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Vietnam: Local garments win back home market from China


http://www.texnet.com.cn  2012-01-11 09:47:16  来源:CTEI 收藏

Many Vietnamese garment brand names have gradually gained back local market share in low-cost product segments targeting average-income consumers, which used to be dominated by Chinese products.

Many fashion stores on Ho Chi Minh City’s Le Van Si and Nguyen Dinh Chieu streets, which used to sell large amounts of Chinese garments, have now reduced the ratio of Chinese-imported products in their stocks.

Stores selling Chinese women garments and accessories have recently received few customers, even though product prices are only around VND200,000-500,000 (US$12-24) an item.

Meanwhile, boutiques of local businesses such as Ha Gatini, Ninomax, N&M, Viet Thy, Viet Tien, and An Phuong are always full of shoppers, especially at night.

Phan Van Kiet, deputy CEO of Viet Tien Co, said buying power has so far risen by 25 to 30 percent year on year.

Viet Tien has also increased supply by 30 percent to meet demand, which is likely to soar further as the Lunar New Year is approaching, Kiet said.

Specifically, he said the company increased supply of products intended for workers, laborers, and low-income earners by as much as 60 percent.

“Our Viet Long brand, which is intended for these consumers, now costs around VND180,000-250,000 a product,” Kiet said.

“Our sales, as well as those of other local garment manufacturers, have surged, since consumers no longer accept low-cost garments with dubious origins, including Chinese products.”

For her part, Dang Quynh Doan, director of Viet Thy Fashion Co, said many local garment makers have won back home market share thanks to the fact that consumers have turned their back on low-quality products originating from China.

“Viet Thy’s most-consumed products are those whose prices range between VND150,000 and VND260,000, the segment which used to face harsh competition from Chinese counterparts in previous Lunar New Years,” Doan said.

She said Chinese garments are now only VND10,000-15,000 an item cheaper than Vietnamese products, since China is no longer able to make use of its advantage of low production costs.

For its part, the local fashion garment chain Vinatex Mart also said sales have unexpectedly soared since last Christmas.

The company’s marketing director, Pham Thi Quynh Ny, said supply for the coming Tet holiday soared by 57 percent year on year.

Daily sales of the entire chain are around VND9 billion, a 192-percent increase compared with normal days.

Meanwhile, in the high-class segment, most of the market share is still held by Korean, Malaysian, and Singaporean manufacturers.

A shop assistant at a fashion store in Zen Plaza said few customers come to the store these days, since prices are too high given the average incomes of most consumers.

“Korean or Malaysian products cost around VND2-4 million for a pair of jeans or a shirt, which is too expensive,” Tran Thu Trang, a shopper at Zen Plaza, said.

“I can only buy when they are on 50-percent discount.”

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文章关键词: Vietnam  garment market  Chinese garments 
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