Should invest in the low-income market segment

(Baonghean) According to observations, currently domestically produced textiles are attracting more and more attention from people. Some clothing store owners on Hong Bang Street (Vinh City) said: Every year, the number of people who love Vietnamese goods increases significantly. However, Vietnamese goods are still behind Chinese goods.

The reason is that many Vietnamese fashion brands have beautiful products with good materials, but such products are only for the consumer market segment of people with average incomes or higher. In general, the products of these brands cost no less than 1 million VND/item, even 3 - 4 million VND/item. Most customers turn to look for Vietnamese products.Malemore affordable prices. However, they are very difficult to satisfy when choosing domestically produced garment products at moderate prices. Therefore, consumers with average income choose to go to tailors or buy Chinese goods. With those products, their needs are partly satisfied.

Currently, there are not many affordable Vietnamese textile brands such as Ninomaxx, PT 2000, Blue Exchange, Maxx Style... But most of them are for young people, office fashion is very rare. There are also businesses such as: Nha Be Garment Company, Viet Tien Garment Company, Phuong Dong, May 10... that have brands from affordable to high-end to serve many market segments. For example, high-end men's shirts San Sciaro, Manhattan of Viet Tien Garment Joint Stock Company are priced from 750,000 VND/piece - 1,250,000 VND/piece, usually for businessmen, office workers with high income, while Viettien Smart Casual brand shirts with a unique design, acceptable material, also of this company have a very "soft" price of 220,000 VND/piece - 370,000 VND/piece, for people with average income. However, most of these companies focus on men's fashion and sportswear, women's fashion remains modest.

In my opinion, in addition to developing high-end fashion brands, manufacturers in the Vietnamese fashion industry need to focus on investing in the middle-income market segment, because this is the market that accounts for the majority of the "consumption pie" of the whole society. The world has proven the success of affordable brands such as Mango, H&M, Bebe, Cloudy.... Affordable brands are in the middle, although the price is higher than fake and market goods, but much lower than high-end brands such as LV, Chanel, Burberry, Marc Jacob..., but the quality is much better than fake goods (fake famous brands) and Chinese goods.

Orchid