Home / Knowledge / News / Textiles / Apparel firms shy away from rural areas

Apparel firms shy away from rural areas

04
May '10
Textile, apparel and consumer product producers are not willing to explore and develop rural markets of Vietnam, despite the fact that a large percentage of the population lives in rural areas.

The reasons are not far to seek. There are about 60 million consumers living in rural areas, but the rural consumer market accounts for only 27 percent of the country's total retail sales, according to a recent survey.

The other big challenge is in setting up of well-oiled distribution networks, which can help goods reach the remotest corners of rural Vietnam, the investments for which are very high.

This is the main reason why, small and medium sized producers are shying away from reaching the rural consumers. The second major reason is the availability of cheap Chinese consumer and apparel goods.

Since the domestic companies did not concentrate on fanning out in to rural markets, cheap and sometimes low quality Chinese goods have flooded the rural as well as urban markets of Vietnam.

Mr Binh of Ha Noi Textile and Garment Co, a big textile firm justifies by saying that their products are focused at the middle and upper class consumers, due to which they have not targeted rural areas.

As per an expert, a long-term retail strategy needs to be developed to help these enterprises produce high quality, low-priced products and establish a comprehensive distribution network.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 28th Mar 2020

Worldwide lockdowns, stimulus shots, raised PPE production

The global response this week to the unfolding COVID-19 crisis saw...

Pic: Shutterstock

Apparel/Garments | On 28th Mar 2020

Vietnam may outdo Bangladesh as 2nd largest RMG exporter

Though Bangladesh is now the second-largest garment exporter...

Pic: Shutterstock

Textiles | On 28th Mar 2020

Morgan Stanley rules out economic depression

With COVID-19 badly damaging the global economy, Morgan Stanley...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

African fashion has a strong identity

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Top executives, Textile industry

Top executives
Textile industry

Denimsandjeans India 2018

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Mala Alwani,

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Vasudevan LK,

Vasudevan LK

Epson is a world leader in digital imaging and printing solutions....

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

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

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

Leave your Comments


March 2020

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


Advanced Search