During the year-end shopping season, while many Vietnamese garment brands gradually disappear from the market or shrink their market share, many foreign brands are still doing well and even continuously expanding their business operations.
Many experts believe that besides the differences in price and design, the main reason foreign garments dominate the market is their strong financial potential.
Vietnamese fashion brands cluster at home
Although it is the end-of-year shopping season, along famous shopping streets in Ho Chi Minh City such as Nguyen Trai (District 1), Quang Trung (Go Vap District) or Le Van Sy (District 3)..., which used to be the headquarters of Vietnamese garments - many stores are just signboards, the premises are empty.
Meanwhile, it has been noted that large wholesale markets in Ho Chi Minh City such as Hanh Thong Tay market and Tan Binh market - places that were once famous for providing cheap Vietnamese clothing - are now flooded with products imported from China. Fashion Vietnam seems to be losing ground.
Having been doing business at Hanh Thong Tay market (Go Vap) for over 10 years, Ms. Ngo Thi Dat said that although many users have a negative attitude towards Chinese goods, with good prices and a wide variety of designs... 70 - 90% of the products sold at this market such as shoes, clothes, fashion accessories... are all Chinese goods.
"The prices of Chinese goods are dirt cheap, such as fashion accessories, hair clips for only 1,000 - 2,000 VND, clothes and many types of sandals for only a few tens of thousands of VND/product, so it's understandable that they are flooding the market," Ms. Dat explained.
Not only in the market, the brands Vietnamese fashion also gradually reduced production or closed down. Lep' - the brand of small floral dresses that was once popular with fashionistas - has just announced that it will officially close down on November 30, ending a regretful 8-year journey.
Previously, a famous fashion chain like CATSA - with more than 13 years of operation - also announced closed all 22 stores. Many other big brands such as Gian, IVY moda had to reduce operations, in which IVY moda "killed" the IVY men's line after 5 years of operation.
Looking back at 2010, it was a boom period for Vietnamese fashion, when a series of prominent brands such as The Blues, Canifa, PT2000, Nem, Elise, IVY moda... were born, covering the major streets in Hanoi and Ho Chi Minh City. However, after more than a decade, many names have narrowed down, even gradually disappeared...
Not only in the traditional market, Vietnamese fashion also seems to be at a disadvantage on the catwalks. e-commerce. For example, according to Metric's Q3-2024 report, Lovito - a Chinese low-cost fashion brand - is dominating the top of the online fashion industry in Vietnam, with an impressive growth of 517% over the same period.
With the "shocking price" strategy, Lovito launched a series of products such as shirts from only 50,000 VND, dresses from 100,000 - 200,000 VND, even flash sales of shirts for 16,000 VND or accessories for only 1,000 VND. This brand also continuously "follows the trend" of holidays such as October 20, Halloween, Christmas to attract young customers.
Imported goods, foreign brands gradually grow stronger
At the shopping mall Big brands such as Vincom Dong Khoi, Takashimaya or Saigon Centre, with prime locations, all belong to foreign brands such as H&M, Zara, Uniqlo... With strong financial potential, flexible pricing strategies and diverse designs, international "giants" easily dominate the market and increasingly expand their business.
These fashion brands often run big promotions, as well as promote their brands almost everywhere. Especially on big sales occasions of the year such as: Concentrated promotions, Black Friday, Singles Day 11-11... all have deep discounts, some brands discount up to 90% to attract customers.
"We accept frequent discounts and sell at no profit in the early stages to promote the brand strongly to users and slowly win customers. Fashion is a difficult business channel, but if done well, it will bring in big profits," said a representative of a foreign fashion brand.
According to information from the Japanese fashion brand - Uniqlo, this system is continuously expanding its scope of operations and has up to 26 stores in Vietnam, most of which are located in prime locations. Recently, Uniqlo Parc Mall (District 8) opened on November 8, located in the largest shopping center in the region with more than 130 international brands.
In addition to a wide variety of designs with almost every fashion segment, the Japanese brand regularly applies promotional programs to attract customers, and especially has a very professional media unit to make this brand familiar to Vietnamese customers.
Meanwhile, with diversified business lines from fashion, cosmetics - beauty, home - life, according to information from TokyoLife, this unit has been present in dozens of provinces and cities with a large number of stores, including 39 stores in Hanoi, 9 stores in Hai Phong , 9 stores in Quang Ninh...
According to the staff of this system, TokyoLife is a Vietnamese brand but does not sell entirely Vietnamese products, and actively sells a variety of products at competitive prices. Specifically, clothing and fashion are mainly produced domestically; cosmetics and beauty products are mainly imported from Japan; household appliances, plastic products... are produced abroad, including China.
To "win customers' hearts", the company regularly launches discount programs, especially on Black Friday, it is applying discounts of up to 50% on a large number of products in most product categories; orders from 279,000 VND or more are free shipping.
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