Home / Knowledge / News / Apparel/Garments / Vietnamese garment exporters turn to local market
Vietnamese garment exporters turn to local market
27
Feb '12
Vietnamese garment exporters are now returning to domestic markets and are finding ways to compete with imported products in their home market. It is because Vietnam has a huge domestic market of around 90 million consumers, compared to around 20 million people in Vietnamese garment export market like Taiwan.

For example, in October 2011, Saigon Garment Co., or Garmex Saigon, made a comeback in the home market by associating with Blue Exchange, a fashion trademark of Blue Co.

The company intends to set up a retail centre for its fashion goods in HCM City's Tan Phu District. The alliance has also earned the company a right to use the Hong Kong office and other links of Blue Exchange to draw more customers and look for new sources for raw material, as it next plans to penetrate in the retail fashion market in other countries in the region.

Garmex Saigon's earlier effort to penetrate in the domestic market through launch of the Saga brand in 1997 could not succeed, and compelled the firm to shut its outlet network that existed from HCM City to Nha Trang, just within few years. However, the firm's current attempt to enter the domestic market is being looked upon as a more judicious, professional move.

According to analysts, so far, just few firms like Viet Tien or An Phuoc have succeeded in establishing a retail stores chain or building a brand for high-class fashion items in Vietnam. Likewise, there are only a few brands like Blue Exchange, Sea and Foci that have proved successful amongst young consumers with average income.

On the other hand some brands like Mattana of Nha Be Garment, or San Sciaro and Manhattan of Viet Tien, which intended to cater to domestic demand, are yet to get prominent presence.

Some garment firms are, however, still sticking to production for export markets rather than making in-roads in the domestic market, as they perceive that establishing a sound foothold in Vietnam requires production of fashion goods in lines with local market sentiments, and not in bulk as for export market.

Moreover, high cost of setting up retail shops in Vietnam and concerns about fake and counterfeit goods and sourcing of raw inputs are among the reasons impeding successful penetration of many firms in the local market.

In addition, there are some preconceptions that have robbed Vietnamese trademarks of an effective and extensive distribution channel, which could have otherwise helped the industry in enhancing its market share. Traditional Vietnamese markets with great scope of bulk sales are pre-dominantly ruled by China-made counterfeit goods bearing international labels. Also, items sold in these markets usually are considered to be inferior quality products, without trademarks.


Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 23rd Feb 2017

Pakistan invites Chinese firms to invest in Apparel Park

At a road show to set up the Quaid-e-Azam Apparel Park, Pakistan's...

Information Technology | On 23rd Feb 2017

Lectra unveils supply chain programme for fashion industry

Lectra, the world leader in integrated technology solutions dedicated ...

Textiles | On 23rd Feb 2017

Gujarat govt announces Rs 1,000 cr package for MSMEs

In its state budget for 2017-18, the Gujarat government has announced ...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search