the term ‘SMART’ in front of the product name will accidentally segment our products to the people only care about the term “SMART”, it would narrow down the market for our products to only a specific group of customers and it would cause us to compete with the big giants in the Smart Home section. While we could remove the SMART and label the product Curtain, then we only need to compete with the furniture companies or the curtain suppliers who is not excel at technology and therefore, we could use our strength of SMART technology as the competitive advantages of our product to compete with them
Secondly, the product this company is segmenting. There are two problems I have seen from these brands:
The first thing is the package of smart applicants. Most of the searched companies in Vietnam focus on providing a package of products while the single product is not prioritized. Meanwhile, the target audience of this group is not the people who have already had a house but those who are intending to have a new house. One case study it could be drawn is the IKEA company, they could successfully make their customers purchase the product as a dairy product with their low-cost. Therefore, by only focusing on providing a package and neglecting selling a single product it could prevent the growth of the Smart Home manufacturers in this section. Moreover, 30 millions without having a trial duration in the long-term would prevent the customers from purchasing a huge amount of money while they might not perceive that it is worth paying.
The second thing is the product they are selling. The top searched and promoted product is the switcher. The problem in this product is similar to the package selling. Switcher is a type of product which is very hard to change due to its sustainability. Therefore, by reaching a market with a product which is rarely replaced, is it true if I said many companies only focus on the people who are intending to have their new houses more than the existing ones? Moreover, Lumi- a Smart Home manufacturer in Vietnam, they decided to come up with a product called Milo speaker which is embedded with a Vietnamese voice. The product is valued at 4 millions VND while Echo Amazon speaker is only 1 million VND, Google Hub is only 800,000 VND. Milo could reduce the R&D cost for Vietnamese voice by teaming up with Google to embed their Google Assistant to their speaker. Moreover, while the Smart Home has not been popular in VIetnam, why do I have to pay 4 millions to purchase that speaker?
There are 2 things worth saying here, the first thing is on Naming and the second one is on the Product Selling. I believe that if I were in that situation, I would have some following recommendations:
Remove the term ‘SMART’ from the name of the product and let it compete with the ordinary and traditional product.
I would sell the products which the people could easily buy them as the dairy products or they would replace them more (Lamps, Clock, Shelves, Decorations, etc)
If we want to sell a product, we need to make our product closer to the customers for a trial. I have a recommendation for a startup - they could team up with a small store, complex areas, local brands store, etc which are very popular in Vietnam in recent years and decide to share a small amount of money to have your product on a small corner in their store. This way could help to save money while it could bring your products closer to the customers.
Collaborate with the real estate companies to have your brand promoted in their showroom or in their catalog.
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