return icon Vietnamnet.vn

Women's footwear and products: multi-billion dollar market

VietNamNet Bridge - Many Vietnamese businesses have spent big money to build up their brands to conquer the home market, despite the popularity of Chinese cheap products here.
VietNamNet Bridge - Many Vietnamese businesses have spent big money to build up their brands to conquer the home market, despite the popularity of Chinese cheap products here.


{keywords}

Unwrapping a gift box on Valentine's Day, Minh Ha felt excited when realizing that the gift was a pair of boots. After trying on, Ha put the boots into her closet with five other brand-new pair of boots. 

Ha and other Vietnamese women spend more money on shoes, cosmetics and fashion products than their mothers and grandmothers did in the past. This has prompted many investors to pour money in the projects to develop fashion brands.

Besides the once-famous brands such as Hanh Dung, Hong Thanh and Dong Hai, the market has seen a lot of newcomers including Vascara, Evashoes, Junor and Sablanca.

Many Vietnamese businesses have spent big money to build up their brands to conquer the home market, despite the popularity of Chinese cheap products here.

Analysts said that joining the domestic fashion market is a daring move for domestic investors. Vietnam, while listed among the world’s top four footwear manufacturers, mostly does outsourcing instead of making products under its brands.

This explains why Hanh Dung, Hong Thanh and Dong Hai, considered the ‘elder brothers’, have fewer than 10 shops each, mostly in HCMC. Some brands have shifted to distribute products of other manufacturers, while others have failed to build up their brands in the domestic market because of the weak distribution networks or unreasonable products.

However, the failure cannot prevent other investors from proceeding. Established in 2007, Vascara, with Brazilian origin, design and production center in Vietnam, managed by Vietnamese, has had more than 80 shops throughout the country.

Juno, present for 10 years in the Vietnamese market, has become well known in the last two years after receiving investment from Seedcom. With support, Juno now has nearly 40 shops in six provinces and cities.

While fashion companies generally don’t pay high attention to online marketing, Juno spends big money on this work. A report of Buzzmetric showed that Juno was the brand with leading number of interactions on last year’s Black Friday, 52,000, which was higher than foreign brands such as Zara, H&M and Adidas.

There are two common characteristics for Vascara and Juno. First, both of them focus on mid-end products, not luxury items. Second, their products are diverse and have youthful designs.

According to Juno and Vascara, the domestic footwear & handbag market is estimated to have value of $1 billion, in which businesses like Juno and Vascara hold 1-2 percent of the market share, while the gross profit is between 30 and 40 percent.

The Ministry of Industry and Trade estimates that the domestic market needs $1.5 billion worth of footwear products each year, while Vietnamese companies can satisfy 40 percent of the demand.


RELATED NEWS

VN expects 10 percent rise in leather, shoe exports

Taiwanese footwear giants scaling up presence in Vietnam


Le Ha

MORE NEWS

Hanoi targets GRDP per capita of 36,000 USD by 2045

Hanoi is set to become a globally-connected city with high living standards and quality of life, according to a new plan that aims to raise the Gross Regional Domestic Product (GRDP) per capita to 36,000 USD by 2045.

Vietnamese security expert honored by US wireless carrier

Ngo Minh Hieu, a white-hat hacker, has been honored by many US technology corporations.

Many real estate firms declared bankruptcy in 2022

The number of real estate firms declaring bankruptcy and dissolution in 2022 increased by 38.7 percent over 2021, according to the Ministry of Construction’s (MOC) recent report.

Electricity prices must be reasonable: PM

Prime Minister Pham Minh Chinh recently chaired a conference on domestic consumption and exports in 2023.

Vietnamese aviation market predicted to fully recover by year-end

The Vietnamese aviation market is forecast to fully recover by the end of this year, according to a global outlook for the aviation industry released by the International Air Transport Association (IATA) recently.

Many Japanese firms plan expansion in Vietnam: JETRO poll

Sixty percent of Japanese investors in Asia-Pacific polled in a 2022 survey by the Japan External Trade Organization (JETRO) said they plan to expand operations in Vietnam within the next two years.

Artificial intelligence programs can't replace human: Experts

With limited data resources and reliance on the will of programmers, AI-powered applications such as ChatGPT can give incorrect answers to user queries.

Despite decelerating, phone exports still have long-term prospects

Phones and components achieved an export turnover of US$57.9 billion last year, a year-on-year increase of only 0.8 per cent.

Hopes gaining ground for 5G commercialisation in 2023

With 5G commercialisation in the gun barrel for 2023, the road for tech players to expand in the market is around the corner, but more favourable conditions may be required to make the most of the situation.

HCM City to launch appropriate programs, policies to attract young talents

The Pham Ngoc Thach University of Medicine in HCM City on February 6 held a talk on seeking solutions for supporting and developing young talents and future leaders and implementing program 01 of the municipal Party Committee.

Admiring the tranquil beauty of the holy land

Located in Chuong My District of Hanoi, the ancient Tram Gian Pagoda has been known far and wide for its long history and beauty.

Central bank not tighten real estate credit: Deputy Governor

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

Vietnamese Prime Minister starts official visit to Singapore

Prime Minister Pham Minh Chinh, his spouse, and a high-ranking Vietnamese delegation arrived in Changi Airport on February 8 afternoon, starting a three-day official visit to Singapore.

Businesses discuss ways to overcome challenges in 2023

Warned that uncertainties will still exist in 2023, businesses need to prepare well to weather the storm.

Vietnam's bond market remains quiet this year

The scale of debt in the corporate bond market is less than 15 per cent of GDP.
back_to_top