The Rise of the Fashion Industry in Vietnam
Photo by: Quang Pham Duy
Model: Thanh Khoa
We are living in a memorable time. The whole world is looking to Southeast Asia in general and Vietnam, particularly as a promising land for the fashion industry. In 2020, Vietnam continued to welcome a wide range of international fashion brands in all segments and many domestic brands, whose names have become proven with time.
On the international front, Vietnam designers and fashionistas are working enthusiastically, gradually putting Vietnam on the fashion world map.
The Potential of the Vietnam Fashion market
The fashion industry is all about human beauty. Fashion businesses are known for attracting a significant amount of attention from consumers. In sewing and fabrics, Vietnam, known for its craft, is one of the most potential proving ground for this growing industry.
The life of the people in Vietnam has been improving. Therefore, their needs are also becoming more complex. One of the increasingly demanding fields is the Vietnam Fashion industry. In recent years, the shopping needs of consumers have increased sharply.
The rise of technology also plays a part in the development of the industry. The advent of supply chain analysis and user-behavior analysis helps brands understand and develop product strategies and customer-centric strategies. Also, there has been an increase in brands focusing more on customer experience.
In the current volatile environment, the fashion industry in Vietnam faces both opportunities and challenges. It takes a long process to create any product in the fashion industry. Each stage will bring different work characteristics from product design to selecting materials, inputting materials, hiring sewing workers, and end-user sales. As each step requires specific workers, the Vietnam Fashion industry has created jobs for hundreds of millions of people.
According to the most recent survey of the fashion market, including clothing and footwear in Vietnam in 2010, the industry contributes 3.8 billion USD, accounting for a significant proportion of consumer products. This trend is bound to continue in the upcoming years.
Fashion Brands in Vietnam
As the Vietnam Fashion market is a vast ocean of potential, many brands seek to dominate it. According to market research from Statista, the Vietnam Fashion market size is approximately 5.6 billion USD, with a projected increase of 8.8% per year in the 2019-2023 period. In particular, 97% of the revenue from the market comes from non-luxury goods.
As early birds, Zara (since 2016) and H&M (since 2017) are two prominent names in Vietnam's fast fashion market. On the other hand, despite its later presence, H&M's opening speed has surpassed Zara with eight stores in Vietnam's central cities, while Zara owns two stores in Hanoi and Ho Chi Minh City.
Over the past two years, with the arrival of global brands such as Zara, H&M, Pull & Bear, Stradivarius, etc., start-up activities, mergers, acquisitions, and expansion of Vietnam Fashion businesses have become increasingly proactive. Although many companies are shrinking or even disappearing after a rapid development period, many new brands with progressive initiatives and more modern schools of thought quickly take over the market and catch consumers' attention.
Compared to foreign brands, names such as Yvy Moda, Canafi, NEM, etc., are also highly appreciated for the reasonable correlation between price, design, and fabric quality. "Fast fashion" is also the keyword for the spending trend of ASEAN consumers in general and Vietnam. In particular, 49% of survey respondents stated that they were willing to spend money on clothes and vacations.
With the arrival of new investors worldwide every year, the Vietnam Fashion industry is under considerable pressure and competition with foreign brands. The emergence of international fashion brands meets the shopping needs of high-class fashionistas and satisfies shopping demands, and puts enormous pressure on the market for domestic fashion.
With such incredible competitive pressure, brands compete not only in products but also in services throughout the sales process. This directly touches on customers' psychology who tend to stay loyal to brands for both their products and quality of services.
Notable
Vietnamese designers
As mentioned above, Vietnam Fashion is creating an increasingly significant influence on the fashion industry worldwide. Therefore, it is imperative always to recognize the contribution of famous fashion designers who have helped bring Vietnam Fashion to the international stage.
One of those names is Cong Tri, who is known as a designer and as an adviser for multiple fashion, entertainment, and art shows in Vietnam and abroad. He has also been defining famous artists' personal styles in Vietnam and has attended many beauty contests worldwide.
Another up-and-coming contributor is Phuong My, a highly regarded Vietnam designer. She has earned many international showbiz stars' respect and trust and invited to the New York Fashion Week 2019.
Thuy Nguyen is also a Vietnam designer making headlines in the industry. Dubbed "The Silk Woman," she harbors an incredible dream of bringing traditional Vietnam Fashion to the forefront of the modern age.
Let us not forget Le Tran Dac Ngoc; an event organizer turned fashion designer who has found great successes on the international stage. He is also the chairman and founder of the Vietnam Fashion Week for Kids, based on the revered Vietnam International Fashion Week, another incredible achievement of the Vietnam Fashion industry.
The Success of the Vietnam International Fashion Week
As one of the major annual events of the Vietnam Fashion industry, over the years, A Vietnam International Fashion Week (AVIFW) has always attracted the audience's attention. Starting in the early days as a rudimental and straightforward occasion, now, the Vietnam Fashion Week has continuously grown and received recognition from professionals. At the moment, The Fashion Week occurs twice a year: The Spring-Summer Week in Ho Chi Minh City and Fall-Winter Week in Vietnam's Capital City, Hanoi.
Vietnam International Fashion Week Fall-Winter 2019 had in attendance six brands and 14 designers both domestic and abroad, including Hoang Hai; Thuy Nguyen (Thuy Design House); Adrian Anh Tuan (Valenciani); Devon Nguyen (Devon London by Devon Nguyen); Ivan Tran; Thao Nguyen (Happy Clothing). The fashion brands included Denim V-Sixtyfour, Aristino, Metiseko; Weill, Lek Chi Wedding Dress; Biluxury. The designers came from the London Institute of Design and Fashion (LCFD), Frederick Lee (Singapore), Kitwoo (Malaysia), as well as the Fashion Institute in Germany. Opening the 2019 Week was Vietnam designer Hoang Hai with his latest collection of Haute Couture style.
With its theme of "A Fashion Journey," the closing night of the Vietnam International Fashion Week Fall - Winter 2019 was dedicated to the designers who have contributed to the Vietnam Fashion industry's success in general and the Vietnam International Fashion Week in particular after ten seasons.
Overall, the Vietnam Fashion industry has seen plenty of changes. In 2020, people have gradually become more interested in live video shopping (Livestream). The arrival of the new 5G network technology also promises faster downloads and less latency. The media will be affected, as well. The industry will require discipline and smarter directions for an optimistic future.