The Study of Beef Market Structure and Channel Competition in Ho Chi Minh City, Vietnam

In strong efforts to bring Japanese Wagyu beef with its outstanding characteristics to external markets, Japan is now paying high attention to exporting promotion globally. In Vietnam, after the official importing approval in April 2014 (Vietnam Custom), the value of Japanese beef is doubled in only one year (reached 158.341 million Yen in 2015). To penetrate into Vietnam market successfully, it is prerequisite for Japanese marketers to consider the Vietnam beef market. Despite Japanese Wagyu beef is an international brand, the response of consumers in each country is different; thus, specific marketing strategies, based on consumer culture and reaction to global brand for certain consumption pattern, is in need (Steenkamp, 2001; Keillor et al., 2001). Moreover, the driving force of the success in exporting performance is to identify the competitors and grasping the proper market segments (Cooper and Kleinschmidt, 1984). Hence, compared with long-history domination of Australian and American beef, it is important for Japanese Wagyu beef to approach from the right step about particular distribution channel for selective beef. With an attempt to provide Japanese Wagyu beef exporters to Ho Chi Minh City (HCMC) market with guidance, this study tries to investigate, not only the general status of the beef market in HCMC but also the Wagyu beef niche market. Via the combination of the primary data from direct interviews and the secondary data, the full context of HCMC beef market is scrutinized from both supply and demand perspectives. Additionally, the intensity of competition between Japanese Wagyu beef and Australian Wagyu beef is clarified through revisiting the theory of competitive advantages (Porter, 1980). Subsequently, the relevant exporting strategy for Japanese Wagyu beef is discussed basing on the eclectic theory of country-entry mode (Dunning, 1999).