APPAREL AND FOOTWEAR IN VIETNAM - ANALYSIS

Country Report | Mar 2022

EXECUTIVE SUMMARY Market Sizes

Apparel and footwear in 2021: The big picture Sales of Apparel and Footwear
Retail Value RSP - VND billion - Current - 2007-2026
In 2021, many cities and provinces in Vietnam went into a lockdown, including Ho Chi
Minh City and Hanoi, from May to September. During the lockdown, apparel and
footwear specialist retailers and department stores were required to close. However, 93,722 Forecast
unlike in 2020, home delivery of apparel and footwear products purchased online was 200,000
not allowed. This negatively affected retail sales of apparel and footwear.
Livestreaming became an effective method for companies to reach customers. In the
last few years, the online channel has become an effective platform to reach
prospective customers. Local brands have been quite active in running livestreams not 150,000
only on social media platforms such as Facebook but also on e-commerce sites such as
Tiki, Shopee and Lazada.
100,000
2021 key trends
Fast fashion is growing in popularity due to the improving economy and higher living
standards. Combined with the strong penetration of Western culture, local consumers 50,000
are increasingly aware of the importance of wearing branded apparel and are willing to
spend money on premium brands to display their status. In the review period, two
famous international brands, Zara and H&M, emerged in Vietnam, focusing mainly on
Hanoi and Ho Chi Minh City due to their large mid- and high-income populations. In 0
addition, various new brands such as Massimo Dutti, Pull & Bear and Stradivarius also 2007 2021 2026
entered Vietnam over the last two years of the review period and targeted different
types of consumers based on their incomes, age and needs. Overall, these fast fashion
brands received huge attention from Vietnamese consumers, especially young people. Sales Performance of Apparel and Footwear
% Y-O-Y Retail Value RSP Growth 2007-2026
Another key trend observed in 2021 is that more and more Vietnamese consumers are
paying attention to the type of fabric apparel is made with, in line with a heightened
sense of consciousness about the environmental impact of fashion businesses. During -15.5% Forecast
2021 we observed a growing use of eco-friendly materials in apparel and footwear in 20%
Vietnam. Demand for apparel made from sustainable fabrics has increased in recent
years in tandem with the higher living standards of Vietnamese consumers. Some of
the eco-friendly fabrics that have received attention are bamboo, which is
environmentally friendly, does not wrinkle and helps to cool body temperature, and 10%
nano-tech polyester.

Competitive landscape 0%
The leading apparel and footwear brand in Vietnam is adidas, which continues to gain
value share due to its extensive retail outlets and sound marketing and advertising
strategies. With a widespread distribution network across the country, adidas has -10%
successfully established a very strong presence in sportswear. In addition to its strong
distribution network, the company is also very active regarding various marketing and
promotional activities such as its popular “adidas Power Women Series – Piloxing
Barrer” event. As a result, adidas enjoys top-of-mind awareness among consumers in -20%
Vietnam. 2007 2021 2026

The majority of consumers in Vietnam remain highly price sensitive and therefore
attracted to cheaper products. However, rising disposable incomes and growing
interest in higher quality products is helping to boost demand for branded products. Sales of Apparel and Footwear by Category
Among branded apparel and footwear, international players have a stronger presence Retail Value RSP - VND billion - Current - 2021 Growth Performance
in comparison with local players. This is due to the fact that local players lack
experience in producing high-quality apparel and footwear and are therefore unable to Apparel
meet consumer demand for fashionable and high-quality products. While international 56,747.4
brands such as adidas continue to focus on the high-income segment, local brands such Footwear
as Biti’s target low and middle-income consumers. 36,974.7
Sportswear
6,710.3
Retailing developments
-25% 0% 15%
Since the government imposed a lockdown in several provinces and cities in the
APPAREL AND FOOTWEAR 93,722.1 CURRENT % CAGR % CAGR
country, including Ho Chi Minh City and Hanoi, a large number of apparel and YEAR % 2016-2021 2021-2026
sportswear stores were closed from May until September. Consumers stayed at home GROWTH
and purchased online, instead of shopping in malls or stores like before. E-commerce
value sales grew strongly, therefore. Although the COVID-19 pandemic has been
controlled very well in Vietnam, most consumers intend to continue to purchase items
online in the future. Therefore, more and more companies are paying attention to
developing their own online websites, increasing activities via social media sites such
as Facebook, and cooperating with internet retailers like Shopee, Lazada and Tiki to

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increase revenue. Competitive Landscape
What next for apparel and footwear? Company Shares of Apparel and Footwear
Vietnam is expected to become an attractive market for international companies to % Share (NBO) - Retail Value RSP - 2021
enter over the forecast period, thus bringing a large number of jobs and opportunities
adidas Vietnam Co Ltd 1.4%
to improve both the economy and incomes in the future. Due to these reasons, apparel
and footwear is expected to recover and grow healthily over the next five years. H&M Hennes & Mauritz Vie... 1.1%

Nevertheless, as economic uncertainty continues and inflation rates remain high, the Au Chau Fashion & Cosmet... 1.1%
market is expected to be slow to recover value sales. On the other hand, as the COVID- Inditex, Industria de Di... 1.1%
19 pandemic is now brought under control, there is likely to be a catch-up effect for in-
An Phuoc Garment Co Ltd 1.0%
store sales in 2022. Nevertheless, new e-commerce habits mean that bricks-and-mortar
sales will become less significant due to lower footfall and high real estate costs. In the Binh Tien Dong Nai Imex ... 0.9%
past, apparel and footwear specialist retailers relied heavily on their bricks-and-mortar Hoang Duong Trading & Se... 0.9%
presence and promotions/discount strategies, instead of meeting consumer demands
by innovating their products, omnichannel offerings and establishing a community and Uniqlo Vietnam Co Ltd 0.8%
narrative that resonates with their target consumers. If they are to survive in the “new Viet Tien Garment JSC 0.7%
normal”, players will have to innovate to meet these demands. Overall, economic
uncertainty means that many consumers in Vietnam continue to focus on buying low- Kowil Fashion Vietnam JS... 0.6%
cost products, while wealthier consumers will choose to invest in more premium Triumph International (V... 0.5%
purchases from high-end and niche players.
Viet Fashion Co Ltd 0.4%
Blue Exchange Co Ltd 0.4%
DISCLAIMER
Maison JSC 0.4%
Forecast closing date: 13 December 2021 Gumac Vietnam Co Ltd 0.4%
Report closing date: 3 March 2022 Du Kim JSC 0.4%

Analysis and data in this report give full consideration to consumer behaviour and 388 JSC 0.2%
market performance in 2021 and beyond as of the dates above. For the very latest Quadrille & Vera Interna... 0.2%
insight on this industry and consumer behaviour, at both global and national level,
Juno Vietnam Co Ltd 0.2%
readers can access strategic analysis and updates on www.euromonitor.com and via the
Passport system, where new content is being added on a systematic basis. Others 87.3%

SOURCES
Sources used during research include the following: Brand Shares of Apparel and Footwear
% Share (LBN) - Retail Value RSP - 2021
Summary 1 Research Sources

Official Sources Business Studies & Assistance Center adidas 1.3%

Genera l Sta tis tics Office H&M 1.1%

Minis try of Indus try & Tra de Biti's 0.9%
Vietna m Cha mber of Commerce & Indus try Canifa 0.9%
Trade Associations Da i Su Ha ng Viet
Zara 0.9%
gia yda viet.net
Uniqlo 0.8%
Vietna m Lea ther & Footwea r As s ocia tion
Viet Tien 0.7%
Vietna m Textile & Appa rel As s ocia tion
Trade Press Ba o Ha Tinh
An Phuoc 0.5%

Ba o Moi Pierre Cardin 0.5%

ba ocongthuong.com Triumph 0.5%
Bus ines s Review, The Ninomaxx 0.4%
Công Ly News Blue Exchange 0.4%
Doa nh Nha n Sa i Gon
Gumac 0.4%
Dung Ha ng Viet
Owen 0.4%
Entrepreneur Forum
Ivy Moda 0.4%
Ha Gia ng News Online
Sa i Gon Gia i Phong Online Nike 0.3%
Sa i Gon News Gap 0.2%
Sa igon Tiep Thi Online G2000 0.2%
Sa igon Times Online Winny 0.2%
Textile & Ga rment News
Others 89.0%
Tha nh Nien Online
5-Year Trend
Tha o So, The
Increasing share Decreasing share No change
Tin Moi
Tin Tuc Online
Tuoi Tre Online
Vietna m Bus ines s Forum
Vietna m Bus ines s News
Vietna m Economy Times
Vietna m Inves tment Review
Vina corp.vn
VTC News

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