Perspective · Handicraft industry

Vietnamese handmade products: the challenge of having a name and a price

When craftsmanship is not lacking but buyers still haggle like at a market, the issue is not with the product.

Quick summary

Handcrafted products are bargained for like market goods not because they are of lower quality but due to a lack of branding systems that help buyers understand what they are purchasing and why the price is justified. When there is a clear name, a genuine origin story, and consistent identity, handcrafted products can escape price competition and stand in the segment where customers pay for value.

The rattan weaver with forty years of experience, the lacquer artisan who learned from his father, the embroiderer who takes three weeks for one piece on silk fabric. They do not lack skill. What they lack is a reason for buyers to understand why this product cannot be sold at market prices. And without that reason, negotiations only go one way: down in price.

The issue is not quality

Most artisans understand their products better than anyone else. They know the labor behind each product, where the materials come from, and the techniques hidden in every detail. The problem is that buyers do not know these things, and in the few seconds they see the product for the first time, they have no tools to evaluate it other than price and external impressions.

This is not the buyer's fault. The human brain processes visual impressions in an instant, before any rational information can be read. Research by Lindgaard and colleagues published in the journal Behaviour & Information Technology in 2006 shows that first impressions form in just 50 milliseconds. At that moment, the buyer has a perception of the product, and that perception is very hard to change later.

If within those 50 milliseconds, the product looks like mass-produced goods, the conversation about price will start from the wrong point.

50 millisecondsThe time it takes to form the first visual impression of the viewer. Source: Lindgaard et al., Behaviour & Information Technology, 2006.

The trap of those who are skilled but have no name

Artisans often fall into one of two traps. The first trap: selling through intermediaries, allowing them to put their name on the product and take most of the profit margin. The second trap: selling directly but without a branding system, so each time they meet a new customer, they have to persuade from scratch and still face bargaining.

Both traps stem from the same cause: the product lacks a unique name. It’s not about the maker's name, but the brand name accompanied by a story, identity, and a reason for buyers to trust enough to pay the right price even on their first encounter.

Marty Neumeier, author of The Brand Gap, defines a brand as "the gut feeling in the minds of customers," not just a logo or name. That feeling does not form naturally. It is built through each touchpoint: the name, the packaging, the story, how the seller talks about the product, and how the product is presented. If any element is missing, that feeling will be vague, and the buyer will fill the gap with the cheapest assumptions.

A brand is not a logo. A brand is a person's gut feeling about a product, service, or company.

Marty Neumeier, The Brand Gap

The story of origin is an irreplaceable asset

Handcrafted products have an advantage that industrial goods can never have: a real story. Where the materials come from. Who makes them. Who they learned from. How long it takes. What techniques are characteristic of the region. These are not fabricated marketing stories; they are verifiable truths, and that is why they have a persuasive power that no advertising budget can buy.

Cocoon, a Vietnamese cosmetics brand, builds its differentiation through local ingredients from different regions: Đắk Lắk coffee, Đắk Lắk avocado, Bến Tre coconut oil. It is not because these ingredients are chemically better than those from elsewhere, but because the story is specific, real, and no one else can tell it that way. Vietnamese handicrafts have similar stories, and most have yet to be told correctly.

Telling the story correctly does not mean telling a lot. It means telling consistently, in the right places, with language suitable for the target buyers. One sentence about the craft village, one line about the technique, one photo of the process. Enough for buyers to see they are purchasing something with a history, with people behind it, not something of unclear origin.

38%The higher price that buyers are willing to pay for brands is perceived as "meaningful and different." Source: Kantar BrandZ, around 2020.

Identity system: not about grandeur, but about consistency

Many artisans think "branding" means hiring a designer to create a beautiful logo and print elegant boxes. That’s just a small part. What truly creates change is consistency across every touchpoint with the buyer.

Using the same tone when talking about the product. The same presentation style whether selling at a fair or online. The same packaging regardless of whether the order is large or small. The same response when customers ask, "Why this price?" These things do not cost much but require discipline, and that discipline accumulates over time into identity, reputation, and the reason customers return and refer others.

Byron Sharp in How Brands Grow points out that brand identity assets only create mental effectiveness when consistently repeated. One time is not enough. Ten times start to leave a mark. With the small scale of most artisan businesses, this is an advantage because it is easier to control than larger enterprises, if there is a system.

+32 percentage pointsThe superior revenue growth of design-led companies compared to the rest, in a study of 300 companies over five years. Source: McKinsey, The Business Value of Design, 2018.

First step: strategy first, logo later

The most common mistake is not the absence of a brand but rather the wrong order of operations. Creating a logo before answering: who am I selling to, what are they looking for, and why is my product a better fit than their other options.

No need for complicated answers. What is needed is a genuine answer. "My customers are those who want meaningful gifts for foreign partners" is very different from "my customers are those who like handicrafts." These two customer groups look different, buy for different reasons, and need to be spoken to in completely different ways.

Once you have that answer, every subsequent design decision, from colors to packaging materials to wording on labels, is grounded. It’s no longer about "I like this color" or "it looks beautiful," but rather "this color resonates with the target buyer for this specific reason."

That’s the difference between a craft business that sells due to familiarity and a craft brand that is sought after, recommended, and priced fairly by those who have never met the maker.

Transparent note: The 38% figure from Kantar BrandZ is the result of a survey on a large global brand dataset, not specific to the handicraft industry or the Vietnamese market. The actual impact depends on the segment, sales channel, and the level of brand execution of each specific establishment.

References

Marty Neumeier, The Brand Gap (2003). Byron Sharp, How Brands Grow (2010). McKinsey & Company, The Business Value of Design (2018). Kantar BrandZ (around 2020). Wharton School / Knowledge@Wharton, research on perceived value and willingness-to-pay. UNESCO, report on handicrafts and the creative economy.

Frequently asked questions

Do handmade crafts need a brand, or is it enough to just make good products?

A good product is a necessary condition but not sufficient. Buyers cannot verify craftsmanship quality just by looking in a few seconds, so they use external signals like name, packaging, presentation, and story to estimate value. Without a branding system, a good product will still be grouped with mass-produced items and bargained over price.

Is branding handmade goods expensive, and is it suitable for small businesses?

Building a brand does not have to be expensive, but it needs to be in the right order: strategy first, identity later. Small businesses even have an advantage because of the genuine founder story, clear material origins, and craftsmanship that can be specifically told. These things cannot be bought with a large budget but can only be achieved through transparency and consistency over time.

I have sold products and have regular customers, do I need to brand?

Familiar customers buy because they know the person, not necessarily because of the brand. When you want to expand, enter new channels, or sell to those who don't know you yet, the brand represents you the first time they see the product. Without it, every new customer has to start from scratch.

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