Many foreign fashion brands have entered the Vietnamese market, creating stiff competition in the market for local brands.
Unlike other businessmen, Le Viet Thanh, CEO of K&K Fashion, doesn’t think foreign fashion brands will ‘choke Vietnamese brands to death’.
“The domestic fashion market has different segments with diverse needs. So, foreign fashion brands, though powerful, won’t be able to satisfy all the demands. Vietnamese brands still have their positions in the market if they have distinct products and can find niche markets,” he said, adding that local companies understand Vietnamese taste and can design products that fit Vietnamese.
The niche market for Michiko, for example, is high-end fashion for women aged over 30, priced at VND1.5-2.5 million. This group of customers likes special styles and original models.
Luu Nga, CEO of Elisa, commented that Vietnamese fashion industry can satisfy customers’ requirements on design and quality, and that Vietnamese brands can compete with foreigners.
Viet Tien Garment has been expanding its retail network with 650 shops, while An Phuoc has 115. Blue Exchange has 200 shops, Elisa 70 and Canifa 100.
The brands have seen revenue increasing directly proportional to network expansion. K&K reported a 50 percent growth rate, An Phuoc 15-17 percent and Garment No 10 22-25 percent.
Some Vietnamese brands have been succeeding in niche markets with self-designed products targeting middle-class and high income earners such as Cashew, Labella, Kelly Bui, Marc, Dotty, Camellia and Mora.
Hoang Thanh Tu, the owner of Mora, said that many Vietnamese fashion brands are now confident enough to join the international market and participate in fashion weeks in the US, South Korea and Japan.
Mora’s showrooms in Nha Trang and Da Nang show that it has stable and loyal clients.
IVY Moda, which develops high-end fast fashion products, has launched IVY Men and is going to launch IVY Kid in the time to come.
Meanwhile, a NEM representative said NEM’s advantage lies in 10 factories and thousands of skilled workers.
Doan Bich Ngoc, CEO of Canifa, commented that while foreign brands pay attention to color and pattern, Canifa focuses on developing products with longer life made of good material.
Vietnamese brands also have advantages in branding. Elisa tends to fund pageant contests, while Canifa sponsors Project Runway and Vietnam Next Top Model TV shows and Marc supports Fashion In Me competition.
Source: VietNamNet