Vietnam is not a luxury market that is easy to succeed ｜ Shanghai Fashion Week observation
Editor’s note: In Shanghai Fashion Week, the ordering of the central urban area will increase the business atmosphere and continue to make efforts to “Asia’s largest ordering season”.Overseas participating brands explore the Chinese market, and local emerging forces focus on international attention. Designers, buyers, and media are all indispensable participants.This season, the First Financial Shanghai Fashion Week specially observed that many guests were invited to share their fashion propositions.The second phase is the founder of GlobalLink, and Tran THI HOAI ANH.
“You also need to make an English version, so that you can face more markets.” Trans THI HOAI Anh said to a principal with a product book.
For the third time I came to Shanghai Fashion Week’s official exhibition Mode Shanghai Clothing and Clothing Show, the picky buyer quickly entered the state, talked with the brand leader, gave opinions in a timely manner to confirm whether there was a cooperation intention.Throughout the February and March, she ran to find a talented young designer at the order of major fashion weeks and invited them to develop business in Vietnam.
Anh is the founder of Globallink. This company incorporates many luxury brands such as Silin, Parisia, Givenchy, and Luo Yiwei into Vietnam’s retail network. Starting from a single brand boutique store, she now has 5 Runway buyers in Vietnam.The local media “Viet Nam News” calls it “a woman who brings luxury fashion brands to Vietnam”. In 2014, she was included in the top 500 global fashion industry figures by well -known fashion media BOF.
Similar to China 20 years ago, Vietnam is growing into a potential luxury market.When the consumption of this part of China, Japan, South Korea and other countries is becoming more and more saturated, Southeast Asia is considered the next place for the Nuggets.Especially in 2019, after 9 years of negotiations, the European Union and Vietnam officially signed the EU and Vietnam Free Trade Agreement and the EU Investment Protection Agreement. In terms of commodity trade, more than 99%of tariffs will eventually be canceled.
In addition to the biggest obstacles to the Vietnamese market, the policy dividend breaks, and the luxury industry has obviously benefited from it. Multiple brands have accelerated the expansion of diversified layouts -moved the fashion show to Hanoi or Ho Chi Minh City, and then set up stores and set up localized teams.The story is constantly being staged.According to market research institutions Statista, the turnover of Vietnam’s high -end retail market in 2023 will exceed 957 million US dollars, and the average annual growth rate of about 3.23%in the phase of 2023 to 2028 will be about 3.23%.
For more than 20 years, Anh has witnessed the cage and birds of the Vietnamese luxury market industry. Ten years ago, the wealthy group may not be divided into Qingguchi and Prada. Nowadays, the head brands are still the most fans. At the same timeOpening, the acceptance of niche brands and independent brands is getting higher and higher.”Most independent designers are very free in style. I like this very much. They do not have the pressure of budget and will not be bound by the sales figures, so there is more space to do what she likes.” She told her toldFirst Finance.
Although Vietnam’s potential business opportunities are generally optimistic, it is not easy to persuade brands to cooperate with themselves.”In the minds of many people, Vietnam is like a small corner far from the world. The brand does not believe that we can sell their products, so it takes a little time to convince them.” In her opinion, the Vietnamese market has huge potential, butRegardless of whether it is a mature brand or a pioneer brand, it is not easy to achieve success in the business sense. “The mentality of the Vietnamese is very open and is particularly willing to accept new brands. However, when they realize that the quality of the product does not meet their expectations, theyAt the time, this brand will soon be abandoned. “
In this set of logic, creativity and innovation are the core competitiveness of all brands, and it is also the increasingly scarce and precious resources in the fashion industry today.Anh always believes that from buyers to the market, all aspects of the industry need to provide more opportunities for young people and give them support.”If everyone only believes in those famous brands, how can the younger generation build their own brand and business?”
“Those super -enthusiastic designers have some things in their hearts that are burning, hoping to share ideas, craftsmanship, and even research fabrics. These are very important. And some brands, they only consider making money and expansion. TheyI hope to quickly promote the business. This is very difficult, because the success of any brand is achieved overnight, it takes time. “Anh said.
Talk to Transte Hoai Anh: The younger generation of Vietnam is more willing to try different types of fashion styles
Vietnam’s luxury market is more diverse
First Finance:The Chinese luxury market has gone through ten years. Is Vietnam’s similarities?What development problems do it currently encounter?
Transte Hoai ANH:The development of Vietnam in the luxury market is indeed similar to China, but the level of development of the two countries is still different.The advantage of Vietnam is that we have a very younger generation. They are very open to fashion and are keen to experience new things.Therefore, Vietnam is a very potential market for luxury brands.
If a brand wants to open up the Vietnamese market, you need to pay attention to some aspects.For example, they cannot obtain very transparent data in Vietnam, mainly because our infrastructure is not perfect, and there are not many big data to support it to help brands infer whether their products are suitable for the market.In the retail industry, the infrastructure of shopping malls and stores is very important, but the current development of Vietnam in this area is very limited, and most developers do not know what a luxury brand wants to rent.So we need time to understand each other, although this will sometimes become a problem that hinders market development.
When it comes to purchasing power, it can be said that Vietnam’s purchasing power is still relatively low.There are more and more middle classes in Vietnam, but the gap between them and China is still large.The luxury brand that wants to develop south needs to consider this problem because they may not be able to achieve their sales in China as expected.
First Finance:You have said that ten years ago Vietnamese consumers were still distinguishing from Kochi and Prada. So what brands do we currently like?
Transte Hoai ANH:Vietnamese consumers have a richer awareness of luxury goods.The rich group still likes top brands like Louis Vuitton and Gucci very much, but they have become more open and began to accept other brands, such as Alexander McQueen or Kouyi.This means that they are looking for some high -quality and interesting things, not just classic models.
The younger middle class is more willing to try different types of fashion styles.We bring some brands such as Qiuhao, Jiu Hua, and Ming MA to Vietnam, and these consumers are also willing to buy high -quality products made in China.Of course, the current fashion is more personal preference for them. They hope to speak and tell the world what they like and what they want to wear.So this is more like an experimental fashion.
Many years ago, Vietnamese girls tended to wear like their mother or grandmother, but now, the mother wants to wear like a daughter, so that they are younger and more interesting to some extent.I saw the change of the younger generation and the middle class when they pursued luxury goods, and also saw the rich group tried fresh and younger products.This diversification is a good thing for us.
The task of buyers is to give market feedback
First Finance:The maturity of the luxury market is bound to nourish the niche brand. Global Link has also begun to sell trendy brands. What kind of independent design style is easier for Vietnam to gain a lot?
Transte Hoai ANH:Retailers are very willing to talk and communicate with designers and tell them our preferences.But many young designers do not agree with our point of view.Some of them only pay attention to appearance and feelings, not real details, they do not understand the market.In the end, we all need to understand that no matter what we do for ourselves, but for the market, the designer group must clearly know who we want to sell the product?What is what you really want to do?They must understand their strengths and shortcomings, then make up for the shortcomings, and then communicate carefully with us, always pay attention to market trends and fulfill their promises.
We sometimes have a lot of suggestions for designers to design tailoring, so that they can make some adjustments to the works to better adapt to the market. In this way, their sales are better and can enter a larger market.In my opinion, to some extent, this is the task of buyers. We need to give market feedback and market preferences. I hope this can help the designer group.
First Finance:There are too many marketing activities now, they can’t help designers and brands understand the market?
Transte Hoai ANH:If a brand really cares about the market, they will want to know why these products sell well, and others will not sell well. As long as the brand is brave and straightforward to ask these questions, they will always get answers.Of course, they also need to consider the pricing structure and communication strategy to discover where they are limited.
Some brands only care about what they like to do, but what they do not understand is that it is not that the designer decides whether the customer is purchased or not, and the decision -making power is in the hands of customers.Therefore, to clarify the two things, the designer has the inspiration of the designer, and has his own story to tell the customer, and the customer may feel that the story is great, but because of various reasons, the product is not suitable for me.Then the brand needs to make adjustments.
I always say that those brands who are willing to listen to market voices and willing to spend a lot of time to visit the store and learn competitors are generally successful.And those who have too many self, do not care about the outside environment, only believe in the brands of themselves and listen to others, their growth will be more difficult.Unless these brands are really good, designers are talented and can dominate the market, it is difficult to really develop.
First Finance:You have helped multiple luxury brands open the Vietnamese market. For overseas independent brands that want to open up the Vietnamese market, how to find suitable partners and pricing strategies?
Transte Hoai ANH:It is not just a fashion industry. It is very important to find business partners in any field.Before you really come to a market, you must understand the market in advance, clarify how other brands in the market perform, and the country’s population, rules and regulations, and tax policies.
For the retail industry, you still need to know who is the largest player in this market and which brand sells things similar to you.For example, in Runway, what we do is the luxury industry, with top -level brand customers. These customers will not only care about prices, but also care about craftsmanship and style. If you do not have enough self -confidence to serve these customers, you do n’t have to come to us.It is also important to find a partner similar to your own brand. If these people have a good reputation in the industry, then you know who to learn from.
The wrong pricing structure cannot maintain the long -term development of the brand, so you need to know the value of the product and understand the cost structure and profit.You can calculate the price of competitors and the tax system.When you finally get the target profit of the brand, you can determine the retail price of the product.
In addition, the brand needs to understand that in addition to Vietnam, there are other markets, there is a competitive relationship between them.For example, the price of some brands in China is sometimes much higher than Europe.In my opinion, this is wrong, and the pricing of different markets should be a little less different.Because the customers who order the phone may come from France or other countries, it may be a ‘trap’ for the brand.And when you lose this customer, you don’t even know which market customer you lose, where you can find him back.
Always ready to plan B
First Finance:With the slowdown of the economy, what is the further impact on the fashion market?
Transte Hoai ANH:Although the global luxury market is slowing, in any environment, there are always people’s income increasing, and some guests really disappear.For all brands and all businesses, it is a very difficult period now.Brands should focus on core values and core products, and make correct decisions. Is it more expanded or focusing on a certain market?
This is also critical for buyer stores.We must decide which product type to the market.I believe that the market is big enough, and every brand has a chance, and there are inevitably some crises.There are many other issues, such as the supply chain, your design may be good, but there is no factory production, and the materials cannot be delivered on time.Everything may happen at any time, so you must prepare for this and have another set of B plans.
First Finance:For Chinese independent designers, everyone is discussing how to survive first.
Transte Hoai ANH:This depends entirely on their talents.If they are talented, they will have a market.But in a global scale, or a large market like China, you will find that people spend less money, and the number of brands is more, so the cake has become smaller. You must surpass other brands with a better design.The pricing structure should also be more reasonable, and then choose a more reliable and talented partner.As I mentioned earlier, you must also listen to market voices, formulate more complete online and offline marketing strategies, and take care of various needs in all aspects.Previously, the designer could still succeed in luck, but now you must have talent.
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