AEON expands into fast fashion

September 13, 2022 | 16:59

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AEON Retail Group has just launched My Closet, a fast-fashion brand, at AEON Mall Binh Tan in Ho Chi Minh City.

My Closet is a fast fashion, low-cost brand with 400 different products produced by AEON. It is aimed at women between the ages of 16-24, with the price of products about 50- 75 per cent lower than other brands.

AEON's fast fashion is aimed at young women

T-shirts from Western and Japanese brands are usually priced between VND200,000-300,000 (from $8.5-12.75), whereas equivalent garments at My Closet are only about $6 USD.

Yasuyuki Furusawa, general director of AEON Vietnam, said that the business goal was to make the new brand the company's first breakthrough in fast fashion.

He said that a local factory processes the products, which takes about 1-2 months.

AEON Vietnam will carry out the launch of the new brand at other stores in Vietnam. The business will also consider providing My Closet on domestic e-commerce sites and in neighbouring countries, including Malaysia.

The company has big plans in Vietnam, a country with a growing economy and an increasing middle class, to focus on Asian markets outside Japan.

In 2014, AEON Group opened its first shopping mall in the country. Since then, the group has expanded to 200 stores nationwide, including a series of supermarkets and six commercial centres.

The garment market in Vietnam is forecast to reach $7.33 billion by 2025 and has plenty of room to grow, according to Statista.

According to AEON, the Asian market will be key to helping the group complete its plan.

In April 2021, a medium-term plan was announced by AEON. The company expects that by 2026, it will generate 25 per cent of its operating profits outside of Japan. This target is 3 per cent higher than the previous four-year period.

Uniqlo, also from Japan, currently has 12 stores in the country (entering the market in 2019), while other fast fashion brands such as H&M, and Zara started appearing in the Vietnamese market in 2016.