SECTION 1 Apparel and Footwear in Vietnam Euromonitor International January 2023 A P P A R E L A N D F O O T W E A R I N V I E T N A M P a s s p o r t i © E u r o m o n i t o r I n t e r n a t i o n a[.]
Apparel and Footwear in Vietnam Euromonitor International January 2023 APPAREL AND FOOTWEAR IN VIETNAM LIST OF CONTENTS AND TABLES Apparel and Footwear in Vietnam - Industry Overview EXECUTIVE SUMMARY Apparel and footwear in 2022: The big picture 2022 key trends Competitive landscape Retail developments What next for apparel and footwear? MARKET DATA Table Table Table Table Table Table Table Table Table Table 10 Table 11 Table 12 Sales of Apparel and Footwear by Category: Volume 2017-2022 Sales of Apparel and Footwear by Category: Value 2017-2022 Sales of Apparel and Footwear by Category: % Volume Growth 20172022 Sales of Apparel and Footwear by Category: % Value Growth 20172022 NBO Company Shares of Apparel and Footwear: % Value 2018-2022 LBN Brand Shares of Apparel and Footwear: % Value 2019-2022 Distribution of Apparel and Footwear by Format: % Value 2017-2022 Distribution of Apparel and Footwear by Format and Category: % Value 2022 Forecast Sales of Apparel and Footwear by Category: Volume 20222027 Forecast Sales of Apparel and Footwear by Category: Value 20222027 Forecast Sales of Apparel and Footwear by Category: % Volume Growth 2022-2027 Forecast Sales of Apparel and Footwear by Category: % Value Growth 2022-2027 DISCLAIMER SOURCES Summary Research Sources Childrenswear in Vietnam - Category Analysis 11 KEY DATA FINDINGS 11 2022 DEVELOPMENTS 11 Childrenswear rebounds strongly, as parents now more confident to take their children out again 11 Parents are paying more attention to the characteristics of the materials in the clothing they select for their children 11 Growth of e-commerce helps to boost sales of childrenswear 12 PROSPECTS AND OPPORTUNITIES 12 Ongoing positive growth expected, with boys’ apparel slightly outperforming apparel for girls12 Online shopping trends set to continue over the forecast period, although counterfeit goods will suppress potential sales 12 Fiercer competition expected in A highly fragmented category 13 CATEGORY DATA 13 Table 13 Table 14 Sales of Childrenswear by Category: Volume 2017-2022 13 Sales of Childrenswear by Category: Value 2017-2022 13 © Euromonitor International Passport i APPAREL AND FOOTWEAR IN VIETNAM Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Sales of Childrenswear by Category: % Volume Growth 2017-2022 13 Sales of Childrenswear by Category: % Value Growth 2017-2022 14 NBO Company Shares of Childrenswear: % Value 2018-2022 14 LBN Brand Shares of Childrenswear: % Value 2019-2022 14 Forecast Sales of Childrenswear by Category: Volume 2022-2027 15 Forecast Sales of Childrenswear by Category: Value 2022-2027 15 Forecast Sales of Childrenswear by Category: % Volume Growth 2022-2027 15 Forecast Sales of Childrenswear by Category: % Value Growth 20222027 15 Apparel Accessories in Vietnam - Category Analysis 17 KEY DATA FINDINGS 17 2022 DEVELOPMENTS 17 Post-pandemic landscape heralds polarised trends for apparel accessories 17 Demand for more sophisticated accessories boosted by rising living standards 17 Unbranded and counterfeit products will continue to dominate overall 18 PROSPECTS AND OPPORTUNITIES 18 Apparel accessories will maintain positive growth, in line with out-of-home lifestyles 18 Other accessories expected to remain in negative figures due to negation of fashion face masks 18 E-commerce channel set to remain popular, thanks to wide ranges and low prices 18 CATEGORY DATA 19 Table 23 Table 24 Table 25 Table 26 Table 27 Table 28 Table 29 Table 30 Table 31 Table 32 Sales of Apparel Accessories by Category: Volume 2017-2022 19 Sales of Apparel Accessories by Category: Value 2017-2022 19 Sales of Apparel Accessories by Category: % Volume Growth 20172022 19 Sales of Apparel Accessories by Category: % Value Growth 20172022 20 NBO Company Shares of Apparel Accessories: % Value 2018-2022 20 LBN Brand Shares of Apparel Accessories: % Value 2019-2022 20 Forecast Sales of Apparel Accessories by Category: Volume 20222027 21 Forecast Sales of Apparel Accessories by Category: Value 20222027 22 Forecast Sales of Apparel Accessories by Category: % Volume Growth 2022-2027 22 Forecast Sales of Apparel Accessories by Category: % Value Growth 2022-2027 22 Menswear in Vietnam - Category Analysis 24 KEY DATA FINDINGS 24 2022 DEVELOPMENTS 24 High quality and innovative materials are the trends driving menswear 24 Menswear rebounds robustly in line with the reopening of society after the pandemic era 24 E-commerce and social media platforms become key to reaching consumers 25 PROSPECTS AND OPPORTUNITIES 25 Ongoing positive growth to continue, albeit at slower rates than seen during the 2022 rebound25 Ongoing price-sensitivity means mass brands and unbranded products will be more popular than premium brands 25 Ongoing demand for functional materials, with local players leading the charge 26 © Euromonitor International Passport ii APPAREL AND FOOTWEAR IN VIETNAM CATEGORY DATA 26 Table 33 Table 34 Table 35 Table 36 Table 37 Table 38 Table 39 Table 40 Table 41 Table 42 Table 43 Table 44 Table 45 Table 46 Table 47 Table 48 Table 49 Table 50 Sales of Menswear by Category: Volume 2017-2022 26 Sales of Menswear by Category: Value 2017-2022 27 Sales of Menswear by Category: % Volume Growth 2017-2022 27 Sales of Menswear by Category: % Value Growth 2017-2022 28 NBO Company Shares of Menswear: % Value 2018-2022 28 LBN Brand Shares of Menswear: % Value 2019-2022 29 NBO Company Shares of Men’s Nightwear: % Value 2018-2022 30 LBN Brand Shares of Men’s Nightwear: % Value 2019-2022 30 NBO Company Shares of Men’s Outerwear: % Value 2018-2022 31 LBN Brand Shares of Men’s Outerwear: % Value 2019-2022 31 NBO Company Shares of Men’s Swimwear: % Value 2018-2022 32 LBN Brand Shares of Men’s Swimwear: % Value 2019-2022 33 NBO Company Shares of Men’s Underwear: % Value 2018-2022 33 LBN Brand Shares of Men’s Underwear: % Value 2019-2022 33 Forecast Sales of Menswear by Category: Volume 2022-2027 34 Forecast Sales of Menswear by Category: Value 2022-2027 34 Forecast Sales of Menswear by Category: % Volume Growth 20222027 35 Forecast Sales of Menswear by Category: % Value Growth 20222027 35 Womenswear in Vietnam - Category Analysis 37 KEY DATA FINDINGS 37 2022 DEVELOPMENTS 37 All subcategories rebound to positive growth, thanks to the reopening of society after the fourth and final COVID-19 wave 37 Fast fashion brands continues to gain favour with Vietnamese consumers 37 Livestreaming continues to support growth in womenswear, as omnichannel strategies become more important 38 PROSPECTS AND OPPORTUNITIES 38 Womenswear expected to maintain healthy growth over the forecast period 39 Online shopping and livestreaming will continue to grow 39 Competition expected to ramp up over the forecast period 39 CATEGORY DATA 39 Table 51 Table 52 Table 53 Table 54 Table 55 Table 56 Table 57 Table 58 Table 59 Table 60 Table 61 Table 62 Table 63 Table 64 Table 65 Sales of Womenswear by Category: Volume 2017-2022 39 Sales of Womenswear by Category: Value 2017-2022 40 Sales of Womenswear by Category: % Volume Growth 2017-2022 41 Sales of Womenswear by Category: % Value Growth 2017-2022 41 NBO Company Shares of Womenswear: % Value 2018-2022 42 LBN Brand Shares of Womenswear: % Value 2019-2022 42 NBO Company Shares of Women's Nightwear: % Value 2018-2022 44 LBN Brand Shares of Women's Nightwear: % Value 2019-2022 44 NBO Company Shares of Women's Outerwear: % Value 2018-2022 44 LBN Brand Shares of Women's Outerwear: % Value 2019-2022 45 NBO Company Shares of Women’s Swimwear: % Value 2018-2022 46 LBN Brand Shares of Women’s Swimwear: % Value 2019-2022 47 NBO Company Shares of Women's Underwear: % Value 2018-2022 47 LBN Brand Shares of Women's Underwear: % Value 2019-2022 47 Forecast Sales of Womenswear by Category: Volume 2022-2027 48 © Euromonitor International Passport iii APPAREL AND FOOTWEAR IN VIETNAM Table 66 Table 67 Table 68 Forecast Sales of Womenswear by Category: Value 2022-2027 49 Forecast Sales of Womenswear by Category: % Volume Growth 2022-2027 49 Forecast Sales of Womenswear by Category: % Value Growth 20222027 50 Jeans in Vietnam - Category Analysis 51 KEY DATA FINDINGS 51 2022 DEVELOPMENTS 51 Jeans return to popularity as consumers resume out-of-home lifestyles 51 Mass brands and unbranded products rebound faster than premium brands 51 New denim trends help to boost sales of jeans in 2022 51 PROSPECTS AND OPPORTUNITIES 52 Jeans is expected to see strong CAGR over the forecast period 52 Strong development of fast fashion brands threatens growth rate of local companies 52 Jeans set to benefit from the cross-category trend of e-commerce growth 52 CATEGORY DATA 53 Table 69 Table 70 Table 71 Table 72 Table 73 Table 74 Table 75 Table 76 Table 77 Table 78 Table 79 Table 80 Table 81 Table 82 Table 83 Table 84 Table 85 Table 87 Table 88 Table 89 Table 90 Table 91 Table 92 Table 93 Table 94 Sales of Jeans by Category: Volume 2017-2022 53 Sales of Jeans by Category: Value 2017-2022 53 Sales of Jeans by Category: % Volume Growth 2017-2022 53 Sales of Jeans by Category: % Value Growth 2017-2022 54 Sales of Men’s Jeans by Category: Volume 2017-2022 54 Sales of Men’s Jeans by Category: Value 2017-2022 54 Sales of Men’s Jeans by Category: % Volume Growth 2017-2022 54 Sales of Men’s Jeans by Category: % Value Growth 2017-2022 55 Sales of Women’s Jeans by Category: Volume 2017-2022 55 Sales of Women’s Jeans by Category: Value 2017-2022 55 Sales of Women’s Jeans by Category: % Volume Growth 2017-2022 56 Sales of Women’s Jeans by Category: % Value Growth 2017-2022 56 NBO Company Shares of Jeans: % Value 2018-2022 56 LBN Brand Shares of Jeans: % Value 2019-2022 57 Forecast Sales of Jeans by Category: Volume 2022-2027 57 Forecast Sales of Jeans by Category: Value 2022-2027 58 Forecast Sales of Jeans by Category: % Volume Growth 2022-2027 58 Forecast Sales of Men’s Jeans by Category: Volume 2022-2027 58 Forecast Sales of Men’s Jeans by Category: Value 2022-2027 59 Forecast Sales of Men’s Jeans by Category: % Volume Growth 20222027 59 Forecast Sales of Men’s Jeans by Category: % Value Growth 20222027 59 Forecast Sales of Women’s Jeans by Category: Volume 2022-2027 59 Forecast Sales of Women’s Jeans by Category: Value 2022-2027 60 Forecast Sales of Women’s Jeans by Category: % Volume Growth 2022-2027 60 Forecast Sales of Women’s Jeans by Category: % Value Growth 2022-2027 60 Hosiery in Vietnam - Category Analysis 62 KEY DATA FINDINGS 62 2022 DEVELOPMENTS 62 Women re-embrace sheer hosiery as they return to workplaces and social events 62 © Euromonitor International Passport iv APPAREL AND FOOTWEAR IN VIETNAM Fragmented category high in unbranded and counterfeit goods 62 Rising living standards lead to consumers paying more attention to quality 63 PROSPECTS AND OPPORTUNITIES 63 Health and wellness trends expected to boost demand for hosiery 63 Unbranded and counterfeit products expected to continue dominating hosiery 64 E-commerce channel set to remain popular, thanks to wide ranges and low prices 64 CATEGORY DATA 64 Table 95 Table 96 Table 97 Table 98 Table 99 Table 100 Table 101 Table 102 Table 103 Table 104 Sales of Hosiery by Category: Volume 2017-2022 64 Sales of Hosiery by Category: Value 2017-2022 64 Sales of Hosiery by Category: % Volume Growth 2017-2022 64 Sales of Hosiery by Category: % Value Growth 2017-2022 65 NBO Company Shares of Hosiery: % Value 2018-2022 65 LBN Brand Shares of Hosiery: % Value 2019-2022 65 Forecast Sales of Hosiery by Category: Volume 2022-2027 66 Forecast Sales of Hosiery by Category: Value 2022-2027 66 Forecast Sales of Hosiery by Category: % Volume Growth 2022-2027 66 Forecast Sales of Hosiery by Category: % Value Growth 2022-2027 66 Footwear in Vietnam - Category Analysis 68 KEY DATA FINDINGS 68 2022 DEVELOPMENTS 68 Footwear back on the front-foot with the reopening of society 68 Mass brands and unbranded products rebound more strongly than premium variants 68 Consumers start to pay more attention to specialist footwear 69 PROSPECTS AND OPPORTUNITIES 69 Forecast growth in footwear driven by out-of-home and active lifestyles, alongside fashion trends 70 E-commerce will continue to benefit, albeit omnichannel options will be key 70 Competitive status quo expected to remain the same 70 CATEGORY DATA 70 Table 105 Table 106 Table 107 Table 108 Table 109 Table 110 Table 111 Table 112 Table 113 Table 114 Table 115 Sales of Footwear by Category: Volume 2017-2022 70 Sales of Footwear by Category: Value 2017-2022 71 Sales of Footwear by Category: % Volume Growth 2017-2022 71 Sales of Footwear by Category: % Value Growth 2017-2022 71 NBO Company Shares of Footwear: % Value 2018-2022 71 LBN Brand Shares of Footwear: % Value 2019-2022 72 Distribution of Footwear by Format: % Value 2017-2022 73 Forecast Sales of Footwear by Category: Volume 2022-2027 73 Forecast Sales of Footwear by Category: Value 2022-2027 74 Forecast Sales of Footwear by Category: % Volume Growth 20222027 74 Forecast Sales of Footwear by Category: % Value Growth 2022-2027 74 Sportswear in Vietnam - Category Analysis 75 KEY DATA FINDINGS 75 2022 DEVELOPMENTS 75 Sportswear shows A healthy rebound with the resumption of sporting activities 75 Consumers show A growing interest in sportswear innovations 76 E-commerce sales of sportswear boosted during the era of the pandemic 76 PROSPECTS AND OPPORTUNITIES 76 © Euromonitor International Passport v APPAREL AND FOOTWEAR IN VIETNAM Health and wellness trends will continue to drive sales over the forecast period 76 Inflationary pressures may limit the growth of sportswear 77 International brands such as adidas and Nike will continue to lead sportswear 77 CATEGORY DATA 77 Table 116 Table 117 Table 118 Table 119 Table 120 Table 121 Table 122 Sales of Sportswear by Category: Value 2017-2022 77 Sales of Sportswear by Category: % Value Growth 2017-2022 78 NBO Company Shares of Sportswear: % Value 2018-2022 78 LBN Brand Shares of Sportswear: % Value 2019-2022 78 Distribution of Sportswear by Format: % Value 2017-2022 79 Forecast Sales of Sportswear by Category: Value 2022-2027 80 Forecast Sales of Sportswear by Category: % Value Growth 20222027 80 © Euromonitor International Passport vi APPAREL AND FOOTWEAR IN VIETNAM APPAREL AND FOOTWEAR IN VIETNAM - INDUSTRY OVERVIEW EXECUTIVE SUMMARY Apparel and footwear in 2022: The big picture Apparel and footwear has rebounded in 2022, thanks to the reopening of society following the pandemic restrictions and with COVID-19 now assigned to history According to the Ministry of Health, Vietnam controlled the outbreaks well and saw four waves of the virus: the first from 23 January to 16 April 2020 (with no deaths reported); the second from 25 July to December 2020 (with fewer than 50 deaths in vulnerable patients); the third from 28 January to 25 March 2021 (with no deaths reported); and the fourth from 27 April 2021 to September 2021 (which was the most disruptive, placing a significant strain on the entire system and resulting in over 15,000 reported deaths) As such, it is clear to see why it has taken until 2022 for society to reopen, as consumers were fearful during and following the most severe, fourth wave However, 2022 heralds a fresh start and a return to out-of-home activities, thus finally boosting sales of apparel and footwear Moreover, the resumption of travel and tourism (both inbound and outbound) is also helping to boost sales It is noted that the Vietnamese government has launched various promotional campaigns to stimulate travel, such as the “Live fully in Vietnam” campaign which was launched at the end of 2021 in line with the World Travel Awards (WTA) honouring Vietnam as Asia’s Leading Destination 2021, and this is expected to further stimulate sales over the forecast period All categories in apparel and footwear are showing double-digit positive growth in 2022, with childrenswear and jeans the strongest in value terms, and apparel accessories the weakest These dynamics are because childrenswear has a shorter lifecycle due to the fact that children grow and their apparel and footwear therefore needs updating, while jeans benefits from consumers returning to out-of-home lifestyles (jeans are not as comfortable as, say, sportswear, thus better suited for outerwear as opposed to lounging at home) On the other hand, apparel accessories has been hit by the negation of fashion face masks which saw astounding tripledigit growth in 2020 due to necessity during the era of the pandemic However, challenges come from inflationary pressures and ongoing economic uncertainty, which means many consumers remain price-sensitive and likely to reassign spending from nonessential to essential costs – thus placing downwards pressure on some apparel and footwear subcategories Additionally, in this environment, consumers are limiting their spending when they purchase apparel – for example, the lowest value sales in both womenswear and menswear are seen in super premium jeans That said, it is noted that inflation is being well controlled by the government in Vietnam and was recorded at 3.8% in August 2022 [source: General Statistics Office] 2022 key trends There are a number of trends seen in apparel and footwear in Vietnam in 2022 Despite the aforementioned price-sensitivity, overall rising living standards in the country are leading consumers to pay more attention to the quality and characteristics of product materials With regards to quality, it is crucial for players to find the right ratio whereby they can offer high standard garments for affordable prices With regards to functional materials, we are seeing innovations in both technical developments and sustainability Within this environment, local © Euromonitor International Passport APPAREL AND FOOTWEAR IN VIETNAM brands such as Viet Tien (Viet Tien Garment JSC), Gumac (Gumac Vietnam Co Ltd), and ecommerce platform Coolmate, are focusing on fabrics including bamboo fibre (which is environmentally-friendly, antiwrinkle, non-shrinking, and helps to cool body temperature) and nano-tech polyester fibre (UV resistant) in order to compete with international brands and unbranded products Areas of interest include air-dry, sun protection, water resistance, antiwrinkle, breathable, sweat absorbent, and more Among these, air-dry and UV protection are the more popular functions as they are suitable for tropical weather and high UV radiation, which is befitting of the weather climate in Vietnam A second trend is the rise of fast fashion, especially in large cities such as Hanoi, Ho Chi Minh and Danang This is due to ongoing globalisation and the associated rising interest in Western fashions Fast fashion brands such as H&M (H&M Hennes & Mauritz Vietnam Co Ltd), Zara (Inditex, Industria de Diseño Textil SA) and Uniqlo (Uniqlo Vietnam Co Ltd) have been receiving greater attention from Vietnamese consumers due to their strong brand reputations and wide variety of products and designs available The other major trend is that of e-commerce, livestreaming, and omnichannel strategies Livestreaming has become an effective method for companies to reach more customers, as they can see an overview of clothes, including design and materials, without visiting brick-andmortar stores It is noted that, in 2021, many cities and provinces in Vietnam went into a lockdown, including Ho Chi Minh City and Hanoi, from May to September During the lockdown, apparel and footwear specialist retailers and department stores were required to close However, unlike in 2020, home delivery of apparel and footwear products purchased online was not allowed Now, in 2022, such methods continue to lend themselves well to omnichannel strategies Indeed, livestreaming offers convenience and time-saving attributes for consumers, whereby they can browse before they either order online or visit a brick-and-mortar store Competitive landscape Apparel and footwear is highly fragmented in Vietnam, with the largest brand shares being held by unbranded “others” and counterfeit goods Indeed, counterfeit goods are widespread in the country, with strong distribution networks, easy accessibility, and low prices This means that brands only hold very small shares across all categories Only sportswear and apparel accessories see brand names holding double digit shares – adidas (adidas Vietnam Co Ltd) in sportswear, due to the global name being perceived as a status item; and H&M (H&M Hennes & Mauritz Vietnam Co Ltd) and Zara (Inditex, Industria de Diseño Textil SA) in apparel accessories due to the rise of fast fashion brands and the fact that apparel accessories is an overall affordable category Among the fast fashion brands, Uniqlo (Uniqlo Vietnam Co Ltd) is particularly popular This success is attributed to the brand’s channel expansion in the country, as it has been growing rapidly through the opening of retail outlets across the major cities It is noted that, following FTA agreements with Japan and Korea, and the joining of the Trans-Pacific Partnership and APEC in the review period, Vietnam has become attractive for foreign players, thus fuelling overall competition, and leading to Uniqlo opening its first store in Ho Chi Minh at the end of 2019 While fast fashion brands penetrate the territory, local brands are focusing on improving the quality and designs of their apparel (as per the aforementioned developments in functional materials), along with enhancing their digital activities For example, domestic brands such as Gumac (Gumac Vietnam Co Ltd), Ivy Moda (Du Kim JSC), and SixDo are very active in running livestreams, both via social media platform such as Facebook and also across e-commerce platforms such as Tiki, Shopee and Lazada Indeed, Lazada Vietnam invited various celebrities such as Huynh Lap, Cat Tuong and Duy Khanh to join their livestreams and try to use products and offer feedback from their experiences to customers Besides local brands, the © Euromonitor International Passport APPAREL AND FOOTWEAR IN VIETNAM Passport aforementioned Uniqlo also runs livestreams together with popular celebrities, through social networks such as Facebook, thus to introduce its new products Retail developments In 2022, both international and local players have continued to increase their presence through online channels as a sustainable strategy to reach customers and promote their products Players will continue to utilise digital marketing as an effective way to reach out to consumers, from building their own website offerings to increasing interaction on social media platforms such as Facebook and TikTok, livestreaming, partnering with influencers and celebrities, and working with third party online platforms such as Shopee, Lazada and Tiki Online shopping trends – and livestreaming – will continue to grow over the forecast period Indeed, it is noted that the government will support and assist businesses in their digital transformation processes, as well as enhance infrastructure systems and e-commerce support services These efforts are said to have been inspired by the event of the pandemic and the enforced move to e-commerce Furthermore, we are seeing regular and attractive discount offers exclusive to the online channel (30% to 50%), which further attracts price-sensitive consumers This is particularly important in the light of the fact that Vietnam has a high number of counterfeit products in apparel, thus sales of brand names are assisted by these discounts According to Ministry of Information and Communication, Vietnam has the 14th largest number of internet users in the world, ranking sixth among the 35 countries and territories in Asia, with over 64 million internet users, equivalent to 67% of the country’s population With the return to busy, out-of-home lifestyles, e-commerce will continue to grow in importance – also in line with the livestreaming trend What next for apparel and footwear? Apparel and footwear looks set to seeing ongoing positive growth over the forecast period, albeit at a slowing rate compared to the rebound sales spikes seen in 2022 following the pandemic slumps This will be supported overall by the post-pandemic return to out-of-home lifestyles and activities, alongside the ongoing rebound of travel and tourism However, in the short-term at least, inflationary pressures will remain which means that mass brands will perform better than their luxury and premium counterparts Counterfeit goods will also continue to pose a challenge, as to date, the government in Vietnam does not have any efficient measures in place to counteract this “black market” Fast fashion brands will continue to gain a foothold in the country, while global names such as adidas and Nike will remain prominent in sportswear – although this will be an exception for higher-priced brands in the overall landscape Meanwhile, local brands will continue to focus on improving their quality and designs, whilst maintaining a balance of quality-to-cost in order to attract consumers and stimulate sales MARKET DATA Table Sales of Apparel and Footwear by Category: Volume 2017-2022 '000 units Footwear Apparel Apparel and Footwear Source: 2017 2018 2019 2020 2021 2022 105,207.6 404,622.9 509,830.6 112,626.3 424,717.6 537,344.0 119,948.8 452,127.3 572,076.0 108,947.1 423,751.3 532,698.3 87,936.2 346,720.9 434,657.1 98,780.4 390,863.8 489,644.2 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources © Euromonitor International APPAREL AND FOOTWEAR IN VIETNAM adidas (adidas Group) Nike (Nike Inc) An Phuoc Pierre Cardin (Pierre Cardin SA) New Balance (New Balance Athletic Shoe Inc) Others Total Source: Passport adidas Vietnam Co Ltd Au Chau Fashion & Cosmetic Co Ltd (ACFC) An Phuoc Garment Co Ltd An Phuoc Garment Co Ltd 0.6 0.2 0.6 0.2 0.6 0.2 0.6 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Crc Sport Vietnam JSC 0.1 0.1 0.1 0.1 92.9 100.0 91.1 100.0 87.0 100.0 87.3 100.0 Others Total Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 101 Forecast Sales of Hosiery by Category: Volume 2022-2027 '000 units - Non-Sheer Hosiery - Sheer Hosiery Hosiery Source: 2022 2023 2024 2025 2026 2027 22,034.5 2,142.1 24,176.6 23,754.2 2,392.2 26,146.4 25,160.7 2,580.7 27,741.4 26,343.0 2,726.7 29,069.8 27,206.0 2,829.7 30,035.7 27,713.7 2,910.3 30,623.9 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 102 Forecast Sales of Hosiery by Category: Value 2022-2027 VND billion - Non-Sheer Hosiery - Sheer Hosiery Hosiery Source: 2022 2023 2024 2025 2026 2027 879.5 285.1 1,164.6 949.9 318.9 1,268.7 1,007.6 344.4 1,352.0 1,056.0 364.3 1,420.3 1,091.5 378.2 1,469.7 1,112.5 389.2 1,501.7 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 103 Forecast Sales of Hosiery by Category: % Volume Growth 2022-2027 % volume growth - Non-Sheer Hosiery - Sheer Hosiery Hosiery Source: 2022/23 2022-27 CAGR 2022/27 Total 7.8 11.7 8.1 4.7 6.3 4.8 25.8 35.9 26.7 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 104 Forecast Sales of Hosiery by Category: % Value Growth 2022-2027 % constant value growth - Non-Sheer Hosiery © Euromonitor International 2022/2023 2022-27 CAGR 2022/27 Total 8.0 4.8 26.5 66 APPAREL AND FOOTWEAR IN VIETNAM - Sheer Hosiery Hosiery Source: Passport 11.9 8.9 6.4 5.2 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources © Euromonitor International 36.5 28.9 67 APPAREL AND FOOTWEAR IN VIETNAM FOOTWEAR IN VIETNAM CATEGORY ANALYSIS KEY DATA FINDINGS ▪ Retail value sales grow by 17% in current terms in 2022 to VND42.7 trillion ▪ Children’s footwear is the best performing category in 2022, with retail value sales growing by 25% in current terms to VND2.6 trillion ▪ Binh Tien Dong Nai Imex Corp Pte Ltd is the leading player in 2022, with a retail value share of 3% ▪ Retail sales are set to grow at a current value CAGR of 10% (2022 constant value CAGR of 6%) over the forecast period to VND69.1 trillion 2022 DEVELOPMENTS Footwear back on the front-foot with the reopening of society Footwear is back on the front-foot with the reopening of society following the pandemic lockdowns and restrictions Footwear, like jeans, tends to have a longer lifecycle and purchases are made either when the item is worn out and needs replacing, or for fashion reasons As such, footwear slumped significantly during the era of the COVID-19 lockdowns – literally, consumers forced to stay at home saved on their shoe leather Furthermore, the lifestyle changes imposed by the pandemic led to a change in consumer priorities, with many focusing on buying more essential items altogether, or selecting more causal and comfortable styles which can be worn at home This benefited shoe styles such as house slippers and sneakers, while causing categories like dress shoes and high heels to suffer With many people worried about their finances due to the ongoing uncertainty and the looming recession caused by the virus, the category has become even more polarised Furthermore, from May to September 2021, children were kept at home by parents since school was closed Therefore, children’s footwear saw a dramatic decline in both value and volume sales in 2021 mainly due to government social distancing measures In 2022, however, these trends are being reversed – which is especially notable in children’s footwear, as the subcategory is showing the strongest growth Indeed, this is also supported by the fact that children’s apparel and footwear has shorter lifecycles due to the fact that children grow and thus need larger sizes on an ongoing basis Furthermore, the return to outdoor activities from sports to trekking and camping has also supported sales in subcategories for adults, as consumers have been keen to purchase the footwear they needed to return to out-ofhome lifestyles after being locked down for so long However, inflationary pressures mean lower spending power for many, thus somewhat suppressing the strength of the rebound seen Mass brands and unbranded products rebound more strongly than premium variants The ongoing, aforementioned inflationary pressures mean that mass brands and unbranded products are rebounding more strongly than their premium counterparts – again, as seen in jeans Price-sensitive consumers are spending less on non-essential items such as apparel and footwear and saving their money for more essential spends Within this environment, many © Euromonitor International Passport 68 APPAREL AND FOOTWEAR IN VIETNAM lower- and mid-income consumers are selecting mass, unbranded, or even counterfeit products when it comes to footwear Indeed, counterfeit variants are widely seen in footwear, which have wide distribution networks through local channels from small stores to markets, along with being prevalent across online channels and social media networks Consumers start to pay more attention to specialist footwear In a somewhat polarised trend to the point mentioned above, rising living standards in Vietnam are leading to consumers paying more attention to specialist footwear Sports-inspired footwear is growing in popularity in Vietnam, especially among young consumers living in big cities, who seek active, fashionable, and youthful designs This trend is particularly evident among women In addition, demand for sportswear is also being boosted by rising health awareness and government efforts to encourage people to exercise regularly The appreciation of this style of footwear in Vietnam is highlighted by the number of people attending Sneaker Fest each year This special event, created by various sports goods companies such as Nike, adidas and Louis Vuitton, is for young people who want to try on sports-inspired footwear and streetwear products that reflect their own personality, as well as display their social status Indeed, over 1,000 young people attended Sneaker Fest in Ho Chi Minh towards the end of the review period, including a number of celebrities as well as fashion designers and bloggers In addition, consumers are increasingly paying attention to the functionality of sportswear products before purchasing, including footwear In the past, people tended to use one type of sports footwear for a variety of sports, but now they care more about the function and benefits of a product As a result, demand for performance footwear specifically designed for running, football, tennis, basketball, or badminton has increased Demand for football footwear in particular increased during the review period since football is the most popular sport in Vietnam However, as seen across other categories, footwear in Vietnam is highly fragmented, with the dominant brand shares being held by unbranded “others” Local brand Biti’s (Binh Tien Dong Nai Imex Corp Pte Ltd) holds the strongest (albeit still insignificant) shares, followed by adidas (adidas Vietnam Co Ltd) and then Nike (Au Chau Fashion & Cosmetic Co Ltd (ACFC)) Biti’s is a popular footwear option among younger people, thanks to its youthful designs and dynamic marketing activities The brand aims to offer customers a comfortable, high-class, and dynamic shopping experience when browsing for footwear, thus striving to be on par with international brands Besides Biti’s, local brands such as Juno (Juno Vietnam Co Ltd) and Vascara (Vascara Vietnam Co Ltd) are also paying attention to launching new products with lower pricing, in order to compete with foreign players adidas is the strongest global brand in footwear, benefiting from its strong reputation, wide distribution network and high product quality In addition, the company has also invested in a large number of promotional events and discounts of up-to-50% to stimulate and boost sales These campaigns always receive a great deal of attention from consumers, especially from middle- and upper-income segments Furthermore, adidas also opened a huge new store in northern Vietnam with a total selling space of 640 sq m Constant new product launches also help to attract consumers, with the launch of a new Nite Jogger with youthful design receiving huge attention from younger generations Moreover, the company has also been actively investing in digital marketing campaigns in order to increase its reputation among consumers PROSPECTS AND OPPORTUNITIES © Euromonitor International Passport 69 APPAREL AND FOOTWEAR IN VIETNAM Passport Forecast growth in footwear driven by out-of-home and active lifestyles, alongside fashion trends Forecast growth in footwear will be driven by post-pandemic, out-of-home, active lifestyles, and fashion trends Younger urban generations, being those who follow fashion trends and have stronger spending power, will be instrumental in this – particularly for branded names such as adidas and Nike The rebounding travel and tourism industry will also play a part, both for Vietnamese consumers and foreign consumers visiting the country On the other hand, local brands such as Biti’s will remain popular with consumers who have lower spending power However, competition from unbranded “others” and counterfeit goods will remain – particularly so during the time of economic uncertainty E-commerce will continue to benefit, albeit omnichannel options will be key The majority of consumers prefer to try on footwear to ensure the correct fit before making their purchases As such, whilst e-commerce will continue to attract attention, omnichannel options will be key, as once consumers know their ideal fit in a shoe, they will then be more confident purchasing it online Online shopping trends – and livestreaming – will continue to grow over the forecast period Indeed, it is noted that the government will support and assist businesses in their digital transformation processes, as well as enhance infrastructure systems and e-commerce support services These efforts are said to have been inspired by the event of the pandemic and the enforced move to e-commerce Furthermore, we are seeing regular and attractive discount offers exclusive to the online channel (30% to 50%), which further attracts price-sensitive consumers This is particularly important in the light of the fact that Vietnam has a high number of counterfeit products in apparel, thus sales of brand names are assisted by these discounts Competitive status quo expected to remain the same The competitive status quo in footwear is expected to remain the same over the forecast period, with higher-income urban consumers selecting global brands such as adidas and Nike, whereas lower-income consumers will remain faithful to local brands such as Biti’s and Juno The larger brands will focus on dynamic marketing activities to reach and engage with consumers, alongside ensuring offers and discounts to attract attention; whereas local brands will focus on maintaining an attractive quality-to-price ratio to meet the needs of many local consumers It is also expected that more local apparel companies, such as Gumac Vietnam Co Ltd, will start paying attention to footwear over the forecast period, with a target to reach the lowto middle-income segment of consumers That said, the entry of new players will not notably change the overall dynamic due to the fragmented nature of the category CATEGORY DATA Table 105 Sales of Footwear by Category: Volume 2017-2022 '000 units Women's Footwear Men's Footwear Children's Footwear Footwear © Euromonitor International 2017 2018 2019 2020 2021 2022 58,930.2 30,833.4 15,444.1 105,207.6 63,055.3 33,145.9 16,425.2 112,626.3 67,153.9 35,300.3 17,494.6 119,948.8 61,781.6 31,770.3 15,395.2 108,947.1 50,984.8 25,292.9 11,658.5 87,936.2 56,758.5 28,076.3 13,945.6 98,780.4 70 APPAREL AND FOOTWEAR IN VIETNAM Source: Passport Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 106 Sales of Footwear by Category: Value 2017-2022 VND billion Women's Footwear Men's Footwear Children's Footwear Footwear Source: 2017 2018 2019 2020 2021 2022 22,439.4 13,456.4 2,429.6 38,325.3 25,178.1 15,017.3 2,680.9 42,876.4 27,883.7 16,368.8 2,922.5 47,175.1 26,210.7 15,059.3 2,630.3 43,900.3 22,279.1 12,348.7 2,051.6 36,679.4 25,843.8 14,324.4 2,564.5 42,732.7 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 107 Sales of Footwear by Category: % Volume Growth 2017-2022 % volume growth Women's Footwear Men's Footwear Children's Footwear Footwear Source: 2021/22 2017-22 CAGR 2017/22 Total 11.3 11.0 19.6 12.3 -0.7 -1.9 -2.0 -1.3 -3.7 -8.9 -9.7 -6.1 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 108 Sales of Footwear by Category: % Value Growth 2017-2022 % current value growth Women's Footwear Men's Footwear Children's Footwear Footwear Source: 2021/22 2017-22 CAGR 2017/22 Total 16.0 16.0 25.0 16.5 2.9 1.3 1.1 2.2 15.2 6.5 5.6 11.5 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 109 NBO Company Shares of Footwear: % Value 2018-2022 % retail value rsp Company Binh Tien Dong Nai Imex Corp Pte Ltd adidas Vietnam Co Ltd Au Chau Fashion & Cosmetic Co Ltd (ACFC) Maison JSC Juno Vietnam Co Ltd Vinh Quang Minh Trading & Services Co Ltd H&M Hennes & Mauritz © Euromonitor International 2018 2019 2020 2021 2022 1.9 2.5 2.4 2.4 2.6 1.9 0.8 2.1 0.8 2.0 0.9 2.3 0.9 2.2 0.9 0.7 0.4 0.2 0.7 0.4 0.2 0.7 0.4 0.2 0.7 0.5 0.2 0.8 0.5 0.2 0.2 0.2 0.2 0.2 0.2 71 APPAREL AND FOOTWEAR IN VIETNAM Vietnam Co Ltd Inditex, Industria de Diseño Textil SA Crc Sport Vietnam JSC Vascara Vietnam Co Ltd Universe General Trading Service JSC Hoang Phuc International Co Ltd Others Total Source: 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.2 0.1 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 93.1 100.0 92.1 100.0 92.3 100.0 91.9 100.0 92.0 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 110 LBN Brand Shares of Footwear: % Value 2019-2022 % retail value rsp Brand (GBO) Biti's adidas (adidas Group) Nike (Nike Inc) Juno Converse (Nike Inc) Vans (VF Corp) H&M (H&M Hennes & Mauritz AB) Charles & Keith (Charles & Keith (S) Pte Ltd) Pedro (Charles & Keith (S) Pte Ltd) Puma (Puma SE) Zara New Balance (New Balance Athletic Shoe Inc) Vascara Reebok (Authentic Brands Group LLC) Skechers (Skechers USA Inc) Kappa (BasicNet SpA) Reebok (adidas Group) Puma (Kering SA) Others Total Source: Passport Company (NBO) 2019 2020 2021 2022 Binh Tien Dong Nai Imex Corp Pte Ltd adidas Vietnam Co Ltd Au Chau Fashion & Cosmetic Co Ltd (ACFC) Juno Vietnam Co Ltd Au Chau Fashion & Cosmetic Co Ltd (ACFC) Vinh Quang Minh Trading & Services Co Ltd H&M Hennes & Mauritz Vietnam Co Ltd Maison JSC 2.5 2.4 2.4 2.6 2.0 0.5 1.9 0.5 2.3 0.5 2.1 0.5 0.4 0.3 0.4 0.3 0.5 0.3 0.5 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Maison JSC 0.2 0.2 0.2 0.2 Maison JSC Inditex, Industria de Diseño Textil SA Crc Sport Vietnam JSC 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.2 Vascara Vietnam Co Ltd Universe General Trading Service JSC Maison JSC 0.1 - 0.1 - 0.2 - 0.2 0.1 0.1 0.1 0.1 0.1 Hoang Phuc International Co Ltd Universe General Trading Service JSC Maison JSC Others Total 0.1 0.1 0.1 0.1 0.2 0.1 0.1 - 92.2 100.0 92.4 100.0 92.1 100.0 92.1 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources © Euromonitor International 72 APPAREL AND FOOTWEAR IN VIETNAM Table 111 Passport Distribution of Footwear by Format: % Value 2017-2022 % retail value rsp Retail Channels - Retail Offline Grocery Retailers - Convenience Retail - Supermarkets - Hypermarkets - Discounters - Warehouse Clubs - Food/drink/tobacco specialists - Small Local Grocers Non-Grocery Retailers - General Merchandise Stores Department Stores Variety Stores - Apparel and Footwear Specialists - Appliances and Electronics Specialists - Home Products Specialists - Health and Beauty Specialists - Leisure and Personal Goods Specialists Bags and Luggage Specialists Jewellery and Watch Specialists Sports goods stores Traditional Toys and Games Stores - Other Non-Grocery Retailers Vending Direct Selling - Retail E-Commerce Total Source: 2017 2018 2019 2020 2021 2022 100.0 96.3 22.3 4.1 2.7 - 100.0 95.8 22.0 4.2 2.7 - 100.0 95.2 22.2 4.5 2.8 - 100.0 93.3 21.4 4.1 2.4 - 100.0 90.8 20.6 4.0 2.0 - 100.0 90.5 21.0 4.1 2.2 - 15.5 74.0 4.7 15.0 73.8 5.0 15.0 73.0 5.2 14.8 71.9 4.4 14.6 70.2 4.0 14.7 69.5 4.3 4.7 62.0 5.0 61.5 5.2 60.0 4.4 59.8 4.0 59.8 4.3 59.2 - - - - - - - - - - - - - - - - - - 4.5 4.6 5.2 5.0 4.5 4.9 - - - - - - - - - - - - 4.5 - 4.6 - 5.2 - 5.0 - 4.5 - 4.9 - 2.8 2.8 2.6 2.7 1.8 1.1 3.7 100.0 4.2 100.0 4.8 100.0 6.7 100.0 9.2 100.0 9.5 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 112 Forecast Sales of Footwear by Category: Volume 2022-2027 '000 units Women's Footwear Men's Footwear Children's Footwear Footwear © Euromonitor International 2022 2023 2024 2025 2026 2027 56,758.5 28,076.3 13,945.6 98,780.4 61,176.0 30,771.2 15,284.1 107,231.4 64,798.2 33,175.7 16,475.2 114,449.1 67,843.1 35,354.4 17,557.1 120,754.7 70,717.4 37,184.4 18,465.9 126,367.7 73,403.5 38,763.9 19,339.0 131,506.4 73 APPAREL AND FOOTWEAR IN VIETNAM Source: Passport Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 113 Forecast Sales of Footwear by Category: Value 2022-2027 VND billion Women's Footwear Men's Footwear Children's Footwear Footwear Source: 2022 2023 2024 2025 2026 2027 25,843.8 14,324.4 2,564.5 42,732.7 27,910.9 15,746.5 2,819.1 46,476.5 29,607.8 17,007.5 3,044.9 49,660.2 31,030.1 18,151.6 3,249.7 52,431.4 32,370.6 19,110.2 3,421.3 54,902.2 33,617.0 19,937.9 3,585.9 57,140.8 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 114 Forecast Sales of Footwear by Category: % Volume Growth 2022-2027 % volume growth Women's Footwear Men's Footwear Children's Footwear Footwear Source: 2022/23 2022-27 CAGR 2022/27 Total 7.8 9.6 9.6 8.6 5.3 6.7 6.8 5.9 29.3 38.1 38.7 33.1 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 115 Forecast Sales of Footwear by Category: % Value Growth 2022-2027 % constant value growth Women's Footwear Men's Footwear Children's Footwear Footwear Source: 2022/2023 2022-27 CAGR 2022/27 Total 8.0 9.9 9.9 8.8 5.4 6.8 6.9 6.0 30.1 39.2 39.8 33.7 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources © Euromonitor International 74 APPAREL AND FOOTWEAR IN VIETNAM SPORTSWEAR IN VIETNAM CATEGORY ANALYSIS KEY DATA FINDINGS ▪ Retail value sales grow by 17% in current terms in 2022 to VND8.0 trillion ▪ Sports apparel is the best performing category in 2022, with retail value sales growing by 18% in current terms to VND4.2 trillion ▪ adidas Vietnam Co Ltd is the leading player in 2022, with a retail value share of 18% ▪ Retail sales are set to rise at a current value CAGR of 10% (2022 constant value CAGR of 6%) over the forecast period to VND12.9 trillion 2022 DEVELOPMENTS Sportswear shows A healthy rebound with the resumption of sporting activities Sportswear took a hit during the era of the pandemic, with the closure of gymnasiums and sports centres, restrictions on sporting events, the closure of non-essential stores (including specialist sports shops), and social distancing measures However, the reopening of society in 2022 heralds a return to such activities and thus a strong rebound in sportswear That said, inflationary pressures and budgetary constraints remain significant factors, thus limiting potentially stronger sales Indeed, popular brands such as the leading adidas (adidas Vietnam Co Ltd), second-placed Nike (Au Chau Fashion & Cosmetic Co Ltd (ACFC)), and Fila (Central Retail Corp), with smaller shares, are considered to be expensive and thus price-sensitive consumers are turning to cheaper brands or counterfeit products in order to budget more carefully It is, however, noted that adidas holds double-digit brand shares in the fragmented category of sportswear – whereas branded shares are typically far smaller over other categories in apparel and footwear, with the percentage of unbranded “others” higher This demonstrates that popular brands still hold some sway in sportswear, being seen as status items The relative success of iconic brands such as adidas and Nike is attributed to their strong marketing activities For example, over the lockdown periods, both players created mini online games and campaigns to encourage people to exercise at home and boost sales via the ecommerce channel Furthermore, sportswear retailers regularly launch promotional campaigns to stimulate demand, feeding into both health and fashion trends With regards to health trends, the event of the pandemic made consumers more aware of the importance of their personal fitness in their ability to be able to fight viral infections This further stimulated the rising health and wellness trends which had already begun to see the light prepandemic In the review period, Vietnam saw a rise in the number of people being diagnosed with obesity, especially among younger people under the age of 18 living in big cities such as Hanoi and Ho Chi Minh In response, the Vietnamese Government began to promote the importance of daily exercise and a healthy diet As such, a growing number of people started to embrace healthier lifestyles, including exercising more often This was compounded further by the event of the pandemic Demand for sportswear is also somewhat supported by the casual fashion trends which were seen during the time of the lockdowns, as consumers sought comfortable and practical apparel © Euromonitor International Passport 75 APPAREL AND FOOTWEAR IN VIETNAM whilst they were staying at home Therefore, such products are more resilient compared with some other apparel and footwear categories because they provide comfort, functionality and even fashion while in the house, doing exercise, or running errands All these factors have combined to help support the rebound of sportswear Consumers show A growing interest in sportswear innovations In the past, most Vietnamese people were unaware of the presence of sportswear and tended to wear comfortable outfits such as t-shirts or shorts when exercising However, with the improvement in living standards, Vietnamese consumers are realising the benefits of sportswear compared with normal clothing, including breathable materials, sweat absorbent fabrics, and reduced-pressure running shoes, to support exercise activities as well as to prevent possible injuries Indeed, with the growing awareness of sportswear options, consumers are seeking both the trendiest and most up-to-date fashion//status pieces, along with those which offer innovative technologies in their fabrics and design This also heralds well for genuine brands as opposed to counterfeit products, which could also somewhat explain why adidas holds comparatively strong brand shares Within this environment, local brands are also relevant in offering good quality for an affordable price, whereas adidas and the like tend to focus more on the higher-income segment For price-sensitive consumers who still seek quality, brands such as Biti’s (Binh Tien Dong Nai Imex Corp Pte Ltd) offer a good alternative E-commerce sales of sportswear boosted during the era of the pandemic E-commerce sales of sportswear were boosted during the era of the pandemic, as sports specialist shops were included in those deemed to be non-essential and thus forced to close during the lockdowns As such, a number of sportswear players placed a strong focus on enhancing their online offers Brands of note include adidas and Nike, who both engaged in strong online promotional activities to engage with consumers and encourage at-home exercise and sales, along with other well-known brands such as Puma (Maison JSC), and local player Biti’s Such efforts focused on both the brands’ own websites and their associations with third party platforms such as Shopee and Lazada Such specialist e-commerce platforms are popular with consumers due to their frequent promotional campaigns, such as “buy one get one free” and discounts of 30% to 50% Furthermore, players in sportswear are active in partnering with local celebrities in order to promote their brands via social media channels such as Facebook Such trends look set to continue over the forecast period PROSPECTS AND OPPORTUNITIES Health and wellness trends will continue to drive sales over the forecast period Health and wellness trends will continue to drive sales in sportswear over the forecast period, as consumers are expected to remain focused on health and witness in the post-pandemic landscape This will also be supported by ongoing campaigns from the government, encouraging Vietnamese citizens to maintain active lifestyles Additionally, players in the category will also continue their efforts to engage with consumers, to the same end – promoting exercise and fitness and, in turn, the correct apparel and footwear to support such activities The number of fitness centres also continues to grow strongly in urban areas, in line with the growing health and wellness trends in the country These fitness centres are successful at © Euromonitor International Passport 76 APPAREL AND FOOTWEAR IN VIETNAM Passport attracting a high number of people to sign up for membership Moreover, Vietnamese consumers are becoming increasingly aware of their appearance Young people not only wear sportswear to the gym and when partaking in sporting activities but also in their daily lives Many consumers, especially men, believe that wearing sports-inspired apparel gives them a youthful and active appearance Therefore, they are increasingly willing to pay for sportswear that conveys a more fashionable image Consequently, sportswear players are introducing various designs for their collections to attract consumers’ attention, as well as to enhance their sales This trend is expected to carry over into the forecast period as fitness continues to be a popular lifestyle trend among Vietnamese consumers, mainly due to the strong development of social networks, as well as government policy Consequently, over the coming years, companies are expected to focus on developing new designs to respond to more sophisticated demand among consumers Inflationary pressures may limit the growth of sportswear As the price of most worldwide sportswear brands such as adidas, Nike, and Puma is usually much higher compared to local, unbranded goods, increasing inflation rates may somewhat limit potential sales in sportswear – notably among with middle- to lower-income segments, being those for whom the more expensive brands are a luxury and who are most likely to turn to cheaper local brands (such as Biti’s) or even unbranded and counterfeit goods Overall, this will suppress final value sales to a degree – at least until the economic situation improves and consumers resume their confidence in their spending power International brands such as adidas and Nike will continue to lead sportswear International brands, such as adidas and Nike, will continue to lead sportswear over the forecast period This is due to their strong brand reputations, excellent product quality, and dynamic omnichannel marketing strategies – from social media networks such as Facebook though to in-store events Meanwhile, local brands such as Biti’s are expected to remain popular with more price-sensitive consumers thanks to their youthful designs and reasonable pricing – especially during a time with an uncertain economic outlook However, overall, activity from local sportswear brands looks set to remain relatively limited, due to strong polarised competition from the leading global giants and counterfeit goods CATEGORY DATA Table 116 Sales of Sportswear by Category: Value 2017-2022 VND billion - Sports-inspired Footwear - Outdoor Footwear - Performance Footwear Sports Footwear - Sports-inspired Apparel - Outdoor Apparel - Performance Apparel Sports Apparel Sportswear © Euromonitor International 2017 2018 2019 2020 2021 2022 2,128.1 2,391.5 2,690.4 2,421.4 1,985.5 2,303.2 227.5 1,087.2 3,442.8 1,870.9 454.1 1,302.6 3,627.6 7,070.4 248.9 1,219.8 3,860.2 2,086.0 495.0 1,471.9 4,053.0 7,913.2 268.8 1,372.3 4,331.5 2,332.2 533.1 1,666.2 4,531.4 8,863.0 255.4 1,262.5 3,939.3 2,238.9 495.7 1,599.5 4,334.2 8,273.4 214.5 1,035.3 3,235.3 1,880.7 416.4 1,311.6 3,608.7 6,844.0 244.6 1,200.9 3,748.7 2,219.2 478.9 1,547.7 4,245.8 7,994.5 77 APPAREL AND FOOTWEAR IN VIETNAM Source: Passport Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 117 Sales of Sportswear by Category: % Value Growth 2017-2022 % current value growth - Sports-inspired Footwear - Outdoor Footwear - Performance Footwear Sports Footwear - Sports-inspired Apparel - Outdoor Apparel - Performance Apparel Sports Apparel Sportswear Source: 2017-22 CAGR 2017/22 Total 16.0 14.0 16.0 15.9 18.0 15.0 18.0 17.7 16.8 1.6 1.5 2.0 1.7 3.5 1.1 3.5 3.2 2.5 8.2 7.5 10.5 8.9 18.6 5.4 18.8 17.0 13.1 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 118 NBO Company Shares of Sportswear: % Value 2018-2022 % retail value rsp Company adidas Vietnam Co Ltd Au Chau Fashion & Cosmetic Co Ltd (ACFC) Binh Tien Dong Nai Imex Corp Pte Ltd Maison JSC Vinh Quang Minh Trading & Services Co Ltd Universe General Trading Service JSC Crc Sport Vietnam JSC Central Retail Corp Hoang Phuc International Co Ltd Others Total Source: 2021/22 2018 2019 2020 2021 2022 16.3 5.0 16.9 5.4 16.5 5.5 19.0 5.7 17.6 5.5 1.7 2.4 2.5 2.7 2.7 1.4 1.2 1.6 1.3 1.7 1.3 1.8 1.3 1.8 1.3 1.3 1.5 1.2 1.2 1.2 0.9 0.1 1.4 0.9 0.2 1.3 0.9 0.4 1.2 0.9 0.8 1.1 1.0 0.8 0.7 70.7 100.0 68.6 100.0 69.0 100.0 65.7 100.0 67.4 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 119 LBN Brand Shares of Sportswear: % Value 2019-2022 % retail value rsp Brand (GBO) adidas (adidas Group) Nike (Nike Inc) Biti's Converse (Nike Inc) © Euromonitor International Company (NBO) 2019 2020 2021 2022 adidas Vietnam Co Ltd Au Chau Fashion & Cosmetic Co Ltd (ACFC) Binh Tien Dong Nai Imex Corp Pte Ltd Au Chau Fashion & Cosmetic Co Ltd (ACFC) 16.4 3.4 16.1 3.5 18.5 3.7 17.2 3.5 2.4 2.5 2.7 2.7 1.9 2.0 2.0 2.0 78 APPAREL AND FOOTWEAR IN VIETNAM Vans (VF Corp) Reebok (Authentic Brands Group LLC) Puma (Puma SE) New Balance (New Balance Athletic Shoe Inc) Fila (Fila Holding SpA) Kappa (BasicNet SpA) Skechers (Skechers USA Inc) adidas Kids (adidas Group) Reebok (adidas Group) Puma (Kering SA) Others Total Source: Passport Vinh Quang Minh Trading & Services Co Ltd Universe General Trading Service JSC Maison JSC Crc Sport Vietnam JSC 1.3 1.3 1.3 1.3 - - - 1.2 1.1 0.9 1.1 0.9 1.2 0.9 1.1 1.0 Central Retail Corp 0.2 0.4 0.8 0.8 Hoang Phuc International Co Ltd Maison JSC 1.3 1.2 1.1 0.7 0.6 0.6 0.6 0.6 adidas Vietnam Co Ltd 0.5 0.4 0.4 0.4 Universe General Trading Service JSC Maison JSC Others Total 1.5 1.2 1.2 - 68.6 100.0 69.0 100.0 65.7 100.0 67.4 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 120 Distribution of Sportswear by Format: % Value 2017-2022 % retail value rsp Retail Channels - Retail Offline Grocery Retailers - Convenience Retail - Supermarkets - Hypermarkets - Discounters - Warehouse Clubs - Food/drink/tobacco specialists - Small Local Grocers Non-Grocery Retailers - General Merchandise Stores Department Stores Variety Stores - Apparel and Footwear Specialists - Appliances and Electronics Specialists - Home Products Specialists - Health and Beauty Specialists - Leisure and Personal Goods Specialists Bags and Luggage Specialists Jewellery and © Euromonitor International 2017 2018 2019 2020 2021 2022 100.0 94.2 18.5 3.8 2.5 - 100.0 92.9 15.9 3.8 2.6 - 100.0 92.2 13.2 3.8 2.6 - 100.0 88.8 12.5 3.4 2.5 - 100.0 84.0 11.7 3.2 2.4 - 100.0 83.6 11.9 3.3 2.4 - 12.3 75.7 4.5 9.5 77.0 4.5 6.7 79.0 4.6 6.6 76.3 4.0 6.1 72.3 2.9 6.2 71.7 4.2 4.5 47.0 4.5 48.1 4.6 49.7 4.0 48.7 2.9 48.0 4.2 48.7 - - - - - - - - - - - - - - - - - - 16.8 16.7 16.5 14.1 13.7 13.7 - - - - - - - - - - - - 79 APPAREL AND FOOTWEAR IN VIETNAM Watch Specialists Sports goods stores Traditional Toys and Games Stores - Other Non-Grocery Retailers Vending Direct Selling - Retail E-Commerce Total Source: Passport 16.8 - 16.7 - 16.5 - 14.1 - 13.7 - 13.7 - 7.4 7.7 8.3 9.4 7.6 5.1 5.8 100.0 7.1 100.0 7.8 100.0 11.2 100.0 16.0 100.0 16.4 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 121 Forecast Sales of Sportswear by Category: Value 2022-2027 VND billion - Sports-inspired Footwear - Outdoor Footwear - Performance Footwear Sports Footwear - Sports-inspired Apparel - Outdoor Apparel - Performance Apparel Sports Apparel Sportswear Source: 2022 2023 2024 2025 2026 2027 2,303.2 2,509.6 2,686.4 2,841.3 2,977.7 3,092.3 244.6 1,200.9 3,748.7 2,219.2 478.9 1,547.7 4,245.8 7,994.5 257.0 1,308.5 4,075.2 2,396.7 517.2 1,671.5 4,585.4 8,660.6 267.7 1,413.3 4,367.4 2,565.5 553.6 1,789.3 4,908.4 9,275.9 276.7 1,494.8 4,612.8 2,713.5 580.2 1,892.4 5,186.1 9,798.9 284.7 1,566.6 4,828.9 2,843.7 602.5 1,992.4 5,438.6 10,267.5 291.5 1,626.9 5,010.8 2,953.2 622.8 2,088.2 5,664.2 10,675.0 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 122 Forecast Sales of Sportswear by Category: % Value Growth 2022-2027 % constant value growth - Sports-inspired Footwear - Outdoor Footwear - Performance Footwear Sports Footwear - Sports-inspired Apparel - Outdoor Apparel - Performance Apparel Sports Apparel Sportswear Source: 2022/2023 2022-27 CAGR 2022/27 Total 9.0 5.1 9.0 8.7 8.0 8.0 8.0 8.0 8.3 6.1 3.6 6.3 6.0 5.9 5.4 6.2 5.9 6.0 34.3 19.2 35.5 33.7 33.1 30.1 34.9 33.4 33.5 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources © Euromonitor International 80