The cake is not easy to eat

In 2023, due to many difficulties in export orders, many Vietnamese enterprises are looking for deeper investment and development in the "home" market.

For example, last year Duc Giang Corporation - JSC launched the HERADG collection, with materials used from environmentally friendly natural fibers such as silk, poplin, recycled fabric... Along with a series of other fashion brands such as S.PEARL, Paul Downer, DGC, Forever Young, Duc Giang Garment's fashion products are increasingly gaining a foothold in the market.

Or as with May 10 Corporation - JSC, the company's office fashion products are increasingly known to consumers. Confident in the competitiveness of May 10 products in the market, Mr. Hoang The Nhu - Deputy General Director of May 10 said: May 10 focuses on product quality and aesthetics by investing in the design team. Currently, May 10 has a network of more than 10 creative designers who are well-trained, then invest in controlling input materials to suit the Vietnamese market.

Domestic textile market: Not an easy cake to eat. Photo by Thu Huong

Along with that, May 10 deploys solutions to improve services before, during and after sales, increasing customer experience through digital technology. When searching for products, customers can experience them through the 3D application before choosing the style, color, etc. before making a decision together. “ During the process of using the product, customers can respond to updated information quickly and that is the solution that May 10 uses to create trust and prestige for the business, ” said Mr. Hoang The Nhu.

Despite systematic and strategic investment, developing the domestic market is very difficult for domestic textile and garment enterprises. The small market size and fierce competition with foreign brands are important reasons.

Mr. Le Tien Truong - Chairman of Vietnam Textile and Garment Group once shared that the size of Vietnam's domestic textile and garment market is only around 5 billion USD - a number too small compared to the production capacity of enterprises in the industry.

In addition, many domestic and foreign fashion brands have been using many technology platforms to distribute in Vietnam, making the competition in the domestic market increasingly fierce. More than 200 foreign fashion brands such as Giovanni, Mango, Zara, H&M, Uniqlo, Warehouse, Topshop, CK, Nike, and Levi's have penetrated the Vietnamese market and are planning to expand their stores.

2023 is also the year that witnessed the expansion of the number of stores of several major brands in Vietnam, typically Uniqlo. Currently, with 8 factories and 240,000 workers producing Uniqlo products in Vietnam, Uniqlo products made in Vietnam have been supplied to 2,400 Uniqlo stores worldwide. In addition, despite the not-so-bright economic outlook, in 2023 Uniqlo opened 7 new stores to bring the total number of stores in Vietnam to 22.

Uniqlo Vietnam General Director Osamu Ikezoe said: In 3 years of development, with the number of direct stores as well as online stores, we have achieved the goal of penetrating and expanding in the Vietnamese market. This achievement is the driving force for the expansion of new stores in the coming time to satisfy the strong demand of customers.

In addition, H&M stores are currently present in the 5 largest cities and provinces in Vietnam with more than 12 stores. Last year, the brand focused on investing more in online stores. At the end of 2022, the Korean youth brand MLB opened 3 large stores in Ho Chi Minh City and Da Nang. Currently, the brand has opened 18 stores nationwide.

Foreign fashion brands have advantages in terms of long-standing famous brands, capital, human resources, technology as well as market experience compared to domestic brands. The “preferring foreign goods” mentality of a large number of Vietnamese consumers is also a favor for foreign brands.

Besides competing with foreign fashion brands, according to Mr. Hoang Ve Dung - Chairman of the Board of Directors of Duc Giang Corporation - JSC, the difficulties in developing the domestic textile market include design, raw materials and consumption, which are three equally difficult stages, all of which require concentrated investment capital to solve.

Besides businesses with clear orientation and strategy, developing the domestic market is considered by domestic textile and garment enterprises as a "salvation" when the export market is difficult.

“ Enterprises connect with each other to implement domestic orders, but in reality the domestic market is still facing difficulties due to inflation and low purchasing power. That is a general compensation solution for production, not an orientation ,” Mr. Pham Xuan Hong, Chairman of the Ho Chi Minh City Textile, Embroidery and Knitting Association, emphasized.

Source: https://congthuong.vn/thi-truong-det-may-noi-dia-mieng-banh-khong-de-an-304349.html