Apparel firms seek ways out of difficulties
By Tran Son - The Saigon Times Daily
HCMC – Apparel product consumption has shrunk by 40% year-on-year, forcing garment makers to seek solutions to prop up purchasing power and ride out the tough times.
Textile and garment producers are trying to catch up with customers’ demands and shopping habits to launch appropriate products, said Nguyen Huu Phung, chairman of Viet Fashion Co. (VFC). He said in the current tough times, customers prioritized cheap and durable products with attractive and diverse designs.
In addition, consumers are also looking for spacious shopping areas, friendly service and products suitable for all family members. Therefore, in the coming time, VFC will optimize the efficiency of its current shops and expand its distribution outlets.
Particularly, VFC will develop a retail chain named Ninomaxx Concept, with the first 50 stores to be opened from now to 2015. Each store in the chain will cover 4,000 square meters and display over 20,000 fashion items of diverse types.
“We will further develop our sale network in line with the systems of Co.opMart, Big C and Parkson. VFC is currently a strategic partner of these three units and is on the way to penetrate Cambodia’s market with these distributors,” said Phung.
Apart from improving distribution networks, some fashion companies that used to mainly operate in the domestic market have shifted their focus to export.
Nguyen Thi Dien, general director of An Phuoc Garment Co., said her company had received an order from a Japanese partner. Though declining to reveal the contract value, she said: “It is enough to survive the shrinking demand in the local market and ensure jobs for workers.”
Moreover, An Phuoc has signed contracts to make office attires for corporations with large numbers of employees. “This is one of the solutions to diversify product outlets. In this way, we are confident to achieve the growth target for 2012,” said Dien.
Meanwhile, Vietnam National Garment and Textile Group (Vinatex) further exploits the market via the retail chain Vinatexmart. In particular, Vinatexmart will distribute textile and garment products of 300 member enterprises of Vinatex and other industry players.