Fast fashion brand Zara opened its first store in Vietnam in Vincom Dong Khoi in Ho Chi Minh City. It penetrated into Vietnam just a short time ago yet it has the volume of visitors beyond the expectations.
On the first day opening , Zara Vietnam reported a revenue of VND5.5 billion ($241,000) which is a dream for both internationally well-known and domestic brands.
The shop covers the area of nearly 2,500 square meter in two floors and it is crowded with visitors at any time. Especially in weekend, customers are queuing a long line from the fitting room to the cashier desk in the outlet. An assistant of the outlet said usually, it is crowded with visitors; therefore, in sales season, it is quite normal that consumers must queue to wait for their turns.
Ms. Minh Nguyet in District 2 with 20 items on her hand said that she dropped by the outlet twice yet it was so crowded in the first time that she could be able to choose the clothes of her choice; hence, she managed to come the shop in lunch time to select clothes for family members.
Ms. Nguyet added that she is impressed with the prices, noting they are 20-30 percent cheaper than in Malaysia,Singapore and Thailand. Similarly, Uyen Nhi who has left Australia for Vietnam in summer vacation said that she intended to see Zara items in Vietnam at first but later she decided to buy five items because of cheap price.
In addition to Zara, Gap brand name in the center also attracted a large of customers. In the sales season, a heap of clothes piled up in tables so that customers could easily choose. Though it is discounted 50 percent, a Gap T-shirt costs from VND250,000 - VND500,000 ($11-$22) while a pair of jeans is worth over VND1 million. Many people still purchased them.
Popular fashion brands namely Spanish Mango, the US’s Gap, UK fashion brands Warehouse, Oasis, and Top Shop all come to the Southeast Asian country a long time ago.
Nevertheless, Spanish fashion retailer Zara are most favorite in Vietnam. It offered a “fever” of foreign fashion brands amongst Vietnamese youths. Young consumers are not reluctant to spend hours queuing to buy an item of their choice.
An expert said that Zara is affordable fashion brand for Vietnamese customers in big city like Ho Chi MInh City. As per a small survey from clients in Zara store, Vietnamese buyers favor Zara brand because the brand has good designs for youth and it offers more than reasonable prices.
Plus, the brand has marketing policy better than local fashion companies and other foreign brands. The cost of a Zara brand item ranges from VND180,000 - VND2.2 million which is even cheaper than Vietnamese brands.
A Zara fashion follower Ha Nhu said that only Zara offers exchange or refund items within 30 days of purchase with an original receipt including sales items. Moreover, each Zara brand item is displayed in shelves within two or three week with limited number. When an item is sold out, the company will not produce any more. Furthermore, Zara launches new collection every two or three weeks, Ms. Nhu said.
Editor of a fashion magazine Nguyen Ngoc said that Zara Vietnam creates a “fever” of shopping amongst youth because many customers favor buying foreign-made clothes. Besides, Zara displays its store beautifully in the biggest commercial center in Ho Chi MInh CIty making customers to think they are rich people.
Zara Vietnam phenomenon showed that foreign fashion brands considered Vietnam as potential market. Experts said that great revenue will be incentive for big fashion brands in the world open its store in Vietnam in upcoming time; for instance, H&M - an internationally famous brand will officially open its store in Vietnam a few days next.
