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Apparel sector fails to find footing in domestic markets
Nov '09
The Vietnamese apparel industry was able to beat the slowdown in the global markets and is on its way to achieve the targeted export figures for 2009, but when it comes to snatching a decent market share in its very own turf, these manufacturers have failed miserably.

The Vietnamese domestic apparel market is dominated by brands from Thailand and China, which are selling clothing at cheap rates, with better designs, which has attracted the attention of the consumers, at a heavy cost to the domestic industry.

The biggest stumbling block for these apparel companies is that they have not invested in brand building activities, nor do they have a good and efficient distribution network, along with which designs are also outdated.

The apparel manufacturing sector produces clothing for well-known brands across the globe, but when it comes to producing for the domestic markets, they have not been able to meet the expectations of the local consumers.

The global apparel retailers buy quality clothing from the garment manufacturers at very low rates and then jack up the prices when it is sold in worldwide markets. But the local companies are afraid of investing in brand building and setting up supply chain networks.

Experts are advising the government to provide an impetus to apparel companies to build brands in the country, lest a day will not be far, when overseas brands will be controlling a majority share of the domestic markets.

Vietnam has a population of around 86 million which is big enough and with rising incomes among the educated young, who also have more disposable incomes; the domestic market provides enough opportunities along with higher margins.

Fibre2fashion News Desk - India

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