Vietnamese large fashion houses may suffer more heavily than small ones if COVID-19 lasts more than six months.
With the opening of Japanese fashion giant Uniqlo in HCM City, locals now have another shopping option for affordable clothing, but the new store could also pose a threat to the local fashion industry.
Vietnam’s garment-textile sector is expected to make breakthroughs in 2020 thanks to the Fourth Industrial Revolution.
A number of famous international fast fashion brands have arrived in the promising Vietnamese market.
Japanese fashion retailer Uniqlo announced on December 25 it will open the first Hanoi store in the Spring of 2020, months after its country debut in Saigon.
Zara’s revenue reached VND1.7 trillion in 2018, six times higher than 2016 thanks to the Vietnamese people’s preference for fast fashion styles.
Swedish fashion brand Hennes & Mauritz (H&M) opened its first store in Da Nang and eighth in the country on November 28.
After announcing the opening of its first 3,000 square metre store at Parkson Saigon Tourist Plaza in Ho Chi Minh City, Uniqlo is now reqruiting staff in Hanoi.
Uniqlo considers Vietnam a key market which will help it access the Southeast Asian market. However, the strong development of Zara, H&M, Elise and Hnoss will challenge the global Japanese brand.
Prime Minister Nguyen Xuan Phuc said on May 27 that Vietnam hopes that Swedish investors and businesses will cooperate with and invest in the Southeast Asian nation.
Japanese casual wear retailer Uniqlo has advertised vacancies for managerial and retail positions in Vietnam.
Along with the impacts of the Comprehensive and Progressive Trans-Pacific Partnership, removing the requirement for an economic needs test will create more pressure on the domestic retail sector, and force local retailers to improve competitiveness to prevent being swallowed up by foreign players.
In tackling violations by e-commerce firms related to low-quality goods and fake discounts, the opening of dedicated shopping websites is set to become an inevitable trend in order to avoid negative impacts from conducting business on common e-commerce platforms, and reducing dependence on them.
The proliferation of foreign fast fashion brands in Vietnam is heating up the local sector and drawing in more and more newcomers, which forces local brands to transform and improve their capacity to compete.
For a population of nearly 100 million, of which the majority is at young age and with a steady growth of income per capita, Vietnam is considered potential market for fashion retailers.
Japanese casual clothing retailer UNIQLO unveiled its plans to open its first store in Vietnam during the fall of 2019, marking its further expansion in Southeast Asia.
Swedish fast-fashion clothing retailer H&M reported the lowest profit of the past 16 years, leaving the largest inventory in the company's history, promising a large wave of clearance sales for Vietnamese fashion hunters.
Domestic brands are expected to have opportunities to prosper in the local market amid the massive arrivals of foreign brands.
VOV.VN - Vietnamese model Chau Bui has attended H&M brand fashion show as part of Paris Fashion Week.
VOV.VN - Vietnam earns billions of dollars from garment and textile exports every year. But in the domestic market, local enterprises are facing fierce competition from foreign rivals.