Zara Vietnam says it will open its first store in July, just as Euromonitor International reveals the Vietnamese branded goods market may reach $2.7 billion in value by next year.
As more than more people can afford branded goods, international fashion brands such as Gap, Mango, Nine West, Ralph Lauren and Topshop have become the choice of many young Vietnamese, especially office workers, says Euromonitor.
Zara is owned by Inditex, which at the end of its latest fiscal year on January 31 had 7013 shops in 88 markets, including 2000 Zara outlets. If the Spanish fast fashion giant follows its normal international expansion course, it will likely roll out some of its other brands in the market, including Bershka, Pull & Bear, Massimo Dutti, Stradivarius and Zara Home.
There is already a Vietnamese website selling Zara items, with a showroom in Ho Chi Minh City, but the shop sells alternatively-sourced and end-of-season lines.
Mango, which targets customers between 18 and 40 years old, has been in Vietnam since 2004 through a franchise contract signed with Maison JSC. It also has other franchise partners, including DAFC, a subsidiary of IPP, and BFF, belonging to Vingroup.
In 107 markets internationally, Mango had $2.6 billion in revenue last year.
A survey by Nielsen on Vietnamese consumer confidence has shown that Vietnamese are willing to spend money on holidays, tourism, fashion and high-technology products.
Meanwhile, Mango and Zara are among brands that have garment factories in Vietnam.
