Vancl recently announced the opening of its first overseas office in Ho Chi Minh City, the biggest city in Vietnam. The company also launched a website for Vietnamese consumers -- www.vancl.vn, intending to introduce its popular fashion brand into the country.
The new website offers clothes and sportswear for men, women and children. Prices range from 36 to 150 yuan ($5.71 to 23.79), comparable to prices in China. Considering the per capita income in Vietnam, Vancl intends to develop its brand in a way similar to Zara and H&M in China.
Statistics from the Ministry of Industry and Trade in Vietnam showed that the nation's per capita income was $1,300 in 2011, totaling approximately $110, or less than 800 yuan, per month. The lowest-priced Vancl item costs 129,000 VND for a women's T-shirt, equivalent to 39.5 yuan.
The Vietnamese clothing market shows a lack of fashionable brands like Zara and H&M. Vancl aims to fill the gap and develop itself into a mid- to high-end brand in the region.
Due to the global economic downturn, new emerging retail markets have become popular focal points for their fast economic development and considerable market potential, including Russia, India, China, Vietnam and Thailand. Retailers like Gap and Zara have announced plans to enter the Indian market.
In addition to their current business model and technology, Vancl will integrate local culture and consumer demands into its clothing design to crack the Vietnamese market.
"We will incorporate local cultural traits and characteristics with popular products such as T-shirts," said a Vancl spokesperson.
In the last decade, Vietnam has had the largest and fastest Internet development in Southeast Asia. Vietnamese Internet users account for 31 percent of its population, with the number increasing by 2 to 3 million every year. Although Vietnam has varying online shopping platforms from group buying, purchasing agents, and business-to-consumer models, there are no electronic business models for self-owned brand like Vancl, especially in the clothing market.
Insiders believe that the Vietnamese market resembles the Chinese market 10 years ago in localized market integration and Internet environment, providing an ideal opportunity for Vancl.
Edited by Chen Zhilin and Michael Thai
