Analyze Biti’s strategies to meet the demand of Chinese consumers

Biti's, a brand that is so familiar to Vietnamese consumers, was born in 1982 under the founding of Mr. and Mrs. Vưu Khải Thành. "Biti" is an abbreviation of "Binh Tien". At first, the company only had 15 employees to produce rubber sandals exported to the Soviet Union and Eastern Europe from low-productivity rust machines. In the late 1980s, when the Soviet Union and Eastern Europe disintegrated, Biti's lost its main market. At the same time, in the domestic market, Thai and Chinese sponge slippers are lighter and more beautiful than Vietnamese rubber slippers. Exporting flat bowls, selling in the country was not finished, Mr. Vưu Khải Thành and his wife immediately went to Taiwan to buy technology to produce EVA foam slippers. This Chinese-born businessman chose Southwest and China as the new export market. China is the world's largest footwear producer and footwear exporter, limiting the expansion of already arduous Chinese goods, let alone attacking the rival. This is a bold decision because while Chinese footwear is entering the Vietnamese market with low prices, Biti’s thinks the opposite: conquering the rival market with quality, affordable products. Advantages: This is considered an easy-going market because it consists of different population classes, different income, so the needs are very diverse, able to survive the goods with good specifications and quality. dozens of times apart. Chinese people have a habit of shopping, being attracted to new and different products while Biti's has the ability to supply thousands of products to the market. In addition, the culture between the two countries has many similarities. China attaches great importance to export promotion, but China's footwear import market is relatively small, accounting for only 1% of the whole country. The well-known foreign brands such as Nike, Adidas. . . are not many but only targeting high-income consumers. Therefore it can be said that this is a favorable market for low to medium quality footwear. The West is the most backward region in China. Therefore, the government of this country always attaches great importance to the economic development of the Western region. This has opened up "golden opportunities" for Vietnamese businesses like Biti’s. Challenges: Although Chinese made goods are not considered high quality, they are always rich and diverse. Thanks in part to market research, and in no small part to the widespread popularity of counterfeit goods in China, Chinese facilities seem to be able to immediately imitate every style and design on the market. school. Strategy: Avoid strong - hit weak "Chinese people walk a lot, so they always have to keep their feet comfortable and comfortable, at this point, Biti's products meet, " said Lai Khiem, Vice Chairman of Biti's Company. to speak. Avoid strong: If China enters the Vietnamese footwear market with low prices, Biti's conquers its competitors with high quality products at competitive prices, higher than Chinese goods but cheaper. Famous brand products such as Adidas and Nike. Weak shot: Biti’s has researched to find a vacancy in the Southwest market of China. The Southwest is a potential market with a population of over 420 million people, focusing on 75% of ethnic minorities and about 80% of China's poor but left open because China is too focused on exporting. Biti’s has invested in building Lao Cai international border-gate trade center to actively buy raw materials, and produce many high-class products for the Chinese market. The advantages of geographical location, available infrastructure and transportation make Vietnamese goods brought to the Southwest closer and more favorable than goods brought from the eastern provinces of China. By understanding China's legal system and business practices here, Biti's management has carried out timely trademark registration and protection. Price strategy: Here, Biti's applies the "one price" policy and creates a good effect right after its inception. Consumers in Southwest China will feel secure because they do not have to worry about paying, buying, buying the wrong one. Moreover, because the price is always associated with quality, although it is a bit more expensive than similar products, Biti’s is still the trend of choice for consumers here. Distribution strategy is summarized in the four words "thick, far-flung": Biti's organizes a centipede distribution system, in big cities there will be a distribution center, this center combined with other local retailers and they distribute to consumers so the spread is stronger. At present, Biti's has developed more than 20 general agents and more than 350 consumer agents in most southwestern provinces of China such as Chongqing, Yunnan, Guangxi, Guangdong, Fujian, Hubei. . . . , even in Beijing and Shanghai, it is a "dream" distribution and retail network of any business. Trade promotion strategy: TV commercials, newspapers in China are expensive but ineffective by reaching directly to consumers through fairs and local distributors. Because the customs of the people here are very interested in travelling, gathering in crowded places, every year here organizes exhibitions and fairs that attract a lot of people visiting shops. Biti’s are immediately taken advantage of opportunities to participate in fairs to promote its products to consumers. Result: Imprinted with a footprint on the away field As a result, Biti’s annual revenue in the Southwest accounts for 80% of the company's total revenue in the Chinese market. From the Southwest market, Biti’s continues to spread throughout China. Biti's can be considered as a successful Vietnamese enterprise in the strategy of "committing itself" and building a brand image in foreign countries, especially in the world-renowned capital market with similar products at the same price. cheap. Biti's is one of the leading enterprises in Vietnam's footwear industry, accounting for 15% of the domestic market with more than VND 1, 000 billion domestic revenue and 50% of export proportion in the company's revenue structure in 2012. .