Apparel and Footwear Specialist Retailers in Vietnam

PROSPECTS

Increasing interest in global apparel brands

Economic growth driving an upmarket shift in demand and increasing access to the internet are supporting a trend towards using global branded products amongst Vietnamese consumers, especially in apparel and footwear. In fact, with rising disposable incomes, affluent consumers often look to shopping centres/malls for a satisfying shopping experience with an array of international brands from cosmetics, apparel, and accessories, to kitchenware.

Upmarket trend bolsters position of luxury retailers

The upmarket trend in consumer demand is supporting the increasing strength of high-end players in apparel and footwear specialist retailers. Indeed, thanks to rising numbers of high-income white collar workers, premium branded apparel and footwear are becoming increasingly popular choices for consumers looking to display their status in both working and leisure contexts.

Growing focus on e-commerce and online activity

Towards the end of review period, with high internet penetration in Vietnam and the increasingly central role of smartphones in the lives of, particularly younger, consumers, there was a gradual increase in consumer interest in shopping online. This has been pioneered by small and medium-sized local players, many of which started with online shops before bricks-and-mortar stores to save costs and reach a wider audience throughout the market.

COMPETITIVE LANDSCAPE

Blue Exchange maintains favourable consumer perceptions

Blue Exchange Co Ltd is the leading player in the fragmented apparel and footwear specialist retailers channel. In contrast to the declining fortunes of many local retailers, the company is managing to maintain consumer credibility and loyalty in the market thanks to perceptions that it offers high quality products and services, as well as continuous brand development.

Competition from counterfeit products

Foreign multinationals looking to target the growing consumer interest in international brands face a significant challenge from counterfeit products. Indeed, some players have chosen to close down unprofitable outlets in the face of this threat.

A fragmented channel with opportunities for smaller players

Apparel and footwear specialist retailing is highly fragmented and unorganised in Vietnam. There is a very high number of individuals and unregistered small businesses in both urban and rural areas, selling either their own products or items that are imported from China and Thailand.

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