VietNamNet Bridge – Developing high-end fashion brands is the target of all Vietnamese textile and garment companies which have been following different ways to reach that end.

The franchisees

An Phuoc Company once caught the special attention from the public 15 years ago when it became the franchisee of Pierre Cardin after a contract signed in 1997.

An Phuoc’s Pierre Cardin brand products, right after hitting the market, became salient among domestic products, while it was in no way inferior to foreign products available on the market.

The brand Pierre Cardin then was “hot” enough to convince consumers to use An Phuoc’s products. Nguyen Thi Dien, General Director of An Phuoc decided that the company’s products should target the businessmen aged 35-40 who are very choosy about the fashion, but don’t change their liking regularly.

However, Dien has realized that the she now has to compete with many redoubtable rivals, and she needs to find a new way out to become stronger. Dien said An Phuoc has been trying some more fabric materials to make the products suitable to Vietnamese conditions. The company is also conducting negotiations with Pierre Cardin on a more flexible design transfer.

According to Dien, the turnover from An Phuoc and Pierre Cardin brand products from 100 sales agents nationwide has been growing steadily by 15-20 percent year after year.

In 2007, the Viet Tien Garment Corporation also became the franchisee of two Italian styled brands in 2007 – San Sciaro of Perry Ellis International and Manhattan of the US Perry Ellis International Europe. With the two high end fashion brands, Viet Tien has been targeting businessmen, managers and high income earners.

“The move was a part of the corporation’s plan to diversify its brands and products, which allows the corporation to target high end market segment,” said Bui Van Tien, General Director of Viet Tien Corporation.

Tien said that one year before the franchising contract was signed, Viet Tien began importing high end materials from Japan, Italia, Germany and India.

Nha Ba Garment Company has also been launching high end fashion products to the domestic market by becoming the franchisee of many well known brands such as Osca dela, Renta, Aoyama, Ann Taylor and Calvin Klein.

The franchisors

The Garment Company No. 10 has been following its specific own way to develop high end fashion brands.

Than Duc Viet, Managing Director of the company, said he has been nourishing the hope of franchising its brand to foreign markets.

The company’s senior executives 6 years ago paid a working visit to some European countries to learn the opportunities of franchising its brands to the markets. However, Viet understands that the company would have to follow on a thorny path and meet a lot of obstacles to reach its end.

According to Viet, there are three main problems on the path. First, the company would have to compete with already well-known brands such as Calvin Klein, Pierre Cardin, Chanel, Dolce & Gabbana (D&G), Dior.

Second, it would have to pay money for the trademark copyright protection. And third, Vietnamese enterprises still lack professionalism in developing brands.

“We need to make out high quality products and cement our firm positions on the domestic markets, and then we will penetrate the South East Asian, then the Asian and European markets,” Viet said, admitting that he cannot be sure when the company will begin franchising its brands.

TBKTVN