Tin mới
How do big the Vietnamese branded goods market? (26/12)
26/12/2012 - 13 Lượt xem
It is true that the sales in Vietnam can bring just a small proportion of the
total revenue of the well-known fashion brands in the world. However, it is
reasonable to say that the Vietnamese branded goods market is seething.
Market gets scorching hot
No one could imagine some 10 years ago that even Hermes and the handbags worth billions of dong would be sold well in Vietnam one day.
Ralf Matthaes, Managing Director of Taylor Nelson, a market survey firm, said that about 1.5 million Vietnamese people can afford expensive luxurious products.
A market survey conducted by the firm showed that 52 percent of Vietnamese men use luxurious goods, 36 percent of the amount lives in Hanoi, 10 percent in HCM City. The Vietnamese people who spend money on luxurious goods are the ones at the ages of 35-54, and all of them have the monthly income of at least 8.5 million dong.
Meanwhile, commenting about the luxurious goods market in Vietnam, Sabyasachi Mishra, General Director of JWT Vietnam, said the market is now in the first phase of development.
Y&R Vietnam has found out from its survey conducted on the people aged from 20 to 65 in four big cities in Vietnam that 14 percent of them once buy luxurious goods.
The figure shows the small scale of the Vietnamese market in comparison with other regional markets. However, Vietnam has great potentials for the branded goods market development thanks to the high percentage of young population.
The report of the firm showed that the Vietnamese people aged 18-35 believe that living means tasting and experiencing new things, and 64 percent of them think that using luxurious goods is the way to tasting new things.
At present, only one percent of population is affordable luxurious goods. However, the figure is expected to increase rapidly with the appearance of the middle class consumers. Statistics showed that the Vietnamese average income per capita increased by two folds in the last five years.
The reports by government agencies all showed the increasingly high volume of luxurious imports. Vietnam imported 10 billion dollars worth of luxurious goods in 2012, according to the Ministry of Industry and Trade, while more and more shops distributing branded goods have been set up in big cities.
As such, Vietnam has appeared in the world of luxurious goods as a potential market, not a market with high consumption level. This is also the reason whey Hermes, a French brand which tops the list of 10 fashion brands in the world, has just opened its second shop at VIncom Center A in HCM City which has the floor area of 240 square meters.
Hermes opened the second shop in Vietnam after witnessing the success made by its first shop in Hanoi, which was inaugurated in 2008 and has been obtaining the average growth rate of 20-30 percent per annum.
Vincom Center A is the fifth shopping mall of the chain bearing Vincom Center brand. The opening of the shopping mall is a component of Vingroup plan to develop one million square meters of retail premises by 2015.
Vincom Center A has nearly fully occupied with the presence of the world’s leading brands such as Hermes, Christian Dior, Hugo Boss, Chopard, Versace, Ralph Lauren, Zegna, Omega, IWC, Montblanc...
A similar proportion has been reported for Vincom Center Ba Trieu, Vincom Center Long Bien in Hanoi and Vincom Center B in HCM City.
Tam Son Company has become better known after it has become the official distributor of Hermes.
The company has 10 shops which display the products with high end brands namely Hermes, Kenzo, Hugo Boss, Korloff, TAG Heuer, while planning to open 50 shops by 2015.
Sources said Tam Son is going to open a shop selling Chopard brand watches and jewelries, which may be located at Vincom A shopping mall. Chopard is a high end watch brand which has introduced the most expensive watch in the world valued at 25 million dollars.
In Vietnam, the concept “luxurious” is just understood as an expensive product; which shows the early stage of the branded goods market development.
Commenting about the opening of a series of high-end branded goods shops recently, analysts say foreign investors can see the great potentials of the fledgling market. Make investment now and the investments would bring fat profits in the future.
The bubble
A lot of Vietnamese high income earners have got exceedingly astonished when hearing that the shops selling Gucci, Dolce Gabbana and Milano branded goods have been found as selling counterfeit goods.
This shows the hard pressure that Vietnamese distributors of branded goods have to bear.
The women bear Hermes Berkin handbags in Vietnam because they want to say to others: “I am rich and I am powerful.”
However, Vietnamese branded goods traders are still not self-confident enough to hold the power. Since the Vietnamese market remains small with low purchasing power, branded goods have been entering Vietnam through distribution companies.
It is estimated that hundreds of famous brands have been present in Vietnam. However, only some 10 Vietnamese companies have been authorized by the brand owners as the official resellers in Vietnam. The companies import products themselves and distribute products directly to consumers through their retail shop networks.
Analysts have said that a lot of branded goods shops have been incurring losses; therefore, they have to try to evade tax or sell counterfeit goods. This way can help them balance their business and use the profits from these types of business to offset the losses brought about by other types of business.
A businessman in HCM City, who asked to be unnamed, said that though he has had 10 shops in the central areas of Hanoi and HCM City over the last four years, he still cannot make profit. It’s very difficult to obtain a contract with brand owner to distribute the products in Vietnam. However, he still hopes that he can get it one day.
In Vietnam, Duy Anh Fashion and Cosmetics Company has been well known as the distributor of many high end brands such as Burberry, Bvlgari, Cartier, Rolex, Salvatore Ferragamo, Versace, Bally.... The company has paid 110 billion dong in import and VAT tax so far this year, which shows the performance of the company’s business.
In fact, it is not easy to earn money from selling branded goods. Lylian, Managing Director of Duy Anh Company said that the biggest problem lies in the retail premises. Brand owners always want the shops to be located on large areas in the commercial hubs. Meanwhile, such retail premises in Hanoi and HCM City have become very expensive, which means lower profits for distributors.
Source: VietnamNet.
Market gets scorching hot
No one could imagine some 10 years ago that even Hermes and the handbags worth billions of dong would be sold well in Vietnam one day.
Ralf Matthaes, Managing Director of Taylor Nelson, a market survey firm, said that about 1.5 million Vietnamese people can afford expensive luxurious products.
A market survey conducted by the firm showed that 52 percent of Vietnamese men use luxurious goods, 36 percent of the amount lives in Hanoi, 10 percent in HCM City. The Vietnamese people who spend money on luxurious goods are the ones at the ages of 35-54, and all of them have the monthly income of at least 8.5 million dong.
Meanwhile, commenting about the luxurious goods market in Vietnam, Sabyasachi Mishra, General Director of JWT Vietnam, said the market is now in the first phase of development.
Y&R Vietnam has found out from its survey conducted on the people aged from 20 to 65 in four big cities in Vietnam that 14 percent of them once buy luxurious goods.
The figure shows the small scale of the Vietnamese market in comparison with other regional markets. However, Vietnam has great potentials for the branded goods market development thanks to the high percentage of young population.
The report of the firm showed that the Vietnamese people aged 18-35 believe that living means tasting and experiencing new things, and 64 percent of them think that using luxurious goods is the way to tasting new things.
At present, only one percent of population is affordable luxurious goods. However, the figure is expected to increase rapidly with the appearance of the middle class consumers. Statistics showed that the Vietnamese average income per capita increased by two folds in the last five years.
The reports by government agencies all showed the increasingly high volume of luxurious imports. Vietnam imported 10 billion dollars worth of luxurious goods in 2012, according to the Ministry of Industry and Trade, while more and more shops distributing branded goods have been set up in big cities.
As such, Vietnam has appeared in the world of luxurious goods as a potential market, not a market with high consumption level. This is also the reason whey Hermes, a French brand which tops the list of 10 fashion brands in the world, has just opened its second shop at VIncom Center A in HCM City which has the floor area of 240 square meters.
Hermes opened the second shop in Vietnam after witnessing the success made by its first shop in Hanoi, which was inaugurated in 2008 and has been obtaining the average growth rate of 20-30 percent per annum.
Vincom Center A is the fifth shopping mall of the chain bearing Vincom Center brand. The opening of the shopping mall is a component of Vingroup plan to develop one million square meters of retail premises by 2015.
Vincom Center A has nearly fully occupied with the presence of the world’s leading brands such as Hermes, Christian Dior, Hugo Boss, Chopard, Versace, Ralph Lauren, Zegna, Omega, IWC, Montblanc...
A similar proportion has been reported for Vincom Center Ba Trieu, Vincom Center Long Bien in Hanoi and Vincom Center B in HCM City.
Tam Son Company has become better known after it has become the official distributor of Hermes.
The company has 10 shops which display the products with high end brands namely Hermes, Kenzo, Hugo Boss, Korloff, TAG Heuer, while planning to open 50 shops by 2015.
Sources said Tam Son is going to open a shop selling Chopard brand watches and jewelries, which may be located at Vincom A shopping mall. Chopard is a high end watch brand which has introduced the most expensive watch in the world valued at 25 million dollars.
In Vietnam, the concept “luxurious” is just understood as an expensive product; which shows the early stage of the branded goods market development.
Commenting about the opening of a series of high-end branded goods shops recently, analysts say foreign investors can see the great potentials of the fledgling market. Make investment now and the investments would bring fat profits in the future.
The bubble
A lot of Vietnamese high income earners have got exceedingly astonished when hearing that the shops selling Gucci, Dolce Gabbana and Milano branded goods have been found as selling counterfeit goods.
This shows the hard pressure that Vietnamese distributors of branded goods have to bear.
The women bear Hermes Berkin handbags in Vietnam because they want to say to others: “I am rich and I am powerful.”
However, Vietnamese branded goods traders are still not self-confident enough to hold the power. Since the Vietnamese market remains small with low purchasing power, branded goods have been entering Vietnam through distribution companies.
It is estimated that hundreds of famous brands have been present in Vietnam. However, only some 10 Vietnamese companies have been authorized by the brand owners as the official resellers in Vietnam. The companies import products themselves and distribute products directly to consumers through their retail shop networks.
Analysts have said that a lot of branded goods shops have been incurring losses; therefore, they have to try to evade tax or sell counterfeit goods. This way can help them balance their business and use the profits from these types of business to offset the losses brought about by other types of business.
A businessman in HCM City, who asked to be unnamed, said that though he has had 10 shops in the central areas of Hanoi and HCM City over the last four years, he still cannot make profit. It’s very difficult to obtain a contract with brand owner to distribute the products in Vietnam. However, he still hopes that he can get it one day.
In Vietnam, Duy Anh Fashion and Cosmetics Company has been well known as the distributor of many high end brands such as Burberry, Bvlgari, Cartier, Rolex, Salvatore Ferragamo, Versace, Bally.... The company has paid 110 billion dong in import and VAT tax so far this year, which shows the performance of the company’s business.
In fact, it is not easy to earn money from selling branded goods. Lylian, Managing Director of Duy Anh Company said that the biggest problem lies in the retail premises. Brand owners always want the shops to be located on large areas in the commercial hubs. Meanwhile, such retail premises in Hanoi and HCM City have become very expensive, which means lower profits for distributors.
Source: VietnamNet.
