Vietnam Time

1/8/2018 10:42:11 AM

Vietnamese consumers and the madness of brand goods

VNF - The fashion brands from popular to high-end, fast food, beverages, retail chains, movie theaters, ... recently landed in two major markets of Hanoi and Ho Chi Minh City. 2017 marks the development of retail sector as dozens of global brands enter Vietnamese market.

Photo for illustation 

In November, it was witnessed the scene of thousands of customers lining up very early, some young people even waiting almost half a day to become the first to buy H & M clothing when the brand officially entered the North market. Just a few minutes ago, Zara also opened a thousand- square-meter store at Vincom Ba Trieu.

Although they are just popular brands, Zara and H & M are very attractive to Vietnamese fashionista. Evidence shows that the spectacle lined up not only in Hanoi but in Ho Chi Minh City also.

Uniqlo plans to open its first store in Vietnam in the near future. Meanwhile, Stripe International, the Japanese fashion company, is preparing to complete the acquisition of NEM Fashion Corporation.

Previously, a series of international fashion brands from popular to luxury such as Topshop, Mango, Gap, Giordano, Old Navy, Coast, Karen Millen and Miss Selridge, Giovanni also landed in Vietnam.

After over 3 years of presence in Vietnam, McDonald's marked its presence in Hanoi. Hours before the store opend, many people queued waiting to be served this U.S fast food.

After many days waiting, finally, the first store of 7-Eleven was officially opened in Vietnam. Long lines of young people are present in front of 7-Eleven from 6 to 7 am only to be one of the first customers to check-in at this store.

In the field of entertainment, CJ CGV Vietnam (CGV) of Korea recently promoted investment in the provincial market. As planned, the company expects to build 12-15 new cinema complexes each year, including 4-5 in remote provinces. It is expected that by the end of 2017, the company will operate 55 cinema complexes across the country, including in Yen Bai, Ha Tinh, Tra Vinh, Kien Giang, Vinh Long.

According to latest data, Vietnam has 148 international franchise brands. Food and beverage sector still dominates with a number of well-known brands operating successfully in Vietnam such as KFC, Lotteria, Jollibee, Pizza Hut, Burger King, Starbucks, McDonald's, Domino's Pizza, Popeye's Chicken, Texas Chicken or Coffee Bean & Tea Leaf, ...

In the near future, many other names will also be present in Vietnam. Walmart- the largest retailer in the world, is headquartered in Dong Khoi Street, Ho Chi Minh city. Now they are researching the market before officially opening the supermarket.

IKEA, the largest furniture retailer in the world which has been officially present in Australia, Japan, Hong Kong, Singapore, Malaysia, Thailand, China and Taiwan, is also expected to be available in Vietnam.

The market lays golden eggs

In the field of fashion, foreign brands have great attraction for consumers in the country. That is a few reasons for fast foreign fashion firms massively landed in the potential Vietnam market. After only a year of its first store in Ho Chi Minh City, Zara Vietnam's revenue is now in the top five of its global best sellers.

H & M said that Vietnam is a fast growing market with high potential in the fashion industry, ranked 68th globally and is H & M's fourth market in Southeast Asia.

Research by Statistics Portal, a German market research firm, said that Vietnam's fashion revenue in 2017 could reach USD 358 million. Revenues show annual growth (CAGR) for the period 2017-2022 is 22.5%.

Recent survey by Niesel shows that Vietnamese clothing expenditure ranks third, just after food and savings. Notably, Vietnamese ranks third in the world on luxury brand addicted.

As predicted by VF Franchising, the franchise market in Vietnam will reach 20% to 25% growth in 2017. With more than 95 million people, Vietnam is one of the countries with rapid GDP growth on the world. Franchisees have seen significant opportunities in Vietnamese expenditure, particularly in food and beverage industry.

Meanwhile, a representative of a media company said that Vietnam's population is double that of South Korea, so the film industry has plenty of room to grow in the next decade.

The presence of international brands in Vietnam opens up opportunities for local consumers and enhances Vietnam's position on the international map. However, this also puts pressure on the domestic units, if not competitive enough, they will be eliminated right at home./.

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