The present fluctuations in the world economy have made a significant impact on the Vietnam market. In the past year alone, the economic recession and high inflation have resulted in escalating business costs; these include labour, fuel, and logistics.

How a glocalisation strategy from DKSH elevates brands, photo Le Toan

However, from a positive perspective, there are still many opportunities for businesses in Vietnam. With an increasing GDP growth forecasted to reach 6.5 per cent in 2023, the rise in population income, and consumer demand continuing with an upward trend, this is the right time for businesses to invest in bringing their business forward.

With nearly 160 years of experience in doing business in Asia and beyond as well as over 30 years of presence in Vietnam, DKSH is strengthening its position as a trusted partner to many businesses. As a bridge-builder among businesses, DKSH leverages its global experience combined with in-depth local market knowledge to help businesses succeed across Asia and beyond.

This combination has created a “glocalisation” strategy, which contributes to the success of leading consumer goods companies.

“In line with the group’s strategy, we apply our expertise to combine international standards with local insights to generate a proper development orientation for each partner, in different markets. The glocalisation strategy has assisted DKSH in adding value to the growth and sustainable development of businesses, local markets, and the communities in which we operate,” said Kim Le Huy, vice president of Business Unit Consumer Goods at DKSH Vietnam.

Businesses, especially foreign-invested companies, must recognise the importance of investment to create added value. In markets with distinct regional differences, such as Vietnam’s north to south, localisation needs to be implemented intensively.

In each region, it is necessary to have local people who can meet the different requirements of customers. For instance, DKSH achieved strong market penetration and healthy growth despite the challenging pandemic conditions due to its in-depth understanding of the local market.

To anticipate similar challenges ahead, businesses need to have a solid business model that allows the company to be flexible while minimising risk. By continuing to invest in digitalisation, businesses can identify opportunities to invest and obtain the best results in the consumer goods industry. Companies that optimise their operating models will gain crucial competitive advantages.

The strategy of glocalisation is the key to business success, especially in today’s demanding market situation. As companies increasingly demand a higher level of local market understanding, this is something that many multinational companies struggle with in Vietnam.

From the perspective of a global enterprise, businesses often want to apply a standardised operation model group-wide. However, in Vietnam, consumers and local cultures are different, and businesses must find a way to reconcile global and local factors to best serve their customers.

Working with the right business partner is important, as an experienced partner will help implement the correct service standards based on having detailed local market insights, creating the appropriate development orientation for each market.

Glocalisation also helps bring value to the growth and sustainable development of businesses, markets, and local communities. When working together with a business partner, it is essential to consider the existing capacity of both sides and the added value each will provide before collaborating.

A good example of this is DKSH’s success in collaborating with Sanofi to create a localised Lactacyd product range, which saw the company chalking up increased sales over 20 times in the past decade.

As Vietnam continues to offer vast opportunities for businesses in the consumer goods industry, the glocalisation strategy will provide an important competitive advantage. To help businesses achieve this, DKSH is focused on developing and strengthening capabilities reliably and responsibly.