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Perseverance will pay off in apparel branding exercise - Experts
Feb '09
The export manufacturing textile and clothing industry in Vietnam has taken a decision in principle to target the domestic markets to offset the loss in sales suffered from its global markets. The industry has concluded that this is the only way to survive in the present crisis and overcome the wave of despondency which has engulfed the whole sector.

According to estimates, the domestic market is worth an estimated US $4.5 billion per year, which is projected to shoot to $6 billion in 2010. More and more companies from Vietnam are slowly but surely trying to find a footing in the domestic market which for long has been dominated by overseas brands, the Chinese ones in particular.

From amongst the most recent entrants in to the domestic markets is the “Fan-Fciar” office wear range for middle-aged customers and “Manhattan” range for young while-collar workers from one of the biggest garment companies in the country; Viet Tien Garment Joint Stock Corporation, which has launched these brands.

Another well-known brand, NinoMaxx, launched by Viet Fashion Company, is continuing pursuit of its strategy to win brand loyalty of the nation's young consumers by offering stylish products at its network of stores across the country. The company reported a y-o-y growth of 30 percent in sales in January.

According to statistics, the local garment brands have a market share of only 20 percent, with the rest, monopolized by brands from neighbouring China and Thailand. According to experts, the Vietnamese brands are not able to keep up with the aspirations of young consumers with regards to designs and quality, in which the Chinese are far ahead.

Today, despite the fact that the Vietnamese clothing sector is considered a global export power house, it is more in to contract manufacturing of different labels in the world, rather than having and developing their own brands. Though it is still a bit late, it is only the perseverance which will pay off in the long run, since branding is a long drawn out exercise.

Fibre2fashion News Desk - India

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