More domestic Vietnamese brands announce closure due to feeling "exhausted"

(Dan Tri) - Two local fashion brands, handbag brand LUU VIETANH and fashion brand DANGHAIYEN, both announced they would cease operations at the end of June.

Local Vietnamese brands stop due to exhaustion

Handbag brand LUU VIETANH recently unexpectedly posted a letter on the store's homepage, announcing the cessation of business operations after 4 years of operation.

According to a post on his personal page, Mr. Luu Viet Anh - founder of the handbag brand LUU VIETANH - said he has tried very hard to ensure stability between market factors and the design value that the brand wants to bring to customers.

For the past 4 years, designer Viet Anh has been waiting for the market to be ready to accept and pay. However, the fierce competition in product prices that occurs every day has made it impossible for the company to continue to balance operating costs to maintain the brand.

Owner of handbag brand LUU VIETANH wrote a farewell letter after 4 years of operation (Photo: Social Network).

Mr. Viet Anh confided that competition in the handbag market is increasingly fierce. Products with fluctuating prices on e-commerce platforms and during livestream sessions have put great pressure on the brand.

The handbag brand owner also said he felt exhausted and was forced to make the decision to stop at this time, the designer wrote on his personal page.

In the comments section announcing the temporary suspension of operations, many accounts expressed their regret. Some commented that the brand had brought a "new breeze" to the Vietnamese market, but the market was becoming increasingly fierce, making them feel regretful about the departure of a name they had high hopes for.

At the same time, another high-end fashion brand, DANGHAIYEN, also announced that it would close its store in Hanoi from June 30. This brand has been operating for 10 years, aiming for a quiet luxury style (a style that discreetly shows wealth).

On the brand’s homepage, the brand acknowledges that the fashion market is developing very quickly today. Accordingly, this pause is the time for the brand to learn how to adapt to the times, so that the repositioning of brand value in the future can be considered more carefully.

Previously, the fashion market witnessed many fluctuations when a series of Vietnamese local brands were forced to close because they could not withstand market pressure. Last February, MỘT - a local shoe brand born in 2018 also officially said goodbye. Or Lep' (a domestic fashion brand) operating for 8 years announced its closure at the end of 2024.

The founder of Lep' at that time gave the reason that "he could no longer keep up with the rapidly changing market every day, with countless new fashion styles, countless new, cheap, and beautiful products".

At the end of 2024, another famous fashion brand in Ho Chi Minh City, Catsa, was also "erased" after 13 years of presence in the market. After announcing its plan to close in the second half of 2024, all Catsa stores in Ho Chi Minh City have stopped operating.

With Catsa, founder Linh Cat said the closure was planned from the end of 2023 when she realized that the business reached a certain growth threshold and it would be difficult to grow further.

Why is it difficult for domestic fashion brands to survive?

Sharing with Dan Tri newspaper reporter, Master Le Hoai Viet, Lecturer of the Department of Innovation and Creativity, Ho Chi Minh City Open University, Member of the Southern National Startup Advisory and Support Council, said that the consumption of goods today by Vietnamese people is not low, but there certainly needs to be selection because consumers are increasingly alert.

Mr. Viet realized that Vietnamese consumers are increasingly willing to spend money on quality products, but to win them over, a domestic brand cannot rely solely on sophisticated design or high-quality materials.

“The purchasing power of Vietnamese people today reflects a shift from quantitative ownership to investment in living values,” Mr. Viet shared.

2 domestic fashion brands closed at the end of June (Photo: Social Network).

In addition, a brand will have a high chance of failure if it lacks the ability to operate a systematic business and a sustainable financial strategy. A brand lacking identity and a clear positioning will become saturated and “disappear” in the midst of the economic storm of the Vietnamese fashion industry.

In addition, the expert also said that the boom of e-commerce makes the traditional fashion business model face more challenges than before.

Although the Vietnamese market is fertile, it is not easy to develop. Therefore, only brands that are resilient and have a flexible development strategy, understand Vietnamese tastes, respect local culture and invest long-term can "survive" in the long term.

Source: https://dantri.com.vn/kinh-doanh/them-loat-thuong-hieu-noi-dia-viet-tuyen-bo-dong-cua-vi-cam-thay-kiet-suc-20250625101707182.htm