With a number of foreign fast fashion brands entering Vietnam and some of them offering products at reasonably competitive prices, Vietnamese brands, such as Ninomaxx, Foci, Hagattini, Viet Thy, PT2000, BlueExchange and Ttup, are losing market share. Analysts feel local brands have to make changes and hire skilled design staff to retain consumers.

For example, Thoi Trang Viet, the company which owns Ninomaxx, had 200 shops once. It has now cut the number to 64, with most shops located in the country’s south, according to a report in an online newspaper in Vietnam.

Consumers in developing nations rushing to buy global fast fashion is a growing tendency and Vietnam is no exception. Zara, Stradivarius and Massimo Dutti from Spain and H&M from Sweden have entered Vietnam with a very positive consumer response and Japan’s Uniqlo will join soon.

The foreign brands now have to cut production costs to improve competitiveness and instead of launching seasonal collections, they now just introduce more collections throughout the year.

Zara is selling in Vietnam at prices 15-20 per cent lower than in Thailand, Singapore and Malaysia for select items. Besides pricing strategy, the success of global fast fashion brands depends on their capability to launch new products.

Zara, for example, can design, produce, do marketing and distribute a new product to 93 countries with 2,213 shops within two weeks. (DS)

Fibre2Fashion News Desk – India

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