Thursday, July 15, 2010

Vietnam Garment producers try to expand domestic distribution

Jul 6th, 2010

In the last year, domestic garment producers opened 220 retail shops that sell office-style garment products for men. It is expected that 80 more shops will be opened by the end of 2010.

Gaining market share with more shops

“Mattana” trademark of Nha Be Garment Company is leading the market in terms of its distribution development rate, with 100 new shops within one year. “Viet Long” brand of Viet Tien Company opened 30 new locations agents within six months. If counting the 500 shops bearing its name and the 22 shops with the “Sanciaro – Manhattan” trademark, Viet Tien Company is leading the market in terms of the widest distribution network.

An Phuoc Company is following the “sight effect” plan and has decided to open 10 new shops a year instead of 3-4. An Phuoc now has 79 retail shops.

Khanh Viet Company has opened four new retail shops to promote its “Khatoco” line and it plans to open 50 shops specializing in office-style fashion for men across Vietnam. “Viet Tay” brand was born in late 2009, but has five shops in HCM City and 10 more will be set up in surrounding districts.

Vietnamese garment producers are now dominating the men’s office fashion market with a wide distribution network covering street shops, supermarkets and shopping malls. There are a wide range of products, from those priced at 150,000 dong to shirts priced at one million dong.

Vietnam-made shirts now appear in high grade shopping malls, including Parkson, Vincom and Zen Plaza, side by side with imported garments, demonstrating the strong development of domestically-made products.

Each company has its own advantage

Vietnamese garment producers are confident in entering the high quality men’s clothing market. All companies say they have advantages of their own in making products and competing with other producers.

Tran Huu An, a senior executive of Khanh Viet Textile and Garment Company, noted that they can weave patterned fabric in accordance with specific designs. Khanh Viet has the financial capability to buy garment materials at good prices, they have a large distribution network, and they have staff who can ensure products arrive at the stories very quickly.

According to Le Mac Thuan, Deputy General Director of Nha Be Company, “Mattana” shirts are quite different from those made by other companies, because the shirts are made with Japanese technology, which is quite different from European or US technologies.

Services still not good

Most garment producers still come up short in service. Some shirts are not produce in many colours, while others do not have different sizes. Sales agents are now offering both low and high quality products and salespersons push consumers to buy low quality products in order to enjoy bigger profits.

A company may have hundreds of stores, but if people want to make an exchange, they must come to the shop at which they purchased it.

Most companies have made heavy investment in producing good products, but the money is not enough to build up brand names.

Dinh Tien Na, the officer in charge of developing “Sanciaro” of Viet Tien Company, explained: “High quality products are not everything. The development of a trademark still depends on the quality of service, from sales service, the image and design of retail shops, sales associates and the shop atmosphere.”

According to The Pathfinder consultancy firm, one Vietnamese person now spends 420,000 dong per year on fashion clothing. In 2010, urban residents will spend 1,400,000 dong annually, while rural dwellers will spend 140,000 dong. It is estimated that the fashion market for men is worth 8600 billion dong a year.

1 comment:

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