Market proves tough to corner

Vinatex mart -  illustration photo

After a decade of development the Vinatex mart system, which specialises in selling locally made textile and garment products made by businesses under Vinatex, has demonstrated its leading role in clothing distribution in the domestic market.

The system’s total revenue exceeded VND2 trillion ($96.6 million) in 2010 and estimated to reach VND2.5 trillion ($120.7 million) in 2011 against VND300 billion ($14.5 million) in its first year of operation a decade ago.

Trade experts, however, said Vinatex mart system should reap more impressive revenue figures with a larger hold on the domestic market since most of the marts occupy premier locations in urban areas and have good relationships with big firms under Vinatex.

Vinatex mart system director Nguyen Thi Hong Huong acknowledged Vinatex’s retail outlets were neither ideal shopping venues for local consumers nor dominated markets in big cities.

“We urge local [textile and garment] producers to further ameliorate product quality and designs for supply to our marts. In fact, many our suppliers offer products of affordable prices and fair quality, but the designs remain poor.

“Though our revenue growth exceeded 30 per cent per year in recent years, these figures do not reflect the scope of our marts in the home market,” said Huong.

The Vinatex mart system currently consists of 58 supermarkets in 20 cities and provinces across the country.

In 2010, the textile and garment sector raked in over VND60 trillion ($2.9 billion) in home market’s sales revenue, with around VND14 trillion ($676.3 million) coming from Vinatex.

Vinatex encompasses over 100 member companies and allied businesses many of them have developed reputed brands captivating the trust of consumers both at home  and abroad such as Manhattan, San Sciaro, TT-up, Vee Sandy or Novely.

The owners of such brands reported high revenue figures in the home market such as Viet Tien Garment Joint Stock Company which grabbed VND500 billion ($24.1 million) in home market revenue in 2010 and Phong Phu Corporation VND1.5 trillion ($72.4 million).