Export earnings contributed a great part to Kinh Do’s total revenue and registered a strong increase in 2009 over 2008. The corporation gained the three most outstanding achievements as follows:
- Export revenue remained encouraging compared to 2008 despite the impact of global economic slump.
- Kinh Do was able to retain and expand market shares in major markets. The impact of the global economic downturn resulted in a decline in purchasing power and fiercer competition in many markets. Despite this, Kinh Do posted significant growth in both consignments and outbound sales last year. Moreover, the company established new distribution channels in new markets.
- Kinh Do reaped success in new markets. In addition to main markets including Japan, the United States, Taiwan, Hong Kong, Cambodia and Africa, last year saw Kinh Do’s successful reach of potential markets such as India, the Middle East, Canada and Cuba... The company won the confidence of local consumers for its products as soon as it entered the new markets. Therefore, export revenues from these new markets promise to fare well in 2010.
Besides exploring new markets and retaining traditional markets, Kinh Do also centered its resources to building brands and further penetrating Cambodia’s market in 2009. Kinh Do promoted its brands through trade fairs, billboards, television commercials, advertisements in print publications and its newly developed distributors’ network there.
More efforts also center on sale coverage in Phnom Penh, widening the distribution network in provinces and delivering goods directly to the shops and stores of agents and distributors. Price and quality are the core components of Kinh Do’s competitiveness strategy applicable to the main products including cakes, crackers and cookies.
2010 Development plan
Kinh Do attaches its 2010 development strategy to consolidating and expanding main markets, and developing potential markets. For example, Kinh Do is working on a plan to penetrate Myanmar, a potential market of more than 50 million people (and where Kinh Do showcased products at a trade fair in November, 2009) as well as China, a market where local consumers share their buying habits with Vietnamese. Both have tariff incentives in addition to their proximity to Vietnam. Kinh Do’s AFC crackers are now available in China.
Currently, Kinh Do is consolidating its stance in the markets where it has set foot in the Middle East and is seeking to enter the United Arab Emirates. Japan is a traditional market that Kinh Do will also focus on. In 2009, Kinh Do was invited to join a trade fair in the “Land of the Rising Sun” and immediately accredited for product quality and factory safety.