Fashion stores in Nghe An simultaneously lower prices.
On many streets in Vinh City, numerous fashion stores selling warm clothes, shoes, and accessories are offering deep discounts of 50-80%. However, currently, not many people are trying on or buying items in person, and purchasing power has only increased slightly.
Various forms of promotions
In the final days of the year, Nguyen Van Cu Street – one of the main fashion streets in Vinh City – is filled with signs advertising "massive discounts" and "big sales". Some stores display signs with all products priced at 299,000 to 399,000 VND, or discounts ranging from 20% to 80% depending on the item.
Some retailers offer discounts based on the quantity purchased, with higher discounts for larger purchases, such as: spending over 500,000 VND entitles you to an additional product of your choice for only 29,000 VND; or customers with loyalty points receive a 20-40% discount on the entire listed price in the store.
Ms. Nguyen Kim Lien, residing in Truong Thi ward (Vinh City), is a regular customer of a branded fashion store on Tran Phu street. She stated that her loyalty card already offers a 40% discount, even on regular days. Now, with the store's Lunar New Year promotion, products are discounted by 30%, and combined with her VIP card's 40% discount, she will receive a total 70% discount on any single purchase.
Mr. Tran Ba Long, the owner of a men's fashion store on Nguyen Van Cu Street, said that in the two months leading up to Tet (Lunar New Year), his store increased its inventory and implemented discounts to boost sales of remaining stock, such as a "buy two, get one free" promotion. "Men's dress pants, which typically cost between 350,000 and 600,000 VND per pair, now offer a 'buy two, get one free' deal; and a 30% discount on a single pair," Mr. Tran Ba Long explained.
Purchasing power increased slightly.
At a well-known branded clothing store near Ho Chi Minh Square, it was 9 am but only a few customers were browsing. Ms. Tran Thuy Ha and two friends from Do Luong town said they had come from Do Luong to Vinh for work and only now had time to shop at clothing stores. The store had quite nice, fashionable clothes, and although there was a 50% discount, the prices were still quite expensive compared to the general market.
Ms. Ha added that the listed price of a short woolen coat was 1.7 million VND, and even with a 50% discount, it was still over 800,000 VND, which is still much more expensive than buying it at private stores or markets. A pair of trousers was listed at 700,000 VND, and even with a 40% discount, it was still nearly 400,000 VND. A two-piece winter dress set, including a long dress and a cropped jacket, was priced at 2.8 million VND, and with a 50% discount, it was 1.4 million VND. Compared to her current income, she was still hesitant and decided to only buy one item.
At a shop selling modern ao dai (traditional Vietnamese dress) for both adults and children, the owner said that direct sales have dropped sharply for over two years. With only two weeks left until Tet (Lunar New Year), sales have increased slightly, mainly through online channels. This year, she is maintaining the shop for in-person customers and has also opened an online sales "channel." Orders are delivered directly to customers, and online sales are currently significantly better than in-store sales.
The shop owner added that clothing prices are currently facing fierce competition, with online sales channels, especially on TikTok, offering prices that are only half the cost. For example, an adult ao dai (traditional Vietnamese dress) she sells directly for around 200,000-300,000 VND/set is being sold online for only 100,000-150,000 VND/set. Therefore, vendors at markets and shops have to adapt their sales methods and reduce costs to survive. Some, unable to keep up with the trend, have closed down, sold, or rented out their shops.
In local markets, vendors are currently offering significant discounts and clearance sales on clothing, with items for children, the elderly, and loungewear like thermal shirts costing only a few tens of thousands of dong each. Sweaters and puffer jackets are also being sold off cheaply for 50-80 thousand dong each. However, these items are often outdated and unfashionable.