The game of the "big players"

Mr. Le Tien Truong, Chairman of the Vietnam Textile and Garment Group, informed that the group has collaborated with Coats Group to research and invest in the production of flame-retardant fabrics. These fabrics are made from flame-retardant, low-flammability, or non-flammable fibers. This is a product with high technical requirements, legal implications, and copyright protection; it is not a typical fashion item.

Products made from flame-retardant fabric are not commercially sold in supermarkets worldwide; instead, they must comply with extremely strict standards and regulations in the importing country. " This is a product with the potential for very rapid growth, but it will depend heavily on the policies of each country. It's a specialized product, not entirely the same as the products we've been producing in recent years ," Mr. Truong stated.

Vinatex - Kova fire-resistant fabric is one of the fire-resistant fabrics produced in cooperation with the Vietnam Textile and Garment Group. Photo: Vinatex

The corporation is accelerating production and expects to export its first orders of flame-retardant fabric to Indonesia, India, the Middle East, and the United States in the third and early fourth quarters of 2024.

With this type of fabric, the corporation aims for a revenue of $2-2.5 million in 2024 and plans to double its revenue annually within the first five years. The primary goal is to meet the demands of the US market – a crucial market for the global textile industry. This success in the US market will then pave the way for expansion into the EU, Japan, South Korea, and other markets worldwide.

" Compared to other conventional products, the potential for growth in flame-retardant fabrics is clearer, with less competition in the market, " Mr. Truong emphasized once again.

According to the Chairman of the Vietnam Textile and Garment Group, foreign countries assess the market potential for flame-retardant fabrics as very large, while Vietnam, which is among the top 5 textile and garment exporting countries in the world, does not yet have facilities to produce raw materials to serve this special market.

Therefore, the Group's collaboration in producing fire-resistant fabrics and clothing aims to target an untapped niche market. With this technology, the value of the fabric increases by 3-5 times, and garments made with this fabric also have a much higher value.

However, all types of fabrics and specialized clothing are subject to patent protection. Flame-retardant fabrics will enter markets with stringent requirements, such as protective clothing and safety apparel, and will not be part of the fashion market.

“ This is the first time the Vietnamese textile and garment industry has encountered a product requiring copyright. This copyright is registered in the countries where it is used and is legally binding. Therefore, the corporation initially had to approach large corporations worldwide that own the copyrights to the technology and register intellectual property for these types of products ,” Mr. Truong informed.

Developing niche markets has been a recommendation from experts to the textile and garment industry for many years. However, opening niche markets is still done by exploring new markets, in addition to export markets that account for a large proportion of the industry's turnover, such as the US, EU, and Japan.

Opening a niche market with challenging, specialized, and potentially lucrative products like flame-retardant fabrics is a major challenge. This is because, in addition to requiring significant capital investment in technology, businesses also need a strategic plan, unwavering determination, and a strong workforce. Despite the difficulty, this is a sustainable development path that can generate good revenue.

Looking back at the denim fabric products resulting from the collaboration between Phong Phu Corporation and Advance Denim Co., Ltd., it's clear that, starting in 2019, Phong Phu has become one of the leading denim fabric manufacturers in Vietnam. Besides its classic 100% cotton lines, Phong Phu has developed hundreds of new jeans designs using cotton, Tencel, Spandex, and Viscose fibers to meet the fashion demands of the market.

Although developing a market with a specialized product segment is difficult, without determination and direction, textile and garment businesses will not be able to break through and find a safe path in the current uncertain and risky market. Clearly, this remains a game for the "big players" with sufficient financial and human resources.

Source: https://congthuong.vn/phat-develop-thi-truong-ngach-cho-nganh-det-may-cuoc-choi-cua-cac-ong-lon-340024.html