VietData's luxury market report in Vietnam shows that most brand distribution enterprises and exclusive distributors in Vietnam in 2023 have a strong decline in revenue compared to the revenue compared to.2022.
However, looking at the sales of these units, it is easy to see why Vietnam is still considered to be a potential market for the luxury industry, when the number of people of the middle class and super -rich people.In Vietnam increasing rapidly.
The luxury industry market in Vietnam is estimated to bring $ 992.2 million in 2024. (Photo: Louis Vuitton)
In exclusive distributors in Vietnam, the highest revenue belongs to Chanel, with nearly VND 1,900 billion, surpassing Louis Vuitton, which dominates the leading position in Vietnam market continuously a few years ago.However, compared to 2022, Chanel's revenue still decreased by 13.6%;The profit also dropped sharply by 51%.
This brand currently owns 6 exclusive Boutique in Vietnam, located in a prime location in the two largest cities in the country, Hanoi and Ho Chi Minh City.
From the leading position, Louis Vuitton last year back to the second with nearly VND 1,800 billion, down 22.5% compared to the previous year.The profit after tax of this brand also dropped sharply by 38%.Notably, Louis Vuitton only owns 2 Boutique in Vietnam and is still considered to have the strongest attraction to users when competing on peer with competitors in the luxury industry.
Christian Dior last year recorded better business results than many other exclusive distribution businesses.Revenue only decreased by 9.5%, reaching VND 1,500 billion and this brand has the highest after -tax profit in the exclusive distribution segment in Vietnam.
Christian Dior owns the most stores, stretching from Hanoi, Hoi An, Ho Chi Minh City with 8 addresses that always attract many shopping customers.
Trillion revenue of Louis Vuitton, Chanel, Dior in Vietnam in 2023. (Source: VietData)
Gucci on a smaller scale, also earned about 750 billion dong, down about 250 billion compared to 2022. In the luxury goods market, Gucci is the most profitable record, with a reduction of up to 77%.
In Vietnam, Gucci has 3 stores in Hanoi and Ho Chi Minh City, including 1 store cooperating with Adidas.
Two smaller -scale units only own only one store in Hanoi, Prada and Ermenegildo Zgeta, also began to be profitable, with revenue of each brand about 200 billion.In particular, Prada is highly appreciated by controlling effective costs and changing the appropriate business strategy, moving from losses in 2022 to profit.
These revenue numbers are only updated by exclusive distributors, not taking into account the businesses and large corporations distributing multi -brands in Vietnam such as Tam Son International Joint Stock CompanyCoordinate for 31 famous international brands: Hermès, Bottega Veneta, Saint Laurent, Kenzo, Boss, Hugo, Marc Jacobs, Patek Philippe, Vacheron Constantin, Chopard, Bang & Olufsen, Bernardaud, Lalique, Rimowa, Alessi, Hanoia ...The system of 109 stores for business and product display.
Or DAFC and ACFC are two of the three distributors of a series of luxury fashion brands of the Pacific Inter -Pacific Group (IPPG) of businessman Johnathan Hanh Nguyen, with more than 350 distribution stores more than 80 floating brandslanguage.
Welcoming the new wave of consumption, at the end of 2023, DAFC opened a series of famous distribution stores from Italy such as Balmain, Monblanc, Moschino and Moschino Jeans, Gianvito Rossi and Alessandra Rich (UK).These are brands in the orientation of rejuvenating DAFC's brand category, aiming at the young and dynamic Genz customer file.
In addition, DAFC has just closed the distribution contract with a series of famous brands in Europe such as Frank Muller, Stefano Ricci ...
Cartier at the beginning of 2024 expanded its business in Vietnam by opening the first flagship store in Ho Chi Minh City in March. (Photo: Cartier)
According to Statista, in Vietnam market, the luxury industry will bring $ 992.2 million in 2024.
The estimate of World Data Lab, in the list of 9 Asian countries is forecasted to have the largest number of people joining the middle class in 2024, Vietnam ranked fifth, with 4 million people.The middle class in Vietnam accounts for about 17% of the population and is expected to increase by 26% by 2026.
The organization said that the middle -class person was the one who spent at least 12 USD/day according to the equivalent purchasing power in 2017.
According to Knight Frank, by the end of 2022, the number of Vietnamese people with net assets of over 30 million USD has reached 1.059 people.It is forecasted that by 2027, this figure will reach 1,300 people.And the number of people with assets of over 1 million USD is forecasted to increase by 173% in the period of 2017 - 2027.
This explains the wave of luxury brands in the world that continues to land in Vietnam since 2023. Like Mont Blanc and Balmain Paris have opened its first store in Trang Tien Plaza;Devialet also ordered the first store on Trang Tien Street - Hanoi.
A series of other big brands such as Victoria’s Secret, Foot Locker, Maison Margiela Paris, Coach, Marimekko, Karl Lagerfeld, Come Home ... also first appeared at Lotte Mall West Lake Hanoi.
At the beginning of 2024, the "king" trio of luxury industry, Cartier, Rene CaoVilla and The Hour Glass Opera simultaneously expanded in Vietnam.
Inner Cartier in March 2024 opened the first flagship store at Union Square shopping center in District 1 - Ho Chi Minh City to 570m2 and 2 floors.The space in Cartier store is divided into many display areas corresponding to the industry and product line, bringing customers in Vietnam the most advanced experience.
According to the recent assessment of Savills, the luxury market has passed through the bottom area, and is showing positive recovery, thanks to the return of international tourism and the trend of inflation decreased.