Viet Tien with over-US$60 products

Will Vietnamese textile-garment businesses lose the market for high-class products to foreign producers, after losing a great piece of the market to cheap Chinese products? Le Quoc An, Chairman of the Vietnam Textile-garment Group, said that Vietnamese producers still make luxurious products but they are unable to reach the standards of famous brands like Gucci, Valentino, Levis, etc.

However, they are investing in high-grade products, for example Viet Tien Garment Company with T-up brand. Garment products bearing this brand are priced at least VND1 million ($60).

An said that Vietnamese garment producers don’t need to hold this market segment because in fact, it accounts for only 1% of the garment market. Though profit from this segment is high, risk is also great.

Dang Phuong Dung from the Vietnam Textile-Garment Group said that with a famous brand, a shirt worth $2 may be sold for $100 while the processor receives just $4.

To build up local brands that can compete with world famous ones is impossible now. A guru on brand said that multinational groups were trying to Vietnamise their brands to conquer this market. That is the trend of localisation after their success in globalisation.

Localising by fish sauce

Before Knorr Phu Quoc fish sauce appeared and stirred up the market, nobody thought that Unilever group would invest in this special product, which seems to be unique to Vietnamese producers only.

To have Knorr Phu Quoc fish sauce, Unilever invested $1 million to build a factory and a huge amount of money for advertising this “half-blood” brand in Vietnam, which has helped it quickly dislodge local fish sauce firms. Moreover, with its global distribution network, fish sauce with Vietnamese brand has been exported to Germany, the US, etc.

Japan’s Honda group uses the slogan “I love Vietnam” to win the hearts of Vietnamese consumers. Though automobile experts warn that the motorbike market has nearly reached the saturation point, Honda still invests more money in a new factory.

Nescafe of Nestle promotes the slogan “More Vietnamese taste” to compete with local coffee producers, which always focus on the name Buon Me Thuot coffee and lose their individual characteristics.

Dinh Nho Bang, Vice Chairman of the Gold Trading Association, also worries that private gold traders and shops will have to accept the position of hired labour for foreigners if they don’t focus on building their own trademarks.

Source: VTC