After Vietnam joined the WTO, it cracked down on faked and copied goods. Foreign renowned fashion brands have begun to enter Vietnam. How are Vietnamese producers and designers coping with this "cyclone?”
In mid-May 2007, a series of world fashion giants established their presence in Vietnam. Gucci opened its shop at Sheraton Hotel in Ho Chi Minh City; CK and Mo&Co in Diamond Plaza, Ungaro, Timberland and Guy Laroche; Levi's are in Parkson or Burberry; LV, Lacoste and Dr. Martens are displayed at Opera View on Dong Khoi Road (Ho Chi Minh City). The selling price of famous brand products is high, ranging from US$50 or US$70 to hundreds of USD each, but they are still very attractive to customers. According to experts, the Vietnamese high-grade fashion segment is keeping two-digit annual growth.
Individual designers: “Nothing to worry!”
Individual designers acknowledged that the entrance of world-leading fashion brands in the Vietnamese market is a good and inevitable development. Designer Hoang Ngan, a lecturer at Ho Chi Minh City Architecture University, thought: “The presence of famous fashion brands in Vietnam is a good signal and proves that the Vietnamese fashion market is very active and has strong purchasing power. Consumers have paid more attention to fashion and know how to smarten their appearance. This is also an opportunity for designers to compete in their careers and learn management and administration.” Designer Viet Lien added: “There is nothing to worry about. This is a good sign for the apparel market in the country. We will have the chance to learn from the experience and professionalism from foreign companies.”
State-owned enterprises joined
Although the garment and textile export revenue of Vietnam in the first five months this year was a bit lower than last year’s earnings to US$2.7 billion, it was only second to crude oil export. A large majority of State-owned enterprises focus on exports and left the home market for private or foreign companies from China, South Korea, Hong Kong and Thailand. After joining the WTO, most Vietnamese garment and textile companies made new progress and paid more attention to their home market. Mr Phan Van Kiet, Deputy General Director of Viet Tien Garment said, “At present, our company has five brand names of Viet Tien, Vee Sendy, T-up, San Sciaro and Manhattan. To realise 30 per cent of the domestic market share by 2010 (currently 15 per cent), we are striving to carry out strategies to make comprehensive renovation by intensifying the designer workforce, developing distribution systems, building trademark development strategies, training human resources, cooperating with strategic consultant companies and developing top trademarks in foreign countries.”
However, to develop a complete “made in Vietnam” fashion trademark is not an easy project. The T-up brand of Viet Tien has not received strong consumer trust although it has been strongly invested. The F-House brand name of Phuong Dong Garment Company is also designed to expand local sales, but it is still meeting difficulties in creating a unique and special impression. Especially, apparel for young people are of simple design and unable to compare with imported products from Thailand, China and South Korea. An Phuoc Garment, with its Pierre Cardin brand franchised from a French fashion firm, is only able to grasp a small share of the shirt market and its customers are mainly high income earners like businessmen as its price remains unaffordable for most Vietnamese people. Most recently, Nha Be Garment has shifted to designing handmade suits for customers to expand its market share for this high-grade product.
However, a large majority of State-owned enterprises now are satisfied with their tiny domestic market shares. All motives and strategies to develop trademarks in the home and foreign markets remain in the “embryo” phase. The deficiencies of State-owned enterprises are the market approachability and fashion trend orientation, especially for the younger generations. (Young People)
Vietnamese
