Viettien stitches up success in Lao clothing market
Viettien stitches up success in Lao clothing market
Viettien, one of the largest Vietnamese garment firms has found success in Laos after entering the neighbouring market three years ago.
The firm established its first shop in Vientiane in 2011, selling mainly high quality business shirts and men's clothing, and has opened five branches in Vientiane after only three years of operation.
The Vietnamese firm also plans to expand its stores to the provinces in the near future after learning of the potential market demand for high quality clothing in Laos thanks to strong economic growth over the past seven years.
Rapid ex pansion of their clothing stores in the capital is one of the best reflections of what is possible for Vietnamese fashion. They have expanded the business in Laos despite the influence of foreign fashion brands, in particular Thai fashion as Lao people like to purchase clothes that Thai celebrit ies wear.
Marketing director of Viettien in Laos, Mr Bounpheng Silichanto said the company was originally successful in doing business in Vietnam so wanted to expand into neighbouring Laos.
One of the main reasons that inspired Viettien to open its branches in Laos was the growing market and purchasing power of consumers for high quality clothes thanks to the strong economy.
“There are many foreign companies interested to invest in Laos, because of the growing purchasing power of Lao people who are also more interested in quality brand name products” he said.
Mr Bounpheng added that the marketing of Viettien in Laos has been very effective with about 70 percent of Vientiane people aware of the brand and expressing interest in their products.
Presently Viettien has six established brands of Viettien, Viettien Smart Sasua, San Sciaro, Manhattan, T up and Vietlong and there are three grades in each brand divided into normal moderate and higher prices.
Viettien products target the higher end of the local clothing market and concentrate on quality products with prices between 50,000 and 2,500,000 kip per item; however customers appear happy to buy.
Mr Bounpheng Silichanto also noted that the firm's branches were generating good income for the business with the Thatluang store having income of about 1.2 billion kip last year and Phonphanao generating 360 million kip.
Overall income has been increasing each year and is predicted to grow another 30 percent this coming year.
To increase overall revenues Viettien plans to enlarge its number of stores in the northern and southern provinces of Laos in the future to open up new markets for the company, Mr Bounpheng Silichanto said.
Viettien Garment Corporation is a well established garment company in Vietnam that first opened its doors in 1976 and there are now about 1,500 branches around the world.
The business focuses on exporting products to international markets, mainly America, Canada, Britain, Germany, Japan, Korea, Singapore, Malaysia and other countries.
Viettien mainly targets middle aged men as well as women, with most male customers being aged between 25 to 55 years old.
vientiane times
