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Clothing producers join forces to setup retail stores
03
Feb '10
After years of disregard displayed by domestic producers of clothing towards marking a presence in the domestic markets, these companies are now joining forces to expand their supply chain networks as well as increase their distributor and retail networks.

Most of these companies which are mainly medium and small firms are perturbed by the high rental and distribution costs of creating a presence in the local markets, which is the biggest factor in companies displaying disinterest from penetrating the markets.

Along with which, large amounts are needed to spend in product branding and marketing of the goods, which is beyond the capacity of small and medium firms. Only large-scale enterprises with deep pockets are able to do so, leaving the smaller ones in a quandry.

For example, The Nha Be Garment Company has invested more than VND20 billion (US $1 million) to build and develop its new 'NBC' brand and expand its distribution channel and increase the number of retail stores nationwide.

Gia Dinh Textile and Garment Corporation (Giditex) and Saigon 2 Garment Joint-Stock Company with its Gidini and Sanding brands, recently joined forces to open new retail stores. It will also help offer customers a diversified variety of goods.

The Vietnamese clothing sector which manufactures apparels for global brand names has been struggling to find a footing in the local markets, which have been swamped by textiles and clothing from China and Thailand, which offer new designs every month.

The free trade agreement signed between ASEAN and China comes in to effect in Vietnam in 2015, Experts say that Vietnamese manufacturers have five years to develop brands and set up good distributor and retail networks.

Fibre2fashion News Desk - India

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