Textile enterprises conquer the domestic market
Domestic market is considered to be very potential for Vietnamese garment enterprises. For years, textile and garment enterprises have only focused on exports and have not paid much attention to the domestic market. However, difficulties caused by the global economic crisis have helped many textile and garment enterprises in Ho Chi Minh City to look back on this market. But the problem is to penetrate and have a firm footing in the domestic market is difficult for garment enterprises.
Pham Xuan Hong, chairman of Ho Chi Minh City Textile and Apparel Association, said that with a population of nearly 90 million people, the domestic market is very potential for garment enterprises.
Favorable conditions are available, but to gain market share from 10-30% in the domestic market is very difficult for Vietnamese garment enterprises in general, HCMC in particular.
On the market today, smuggled goods, imitation goods, counterfeit goods, poor quality goods are widely labeled as Vietnamese goods, the brand and are selected by many consumers. Not only that, many garment processing enterprises in the country only invested in quantity, not paying attention to quality as well as brand building, so the production cost is low, the product sold at cheaper price. Compared with branded businesses.
As a result, many garment enterprises, despite their international reputation for export products, have not been able to capture the foothold in Vietnam.
In order to enter the domestic market, many businesses have chosen to produce and sell wholesale products through domestic distribution companies, because distribution in the domestic market is not easy for businesses. Capital of export. If it is not smart business enterprises must hold the burden of inventory because they can not sell goods.
Nguyen An, General Director of Saigon Commercial Joint Stock Company (Garmex Saigon), said that the current rate of domestic production of the company only accounts for 10%, but to sell 10% This company must link to local retailers.
It is worth mentioning that many enterprises, despite their position in the international market and are creating their position in the domestic market, to produce 100% Vietnamese products at affordable prices. Being able to compete with foreign goods, counterfeit goods, imitation goods, poor quality goods are flooding, it takes a long time and very difficult. But garment enterprises all claim that it is difficult to do because they can not lose at home.
According to businesses, the most difficult of the garment industry is the raw material. As every year Vietnam needs nearly 6 billion 800 million meters of fabric, but in the country only produce and supply only 800 billion meters of fabric, and 6 billion meters of fabric must be imported abroad. Fabrics made in Vietnam are also more expensive than imported fabrics, especially from China and Korea, so many businesses choose to import the main fabric. As a result, Vietnamese garment products are well-known in the domestic market, targeting the local market with domestic products, but the raw materials are mostly imported.
Before this difficulty, many businesses think that in order to meet domestic production with domestic raw materials, garment enterprises must actively seek domestic raw materials. At the same time, the State should also have policies to plan, encourage the support of the textile industry, dye development of raw materials. Because there is no good material in the country, there can not be high quality Vietnamese textiles and garments for Vietnamese people.