#16 | Vietnam and a strong transformation in the digital economy – Guest Dr. Chen, Vice President of Qualcomm
Nutricare, a Vietnamese brand in medical nutrition, shared on The Next Power talkshow episode 15, is on a journey of innovation with the recombination of nutritional ingredients as well as applying in a specific business strategy for medical products in order to balance social responsibility and sustainable business growth.
Early in 2022, the government approved the National Strategy on Nutrition for the years 2021–2030, with the goal of improving the nutritional status of mothers and children and keeping a malnutrition rate for children under the age of five below 3% by that time. Additionally, men’s average height is expected to rise by 2-2.5 cm and women’s average height to rise by 1.5–2 cm. Nutrition is a factor that must be prioritized if the goals of improving stature and health for such generations are to be met.
Established in 2010, Nutricare has won the National Brand of Medical Nutrition three times in a row for its specialized medical nutrition products, which are diverse by age and pathology. Nutricare offers nutritional products for patients with diabetes, cancer, liver, kidney, thyroid, stomach disorders, people who need to recover from surgery, mothers, babies, and the elderly in addition to products for mothers, infants, and the elderly. These products are available at the majority of regional and local hospitals.
“Medical Nutrition” is still a relatively new field in Vietnam. Medical nutrition products are formulated for patients with specific nutritional needs and absorption capacities, as opposed to conventional nutritional products. Businesses haven’t given patients with such a unique condition’s nutritional needs much consideration.
The nutrition sector, also known as the health products sector, is extremely competitive in the Vietnamese market. In addition, this field’s supporting industry is still in its infancy. To ensure quality, numerous tests are therefore required to be conducted abroad.
Along with the limitations, the Vietnamese market offers plenty of fantastic opportunities, which Nutricare is seizing and taking full advantage of. One of them is the domestic market, which has a population of almost 100 million people and is experiencing rising interest in nutrition and demand for care products. Additionally, Nutricare has developed products that are appropriate for the physical condition of Vietnamese people at prices that are appropriate for the current economic climate based on the food consumption pattern and biological characteristics of the Vietnamese people.
The public is becoming more and more interested in healthy nutritional products. Consumers seek out healthier product categories to avoid health issues, according to a Nielsen survey conducted in 2022. Of those, 39% of Asia-Pacific consumers have bought a product with a healthy element in the last two years, 32% have bought a healthy product with a label, 29% have bought a product with a calming effect, and 26% have bought a product with special nutrition.
By sending employees to the US for training and connecting them with foreign partners and experts so they can directly consult and take part in the development of new technology, this business seizes the chance to establish international connections. Using product knowledge, international nutritional science applications can be updated quickly during product development.
Nutricare differentiates itself from the competition by using new technological advancements in product development and manufacturing. This company has specifically combined nutritional components to create tailored products based on the various requirements of people at various stages of development.
Nutricare always prioritizes social responsibility when producing goods that directly impact human health. The brand establishes a mission and vision to develop nutritional solutions, products, and services to support the healthcare community, improve the quality of life, and lay a better foundation for future generations in the context of environmental pollution, food pollution, and excessive consumption of unhealthy nutritional groups.
According to Dr. Nguyen, undertaking a lengthy research project that produces no results is the most dangerous step in the innovation process. Numerous products only work well when they are tested in the lab; however, when they are produced in large quantities, they lose their intended characteristics and effects. Some products, like those for cancer, kidneys, and the thyroid, only benefit a small population, but Nutricare still decided to keep supplying them to the market because their target market continues to have a need for those particular nutritional requirements.
Nutricare has adopted the “Don’t put all your eggs in one basket” strategy due to the uniqueness of the medical nutrition product, which necessitates extensive time for research, testing in the laboratory, and clinical trials. Instead of having a single, fixed goal to promote a project, Nutricare has evenly distributed resources to projects. Therefore, even if the company fails, it will still be able to grow.
When doctors “encroach” into the market for nutritional products, this will be both a benefit and a drawback due to their professional standing. Although doctors lack formal training in management, marketing, customer research, or market analysis, they have an advantage in product development due to their in-depth knowledge of needs, thinking, or pathophysiology, which they use to treat patients and develop products. Therefore, in addition to doctors, Nutricare combines a variety of professionals to handle investment, finance, marketing, etc. to create a team that can offer various viewpoints and critiques in order to jointly develop and create products that are both appropriate for users and effective from a business standpoint.