Local brand Vietnamese is too difficult: Many places are closed, some people fly 20 billion

It can be said that in 2024 was a turbulent year for domestic fashion brands.Besides a few brands achieved many successes, increasing the coverage when continuously internationally famous stars, there are still many Local Brand struggling to find new development directions.Not only that, recently, many small and medium -sized domestic fashion brands have to close.

So what is the reason for these problems?

The rapid change of the market

One of the "tribulation" of local brands that we can see most is the continuous change of the market and the trend of consumers' purchases.Looking back on the past 15 years, the way of sales of fashion brands in Vietnam has changed significantly, specifically:

From the years 2010 - 2014, shoppers will mainly look to traditional markets, kiot, Guangzhou clothing shops or more advanced than the commercial center.2015 - 2019 is the golden age of Local Brand, when these domestic brands continuously opened offline store, and online business on Facebook, Instagram.

Until the outbreak of Covid -19 translated, the peak was in 2020 - 2021, many brands had to close and gradually convert the sales from offline online, combined with e -commerce platforms (E -commerce).However, this trend also quickly became lost when Tiktok Shop appeared, leading to the sales period through Koc Livestream on social networks Tiktok or Affiliate Marketing campaigns (affiliate marketing) in 2022-2023.

Finally, in 2024, the trend of special sales blossomed at Mega Live Silver Billions.Even to meet the large number of goods, the factories stand out to work with KOC, KOL.This leads to the market gradually becoming a competitive battle between factories, Local Brand is therefore struggling.

It is this rapid change that leads to the Local Brand that wants to survive must absorb and innovate continuously according to the market trend.Local Brand M. representative said:"We are fortunate to have a workshop and take the initiative to import materials from the Central side but still cannot" fight "with the online factory heads because it still needs to pay a lot of other fees to get out.single.This year is not the war of Brand with Brand but the battle between the heads of the factory.Production capacity is the decisive factor at this time. "

Since 2024, Local Brand has difficulty piling up

To keep up with the trend of the era, many Local Brand chose to sell through e -commerce.The online business will help the brand optimize the cost of premises, sales and operate personnel.In addition, this also makes Local Brand reach customers more easily.However, this is only the surface of the submerged iceberg.In essence, participating and dependent on business on e -commerce is a double -edged sword.

Because the brands are easy to participate in sales on e -commerce, it means that the competition will be high and easy to fall into inventory.The cause of this comes from unstable access to people.And more importantly, Brand cannot control customer data on semi -selling channels so it is easy to depend on the policies of the floor.

According to the representative of Local Brand "Unleashed", the business on the floors will accidentally make the shopping behavior of customers depend on the sale of sale and deal.This creates an intangible pressure for brands: It is required to sell to sell goods.Besides, Mega Live sessions seem to be a great sales opportunity but actually not as many people still think.

"FloorsE-commerce requires Brand to sell (at least 40%) when participating in Mega Live but Brand also suffers from costs such as Booking Kol (about 20%), floor fees (10-15%) or advertising costs, realityMarketing campaigns.Final,When deducting all the money to spend, the profit of Brand collected is not worth much."

Many continuous brand sale, livestream deal continuously for too low prices perhaps just to push sales and make more customers know the brand.This even makes the factory of Local Brand wonder whether they are profitable or not.The original cost to create a product is higher than the cost of the product after being brought to the e -commerce floor.Recently, because of the heat, many Local Brand had withdrawn from the floor, set up a separate web to sell.

"For half a year, the founder almost could not hold the money, in other words, the loss.Whether it is often thick, must balance the design. "- Unleashed shared.

M. said Brand was also greatly affected from the price battle on Tiktok Shop.For example, a 300k shirt on Tiktok Shop will only be 100k, the seller must squeeze the price to compete.In addition, M. participated in Mega Live but Kol took a high fee.Participating in Tiktok's sale campaigns, guests will be reduced, with a very deep loser (for example, over 150k is 30k discount to 120k).This leads to the fact that when there is no code, the customer does not want to close the application.

When working with Tiktok Shop, the floor also applies very high with the brand with the brand each time participating in the live session or the sale program.For example, the floor requires 3 days to sell $ 30,000 revenue.And to meet the above requirements, the brand must pay for itself to run marketing programs, promote livestreaming personnel, booking koc, kol ... If not achieved goals, Brand will lose muscle graduallyThe Association participates in the Live sessions of the floor.

In addition, one more thing that makes the M. brand find it difficult to work with e -commerce floors is the unreasonable repayment policy.Brand M. shared, many people ordered, using its products to take photos, then ... return.There are many Brand dishes that have to accept to leave if the situation is too bad.If the item can still be used, the brand will sell low prices to employees or charity.Besides the loss of capital, this pile of goods also causes a tight situation, consuming space.

In short, guests only wait for the sale, the e -commerce floor will squeeze KPI and remove Brand if Brand does not meet the requirements, the founder accepts losses to continue and rotate enough direction to live.

Which path for future Local Brand?

In the face of the above -mentioned affection, many Local Brand chose not to participate in the Mega Live of the floor.Besides, the brand will run the sale programs with the right price for both the seller and the buyer to feel comfortable.There is also Brand decided to focus more on the quality to raise the price properly, and launch a new product line and expand the market to neighboring countries like Thailand.

Brand M said: "M. is negotiating with Thai TMDT platforms because Local Brand Vietnamese is very popular here and their purchasing power is also good.In fact, there are more "Thai Tien" brands to expand the market.In addition, Brand is also focusing on producing more accessories.Although the processing time is longer, at least this is still a new path, diversifying products to attract more customers. "

Mr. Tien Hai, who has just closed 9 consecutive stores in the Giian fashion chain, lost 20 billion investments shared:"The fast -growing e -commerce platform leads to customers' acts of changing behaviors, which brands do not change will be quickly backwards.".Besides, he also shared the solution to build and business in the future is to study, innovate and use gene personnel, gene Z. In addition, the application of technology and intelligenceCreated to develop business is also very important.However, the most essential thing is to be strong in financial matters or in other words, there is a lot of money to invest.

Brand representative of LEVEVES said that to avoid being too much dependent on e -commerce platform, the owner needs to identify and understand the business model, the value of the brand then select the appropriate sales form.and focus on investing resources for that selling channel.

"With Levents, the ownership of the sale and traffic channels is the top priority. To do that, we focus on building the website, offering preferential policies for loyal customers., building physical stores to create superior experiences compared to online shopping.Or in the wrong season. "