Womens fashion vietnam

WOMEN'S FASHION IN VIETNAM
© 1974 - 2012
THE WOMEN’S FASHION MARKET REPORTS ARE AVAILABLE FOR:
Australia, Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New
Zealand, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, & Vietnam.

Branded Women's Fashion in Vietnam
2
This report has been prepared by:
17 September 2012
The Women's Fashion in Vietnam core database has 63
chapters, plus Excel spreadsheets & Access databases, and a
large number of documents, tools and utilities.
CONTENTS
Indicates a dynamic link to the online data
Contents
CONTENTS .......................................................................................................................................... 2
Introduction ......................................................................................................................................... 14
Pan Asia average for monthly Consumer Spending in 2008-2011 .............................................. 14
Monthly Consumer Spending forecast for 2013-2018.................................................................. 15
Asia-Pacific Fashion........................................................................................................................ 17
Korean Fashion............................................................................................................................... 17
Objectives........................................................................................................................................ 18
Criteria............................................................................................................................................. 18
1. Report Criteria..................................................................................................................... 18
Parameters...................................................................................................................................... 20
2. Research overview.............................................................................................................. 20
Brand Surveys................................................................................................................................. 22
Brand Coverage .............................................................................................................................. 23
Market Opportunity.......................................................................................................................... 30
Analysis of the development of the retail trade and its life cycle .................................................. 30
Added Value and Transaction Costs across the Supply Chain.................................................... 31
Clothing retailers per 10,000 inhabitants...................................................................................... 32
Clothing Store Revenue per Square Meter per annum (US$)...................................................... 32

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Average Revenue per Clothing Store per annum (‘000 US$) ...................................................... 33
Average Clothing Store Sales Area (Square Meters) .................................................................. 33
Existing Distribution Channels ..................................................................................................... 34
New Distribution developments ................................................................................................... 34
Online Shopping by Middle Classes – Purchases per month ...................................................... 35
Distribution Policies & Strategies................................................................................................. 36
Retail Trade Life Cycle and Development in Women’s Fashion .................................................. 39
City and Town analysis for Vietnam ..................................................................................... 40
Wholesaler, Trade Buyer, Retailer and Store Performance Surveys ........................................... 41
Products....................................................................................................................................... 41
Retail Operations ......................................................................................................................... 41
Buyer Profiles .............................................................................................................................. 41
Trading Area................................................................................................................................ 41
Competitors ................................................................................................................................. 42
Retailer & Wholesaler Surveys............................................................................................. 42
Trade Decision Makers Surveys........................................................................................... 43
Store Performance Surveys ................................................................................................. 43
Market Size ..................................................................................................................................... 44
Vietnam Branded Market Volume Sold in units by Product Sectors ............................................ 44
Vietnam Branded Market Value by Product Sectors............................................................. 45
City / Town Market Value ..................................................................................................... 45
Consumer Attitudes ..................................................................................................................... 46
Products....................................................................................................................................... 46
Retail Operations ......................................................................................................................... 46
Buyer Profiles .............................................................................................................................. 46
Trading Area................................................................................................................................ 46
Competitors ................................................................................................................................. 47
Consumer Surveys............................................................................................................... 47
Store Performance Surveys ................................................................................................. 48
Competitive Factors ........................................................................................................................ 49
Representative Brands ................................................................................................................ 49
Brands Price Differentials ............................................................................................................ 53
Product Price Differentials ........................................................................................................... 54
Product Positioning ......................................................................................................................... 55
Casual Product ............................................................................................................................ 55
Smart Casual............................................................................................................................... 55
Formal.......................................................................................................................................... 55

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Special Occasion ......................................................................................................................... 55
Price Discounting......................................................................................................................... 56
Low Price..................................................................................................................................... 56
Market Median Price.................................................................................................................... 56
High Price .................................................................................................................................... 56
Basic Quality................................................................................................................................ 57
Median Quality............................................................................................................................. 57
High Quality ................................................................................................................................. 57
Premium Quality .......................................................................................................................... 57
Low Product Specification............................................................................................................ 58
Undifferentiated Product .............................................................................................................. 58
Differentiated ............................................................................................................................... 58
High Specification ........................................................................................................................ 58
No Target Audience..................................................................................................................... 59
Some Targeting ........................................................................................................................... 59
Highly Targeted ........................................................................................................................... 59
Specific Audience ........................................................................................................................ 59
High Volume ................................................................................................................................ 60
Median Volumes .......................................................................................................................... 60
Low Volume ................................................................................................................................. 60
Restricted Volume........................................................................................................................ 60
Necessity Product........................................................................................................................ 61
Common Product......................................................................................................................... 61
Discretionary Product................................................................................................................... 61
Luxury Product............................................................................................................................. 61
Frequent Cleaning ....................................................................................................................... 62
Average Cleaning ........................................................................................................................ 62
Infrequent Cleaning...................................................................................................................... 62
Specialist Cleaning ...................................................................................................................... 62
Simple Merchandising.................................................................................................................. 63
Display Merchandising................................................................................................................. 63
Featured ...................................................................................................................................... 63
Complex Proposal ....................................................................................................................... 63
Basic Advertising ......................................................................................................................... 64
Feature Advertising...................................................................................................................... 64
Target Advertising........................................................................................................................ 64
Complex Advertising.................................................................................................................... 64
Brand Positioning Tactics & Strategy .............................................................................................. 65

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Current Tactical Brand Model ...................................................................................................... 65
Strategic Brand Objectives .......................................................................................................... 66
Functional Positioning - Symbolic Positioning - Experiential Positioning ..................................... 67
Customer Value Propositioning ................................................................................................... 68
Value Concept & Positioning ....................................................................................................... 69
Brand Differentiation Propositions ............................................................................................... 70
Key Selling Messages.................................................................................................................. 71
Communications Tactics.............................................................................................................. 72
Advertising Tactics....................................................................................................................... 73
Media & PR Tactics ..................................................................................................................... 74
Web & Online Tactics .................................................................................................................. 75
Point of Sale Tactics .................................................................................................................... 76
Merchandising ............................................................................................................................. 77
Product Display............................................................................................................................ 78
Korean Brands ................................................................................................................................ 79
Awareness of existing Korean Brands ......................................................................................... 79
Trade Buyer Perceptions of existing Korean Brands....................................................................... 80
Customer Base Perceptions of existing Korean Brands .............................................................. 81
Perceived Strengths and Weaknesses of existing Korean Brands .............................................. 82
Market Entry Management Factors ................................................................................................. 83
Women’s Fashion Distribution ..................................................................................................... 83
Retail Level.................................................................................................................................. 83
Nature of Competition.................................................................................................................. 84
Brand Competition ....................................................................................................................... 84
Value............................................................................................................................................ 85
Location ....................................................................................................................................... 85
Supply Chain ............................................................................................................................... 85
Nature of Competition.................................................................................................................. 86
Supplier Price Differentials........................................................................................................... 87
Retailer Reaction ......................................................................................................................... 88
Supplier Reaction ........................................................................................................................ 89
Conclusion................................................................................................................................... 90
Distributors – Market Entry choices ............................................................................................. 92
Retail Presence – Market Entry choices ...................................................................................... 93
Distribution Channel: Advantages – Disadvantages .................................................................... 94
Market Entry options for Domestic Brands ...................................................................................... 95
Market Entry options for Established or Global Brands ................................................................... 96
Market Entry Features ................................................................................................................. 97

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Start-up Costs ................................................................................................................................. 98
Start-up Costs, Initial Investment and Product Launch Balance sheet ........................................ 98
Inventory Costs............................................................................................................................ 98
Brand Store Start-up Costs.......................................................................................................... 99
Independent Store Start-up Costs ............................................................................................. 100
Brand In-Store Start-up Costs.................................................................................................... 101
Distributor / Exclusive Wholesaler Sign-up Costs...................................................................... 102
Start Times Weeks: Brand Store ............................................................................................... 103
Start Times Weeks: Independent Store ..................................................................................... 104
Start Times Weeks: Distributor / Exclusive Wholesaler ............................................................. 105
Economies of Scale with multiple Stores ................................................................................... 106
Cash Flow, Profit & Loss, Balance Sheet, Project Financial Analysis ........................................... 107
12 Months Cash Flow Analysis.................................................................................................. 107
First 12 months and First 3 years Profit & loss Account............................................................. 108
1-7 Years Balance Sheet........................................................................................................... 109
10 Years Project Financial Analysis........................................................................................... 110
SWOT Analysis ............................................................................................................................. 111
SWOT analysis by type of Market Entry .................................................................................... 111
Entry via Own Retail Stores....................................................................................................... 111
Entry via Domestic Retail Joint Venture..................................................................................... 111
Entry via National Franchise Licensee....................................................................................... 112
Entry via Intensive Individual Franchising.................................................................................. 112
Entry via Exclusive National Distributor ..................................................................................... 113
Entry via Intensive National Distribution / Wholesaling .............................................................. 113
Competitive Analysis ..................................................................................................................... 114
Indonesia Representative Brands.............................................................................................. 114
Singapore Representative Brands ............................................................................................. 115
Vietnam Representative Brands ................................................................................................ 116
Market Penetration Prospects ....................................................................................................... 117
Advancing into the target markets ............................................................................................. 117
Brand Concept........................................................................................................................... 118
Brand Equity .............................................................................................................................. 118
Customer Based Brand Equity................................................................................................... 119
Brand Knowledge ...................................................................................................................... 119
Substantial Brand Knowledge & Awareness – All Brands.......................................................... 119
Brand Equity Model.................................................................................................................... 120
Substantial Brand Loyalty – All Brands...................................................................................... 121
Substantial Brand Quality –v Price Perceptions – All Brands .................................................... 122

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Brand Knowledge Components ................................................................................................. 123
Brand Resonance Components................................................................................................. 123
Brand Resonance ...................................................................................................................... 124
Qualitative Brand Research....................................................................................................... 126
Qualitative Brand Identifiers....................................................................................................... 126
Marketing communication applied to fashion products .............................................................. 127
The Brand Image in the marketing communication process ...................................................... 128
The Store Image in marketing communication process ............................................................. 128
Consumer confidence and consumer markets in Asia-Pacific ................................................... 129
Consumer Confidence Index ..................................................................................................... 129
Consumer Attitudes and Perceptions which impact Clothing Brands ........................................ 131
% Usage & Purpose of clothes purchases................................................................................. 132
Celebrity endorsement............................................................................................................... 133
Relative Ranking Criteria and Consumer Habits for Clothing Purchase .................................... 134
Brand Selection ......................................................................................................................... 134
Price over Brand Loyalty amongst Young Buyers...................................................................... 135
Purchase Drivers for Younger Buyers : < 19 and 19-24 Years Old........................................ 135
Domestic Brands -v- Foreign Brands......................................................................................... 136
Asia-Pacific Markets Conclusion................................................................................................ 137
Fashion market potential in the Asia-Pacific region ................................................................... 137
What do consumers want in a branded product?....................................................................... 138
What can Korean brands and designers do to counter the established brands? ....................... 139
How can Korean brands and designers do better than the established brands?....................... 139
Novel marketing methods to distinguish oneself from the competition ...................................... 140
Unique Brand Offerings ............................................................................................................. 141
New and Untapped Market Demand.......................................................................................... 142
Niche Markets............................................................................................................................ 142
Brand Superiority ....................................................................................................................... 143
Building Heritage Brands ........................................................................................................... 143
Brand Resonance ...................................................................................................................... 144
Brand Persistence ..................................................................................................................... 145
Brand Development Opportunities............................................................................................. 147
Fashion Industry Checklist......................................................................................................... 151
Fashion Design and Merchandising........................................................................................... 151
Performance Indicators.............................................................................................................. 152
Application of Design – Performance Factors............................................................................ 153
Industry Performance Indicators................................................................................................ 153
Performance Indicators for brand selection, development, and distribution............................... 154

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Performance Indicators for merchandising strategies................................................................ 155
Market Strategy Insight.................................................................................................................. 156
Market Entry Possibilities and Criteria ....................................................................................... 156
Market Entry Difficulties ............................................................................................................. 156
Market Potential......................................................................................................................... 157
Financial Potential ..................................................................................................................... 158
Consumer Potential & Attitudes................................................................................................. 159
Relative Return on Investment by country 1-7 years & 7-14 years............................................ 160
Relative Return on Investment by country 14+ years & Overall................................................. 161
Relative Return on Investment by Product Category ................................................................. 162
Relative Return on Investment by country for Young Casual Wear ........................................... 162
Relative Return on Investment by country for Career Wear....................................................... 163
Relative Return on Investment by country for Denim & Casual Wear........................................ 164
Relative Return on Investment by country for Every day Wear.................................................. 165
Relative Return on Investment by country for Sports & Outdoor Wear...................................... 166
Relative Return on Investment by country for Lingerie & Underwear ........................................ 167
Relative Return on Investment by country for Fashion Accessories .......................................... 168
Opinions of the fashion and retail experts on introducing new brands....................................... 169
MARKET RESEARCH COVERAGE................................................................................................. 170
Markets & Products covered ......................................................................................................... 170
Product Sectors ......................................................................................................................... 170
Survey Data................................................................................................................................... 171
Consumer Surveys .................................................................................................................... 171
Retailer & Wholesaler Surveys .................................................................................................. 172
Trade Decision Makers Surveys................................................................................................ 172
Store Performance Surveys....................................................................................................... 173
Competitors ............................................................................................................................... 173
Retail Operations ....................................................................................................................... 174
Products..................................................................................................................................... 174
Buyer Profiles ............................................................................................................................ 175
Trading Area.............................................................................................................................. 175
Geographic Coverage ................................................................................................................... 176
Financial data................................................................................................................................ 176
Financial Data Scenarios........................................................................................................... 176
Financial Margins & Ratios Data Scenarios............................................................................... 176
Vietnam General Contents ............................................................................................................ 177
Vietnam Report Table of Contents ................................................................................................ 178
Vietnam Core Database Open the Core Database here ............................................................. 178

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Sections......................................................................................................................................... 178
Preface.............................................................................................................................. 178
Chapters............................................................................................................................ 178
Databases ......................................................................................................................... 178
Financials .......................................................................................................................... 178
Industry.............................................................................................................................. 178
Markets.............................................................................................................................. 178
Products ............................................................................................................................ 178
Grids.................................................................................................................................. 178
Reference.......................................................................................................................... 178
Contents............................................................................................................................ 178
Legend............................................................................................................................... 178
Cities ................................................................................................................................. 178
Countries........................................................................................................................... 178
Chapters........................................................................................................................................ 179
Chapter 1.................................................................................................................................. 179
ADMINISTRATION............................................................................................................ 179
Chapter 2.................................................................................................................................. 179
ADVERTISING .................................................................................................................. 179
Chapter 3.................................................................................................................................. 179
BUYERS – COMMERCIAL OPERATIONS ....................................................................... 179
Chapter 4.................................................................................................................................. 179
BUYERS – COMPETITORS.............................................................................................. 179
Chapter 5.................................................................................................................................. 179
BUYERS – MAJOR CITY .................................................................................................. 179
Chapter 6.................................................................................................................................. 179
BUYERS – PRODUCTS.................................................................................................... 179
Chapter 7.................................................................................................................................. 179
BUYERS – TRADE CELL.................................................................................................. 179
Chapter 8.................................................................................................................................. 179
COMPETITIVE INDUSTRY ANALYSIS............................................................................. 179
Chapter 9.................................................................................................................................. 179
COMPETITOR ANALYSIS ................................................................................................ 179
Chapter 10................................................................................................................................. 179
COUNTRY FOCUS ........................................................................................................... 179
Chapter 11................................................................................................................................. 179

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DISTRIBUTION ................................................................................................................. 179
Chapter 12................................................................................................................................. 179
FINANCIAL - BUSINESS DECISION SCENARIOS .......................................................... 179
Chapter 13................................................................................................................................. 179
FINANCIAL - CAPITAL COSTS FINANCIAL SCENARIOS............................................... 179
Chapter 14................................................................................................................................. 179
FINANCIAL - CASHFLOW OPTION SCENARIOS............................................................ 179
Chapter 15................................................................................................................................. 179
FINANCIAL - COST STRUCTURE SCENARIOS.............................................................. 179
Chapter 16................................................................................................................................. 179
FINANCIAL - HISTORIC INDUSTRY BALANCE SHEET.................................................. 179
Chapter 17................................................................................................................................. 179
FINANCIAL - HISTORIC MARKETING COSTS & MARGINS........................................... 179
Chapter 18................................................................................................................................. 179
FINANCIAL - INVESTMENT + COST REDUCTION SCENARIOS ................................... 179
Chapter 19................................................................................................................................. 179
FINANCIAL - MARKET CLIMATE SCENARIOS ............................................................... 179
Chapter 20................................................................................................................................. 179
FINANCIAL – MARKETING COSTS ................................................................................. 179
Chapter 21................................................................................................................................. 179
FINANCIAL - MARKETING EXPENDITURE SCENARIOS............................................... 179
Chapter 22................................................................................................................................. 179
FINANCIAL – MARKETING MARGINS............................................................................. 179
Chapter 23................................................................................................................................. 179
FINANCIAL - STRATEGIC OPTIONS SCENARIOS ......................................................... 179
Chapter 24................................................................................................................................. 179
FINANCIAL - SURVIVAL SCENARIOS............................................................................. 179
Chapter 25................................................................................................................................. 179
FINANCIAL - TACTICAL OPTIONS SCENARIOS ............................................................ 179
Chapter 26................................................................................................................................. 180
GEOGRAPHIC DATA........................................................................................................ 180
Chapter 27................................................................................................................................. 180
INDUSTRY - NORMS........................................................................................................ 180
Chapter 28................................................................................................................................. 180
MAJOR CITY MARKET ANALYSIS .................................................................................. 180
Chapter 29................................................................................................................................. 180
MARKET CAPITAL ACCESS SCENARIOS...................................................................... 180

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Chapter 30................................................................................................................................. 180
MARKET CASHFLOW SCENARIOS ................................................................................ 180
Chapter 31................................................................................................................................. 180
MARKET ECONOMIC CLIMATE SCENARIOS ................................................................ 180
Chapter 32................................................................................................................................. 180
MARKET INVESTMENT + COSTS SCENARIOS ............................................................. 180
Chapter 33................................................................................................................................. 180
MARKET MARKETING EXPENDITURE SCENARIOS..................................................... 180
Chapter 34................................................................................................................................. 180
MARKET RISK SCENARIOS ............................................................................................ 180
Chapter 35................................................................................................................................. 180
MARKET STRATEGIC OPTION SCENARIOS ................................................................. 180
Chapter 36................................................................................................................................. 180
MARKET SURVIVAL OPTION SCENARIOS .................................................................... 180
Chapter 37................................................................................................................................. 180
MARKET TACTICAL OPTION SCENARIOS..................................................................... 180
Chapter 38................................................................................................................................. 180
MARKETING EXPENDITURE -v- MARKET SHARE ........................................................ 180
Chapter 39................................................................................................................................. 180
MARKETING STRATEGY DEVELOPMENT..................................................................... 180
Chapter 40................................................................................................................................. 180
MARKETS ......................................................................................................................... 180
Chapter 41................................................................................................................................. 180
OPERATIONAL ANALYSIS............................................................................................... 180
Chapter 42................................................................................................................................. 180
OVERSEAS DEVELOPMENT........................................................................................... 180
Chapter 43................................................................................................................................. 180
PERSONNEL MANAGEMENT.......................................................................................... 180
Chapter 44................................................................................................................................. 180
PHYSICAL DISTRIBUTION + CUSTOMER HANDLING................................................... 180
Chapter 45................................................................................................................................. 180
PRICING............................................................................................................................ 180
Chapter 46................................................................................................................................. 180
PROCESS + ORDER HANDLING..................................................................................... 180
Chapter 47................................................................................................................................. 180
PRODUCT ANALYSIS ...................................................................................................... 180
Chapter 48................................................................................................................................. 180

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PRODUCT DEVELOPMENT............................................................................................. 180
Chapter 49................................................................................................................................. 180
PRODUCT MARKETING FACTORS ................................................................................ 180
Chapter 50................................................................................................................................. 180
PRODUCT MIX ................................................................................................................. 180
Chapter 51................................................................................................................................. 180
PRODUCT SUMMARY...................................................................................................... 180
Chapter 52................................................................................................................................. 180
PROFIT RISK SCENARIOS.............................................................................................. 180
Chapter 53................................................................................................................................. 181
PROMOTIONAL MIX......................................................................................................... 181
Chapter 54................................................................................................................................. 181
SALESFORCE DECISIONS.............................................................................................. 181
Chapter 55................................................................................................................................. 181
SALES PROMOTION........................................................................................................ 181
Chapter 56................................................................................................................................. 181
SURVEYS ......................................................................................................................... 181
Chapter 57................................................................................................................................. 181
TARGETS - PRODUCT + MARKET................................................................................. 181
Chapter 58................................................................................................................................. 181
TECHNOLOGY ................................................................................................................. 181
Chapter 59................................................................................................................................. 181
TRADE CELL ANALYSIS.................................................................................................. 181
Chapter 60................................................................................................................................. 181
URBAN COMPETITION .................................................................................................... 181
Chapter 61................................................................................................................................. 181
TOWNS - FINANCIAL ....................................................................................................... 181
Chapter 62................................................................................................................................. 181
TOWNS - INDUSTRY........................................................................................................ 181
Chapter 63................................................................................................................................. 181
TOWNS - MARKET ........................................................................................................... 181
BUSINESS PLANNING..................................................................................................................... 182
Checklist........................................................................................................................................ 182
Checklist implementation........................................................................................................... 185
Advancing your Project.............................................................................................................. 186
Cashflow Projections..................................................................................................................... 187
The Business Plan Programme..................................................................................................... 188

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Installing the Business Plan Programme ................................................................................... 189
Methodology.................................................................................................................................. 196
Presentation .................................................................................................................................. 196
After-Sales Service & Client Support............................................................................................. 196
Real Time Support..................................................................................................................... 197
Resource Webs -v- Dedicated sites........................................................................................... 197
Product Level............................................................................................................................. 198
Data Product levels.................................................................................................................... 199
Getting Started with the Core Database .................................................................................... 199
Using the data............................................................................................................................ 200
Toolkit ........................................................................................................................................ 200
Proprietary Software packages.................................................................................................. 201

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Introduction
The growth of the middle classes in Asia-Pacific countries and the globalization of women’s garment
retailing have led to the rapid expansion of global brands in Asia-Pacific markets.
These brands may be conveniently divided into the following main groupings:
• Luxury
• High Street
• Asia-Pacific Brands
• Department Stores Brands & Generic Brands
Whereas in Europe and North America these brands are purchased by all Social and Income Groups,
in Asia the purchases often tend to be more skewed towards the higher end of the spectrum simply
for the reason that local median income levels tend to be less than those of buyers in Europe and
North America. Thus whereas many of the High Street brands would in Europe and North America be
regarded as inexpensive and therefore accessible to the D and E social groups, in many Asia-Pacific
countries these same brands would be more patronized by the C1 and C2 social groups.
Furthermore, there is a sociological context to the development of the global brands in Asia which
make them more acceptable to those potential buyers more exposed to globalized culture through
their education or through the media they observe.
The growth and market penetration of the globalized brands in Asia will certainly be more promising
and sustainable in Asia than for the same brands in North America and Europe.
With a rapidly growing middle class in most Asia-Pacific countries there is a significant augmentation
in household incomes. As household income grows the percentage of disposable income which was
in the past used on food is diminishing and this provides the basis for much more discretionary
spending. Inevitable the use of some of that disposable income will be channelled into fashion
products.
Pan Asia average for monthly Consumer Spending in 2008-2011

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Monthly Consumer Spending forecast for 2013-2018
Food&Drink
Clothing
Durables
Home
Furnishings
Health&Beauty
Medical
Footwear
LeisureGoods
LuxuryGoods
Otherspending&
Investments
% % % % % % % % % %
Australia 36 6 5 3 2 5 2 3 4 34
Bangladesh 72 7 4 3 3 4 1 2 2 2
Cambodia 68 5 3 3 2 5 1 2 2 9
China 55 6 3 3 2 6 1 2 3 19
Hong Kong 44 5 4 3 2 4 2 2 4 30
India 68 7 3 3 4 5 1 2 3 4
Indonesia 62 7 3 4 3 4 1 1 3 12
Japan 36 6 5 3 2 5 2 3 4 34
Malaysia 57 7 3 4 3 6 1 2 3 14
New Zealand 36 5 4 3 1 4 2 3 4 38
The Philippines 61 6 4 4 2 5 1 2 2 13
Singapore 40 5 4 3 2 4 1 2 3 36
South Korea 37 6 5 3 1 4 2 3 4 35
Sri Lanka 70 6 3 4 4 6 1 2 2 2
Taiwan 42 6 4 2 1 5 2 2 3 33
Thailand 55 7 3 3 3 6 1 2 3 17
Vietnam 68 7 4 4 2 6 1 2 3 3
Disposable Income and Discretionary Spending (together with the consumers’ own assessment of
future trends) is measured during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
In most Asia-Pacific markets the Value Proposition of many Luxury and High Street brands have
survived intact; conversely in North America and Europe the Value Proposition of many Luxury and
High Street brands have been devalued for a number of reasons. Fashion Garments, as with
Jewellery and Cosmetics products, have seen their perceived worth diminished during the last decade
or so in North America and Europe. This is due to both the popularization of the brands which make
them less exclusive, and because they are perceived to be less costly to manufacture and less
durable. Some formerly high end brands have suffered for these reasons; for example, the Ralph
Lauren Polo brand is not perceived to be as up-market as before because it is now worn by C2, D and
E social groups and because their labels show that the garments are manufactured in Jamaica,
Malaysia, and more recently in even cheaper labour-rate countries. Similarly in the United Kingdom
the Burberry brand has suffered because it was adopted as a dress code or uniform by badly
behaved youth gangs of the D and E social groups; and thereby the Burberry brand became
associated with a particularly unfortunate customer base, thereby devaluing the brand.

16
There are psychological reasons which currently make Asia-Pacific markets more durable than, for
example, the United Sates or the United Kingdom markets and that is the general neurotic
1
(and
sometimes psychotic) psychology of female fashion and luxury goods consumers in some countries.
The increasingly neurotic nature of some of these customer bases is tending to divert expenditure
away from fashion into other neurotic activities.
In, for example the United Sates and the United Kingdom, neurotic behaviour patterns have
increasingly led women to succumb to eating disorders (which has led to obesity) and impulsive
disorders like drinking alcohol to excess. This has caused a rapid rise in over-weight women (over
50% of the adult female population in the United Sates and the United Kingdom are over-weight) and
clinical obesity (over 35% of the adult female population in the United Sates and over 25% of the adult
female population in the United Kingdom are clinical obese). This means that these women find it
increasingly difficult to interact and interface with fashion products and as a consequence they do not
perceive themselves to be capable of engaging with much of the fashion industry.
Neuroses play an important part in the purchasing behaviours of consumers, especially with fashion
and luxury goods, and these neuroses represent both opportunities and threats to fashion product
manufacturers and retailers.
The good news for fashion product manufacturers and retailers is that a neurotic customer base
makes it relatively easier for retailers to loosen the purses of buyers; the bad news is that a neurotic
customer base has a short attention span and is prone to be irrationally diverted to other neurotic
activity.
1
The terms neurosis and psychosis are used in their clinical context. The symptoms as described as follows:-
There are many forms of neurosis: obsessive-compulsive disorder, anxiety neurosis, hysteria, and a very wide variety of
phobias as well as obsessions. Effects of neurosis can involve anxiety, sadness or depression, anger, irritability, mental
confusion, low sense of self-worth, et cetera; behavioural symptoms such as phobic avoidance, vigilance, impulsive and
compulsive acts, lethargy, et cetera; cognitive problems such as unpleasant or disturbing thoughts, repetition of thoughts and
obsession, habitual fantasizing, negativity and cynicism, etc. Interpersonally, neurosis involves dependency, perfectionism,
feelings of isolation, socio-culturally behaviours, et cetera.
Individuals who score high on neuroticism are more likely than the average to experience such feelings as anxiety, anger, envy,
guilt, and depressed mood. They respond more poorly to environmental stress, and are more likely to interpret ordinary
situations as threatening, and minor frustrations as hopelessly difficult. They are often self-conscious and shy, and they may
have trouble controlling urges and delaying gratification. Neuroticism is a risk factor for the "internalizing" mental disorders such
as phobia, depression, panic disorder, and other anxiety disorders (traditionally called neuroses). Research has found that a
wide range of clinical mental disorders are associated with elevated levels of neuroticism compared to levels in the general
population. Disorders associated with elevated neuroticism include mood disorders, such as depression and bipolar disorder,
anxiety disorders, eating disorders, schizoaffective disorder, dissociative identity disorder, and hypochondriasis. Mood
disorders tend to have a much larger association with neuroticism than these other disorders. The remaining personality
disorders had either modest positive or non-significant (in the case of narcissistic and histrionic) associations with neuroticism.
Research has consistently found that on average, women score moderately higher than men on neuroticism. A study
examining gender differences in big five personality traits in 55 nations found that across nations the most pronounced gender
difference in personality was in neuroticism. In 49 of the 55 nations studied, women scored significantly higher in neuroticism
than men. In no country did men report significantly higher neuroticism than women, although in Botswana and Indonesia, men
were slightly higher than women. Gender differences in neuroticism within nations ranged from very small to quite large. The
differences were moderate to large in 17 countries, and small to moderate in 29 countries. In only seven countries -
Bangladesh, Tanzania, Ethiopia, Greece, Japan, Botswana, and Indonesia - were they negligible. African and Asian/South
Asian world regions tended to have smaller sex differences in personality overall than did western world regions (Europe, and
North and South America). Differences in the magnitude of sex differences between world regions were due to differences
between men in these respective regions. That is, men in western world regions were lower on neuroticism compared to men in
African and Asian/South Asian world regions. Women, on the other hand tended not to differ in neuroticism across regions.
Gender differences were also positively associated with measures of human development, that is, a long and healthy life,
access to knowledge and education, and decent standards of living. Sex differences became more pronounced in countries
with higher levels of human development. It is speculated that resource poor environments (that is, countries with low levels of
development) may inhibit the development of gender differences, whereas resource rich environments facilitate them. This may
be because males require more resources than females in order to reach their full developmental potential. Evolutionary
theories suggest that gender differences in neuroticism developed because men have evolved to be more risk taking whereas
women have evolved to be more cautious and hence more anxious and avoidant when faced with danger.

17
Asia-Pacific Fashion
The market for Branded Women’s Fashion wear is becoming increasingly sophisticated in the Asia-
Pacific markets.
When Jimmy Lai started the Giordano brand in Hong Kong in 1981 the business model was relatively
unsophisticated, and relied on a facsimile American product offering coupled to an Italian sounding
brand name. Giordano ran into problems and since 2001 their business model has proved somewhat
fragile. The question remains: can an Asia-Pacific company produce facsimile American or European
product designs with an American or European sounding brand name and succeed? The probability is
that this business model will not succeed in the long term. Indeed Peter Lau, the current CEO of
Giordano is now actively seeking a more robust business model.
The reasons for the less than dynamic growth for brands like Giordano is not because the product
design or the product quality is less than that of any of the American or European brands, it is just that
Asia-Pacific buyers, especially women, are fully exposed to American and European brands and they
value the brand image or legacy of those global brands.
In Indonesia, Singapore and in other Asia-Pacific countries there is a new generation of fashion
entrepreneurs with great ambition and encouraging designs. Can this new generation of fashion
designer introduce products which are marketable across Asia?
With thousands of new brands being produced in Asia it is increasingly difficult for brands and
designers to achieve long term success.
Korean Fashion
Korean Brands, like those of Woo Jong Wan’s Basic House, have also emulated American or
European design trends and coupled these with Brand names like Basic House, Mind Bridge, Voll,
The Class, D’Urban, and so forth.
The Singapore department store, Robinsons, carries the Basic House products; however these
brands have not greatly succeeded against the European or American brands sold in Singapore.
This study is designed to answer one question; how can Korean Women’s Fashion brands and
designers profitably market their products to an increasingly sophisticated customer base?
What tactics and strategies should the Korean companies use to counter the existing brands; and
which market or product niches will open up new opportunities for the Korean companies?

18
Objectives
To research the Women’s Fashion Market in Vietnam and thereby develop entry strategies for the
penetration of that market
Criteria
1. Report Criteria
This report has been conducted using primary and secondary research:-
 Primary Personal Interviews were conducted with Fashion Experts at Fashion Magazines or
other Media, Fashion Brand Managers, Fashion Trade Buyers, Fashion Retailers, In-store
Retail Negotiators, Retail Mall Operators, Fashion Wholesalers, Property & Real Estate
agents, Shop-fitting companies, Shipping and Logistics companies. The discussions with
these persons covered the following issues based on the interviewees’ personal or corporate
experiences:-
Company History
Planned Products & Services during Start-up
Current Market Analysis
Current Strategy & Implementation
Current Management
Current Financial Plan
Start-Up Investment Fund Sources & Use of Funds
Shop Legal Entity & Ownership
Company History to Date
Company Facilities
Company Key Assets
Actual Products Carried & Services Offered
 Description
 Target Customer
 Features & Benefits
 Competition
Competitive Advantage / Barriers to Entry Encountered after Start-up
Development Plans
Future Market Analysis
Future Target Customer
Projected Market Size

19
Future Fashion Trends
SWOT ANALYSIS
Strengths
• Experience and understanding of the fashion industry
• Shopping experience and customer service
• Location
• Consumer base
Weaknesses
• Untested markets
• Niche markets
Opportunities
• Outstanding shopping experience will lead to repeat business
• Online presence
• Establish a clothing line
Threats
• Cost and effectiveness of marketing to women
• New retail shops
FUTURE STRATEGY PLANNING & IMPLEMENTATION
 Philosophy
 Product Development
 Internet Strategy
 Marketing Strategy
 Sales Strategy
 Strategic Alliances
 Operations
GOALS
 Renovating, stocking, staff hiring and marketing
 Hosting events
 Penetrate and raise awareness in the targeted consumer market
 Achieving a higher profit margin
 Build a solid customer base and contact list
 Generate repeat and referral sales
 Become a highly profitable business with expansion potential
 Establish a solid reputation as quality retail establishment
EXIT STRATEGY

20
MANAGEMENT
 Organizational Structure
 Leadership
 Staff Members
FINANCIAL PLAN
 Finance Requirements
 Use of Funds
 Income Statement & Projections
 Cash Flow Projections
 Balance Sheet Topics
 Financial Assumptions
 Primary Surveys of Consumers and Retail Customers were undertaken to analyse Brand
awareness and attitudes in Vietnam. These Surveys included not only Women’s Fashion
products, but also other Luxury and High Street Brands in order to fully evaluate the impact of
Branding on Disposable Income and Discretionary Purchases in Vietnam. See details below.
 DataGroup Fashion Market databases.
 Market and Financial Data from 1997 to 2011, forecast to 2012-2018 and 2018-2025.
 Market and Financial Data in US$ prices and Local Currency by year.
Parameters
2. Research overview
Research Subjects
• Female clothing target market: Up to 19 years, 20-24 years, 25-34 years, 35-44
years, 45-54 years, 55-64 years, 64+ years.
• Female Garment Categories covered
1. Fur & Fun Fur Garments
2. Dresses
3. Outerwear Coats, Jackets & Rainwear
4. Suits, Trouser Suits, Jackets, Blazers & Business Wear
5. Slacks, Trousers, Jeans, Shorts & Skirts
6. Tops, T-Shirts, Knit & Woven Tops, Blouses, Sweaters
7. Sportswear & Swimwear
8. Hosiery, Pantyhose, Socks & Tights

21
9. Underwear, Bras & Girdles
10. Lingerie, Sleepwear & Loungewear
11. Hats, Scarves, Wigs & Hairpieces
12. Accessories, Handbags, Wallets, Neckwear, Gloves & Belts
13. Tailored Garments
14. Casual, Sweat tops, Pants, & Warm-ups
15. Functional Garments, Uniforms, Smocks & Workwear
16. Footwear
17. Dress & Casual Footwear
18. Athletic Footwear & Trainers
• Female Fashion Categories covered:
1. Young Casual Wear
2. Career Wear
3. Denim & Casual Wear
4. Every day Wear
5. Sports & Outdoor Wear
6. Lingerie & Underwear
7. Fashion Accessories
8. Footwear
Towns and Cities covered in Vietnam
The overall Market Data covers each of the major towns and cities in Vietnam. Click on this
link to see the towns and cities covered.
http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/World_Citie
s/VM.html

22
Brand Surveys
This evaluation consists of Consumer Surveys undertaken in the shopping areas and malls of Hanoi +
Ho Chi Minh City. The data collected was for the target Women’s Fashion Brands, plus other Luxury
and High Street Brands to be found in Vietnam.
Individual Brand Surveys are available (from the After-Sales Service) for each of the Brands named
below:-
• Women’s Fashion Brands covered in Vietnam are:
Luxury Brands
 Burberry
 Chanel
 Dior
 Dolce & Gabbana
 Gucci
 Hermes
 Louis Vuitton
 Marc Jacobs
 Prada
 Valentino
 Yves Saint Laurent
High Street Brands
 Banana Republic
 Calvin Klein Jeans
 DKNY
 GAP
 GUESS
 Karen Millen
 Lacoste
 Mango
 Zara
Asian Brands
 Blue Exchange
 BYSI
 Esprit
 G2000
 Hagatini
 M)Phosis
 PT 2000
Department Store & Generic Brands
 Parkson / Saigon Paragon
 Tax
 Vincom

23
Brand Coverage
• In addition other Luxury and High Street Brands were evaluated for their impact of Branding
on Disposable Income and Discretionary Purchases in Vietnam. These brands included non-fashion
products so that an overall appraisal of Brand Impact on Discretionary Purchases could be more
completely assessed in Vietnam.
Individual Brand Surveys are available for each of these Brands from the After-Sales Service.
Ho Chi Minh City: Store targets
(CA) = Caravelle Hotel
(CO) = Continental Hotel
(NW) = New World Hotel
(R) = Rex Hotel
(S) = Sheraton Hotel,
(DK) = Dong Khoi St
(HBT) = Hai Ba Trung St
(LL) = Le Loi street
(P) = Pasteur St
(NT) = Nguyen Trai St
(MTB) = Mac Thi Boui St
(CM) = Crescent Mall
(KA) = Kumho Asiana Plaza
(SC) = Saigon Center
(VS) = Vincom Shopping Centre
(ZP) = Zen Plaza
(D) = Diamond Department Store
(GR) = Galerie Royale
(M) = Milano
(TSN) = Tan Son Nhat International Airport
(PLTT) = Parkson Department Store Le Thanh Ton
(PLDH) = Parkson Department Store Parkson Le Dai Hanh
(PP) = Parkson Department Store Paragon
(PLTT) = Parkson Department Store Hung Vuong Plaza
(PF) = Parkson Department Store Flemington
(PSTP) = Parkson Department Store Saigon Tourist Plaza
Ho Chi Minh City Luxury Brands
 Aspial (VS)
 Balenciaga (R)
 Bally (D, R, TSN)
 Blugirl (M)
 Blumarine (M)
 Burberry (D, R, TSN)
 BVLGARI Perfumes & Cosmetics (D)
 Cartier (D, CA, R)
 Chanel (D, R)
 Charmes (VS)
 Chloe (R, VS)
 Chopard (D)
 Christian Louboutin
 Coach (TSN)

24
 DKNY (CM)
 Dolce and Gabbana (M)
 Dsquared2 (M)
 Dunhill (D)
 Emporio Armani (VS)
 Ermenegildo Zegna (R)
 Furla (D, DK, VS)
 Givenchy (D, R)
 Gucci (D, S)
 Jaeger LeCoultre (CA)
 Janeke (M)
 Jimmy Choo (VS)
 John Galliano (M)
 Just Cavalli (VS)
 Kenzo (GR)
 LeSportsac (TSN)
 Loewe (R)
 Longchamp (D)
 Longines (CO)
 Louis Vuitton (DK)
 Marc Jacobs (R)
 Mont Blanc (D, TSN)
 Moreschi
 Omega (D, DK)
 Philippe Charriol (D)
 Piaget (CO)
 Rado (MTB)
 Ralph Lauren (R)
 Rene Caovilla (M)
 Roberto Cavalli (M)
 Rolex (D, R)
 Rolex & Chopard (D)
 Salvatore Ferragamo (D, R, PLTT, TSN)
 Seiko (DK)
 Sergio Rossi (P)
 Swavoski (TSN, VS)
 Swiss Watch (D)
 Tag Heuer (DK, TSN)
 Tara Jarmon (R)
 Testoni (D)
 Tod's (M)
 Tumi (R)
 Valentino (PLTT)
 Valentino Rudy (D)
 Versace (PLTT, VS)
 Vertu (S)
 Yves saint Laurent (M)
 Zeades (PLTT)

25
Ho Chi Minh City High Street Brands
 Accessorize (NT, VS)
 Aldo (DK, KA, VS)
 Axara Paris (CM, NT, SC, VS)
 Bana Bana (D)
 Bata (VS)
 BCBGMAXAZRIA (CM, VS)
 Bebe (SC, VS)
 Biotherm (D)
 Bonia (PF, PHV, PLTT, PSTP, VS)
 Birkenstock
 Bossini (LL)
 Braun Buffel (D)
 bYSI (VS)
 Calvin Klein (D)
 Carlo Rino (PLDH, NT, VS)
 Charles & Keith (NT, VS)
 Charles David (CM)
 Chic Accessories (VS)
 CK Jeans (D)
 Clarks (D)
 Converse (10 locations)
 Crocs Shoes (PLDH, PLTT)
 Crocodile (D)
 Diesel (ZP)(CM)
 Diva Fine Jewellery (8)
 Dr. Martens (11 locations)
 Ecco (VS)
 Ecko Unlimited (VS)
 Elizabeth Arden (PLTT, PHV)
 Elle (D, VS, PLDH)
 EVita (PLTT)
 Espirit (CM, DK, PHV, PLDH)
 Etam (PLDH)
 Four Seasons Boutique (VS)
 French Connection (CM, D, LL, NT, VS)
 Florsheim (4 locations)
 GAP (CM)
 Geox (D, PP, SC)
 Giordano (5 locations)
 Guess (D)
 Guerlain Cosmetics
 Guy Laroche (D)
 Hello Kitty (NT)
 Hikosen Cara (11 locations)
 Hoffmann (VS, NT)
 Kanebo (PLTT)
 Kangnai (VS)
 Kappa (D, VS)

26
 Kipling (PLDH)
 Kookai (MTB, SC)
 L'OCCITANE (9 locations)
 Lacoste (DK, NW, PHV, PLTT)
 Lancel (PLDH)
 Laneige (PLTT)
 La Perla (GR)
 La Senza (NT, VS)
 la Vie en Rose (VS)
 Lee (3 locations)
 Levis (D, DK, NT, SC, VS)
 M.A.C (PSTP)
 MaBelle (NW)
 Makeup For Ever (PSTP, VC)
 Mango (NT, MTB, SC, VS)
 Menard (D, NW, PCT, PHV, PSTP, PF)
 Misaki (PLTT)
 Miss Sixty & Energie (D)
 Monsoon Accessorize (2 locations)
 Montagut (NT)
 Muse Boutique (SC)
 Naf Naf (VS)
 Nike (LL)
 Nike Fashion (ZP)
 Nike Town (CM)
 Nine West (HBT, NT, SC, VS)
 Noir (PLDH)
 Paris Hilton (NT, VS)
 Pedro (VS)
 Pierre Cardin (PLTT, VS)
 Playboy (VS)
 Replay (NT, VS)
 Samsonite (2)
 Shiseido (NW, PLTT)
 Skechers (VS)
 Sisley
 The Body Shop (NT)
 THE FACE SHOP (17 locations)
 Thomas Sabo (VS)
 Tommy Hilfiger (ZP)(CM)
 Van Laack (DK)
 Voir (PLDH)
 Yves Rocher (NT, VS)
Ho Chi Minh City Department Store
 Debenhams
 Isetan from Japan (Start-up)

27
Hanoi: Store targets
(H) = Hilton Hotel
(M) = Melia Hotel
(S) = Sofitel Hotel
(LTT) = Le Thai To Street
(LTK) = Ly Thuong Kiet
(GP) = Grand Plaza
(HD) = Hang Da Galleria
(HG) = Ho Guom Plaza
(LM) = Luxury Mall
(MA) = Metropole Arcade
(PM) = Pico Mall
(VC) = Vincom City Towers
(OBC) = Opera Business Center
(PP) = Pacific Place
(CT) = C.T Hapro Mini Department Store
(GR) = Gallery Royalem
(RB) = Runway Boutique
(PCT) = Parkson Department Store CT Plaza
(PV) = Parkson Department Store Viet Tower
Hanoi Luxury Brands
 Antonio Berardi (RB)
 Bally (MA)
 Bang & Olufsen (PP)
 Burberry (MA, OBC)
 Cartier (GP, MA)
 Chole (RB)
 Chopard (MA)
 Clinique
 D&G (LM)
 Dunhill (H)
 Escada (LTT)
 Estee Lauder (OBC)
 Furla (H)
 GF Ferre (LM)
 Gianfranco Ferre (LM)
 Gianni Versace
 Giovanni (GP)
 Giuseppe Zanotti (LM)
 Gucci (LTT)
 Jaeger-LeCoultre (MA)
 Just Cavalli (GP, LM)
 Hermes (MA)
 Hussein Chalayan (RB)
 IWC Schaffhausen (MA)
 Kenzo (GR, OBC)
 Kiton (LM)
 Korloff (GR)
 La Perla (GR)
 Little Marc (RB)

28
 LongChamp (LTT)
 Longines (LTT, PP)
 Louis Vuitton (MA)
 Marc by Marc Jacobs (RB)
 Michael Kors (RB)
 Mont Blanc (GP, MA)
 Moreschi (LM)
 Roberto Botticelli (LM)
 Roberto Cavalli (LM)
 Roberto Scarpa (LM)
 Sergio Rossi (MA)
 Salvatore Ferragamo (MA)
 Valentino Rudy (LM, VC)
 Valentino (GP, LTT, PP)
 Versace (LM)
 Vertu (M, S)
 Viktor & Rolf (RB)
Hanoi High Street Brands
 Addidas (VC)
 Aldo (HG, VC)
 Axara Paris (HD, LTT, PM)
 BCBGMAXAZRIA (LTT)
 Birken Stock (HD)
 Bonia (PCT, VC)
 Bossini (VC)
 Braun Buffel (VC)
 C'N'C (LM)
 Calvin Klein (CT, PCT)
 Clarins (VC)
 Clinque (LTT)
 Converse (3 locations)
 Croc Shoes (PCT, PM)
 Debon (VC)
 Delsey (PM)
 Dr. Martin (2 locations)
 Ecco (PM)
 Elizabeth Arden (PCT)
 Elle (VC)
 Espirit (PCT, VC)
 Exte (LM)
 Florsheim (PCT)
 French Connection (HD, PM)
 G2000 (HD, PM)
 Geox (GP, PCT, PM, PV, VC)
 Giordano (2 locations)
 Guerlain Cosmetics
 Kenebo (VC)

29
 Laneige (VC)
 L'OCCITANE (PV, VC)
 La Perla (OBC)
 Lacoste (PCT, PP, VC)
 Lego (VC)
 Levis (7 locations)
 Mango (LTK, PCT, VC)
 Marie France Bodyline
 Menard (5 locations)
 Monsoon Accessorize
 Morgan De Toi (PM)
 Minoshe (PM)
 Misaki (VC)
 Nike (VC)
 Naf Naf (HD, PM)
 Nine West (LTT, PP, VC)
 Noir (HD)
 Pierre Cardin (VC)
 Samsonite (PM)
 Shiseido (VC)
 THE FACE SHOP (3 locations)
 Tissot (PM)
 Triumph (PM, VC)
 Umberto Bilancioni (LM)
 United Color of Benetton (VC)
 Wacoal (PM)
 Van Laack (LTT)
 Yves Rocher

30
Market Opportunity
Analysis of the development of the retail trade and its life cycle
The choice of route to the market has opportunities and pitfalls, product and brand superiority is an
obvious competitive advantage which can be re-enforced through firm control of the retail channels.
However products and brands superiority is a medium and long-term strategy which can be unstable
and may be subject to short-term set-backs. Clearly strong brands with real product benefits have the
best competitive advantage, and for this reason the long-lived brands have consistently invested in
brand equity.
The low transaction cost routes to the market have clear benefits, but may suffer from sustainability
problems as the concept adopted is easy and inexpensive to replicate by competitors. The majority of
foreign brands operating in any one country tend to choose the Medium Added Value and Medium
Transaction Costs routes to the market as these are tested and known. However the use of novel and
innovative channels of distribution are being increasingly explored by the brand leaders. Newcomers
are less inhibited (than the entrenched brands) in trying and testing new distribution channels and
often new brands can achieve improved market penetration through imaginative distribution policies
and tactics.
The task of any brand seeking to enter these markets is to achieve an alignment with the distribution
and a synergy with consumer buying behaviours and expectations.
 Analyse consumer buying behaviours
 Evaluate consumer ‘Shopping Experience’ criteria
 Identify consumer channel preferences
 Correlate consumer channel usage with purchasing criteria
 Provide flexible and adaptable retail channel options
 Observer changes in consumer buying behaviours
 Adapt and respond to consumer buying behaviours
The above considerations are of course an analogy of the life cycle of particular channels. Failure to
respond and adapt in the above manner will inevitably result in the premature shortening of the life
cycle of any particular channel.
The purchasing criteria of consumers will be recognisable, and have been specified in other sections
of this study. The basic criteria are inevitably the same in most of the countries:-
 Price
 Availability
 Brand
 Quality
 Shopping experience
 Store Personnel
 Store appeal
 Promotional actions
 Et cetera
How these criteria then interact with particular channels is the important issue; as is how these criteria
and the individual channel can be correlated and manipulated to maximise Added Value and minimise
Transaction Costs.

31
Added Value and Transaction Costs across the Supply Chain
OwnedExclusive
BrandStores
NationalBrand
Licensing
RetailFranchising
Sellingvia
Exclusive
Distributors
Multi-BrandRetail
Stores
DirectSellingto
Independent
Retailers
ConsumerParty
Plan
SocialNetwork
SalesTactics
Telemarketing
eCommerce
AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC
Australia H H M H M M M M M M M M L L L L L L L L
Bangladesh H M M M M M M M M M M M L L L L L L L L
Cambodia H H M M M M M M M M M M L L L L L L L L
China H H M M M M M M M M M M L L L L L L L L
Hong Kong H H M H M M M M M M M M L L L L L L L L
India H M M M M M M M M M M M L L L L L L L L
Indonesia H H M M M M M M M M M M L L L L L L L L
Japan H H M H M M M M M M M M L M L L L L L L
Malaysia H H M M M M M M M M M M L L L L L L L L
New Zealand H H M M M M M M M M M M L L L L L L L L
Philippines H M M M M M M M M M M M L L L L L L L L
Singapore H H M M M M M M M M M M L L L L L L L L
South Korea H H M H M M M M M M M M L L L L L L L L
Sri Lanka H M M M M M M M M M M M L L L L L L L L
Taiwan H H M M M M M M M M M M L L L L L L L L
Thailand H H M M M M M M M M M M L L L L L L L L
Vietnam H M M M M M M M M M M M L L L L L L L L
AV = Added Value : TC = Transaction Costs : H = High : M = Medium : L = Low

32
Clothing retailers per 10,000 inhabitants
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Australia 9 10 9 10 9 10 10 11 11 10 9
Bangladesh 4 4 4 4 5 5 5 6 5 5 5
Cambodia 4 4 5 5 5 6 6 6 7 8 9
China 8 8 8 7 8 8 9 9 9 9 10
Hong Kong 7 8 8 9 9 8 9 10 10 9 8
India 5 5 6 5 6 7 7 7 8 9 10
Indonesia 6 7 7 6 6 7 7 7 7 7 7
Japan 9 9 9 9 9 9 10 10 9 10 10
Malaysia 6 7 6 7 7 8 9 9 8 9 9
New Zealand 9 10 9 9 8 9 9 9 10 10 9
The Philippines 6 7 6 7 8 7 8 8 9 9 10
Singapore 5 5 5 5 5 5 5 6 6 6 5
South Korea 8 8 9 10 10 10 10 10 10 10 11
Sri Lanka 4 4 4 4 4 5 5 6 6 6 6
Taiwan 6 7 7 7 7 7 7 7 8 8 9
Thailand 5 5 5 6 6 7 8 8 8 9 9
Vietnam 4 4 5 5 5 5 5 6 7 7 8
Clothing Store Revenue per Square Meter per annum (US$)
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Australia 3500 3898 4341 4834 4845 5395 6009 6022 6707 7469 7486
Bangladesh 1500 1497 1659 1656 1836 2035 2031 2252 2496 2491 2762
Cambodia 1450 1453 1618 1802 1806 2012 2240 2245 2501 2506 2791
China 2400 2417 2705 3027 3049 3070 3092 3114 3137 3159 3535
Hong Kong 19800 20900 22061 20958 19910 18915 17969 18967 20021 19020 18069
India 1800 1865 2148 2474 2564 2657 2753 2853 3286 3784 3921
Indonesia 1700 1950 2237 2309 2649 2734 2823 3238 3343 3834 4398
Japan 11100 10533 11105 10538 11111 10543 10005 10548 11122 10553 10014
Malaysia 2200 2280 2625 2721 2820 2922 3029 3139 3614 3746 3882
New Zealand 4500 4455 4410 4366 4323 4279 4237 4660 5126 5075 5024
Philippines 1100 1196 1301 1415 1709 2066 2496 2714 3280 3963 4789
Singapore 8100 7953 7808 8518 9292 9123 9953 10858 11845 12921 12686
South Korea 3300 3785 3908 4034 4165 4777 5480 6286 6489 7443 7684
Sri Lanka 1600 1767 1951 1939 2140 2127 2349 2593 2577 2846 2828
Taiwan 3200 3223 3246 3269 3292 3316 3711 4152 4182 4212 4242
Thailand 8300 8093 7890 8548 8334 9029 9781 9536 9298 10073 10912
Vietnam 2100 2176 2256 2597 2692 3100 3212 3329 3450 3576 4117

33
Average Revenue per Clothing Store per annum (‘000 US$)
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Australia 340 341 342 342 343 382 383 426 475 476 477
Bangladesh 131 131 145 145 160 160 177 177 196 196 195
Cambodia 134 134 150 150 150 167 168 187 208 232 232
China 236 238 266 268 300 302 338 340 343 383 386
Hong Kong 1908 2014 1913 1818 1727 1823 1924 2031 2144 2036 2150
India 159 165 171 177 204 211 219 252 261 301 346
Indonesia 170 195 201 208 238 246 254 291 301 311 321
Japan 1188 1253 1321 1253 1189 1128 1190 1254 1323 1394 1470
Malaysia 205 212 245 282 292 303 314 361 416 431 447
New Zealand 394 433 429 425 421 463 509 504 499 494 543
Philippines 110 133 161 194 211 255 308 335 405 489 591
Singapore 722 788 859 844 828 813 887 968 950 933 916
South Korea 302 312 358 410 423 437 501 575 660 757 868
Sri Lanka 146 161 178 177 195 194 193 213 235 234 258
Taiwan 305 341 344 385 430 434 437 489 492 496 555
Thailand 763 744 806 873 946 922 999 974 950 1029 1115
Vietnam 185 192 221 229 237 273 283 326 375 389 448
Average Clothing Store Sales Area (Square Meters)
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Australia 97 84 77 67 69 72 60 70 73 61 61
Bangladesh 89 89 82 88 89 75 90 77 77 76 69
Cambodia 93 92 88 79 84 79 74 85 87 97 83
China 97 103 98 88 97 94 114 105 105 115 110
Hong Kong 100 98 91 85 89 98 107 108 107 112 118
India 90 90 79 69 75 83 80 83 81 75 83
Indonesia 101 99 90 94 94 88 85 87 87 84 71
Japan 104 116 115 115 109 109 123 121 121 128 140
Malaysia 91 91 91 104 101 101 106 116 120 118 110
New Zealand 87 97 97 100 93 107 116 108 102 94 109
Philippines 100 105 117 130 120 119 122 125 119 120 118
Singapore 90 99 108 103 90 86 92 88 82 73 71
South Korea 91 82 96 103 100 94 93 94 102 106 116
Sri Lanka 93 95 93 88 90 86 78 82 87 82 91
Taiwan 98 104 111 112 124 135 112 117 121 118 129
Thailand 87 94 104 97 111 102 104 99 105 99 101
Vietnam 83 90 97 90 83 88 88 93 105 104 108

34
Existing Distribution Channels
Wholesale-Domestic
owned&controlled
Wholesale-Foreign
controlled
Wholesale-Joint
Ventures
Wholesale-Other
Retailer-Domestic
owned&controlled
Retailer-Foreign
controlled
Retailers-Joint
Ventures
Retail–Internet&
Others
% % % % % % % %
Australia 82 7 8 3 83 7 5 5
Bangladesh 86 6 6 2 82 6 4 8
Cambodia 87 5 4 4 80 8 5 7
China 87 7 2 4 84 7 4 5
Hong Kong 81 12 4 3 77 11 7 5
India 91 6 2 1 84 7 5 4
Indonesia 84 8 4 4 79 6 7 8
Japan 85 8 2 5 81 8 3 8
Malaysia 83 6 5 6 80 5 6 9
New
Zealand
85 6 8 1 78 8 7 7
Philippines 82 6 6 6 81 6 8 5
Singapore 82 7 6 5 81 8 8 3
South
Korea
87 5 1 7 83 6 2 9
Sri Lanka 87 7 1 5 86 5 6 3
Taiwan 85 5 6 4 80 5 9 6
Thailand 82 5 7 6 82 7 8 3
Vietnam 91 5 1 3 86 6 4 4
New Distribution developments
Multiple-Channel Development
Developing a Multi-Channel approach to the consumer is often very effective and allows:-
 Efficient access to each market segment
 Increased market coverage
 Lower channel cost
 Opportunities for targeted and customised selling
 More precise control of channels

35
 The introduction of Complementary Channels, each of which targets different product or
consumer segments.
 Competitive Channels where more than one channels competes for the same consumer
segment. This permits dynamic pricing tactics, promotional opportunities and better inventory
management mechanisms.
Multi-Marketing & Social Networking
Developing a Multi-Marketing & Social Networking approach to the consumer can help access niche
markets:-
 Direct selling an Party Plan to access specific demographics (Married women, Older women,
women in rural locations)
 Telemarketing which can access Housewives and women at their work place.
 Social Network integration with mobile applications to promote specific events and ‘shopping
experiences’ for the younger demographics.
e-Commerce & M-Commerce
The effective application of e-Commerce and then Mobile Applications will increasing become very
important in the marketing mix of all brands.
Online Shopping by Middle Classes – Purchases per month
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Australia 8 9 11 12 13 14 15 16 17 18 19
Bangladesh 3 4 5 7 8 9 10 11 12 13 14
Cambodia 2 3 4 5 7 8 8 9 10 12 12
China 8 9 10 11 12 13 14 15 15 16 17
Hong Kong 6 7 8 9 10 12 13 14 15 16 16
India 4 5 6 7 8 9 10 11 12 13 14
Indonesia 3 4 6 6 7 8 9 10 11 12 13
Japan 5 6 7 8 9 10 11 12 13 14 16
Malaysia 3 4 5 6 7 8 9 10 11 12 13
New Zealand 9 10 11 13 13 14 15 16 17 18 19
Philippines 5 6 7 8 9 11 11 12 13 14 15
Singapore 5 6 7 8 9 10 12 12 13 15 15
South Korea 8 9 10 11 12 13 14 15 17 18 19
Sri Lanka 3 4 5 6 7 8 9 10 11 11 13
Taiwan 6 7 8 9 10 11 12 13 14 15 16
Thailand 3 4 5 6 7 8 9 10 10 11 12
Vietnam 3 4 5 6 7 8 9 10 11 12 13
The data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.

36
Distribution Policies & Strategies
Distribution Strategies for consideration
ExclusiveDistributor
Non-ExclusiveDistributor
SelectedWholesaleDistribution
IntensiveDistributiontoprovide
conveniencetoindependentretailers
DirectsupplytoSelectedRetailers
IntensiveDistributiontoindependent
retailers
Multi-channelDistribution
Australia X
Bangladesh X
Cambodia X
China X
Hong Kong X
India X
Indonesia X
Japan X
Malaysia X
New Zealand X
Philippines X
Singapore X
South Korea X
Sri Lanka X
Taiwan X
Thailand X
Vietnam X
The above distribution strategies are used by the
current players in each of the country markets. Each
distribution method needs to be analysed in depth to
understand the implications.
Exclusive Distribution advantages include:
 Maximised control over service
level
 Control of costs
 Enhanced brand equity
 Enhanced margins
 Control of tied retailers
 Improved independent retailer
loyalty
 Improved ERP and inventory
control
 Improved merchandising controls
 Improved forecasting and market
reaction time
 Market power and influence
Exclusive Distribution disadvantages:
 Risk in reliance on an exclusive
distribution system
 Mainly geared to big brand, high
price, high margin and low volume
products
Intensive Distribution advantages include:-
 Potentially increased retailer sales
 Wider consumer recognition
 Enhanced product exposure
Intensive Distribution disadvantages:-
 Applicable to low price, low-margin
high street brands
 Products require constant
refreshing and high stock turn
 Difficulty controlling brand image
Selective Distribution advantages:
 Better market coverage than
exclusive distribution
 More control and less cost than
intensive distribution
 Concentration on productive
outlets
 Carry full product line
 Provide superior services
Selective Distribution disadvantages:
 May not cover the market
adequately
 Potential errors in distributor
selection

37
Adaption of Distribution
Strategies
Channel Control Strategies
BetterknowledgeofConsumerbuyinghabits
BetterattentiontoCustomerexpectations
MoreattentiontoCompetitor’sproduct
offerings
Betterselectionofretailoutlets&locations
Improvementof‘StoreExperience’
MoreattentiontoBrandEquity
Increasevolumelevelofsales
MoreattentiontotheMarketingMix
VerticalMarketingSystem(VMS)
ERPmethodology
Firmcentralcoordination
ProfessionalManagement
Programmednetworksystems
Useofinnovativemarketingchannels
Definitionsofcorporate,administrativeand
contractualVMS
HorizontalMarketingSystem
Symbioticmarketing
Australia X X X X X X X X X X
Bangladesh X X X X X X X X X X X X X X X X X
Cambodia X X X X X X X X X X X X X X X X X
China X X X X X X X X X X X X X X X X X
Hong Kong X X X X X X X X X
India X X X X X X X X X X X X X X X X X
Indonesia X X X X X X X X X X X X X X X X X
Japan X X X X X X
Malaysia X X X X X X X X X X X X X X X X X
New Zealand X X X X X X X X X X X X X X X
Philippines X X X X X X X X X X X X X X X X X
Singapore X X X X X X X
South Korea X X X X X X X X X
Sri Lanka X X X X X X X X X X X X X X X X X
Taiwan X X X X X X X X X X X X X X
Thailand X X X X X X X X X X X X X X X X X
Vietnam X X X X X X X X X X X X X X X X X
The countries marked with an X indicate the need for the distribution strategies to be analysed in
depth to understand the implications.

38
Purchasing power
NationalWholesalers
RegionalWholesalers
IndependentWholesalers
Agents&Jobbers
NationalRetailers
RegionalRetailers
IndependentRetailers
MailOrder
Catalogue
Online
Australia S M L M S M L S M M
Bangladesh M L N L M M N L L L
Cambodia M L N L M M N L L L
China S M L M S M L M M M
Hong Kong S M L M S M L M M M
India S M L M S M L M M M
Indonesia S M L M S M L M M M
Japan S M L M S M L S M M
Malaysia S M L M S M L M M M
New Zealand S M L M S M L M M M
Philippines S M L M S M L M M M
Singapore S M L M S M L M M M
South Korea S M L M S M L M M M
Sri Lanka M L N M M M N L L L
Taiwan S M L M S M L M M M
Thailand S M L M S M N M M M
Vietnam M L N L M M N L L L
S = Substantial : M = Moderate : L = Limited : N = None
Purchasing power is defined by the relative discounts and terms of payment achieved that each level
of the supply chain can achieve when negotiating with their suppliers. In general the distribution and
retail buyers can usually negotiate more advantageous terms with suppliers from Asia than with
suppliers from North America or Europe.

39
Retail Trade Life Cycle and Development in Women’s Fashion
Brand Development in the Retail Trade
The Retail Trade Life Cycle and Brand Development in Women’s Fashion have been very consistent
since the 1980s. Obviously in certain more developed countries like Australia, Japan, South Korea the
stage of the Life Cycle is fully mature and has reached saturation.
China will during the next decade experience structural problems with the age demographic and this
will affect Women’s fashion products.
It is not anticipated that the newly developing Asia Pacific countries will catch up with the developed
countries before 2025. Indeed with the effects of an aging population throughout the region there is
some doubt about the impact the age demographic will have on the life cycle in many Asia Pacific
countries.

40
Future Prospects and Development of the Retail Trade
The future of the Retail Trade in the Asia Pacific region will emulate the development of the trade in
North America and Europe; expect that the development will be greatly accelerated. Essentially the
Asia Pacific trade will clone the concepts and systems used in North America and Europe and simply
adapt those to local conditions. Thus whereas in North America and Europe Women’s Fashion brands
took some three decades to evolve, in Asia Pacific region this will be done much rapidly and will
depend solely on the ability of the local populations to have the disposable income to afford such
consumer brands.
In the larger countries, like China, India and Indonesia, it is probable that traditional retailing will never
fully evolve; as is has done in North America and Europe. This is due to the rapid changes in age
demographics within these countries and the effects of new distribution processes like online retailing.
For women’s fashion brands to develop along tradition lines, in the high street and shopping malls, it
will be necessary for retailers to develop and enhance the ‘shopping experience’ to draw consumers
to their brands.
City and Town analysis for Vietnam
The Research focuses on the Girl’s and Women’s Fashion Retailers in the Major Cities and General
Clothing Retailers in other cities. A full list of the cities in the database can be found here:
http://www.datagroup.org/BASE_FOLDERS/World_Cities/VM.html
The overall Market Data covers each of the major towns and cities in Vietnam can be found here:
http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/xls_MarketResearch
/CTM.xls
Detailed Market Data covers each of the major towns and cities in Vietnam can be found here:
http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_TOWN_MARKE
T.htm

41
Wholesaler, Trade Buyer, Retailer and Store Performance Surveys
Products
1. Cardigans & Jumpers
2. Dresses
3. Jackets & Coats
4. Jeans & Denim
5. Knitwear
6. Lingerie
7. Maternity Wear
8. Nightwear
9. Shirts & Blouses - Tops & T-Shirts
10. Suits
11. Skirts
12. Sportswear & Swimwear
13. Stockings, Tights & Socks
14. Trousers, Leggings, Culottes, Shorts, Dungarees
15. Accessories
Retail Operations
1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Design Research & Development
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT
Buyer Profiles
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Immediate Distributors
6. Immediate Trade
7. Immediate End Users
8. Immediate Other Users
9. End User Age: <25
10. End User Age: 25-55
11. End User Age: 25-55
12. End User Social Group: AB
13. End User Social Group: C1
14. End User Social Group: C2
15. End User Social Group: DE
Trading Area
1. Ho Chi Minh City
2. Hanoi
3. Haiphong

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