Deputy Minister of Industry and Trade Bui Xuan Khu
recently reminded garment
companies to
pay close attention to the
domestic market, which he called a ‘fertile land’.
Mr Khu said garment companies have been focusing on export markets, while ignoring a domestic
market full of potential.
According to the Vietnam Textile and Apparel
Association (Vitas), domestic
sales grew by 15% this year, a modest
figure in an increasingly prosperous market with over 80mil Vietnamese
consumers and 4mil tourists every year.
Le Quoc An, Chairman of Vitas, said the biggest
competitor for domestically made products is illegal imports from
China, not imported luxury fashion. Mr An said that illegal imports
from China have been troubling garment companies.
Meanwhile, Hoang Thi Minh Chau, Deputy Director of
Sanding trademark under Saigon 2 Garment Company, said the biggest
problem for garment companies is they have to import 70% of production
materials; therefore, they cannot take initiative in their business
plans.
Mr Khu has asked local companies to make the sizable investments necessary to regain a lucrative domestic market.
“Prices are not the most important competitive feature
of products,” said Phan Van Kiet, Managing Director of Viet Tien
Garment Company, adding that his company would pay more attention to
design and advertisement.
Viet Tien is the domestic market leader this year.
Domestic sales bring in 25% of the company’s total turnover, a growth
rate of 30% over 2006.
Mr Kiet said the company has 40 new designers, who
will launch two luxury
fashion lines, Fan-Fciar for men’s office
fashion and Manhattan for the youth.
Meanwhile, Mr Chau said that Sanding will market products that reflect world fashion trends.
“It is necessary to reorganize and restructure the
domestic market, and especially, it is necessary to have suitable
marketing campaigns,” Mr An said and confirmed that local garment
companies are moving ahead with projects to conquer their home market.
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