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Covid-19 - Opportunities or challenges for Vietnamese fashion brands?

Fashion is one of the items that are always "hot" and brings great revenue not only in Vietnam but around the world. Fashion is also an industry with an amazing growth rate. In 2021 and 2022, the entire fashion industry sees global growth of 22% and 13% respectively, setting the stage for 2023 despite many difficulties.

With the entry of a series of international fashion brands, the fashion market in Vietnam becomes attractive and vibrant but equally competitive. The past few years are a time when the fashion industry has had the most fierce competition because of the penetration of a series of fashion brands from luxury to affordable such as Chanel, Burberry, Giovanni, Versace, Mango, Zara, H&M, Uniqlo,...

Besides the famous global brands, the domestic market still owns many prominent Vietnamese fashion brands such as IVY Moda, Blue Exchange, Canifa, Juno, Hnoss, YaMe, NEM, HOANG PHUC International, Elise, OWEN, Viettien… However, the emergence of the Covid-19 pandemic has impacted the global economy in general and the fashion industry in particular.

In the context of the complicated Covid epidemic, the disruption in the fashion industry began when people were asked to stay at home to prevent the spread of the virus. Retail stores, markets, and shopping malls are all closed, which results in limited in-person shopping.

In addition, the government also only allows online shopping of essential items, restricting the sale of non-essential items, including fashion, for a certain period. As a result, fashion sales decrease and inventory are retained throughout the supply chain.

However, this is also an opportunity for domestic enterprises to rethink their fashion brand growth plans and can quickly increase their domestic market share, rebalancing the game.

After the epidemic was basically controlled, people's consumption demand was gradually restored and there were good changes, especially for fashion products. In recent years, purchasing power at stores and systems of many domestic fashion brands has gradually recovered and stabilized.

The second opportunity for local brands to develop on their "home turf" compared to foreign fashion brands is when domestic fashion orders from China are being congested because many cities in China are temporarily blocked. In fact, the trend of ordering foreign fashion products is quite prevalent, especially Chinese domestic goods, creating great competition in both design and price with many local brands.

At the same time, in the context of current integration, the trend of fast fashion has become a new trend that has received the response of a large number of users, especially young people. This has created opportunities for local brands to be born and develop.

If only looking at the entry of international fashion brands in big malls and e-commerce platforms, the local brand seems to be being overwhelmed. On the contrary, the story of assessing the development level of a Vietnamese brand lies not only in the scale and coverage but also in the value of the brand. When ordering products from foreign brands and big fashion brands in Vietnam, it can be seen that the product quality is not inferior.


Viet Tien is a Vietnamese fashion brand with a range of products in many segments such as Sanciaro, Manhattan, TT-up (women's wear) for high-income people. Viet Tien, Viettien Smart Casual are for middle-income people and Viet Long targets the low-middle-income segment. With solid potential from the garment corporation of the same name as well as many years of experience in brand development, Viet Tien men's fashion has become one of the outstanding fashion brands of our country today.

In the context of the complicated situation of the Covid-19 epidemic worldwide in general and Vietnam in particular. Especially in the area of Ho Chi Minh City and the southern provinces. This has affected the production and business situation of Viet Tien: The source of raw materials was interrupted, orders fell sharply, and the entire system of stores and distribution channels had to be closed,...

Accordingly, the business results of Viet Tien Garment Corporation also decreased significantly since 2019. Specifically, the brand's net revenue gradually decreased from VND9.7 trillion in 2018 to more than VND6 trillion in 2021. The company's profit after tax also continuously decreased and reached only VND83.46 billion in 2021 (down 45% compared to 2020).


The fashion brand Canifa was founded in 2001. Canifa is one of the famous fashion brands in Vietnam with products for couples and families. After more than 20 years of presence in the Vietnamese market, this local brand owns a system with about 110 stores nationwide.

In addition, owning an online sales channel and promoting online shopping activities have helped this brand improve its business results. Especially in the context of a series of stores closing because of the Covid-19 pandemic.

In 2021, the revenue of this domestic brand grew again and reached VND1.2 trillion, which increased by 34% compared to 2020. Profit after tax was still negative but also improved significantly compared to the same period in 2020.


Elise is a cult name in the Vietnamese fashion brand village with 121 stores across 63 provinces. Elise Fashion, founded in 2011, is a fashion brand targeting female customers between the ages of 20 and 45.

According to data from the report, after the revenue reached VND1 trillion in 2019, the revenue of this popular brand decreased significantly. Accordingly, revenue in 2020 is only nearly VND730 billion and by 2021 ELise's revenue is just over VND640 billion.

The fashion brand's after-tax profit also dropped unexpectedly. From nearly VND195 billion in 2019, down to more than VND6 billion in 2020 and even reporting a loss in 2021.

HOANG PHUC International

The brand "HOANG PHUC International" has been on the market since 1989, but the owner of this fashion retail chain - Hoang Phuc International Investment Joint Stock Company was only established in 2017. HOANG PHUC International is a common home of world-famous brands: Kappa, Ecko Unltd, Superga, Replay, Staple are sold at a system of nearly 50 stores nationwide.

After being established for a year, the net revenue of this fashion store chain has reached nearly VND84 billion. By the end of 2021, this number has reached VND495 billion. However, this is still not the highest level of revenue that this business has achieved.

Although the revenue is up to hundreds of billions of dong per year, the profit of this domestic enterprise is small. Even in 2020, this business also reported a loss of nearly VND6 billion, before the profit returned to a positive VND12 billion in 2021.


NEM Fashion is known as one of the famous women's fashion brands in Vietnam. Established in 2002, with the orientation from the beginning toward the high-end segment.

At that time, NEM Fashion was the fashion brand that dominated the Vietnamese office fashion market and caught the attention of foreign investors. But now, in the face of fierce competition from domestic and foreign fashion brands as well as the influence of the Covid-19 wave, the business situation of this local brand has been reduced.

Specifically, after the revenue reached nearly VND895 billion in 2019, it began to decrease gradually until 2021. Besides, profit after tax is continuously negative and by the end of 2021, this business has lost nearly VND78 billion.

Seedcom Fashion Group

Seedcom Fashion Group (SFG) manages fashion brands such as Juno, Hnoss, and the new fashion boutique model WeStyle. Up to now, SFG owns 27 showrooms under the Hnoss brand and 68 showrooms under the Juno brand.

Since the Covid-19 pandemic appeared, SFG's revenue recorded a continuous decline. From about VND600 billion in 2018, down to more than VND370 billion in 2021 (decreased by nearly 20% compared to 2020). Accordingly, SFG's profit after tax also changed significantly. After 2 consecutive years of reporting losses, this business will also make a profit of nearly VND8 billion by 2020, but then this business will continue to record negative profits in 2021.

IVY Moda

IVY Moda is a Vietnamese fashion brand established in 2005. Ivy Moda is considered the leading high-end fashion line of Vietnamese people with a system of more than 84 showrooms nationwide with a variety of models and product lines such as IVY Senora, IVY Accessorize, IVY You, IVY Secret... with office outfits with unique, beautiful and trendy designs.

In recent years, the revenue of this domestic brand is almost flat at VND350 billion. Although the revenue of this cult brand reaches several hundred billion per year, the profit after tax is small compared to other competitors in the market.


Owen is one of the leading fashion brands in our country, this famous fashion brand belongs to Vietnam Kowil Fashion Joint Stock Company. After 10 years of continuous development and improvement, Owen marked a resounding success with more than 1000 dealers, showrooms, and 100 retail stores in major provinces and cities, becoming a men's fashion brand with the largest coverage in the country.

However, in the recent period, this fashion brand chain has recorded a continuous decline in revenue. From more than VND500 billion in 2017, it fell to VND440 billion in 2018 and decreased to VND215 billion by the end of 2021.

Blue Exchange

Blue Exchange is one of the oldest fashion brands in Vietnam. Appearing in 2001, with a huge network of stores, Blue Exchange has more than 300 stores across provinces and cities in Vietnam. Owning a large and loyal customer base has helped Blue Exchange occupy a not-small market share in Vietnam.

Before the epidemic happened, the revenue of this fashion company was almost flat at VND250 billion and showed signs of decreasing. By 2021, Blue Exchange's revenue is only VND120 billion, down nearly 40% compared to 2020. However, by the end of 2021, this brand has brought in more than VND25 billion - the highest profit after tax in the period 2017 - 2021.


This is a prominent system among low-cost fashion brands in Vietnam. The fashion products at YaMe are very diverse and able to serve many costume needs of different ages. Currently, YaMe has more than 36 branches throughout the provinces of Southwest - Southeast - Central Highlands - Ho Chi Minh City and is continuing to grow continuously.

Closing 2021 full of fluctuations, this brand's revenue reached over VND80 billion, down 32% compared to 2020. After a period of positive growth in profit after tax, by 2020, YaMe's profit started to decrease and even become negative.

After the Covid-19 pandemic, people's consumption demand was gradually restored, and the purchasing power at stores and systems of many domestic fashion brands gradually recovered and stabilized. This is one of the opportunities for Vietnamese fashion brands to regain their home ground before the wave of "importation" of foreign fashion brands. However, fashion brands also face many difficulties and challenges when the supply chain of input materials from other countries is interrupted, domestic consumption demand and product exports decrease, etc. Facing competitive pressures and challenges facing the industry, domestic fashion brands must make efforts to innovate in quality, design, and style as well as change brand strategy, apply new technology and carry out marketing activities to keep up with the trend.

Source: Vietdata's 2022 Vietnam Fast Fashion Industry Report


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