Lam Khue and a series of local brands closing down: 7 common mistakes of startups

(Dan Tri) - The founder of Lam Khue fashion brand admitted that a domestic fashion brand failed due to wrong thinking even though the start-up worked very hard.

Recently on his personal social networking site, businessman Nguyen Hoa Binh (shark Binh) re-shared an article by the founder of fashion brand Lam Khue about mistakes that lead to failure when starting a business.

According to information found, this women's fashion brand specializing in handmade designs has closed its store on Hue Street, Pho Hue Ward, Hanoi since June 30, officially ceasing operations after 8 years of launching.

Lam Khue impresses customers with its meticulously embroidered and beaded dresses and ao dai designs. The brand focuses on female customers who pursue a traditional and gentle style.

In the article, founder Huong Pham admits that a domestic fashion brand fails not because the founder is not good or diligent, but because of a wrong mindset despite working very hard. She talks about 7 painful but necessary mistakes she learned on her journey to start a fashion business.

The first mistake is to think that a difficult market is the main cause of declining business results. This mistake comes from a mindset of blaming instead of proactively changing to adapt. According to her, this belief limits the creativity and adaptability of entrepreneurs, making them more likely to accept doing their best without being effective, or to give up and wait for the market to improve. “If we keep blaming, we will never truly move forward,” she wrote.

The second mistake is not having a clear and consistent brand direction. Many founders start their brands with passion and manage them entirely by instinct. They do not really realize the importance of building a systematic brand value system and philosophy, do not clearly define what the brand represents, who the ideal customer is, what the vision and mission are, and what core values need to be preserved.

She also realized that the deeper reason for not being able to orient the brand comes from the founder not understanding himself. Meanwhile, the domestic brand is the embodiment, the reflection of the founder.

When the founder’s true self matches what customers are looking for, it is an extremely solid foundation for building a brand. When the founder is true to himself, clearly positions himself, it will create a clear identity that cannot be copied. From there, when the brand meets the right customer, it will create an extremely strong connection.

Post shared by the founder of Lam Khue brand on social networking site (Screenshot).

The third mistake is not setting clear, specific and measurable goals. Founder Lam Khue frankly said that he used to run a business without specific KPIs. The business was run based on emotions and inertia, not knowing what was a priority, not knowing whether he or his staff had really done well or not.

The fourth mistake is loving the product too much and forgetting that the product you make is to serve customers. This is a common mistake of many creative people, who spend most of their energy creating beautiful, unique designs based on personal feelings and aesthetic ideals, without considering the customer's perspective. They forget an important thing: customers do not only buy because of beauty but also need a design that fits real life.

The fifth mistake is to underestimate financial management and not separate business and personal finances. She said Lam Khue did not have a clear financial management system, revenue and expenses were poorly tracked, there was a lack of specific financial reports, no cash flow planning, etc. Because personal and business finances were not separated, entrepreneurs did not have a clear view of the true effectiveness of their business.

The sixth mistake is not knowing how to “humanize oneself”, because they do not understand the importance of training and do not dare to be strict with their staff. This mistake is made by many people who want to lead with a loving heart, living emotionally, stemming from the belief that “being strict, disciplined, or abandoning others is cruel, is hurting them”.

Mistake 7 is not building a personal brand, despite understanding that the founder himself is a powerful communication channel.

The root cause is her obsession with perfection. Founder Lam Khue thought she had to wait until she was good enough, good enough, and achieved brilliant results before sharing. "I was afraid of losing my image, but I forgot that deep connection does not come from perfection, but from authenticity," she concluded.

In addition to Lam Khue, many domestic fashion brands have also announced their closure recently. For example, Danghaiyen, founded in 2014, has also closed its stores since June 30.

Another domestic brand, LUU VIETANH, also closed completely on June 21. The founder of this brand said that it could no longer continue to operate due to increasingly fierce competition and that the business model was no longer suitable for development.

Source: https://dantri.com.vn/kinh-doanh/lam-khue-va-loat-local-brand-dong-cua-7-sai-lam-pho-bien-cua-start-up-20250717150645701.htm