VietNamNet Bridge – Developing high-end fashion brands is the target of all
Vietnamese textile and garment companies which have been following different
ways to reach that end.
The franchisees
An Phuoc Company once caught the special attention from the public 15 years ago
when it became the franchisee of Pierre Cardin after a contract signed in 1997.
An Phuoc’s Pierre Cardin brand products, right after hitting the market, became
salient among domestic products, while it was in no way inferior to foreign
products available on the market.
The brand Pierre Cardin then was “hot” enough to convince consumers to use An
Phuoc’s products. Nguyen Thi Dien, General Director of An Phuoc decided that the
company’s products should target the businessmen aged 35-40 who are very choosy
about the fashion, but don’t change their liking regularly.
However, Dien has realized that the she now has to compete with many redoubtable
rivals, and she needs to find a new way out to become stronger. Dien said An
Phuoc has been trying some more fabric materials to make the products suitable
to Vietnamese conditions. The company is also conducting negotiations with
Pierre Cardin on a more flexible design transfer.
According to Dien, the turnover from An Phuoc and Pierre Cardin brand products
from 100 sales agents nationwide has been growing steadily by 15-20 percent year
after year.
In 2007, the Viet Tien Garment Corporation also became the franchisee of two
Italian styled brands in 2007 – San Sciaro of Perry Ellis International and
Manhattan of the US Perry Ellis International Europe. With the two high end
fashion brands, Viet Tien has been targeting businessmen, managers and high
income earners.
“The move was a part of the corporation’s plan to diversify its brands and
products, which allows the corporation to target high end market segment,” said
Bui Van Tien, General Director of Viet Tien Corporation.
Tien said that one year before the franchising contract was signed, Viet Tien
began importing high end materials from Japan, Italia, Germany and India.
Nha Ba Garment Company has also been launching high end fashion products to the
domestic market by becoming the franchisee of many well known brands such as
Osca dela, Renta, Aoyama, Ann Taylor and Calvin Klein.
The franchisors
The Garment Company No. 10 has been following its specific own way to develop
high end fashion brands.
Than Duc Viet, Managing Director of the company, said he has been nourishing the
hope of franchising its brand to foreign markets.
The company’s senior executives 6 years ago paid a working visit to some
European countries to learn the opportunities of franchising its brands to the
markets. However, Viet understands that the company would have to follow on a
thorny path and meet a lot of obstacles to reach its end.
According to Viet, there are three main problems on the path. First, the company
would have to compete with already well-known brands such as Calvin Klein,
Pierre Cardin, Chanel, Dolce Gabbana (DG), Dior.
Second, it would have to pay money for the trademark copyright protection. And
third, Vietnamese enterprises still lack professionalism in developing brands.
“We need to make out high quality products and cement our firm positions on the
domestic markets, and then we will penetrate the South East Asian, then the
Asian and European markets,” Viet said, admitting that he cannot be sure when
the company will begin franchising its brands.
TBKTVN