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Fast fashion brands are accelerating their growth

Earlier in September, AEON Vietnam launched fast fashion brand My Closet at AEON Binh Tan in Ho Chi Minh City, marking the first step into fast fashion in Vietnam.

According to data from the Vietnam Retailers Association, more than 200 foreign fashion brands are currently present here, accounting for more than 60% of the market share and ranging from affordable to high-end products.

After five years, the Swedish brand H&M has 12 stores in five major cities in Vietnam. Elsewhere, Zara – owned by the world’s biggest fashion group, Inditex – has had a presence in Vietnam since 2016, with two stores in Hanoi and Ho Chi Minh City.

Together, the two Zara stores generated more revenue than high-end fashion chains such as Tam Son Fashion – which distributes Hermes, Bottega Veneta and Boss – and MaiSon International Retail, which sells Mango, Topshop, Charles & Keith , and Other brands.

Following the success of Zara Vietnam, Mitra Adiperkasa Group – partner of Inditex in Indonesia and also distributor of Zara in Vietnam – brought other fashion brands to the country such as Massimo Dutti, Pull & Bear and Stradivarius.

Meanwhile, Japanese brand Uniqlo has seen an impressive rate of expansion. Since its debut in Ho Chi Minh City in 2019, Uniqlo has grown the total number of stores to 11, including the largest in Southeast Asia.

Tadashi Yanai, chairman of Uniqlo owner Fast Retail Group, said at the grand opening of the first Uniqlo store that he plans to open 100 stores over the next 10 years.

In addition to easily recognizable names, the fast fashion market has also witnessed the presence of new brands such as Cotton On and Muji, as well as international fashion brands that have acquired domestic brands. And in 2020, Global Fashion, owner of shoe and handbag brand Vascara, officially merged with Japan’s Stripe International.

However, the market also witnessed the withdrawal of new names, such as AVA Fashion from Mobile World Group (MWG) after only six months of launch. Similar to AEON, the company also outsourced products to a number of domestic companies. While AVA Fashion’s website is now closed, MWG has also launched sportswear, mother and child products and jewelry boutiques.

MWG CEO Doan Van Hieu Em admitted, “AVA Fashion originally planned to follow the path of Zara and H&M. However, things did not go smoothly as Vietnamese consumers were not enthusiastic about the new brand.

According to Statista, the clothing market in Vietnam is expected to reach $7.33 billion by 2025 and there is still plenty of room for exploitation. Data from Vietnam’s National Textile and Garment Group shows that every year, Vietnamese spend about $4.3 billion on clothes, and this rate is expected to steadily increase by about 10% per year.

Source: VIR

Hazel J. Edmonds

The author Hazel J. Edmonds