Vietnamese fashion is inferior to foreign giants

4 min read

In the recently released report, Virac assessed that Vietnamese fashion is still unfamiliar with the world map or even in the region, although Vietnam is in the top of export of textiles and garments. Exported textile products are still heavily processed and exported under the names of foreign brands.

In the domestic market, more and more international brands enter the Vietnamese market and dominate such as H&M, Zara, Uniqlo … About 200 foreign fashion brands have official stores in Vietnam, covering from the affordable to high-end segments.

Lacked in the “home field”, it is not difficult to understand when the list of businesses leading the market share of Vietnamese fashion is in the hands of foreign “owners”. According to Euromonitor data, three enterprises in the top 10 enterprises with the largest market share in Vietnam are owned by foreign countries. Next is a number of Vietnamese brands such as Canifa, Biti’s, Viet Tien, May 10 … Some domestic brands such as Foci, although once considered “branded” with large-volume stores, have closed. But even names like Viet Tien, An Phuoc, May 10 …, the product segment is quite narrow, mainly office products.

Explaining the weakness of Vietnamese fashion in front of foreign “owners”, Virac said that, mainly due to the poor design of Vietnamese fashion, small scale, heavy on processing despite the improvement of materials for many years.

Customers shop at a shopping mall in Ho Chi Minh City. Photo: Viet Tien

Along with that, the spontaneous business trend accompanied by the lack of professionalism of many Vietnamese fashion startups has also deepened the gap between fashion houses and consumers. The first collection of many domestic brands may sell very well, but are unsustainable, and cannot be maintained for long in the market due to the lack of long-term branding and management strategy.

Many young brands even copy designs from international brands and sell them at lower prices in order to profit without long-term development goals. According to Virac, the lack of a formal, systematic fashion industry has led to this situation.

The “explosion” of counterfeit goods and counterfeit goods is still a painful problem of the Vietnamese fashion industry, as the degree of counterfeiting of world famous brands is increasingly sophisticated, in both traditional and online sales channels.

Facing the trend of “shadow” of foreign businesses in the domestic fashion market, Mr. Le Tien Truong – Chairman of Vietnam Textile and Garment Group (Vinatex) once shared with VnExpress, “beating” with the big man must have a way Not seeing them open and develop a retail system, but we also have to try to run by.

According to him, developing the domestic market must be very radical, that is to make the brand corresponding to the capacity of the distribution system. Instead of the strategy of “massively covering the ball”, Vietnamese businesses should choose the way that suits their strength, based on the internal strength analysis platform, and cannot run after other men.

As a leader of a fashion business in Ho Chi Minh City expressed, it may not be difficult for a fashion brand to be known, but it is important to survive and win the hearts of customers.

When the market and consumer habits change, he said that in order for a brand to “go long distances in the fashion market”, there must be a new mindset in production, product creation, or changing marketing models.

In fact, while foreign businesses “rushed” into the market, domestic businesses also attempted to go their separate ways. Strongly develop online sales channel together with consumers’ favorite online shopping habits; Spending on branding through famous representatives (influencer marketing) … are marketing trends that have been invested by domestic fashion firms in recent years. Covid-19 is also one of the “driving forces” for domestic fashion enterprises to transform, diversify channels of selling, marketing and promoting their products.

Besides, livestream is also showing the usefulness in boosting sales. Many large-scale shopping events are being held on the livestream, and this is becoming increasingly common.

Virac’s analysis explained that Vietnamese fashion will welcome new trends in product development and consumption. The presence of many fashion brands in the world in the market helps Vietnamese consumers access the latest designs at affordable prices, creating the attraction of “fast fashion”, also known as soft price brands. However, the short life cycle that makes these “fast fashion” items will soon be thrown away has negatively impacted the environment, people and resources.

Meanwhile, sustainable fashion – the supply, production and consumption of fashion products designed in a way that ensures environmental, social and economic sustainability – is forecast to be an inevitable trend. weak. This trend, according to Virac, will become the mainstream of Vietnam, in the context of gradually improving people’s income and increasing awareness of responsibility for the environment among young people.

Source: ndh.vn – Translated by fintel.vn