Daesung's Nationwide Expansion Plan on MT and GT Channels for 2024-2029

In its five-year strategic plan, Daesung aims to extensively cover the MT (Modern Trade) and GT (General Trade) channels nationwide, contributing 30% of the revenue as outlined by the company's leadership.

Achievements and Future Goals

After just two years of development, Daesung  has captured a significant share of the online market in the kitchen knives and household scissors, achieving its goals for 2022 and 2023. In the traditional sales channels, Daesung has initially established several distributors, dealers, and points of sale in major provinces and cities across the country.

To sustain and develop further, Daesung's five-year plan for 2024-2029 focuses on expanding its brand presence in MT (supermarkets, chain stores) and GT (household businesses, home goods stores) channels across all provinces. The target is to have at least one dealer/distributor in each province by 2026. From 2027 to 2029, Daesung will focus on supporting and enhancing sellers to achieve stable revenue and consistent growth annually.

Strategic Importance

This decisive step by Daesung's leadership comes as the economic crisis shows signs of recovery. The strategy to expand and boost consumption on both MT and GT channels aligns with the economic upturn, with consumer spending on household goods increasing.

Market Insights and Approach

According to Daesung's market research team, consumer behavior for household goods in major cities is primarily concentrated on online channels and hypermarkets. In contrast, rural areas still rely heavily on home goods stores for purchases, with a significant sales advantage, although a small segment of young people has started buying online. This indicates that focusing on both MT and GT systems is crucial for Daesung to quickly capture a large market share in household knives and scissors.

Initial Steps and Policies

As the first step in the plan, Daesung's leadership will introduce attractive policies for sellers and promotional programs for customers, ensuring the best quality and stable retail prices.

Additionally, Daesung will ensure that its factory operates smoothly to meet production capacity and maintain a steady supply of products, supplementing manpower and streamlining operations in essential positions.

Simultaneously, the leadership has agreed to allocate 30% of the budget for brand communication and promotional activities. This important strategy aims to bring the new brand closer to customers, thereby supporting sellers in conducting effective business.

Summary

Daesung's comprehensive five-year plan aims to:

- Establish at least one dealer/distributor per province by 2026.

- Focus on achieving stable revenue growth from 2027-2029.

- Implement attractive sales policies and customer promotions.

- Ensure smooth factory operations and continuous product supply.

- Allocate 30% of the budget for branding and marketing.

With these efforts, Daesung is positioned to become the leading producer and distributor of household knives and scissors in Vietnam, leveraging the strengths of both MT and GT channels to reach a wide range of consumers.