Facing the risks and challenges caused by the heavy impact of the Covid-19 pandemic through many outbreaks. Textile enterprises in general, especially those specializing in outsourcing production, are still "stretching" to maintain production, trying to overcome the difficult period. So is the Southern Textile Corporation - Vinatex (VSC) too! More specifically, besides making efforts to maintain production, VSC also "brows" and is gradually building its own fashion brand. With the desire to expand business form, improve production value as well as access the exciting fashion market at home and abroad.
The following article shares the challenges and opportunities that textile businesses in general will gain from branding. At the same time, it helps you somewhat understand the "non-stop efforts" and the initial fashion brand development orientations of the Southern Textile and Garment Corporation - Vinatex.
The overall picture of Vietnam's textile industry and opportunities from brand development
According to the Center for Industry and Trade Information, the Covid-19 epidemic caused Vietnam's garment exports to slow down in 2020, but recovered quickly from the last months of 2020 and made a strong breakthrough in 6 months. Early 2021. Preliminary statistics also show that, in the first 6 months of 2021, Vietnam's textile and garment exports are estimated at 19.18 billion USD, up 21% compared to the first 6 months of 2020 and up 4 25% compared to the first 6 months of 2019. Currently, Vietnam is the 4th largest garment exporter in the world market after China, the EU and Bangladesh with an export share of 7.05% in 2020, an increase. higher than 5.54% in 2016.
Vietnam's textile and garment industry achieves "good results" in the first 6 months of 2021
The textile and garment value chain includes the following stages: Design, production of raw materials, garment production, import and distribution. However, in fact, Vietnam has only participated in the stage that brings the least value, which is garment production. And although in addition to traditional textile products, high value-added items such as fabrics, fibers, geotextiles, and textile accessories also have a very good growth, but the proportion of export turnover These items in the total export turnover of the whole industry have not improved much. However, apparel is still the group with the largest proportion of export turnover and is dominant, accounting for over 83% of the entire textile and garment industry in Vietnam in the past time and is expected in the coming years.
At the seminar "Brands for textile enterprises in the domestic market", organized by Masso Consulting in collaboration with the Vietnam Textile and Apparel Association and the Oriented Market Research Company (FTA). Mr. Le Quoc An, Chairman of the Vietnam Textile and Apparel Association, said that the weakness of Vietnam's textile and garment industry is its design, branding and dependence on imported raw materials. When sketching the overall picture of Vietnam's textile industry, most experts have the same opinion: Although there are many businesses operating in the textile industry, creating a brand is still quite modest. Meanwhile, more and more international brands are pouring into the Vietnamese market, creating more opportunities for domestic consumers to pay attention to "dressing well" instead of "wearing warm".
Vietnam's textile and garment industry is only involved in the stage that brings the least value
(Source: digital.fpt.com.vn)
The transformation of digital technologies and fierce competition in the industry requires Vietnamese textile and garment enterprises to change direction. Change business strategy, innovate technology if you want to ensure competitive advantage and sustainable development in the market. More than ever, if Vietnamese textile and garment enterprises want to survive and develop in the market, it is necessary to switch from the traditional production method, which is mainly outsourcing, to designing and manufacturing finished products by themselves. Promote Vietnamese brand building, supply chain linkages, and develop supporting industries.
Therefore, it can be said that building and developing their own fashion brand will open up a lot of opportunities for textile enterprises in general and for the Southern Textile and Garment Corporation in particular.
VSC exploits opportunities from difficulties and challenges
In the current complicated epidemic situation, not only the Southern Textile and Garment Corporation - Vinatex (VSC) but believes that most businesses are more or less affected. Although Covid-19 has caused a global economic slowdown, it also creates an opportunity for businesses to look back to better understand their businesses from another angle; Review and re-evaluate the supply chain to find solutions to improve efficiency in corporate governance; Linking industries in the same value chain to create new opportunities.
Covid-19 caused the global economy to "stumble"
(Source: anh.24h.com.vn)
According to experts, it is the challenges from Covid-19 that have made the textile and garment industry more stable with actions such as reducing the import of raw materials from abroad and instead using domestic materials. more, helping to increase the added value in exports. It is thanks to continuous efforts, not afraid of difficulties and "courageous" to face and rise up.
The Southern Textile and Garment Corporation - Vinatex (VSC) recently also had many difficulties when the Corporation's office in Ho Chi Minh City. Ho Chi Minh City applies the form of distance, working online from home, some jobs face more obstacles than usual. Vinatex garment factories in the South have also implemented social distancing, implemented safe and natural models, kept factories warm and are now trying to restore production step by step. Despite "difficulties and difficulties", all VSC's staff and employees under the direction of the Board of Directors still try to be "courageous" every day. In addition to maintaining production, VSC has also been urgently implementing a project to build a fashion brand in both the domestic market and the US market.
“Amidst many difficulties and challenges, we choose to seize and take advantage of even the smallest opportunities!”
The implementation of building VSC's own fashion brand
Always in a proactive attitude, ready to face difficulties to carry out related tasks and promote brand building. VSC also has certain thoughts and orientations for the future fashion brand. So what were those initial thoughts and orientations? Let's find out together!
Thinking about choosing an online sales channel
Fashion brands in general in Vietnam are racing on online sales platforms with rich and diverse sales methods, especially during the Covid-19 period when physical stores are closed. – open subject to social distancing policy. However, in the midst of the diversity of online sales platforms, many businesses are still wondering whether to choose to sell on business-owned channels or on e-commerce platforms.
Selling and shopping online is a global trend
(Source: congdongseovn.com)
According to a study by FPT Digital on the choice of business channels of popular fashion brands. Most of the international fashion brands operating in Vietnam (Example: Zara, H&M, Uniqlo...) do not tend to sell on e-commerce platforms, or if they do, very limited in number. products and promotions. They focus on programs on owned sales channels such as websites or on mobile applications. Meanwhile, Vietnamese fashion brands tend to make full use of online sales channels.
In fact, the online sales channel is the first choice today. However, the effectiveness brought from high or low channels also depends a lot on the experience that customers have when making purchases on the channel. The Southern Textile and Garment Corporation - Vinatex also has the mindset of choosing and exploiting the future online sales channel for its brand. However, whether it is a business-owned channel or an e-commerce platform, we will also focus on improving the customer experience, understanding the needs to improve products and services, providing maximum satisfaction. multi.
Exploiting both domestic and foreign markets
Not only Vietnam, but the world fashion market is also extremely exciting. This is also the reason why VSC decided to build a brand and exploit both domestic and foreign markets. Specifically, it is expected that VSC's fashion brand will be sold on online channels in the Vietnamese market, and also be linked and distributed in the US market on Amazon - the leading e-commerce platform with many brands. many opportunities are open.
Amazon opens up business opportunities for every business around the world
(Source: ict-imgs.vgcloud.vn)
Thus, the above article has revealed about the branding project of the Southern Textile and Garment Corporation - Vinatex (VSC). VSC's strength in branding is the availability of outsourcing factories with extensive experience in processing and manufacturing products. However, it cannot be denied that despite such a potential market, although the Corporation has certain strengths, building and developing a fashion brand is not easy. Because of the high level of competition, by the weaknesses and challenges from the market. It requires the VSC team to be more courageous, trying constantly to quickly bring the first products of the brand to customers.
Hopefully the "nursing" of the Southern Textile and Garment Corporation - Vinatex will soon be released. Wishing everyone peace, health and determination to try to overcome this difficult period to reap more success in the future!
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