The game of the "big guys"

Mr. Le Tien Truong - Chairman of Vietnam Textile and Garment Group - informed that the group has cooperated with Coats Group to research and cooperate in investing in the production of fire-resistant fabric. This type of fabric is made from flame-retardant, low-flammability, non-flammable fibers. This is an item with high technical requirements, legality, copyright, not a regular fashion item.

Products made from fire-resistant fabrics are not commercial items sold in supermarket chains worldwide, but the products must strictly comply with the standards and assessment regulations in the importing country. " This is a product that can have a very fast growth rate but will depend a lot on the policies of each country, the specific products are not completely like the products we have made in recent years, " said Mr. Truong.

Vinatex - Kova fireproof fabric is one of the fireproof fabrics jointly produced by Vietnam Textile and Garment Group. Photo: Vinatex

The Group is urgently producing, expecting to export the first orders of fire-resistant fabrics to Indonesia, India, the Middle East, and the US in the third quarter and early fourth quarter of 2024.

With this fabric, in 2024 the group sets a revenue target of 2 - 2.5 million USD and in the first 5 years the orientation is to be able to double growth each year, the first goal is to meet the requirements of the US market - a very important market for the world's textile and garment industry, from the step forward in the US market will be favorable in the EU, Japanese, Korean and other markets in the world.

“ Compared to other common products, the development potential of fire-resistant fabrics is clearer and there is less competition in the market, ” Mr. Truong emphasized once again.

According to the Chairman of Vietnam Textile and Garment Group, foreign countries assess the market potential for fire-resistant fabric products as very large, while Vietnam is in the Top 5 textile and garment exporting countries in the world and does not have raw material production facilities to serve this special market.

Therefore, the Group's cooperation in the production of fire-resistant fabrics and clothing aims to enter a niche market that is still untapped. With this technology, the value of the fabric increases 3-5 times, and the products made from this fabric also have a much higher value.

However, all special fabrics and clothing are subject to copyright. Fire-resistant fabric products will enter the market with strict requirements such as protective clothing, clothing to ensure user safety that is not within the scope of the fashion market.

“ This is the first time the Vietnamese textile industry has approached a product that requires copyright. This copyright is registered in the countries where it is used and is legal. Therefore, the group must initially approach large corporations in the world that own copyrights on technology and register intellectual property for these types of products ,” Mr. Truong informed.

Developing niche markets has been a recommendation given by experts to the textile industry for many years. However, opening niche markets is still carried out in the direction of exploiting new markets, in addition to export markets that account for a large proportion of the industry's turnover such as the US, EU, Japan, etc.

Opening a niche market with difficult, specific and potential products such as fireproof fabrics is a big challenge. Because, with these products, besides requiring large capital for technology investment, businesses also need to have a strategy and determination to pursue, along with a strong enough human resource. It is difficult but this is a sustainable development direction, achieving good revenue.

Looking back at the denim fabric products that Phong Phu Joint Stock Corporation cooperated with Advance Denim Company Limited, it can be clearly seen that, starting the cooperation in 2019, up to now, Phong Phu is one of the leading enterprises in denim fabric production in Vietnam. In addition to the classic 100% cotton lines, Phong Phu has developed hundreds of new jeans models, with cotton, Tencel, Spandex, and Viscose fibers to meet the fashion needs of the market.

Although it is known that developing the market with specific product segments is difficult, however, without determination and direction, textile and garment enterprises will not be able to break through and find a safe direction in the current uncertain and risky market context. And clearly, this is still the game of the "big guys" with strong financial and human resources.

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