Co-branding is now a growing international trend and offers Vietnamese businesses the easiest way to join the global market ( Photo: toquoc.vn) Shoemaker Biti’s and jewellery manufacturer PNJ are among the first domestic firmsto embrace the trend.
Biti’s has obtained permission to use images from Disney’s famous film Frozenon its products, and PNJ has tied up with France’s Swarovski to make itsproducts in Vietnam.
“Buyingthe rights to use global brands has both improved Vietnamese enterprises andhelped customers get the best products,” Vuu Le Quyen, deputy general directorof Biti’s, was quoted as saying by Phu Nu (Women) newspaper.
Disney is also hoping that its tie-up with Biti’s will enable its products to enterVietnam through the latter’s 1,500 stores.
Dr Doan Dinh Hoang, a branding expert, said “Local enterprises have started towork with foreign brand names and the cooperation will benefit from bothparty’s strengths.”
Through co-branding, international brands can exploit new markets at low costwhile local companies get access to new financial sources, modern technologiesand, especially, their partners’ customers and markets.
EconomistLe Ba Chi Nhan said the value of a brand would increase significantly if it canestablish a joint venture with a famous brand and develop together.
Pham Ngoc Hung, deputy chairman of the HCM City Enterprises Association, said“The famous Disney choosing a Vietnamese company to do business with provesthat the latter has met Disney’s strict requirements and that Vietnameseenterprises are growing enough to collaborate with big foreign companies.”
He agreedthat co-branding is the way for local companies to become bigger and develop inthe context of the growing global integration.
But some economists said Vietnamese firms should be careful because this is anew development in this country.
“Localbrands will be weaker or fully dependent on their foreign partners,” Nhanpointed out.-VNA
VNA
