The Evolution of Vietnamese Fashion: A Tired Trend?

1 December, 2024

“Japanese Global Fashion Brand Celebrates Five Years in Vietnam”

A well-known Japanese global fashion brand recently celebrated its fifth anniversary in Vietnam. Over the past five years, since the opening of its first store (UNIQLO Dong Khoi) in Ho Chi Minh City, the brand has expanded to 26 retail stores in prime locations across major cities in Vietnam, along with an online store.

International Brands Dominate

“Reflecting on UNIQLO’s journey in Vietnam over the past five years, we are proud that our LifeWear apparel has contributed to bringing positive value and change to Vietnamese people and society, becoming the choice of many customers in their daily lives,” said Mr. Nishida Hideki, General Director of UNIQLO Vietnam, at the anniversary celebration held in Ho Chi Minh City on November 26.

According to UNIQLO, they have continuously expanded their retail system, and each new store opening has been met with overwhelming customer turnout. In the field of e-commerce, their revenue has also grown by 140% annually.

The brand has just announced its plan to have a presence in all three regions of Vietnam: North, Central, and South, in the near future. UNIQLO will expand to Bien Hoa, Dong Nai, and open its first store in Central Vietnam, UNIQLO AEON MALL Hue, in 2025.

International and Vietnamese fashion brands are offering year-end promotions to attract customers. Photo: HOANG TRIEU

UNIQLO is not the only international fashion brand thriving in Vietnam, especially in Ho Chi Minh City. Many other international labels such as Zara, Mango, H&M, Nike, and Adidas have become familiar to Vietnamese consumers and are present in most major shopping malls like Union Square, Diamond Plaza, Gigamall, Van Hanh Mall, SC VivoCity, and Cressent Mall.

Some brands even have large, spacious stores spanning one or two floors of these malls (Muji, UNIQLO…). In contrast, the stores of Vietnamese fashion manufacturers like Ninomaxx, Viet Thang Jeans, and Canifa appear modest and simplistic, thus fading into the background amidst the grand spaces and trendy offerings of their international counterparts.

Many attribute the success of international brands to the rapid growth of young, affluent consumers who are quick to embrace global consumption trends and have refined taste in their daily fashion choices. Additionally, a few other favorable conditions have made it much easier for Vietnamese consumers to access and shop for international “branded” fashion.

Vietnamese Brands are Struggling

While the Vietnamese fashion market hasn’t grown significantly, the explosive growth of international fashion brands has resulted in a shrinking market share for domestic brands. Moreover, competition from cheap Chinese fashion products flooding e-commerce platforms and online marketplaces poses a significant threat to the existence of Vietnamese fashion brands.

In late July 2024, the Catsa men’s fashion chain suddenly announced the closure of all 22 of its stores after more than 13 years of establishment and development. Recently, the well-known Northern brand Lep’ also decided to end its eight-year journey with 17 branches nationwide. Several other brands, such as Mieu and Ivy Moda, have also withdrawn from the fashion business this year.

Even on e-commerce platforms, a KOL (Key Opinion Leader) named Thu Nhi recently declared that she would stop selling her self-built fashion brand, MEO, due to poor sales.

The leaders of these Vietnamese fashion brands share a common reason for their difficult decisions: “We cannot keep up with the rapid development of the fashion market and the dizzying changes in consumer tastes.” Additionally, the price competition has left domestic brands breathless, forcing them to cut many expenses.

Mr. Le Viet Thanh, Director of K&K Fashion (which owns a chain of 13 stores), points out the challenge for local fashion companies in reaching new customers. Meanwhile, the current market demands that businesses continuously innovate, catch up with trends, and even set trends to attract and retain customers.

Mr. Thanh analyzes: “The fashion industry is dynamic and ruthless; many brands emerge every year, but many also perish. Some brands start with great inspiration and trend-catching ability but eventually lose steam, and their designs become out of touch with the market.”

According to Mr. Thanh, Vietnamese fashion companies tend to be small, with young design teams, and mostly target office workers and middle-aged customers. This group of customers tends to be more frugal with their spending after the COVID-19 pandemic. In contrast, Gen Z consumers are the primary target of international fashion brands.

“The difference in fashion taste between these two customer groups is enormous. Therefore, it is challenging for Vietnamese fashion brands to appeal to younger customers,” Mr. Viet Thanh acknowledges.

Embracing Online Sales

Mr. Pham Van Viet, Vice President of the Ho Chi Minh City Textile, Embroidery, Knitting, and Sewing Association and General Director of Viet Thang Jeans, believes that businesses must now familiarize themselves with and effectively utilize e-commerce channels for brand promotion and sales.

“When traditional stores became less efficient, Viet Thang Jeans heavily invested in e-commerce and regular livestream sales starting in 2023. The results have been very positive,” Mr. Viet shared.

Thanh Nhan