Textiles and footwear seek direction to develop domestic market

In Ho Chi Minh City, the Ministry of Industry and Trade has just coordinated with the Vietnam Textile and Apparel Association (Vitas) and the Vietnam Leather, Footwear and Handbag Association (Lefaso) to organize a conference on “Developing the domestic market for the textile and footwear industry”. In the context of many difficulties in exports, effectively exploiting the domestic market is considered a parallel direction, not only helping enterprises stabilize production but also helping consumers access products that meet international standards.

Challenges from "home"

According to reports from Vitas and Lefaso, the domestic textile and footwear market is about 6-6.5 billion USD; of which, textiles and footwear are about 5-5.5 billion USD, about 1 billion USD for footwear. This is an opportunity for businesses to reduce dependence on exports and consolidate their position at home. Recently, the Vietnamese textile and footwear industry has faced many pressures from export markets when demand decreased and technical barriers increased, especially in the US, Europe, Korea, China, etc. Therefore, focusing on the domestic market is considered a lifeline for businesses at the present time.

For many years, Vitas and Lefaso have accompanied the Government and the Ministry of Industry and Trade in promoting the consumption of Vietnamese goods in the domestic market. This cooperation has contributed to enhancing the position of the textile and footwear industry, and effectively realizing the campaign "Vietnamese people prioritize using Vietnamese goods". The domestic market is considered to have great potential for Vietnamese textile and garment enterprises. In fact, for a long time, textile and garment enterprises have only focused on export and have not paid much attention to the domestic market. However, the difficulties of the global economy in recent times have forced many textile and garment enterprises to re-evaluate the domestic market. According to experts, when returning to the domestic market, the problem is that not all enterprises can penetrate and gain a foothold, this is a huge challenge for textile and garment enterprises.

Experts also commented that the exploitation of the domestic market by Vietnamese textile and garment enterprises still has many limitations. That is, the distribution system is not synchronized, lack of connection with distribution systems, leading to many brands' goods not creating strong attraction to consumers, especially young people; the situation of counterfeit goods, fake goods and competition from cheap imported products are still big challenges for enterprises. Meanwhile, the problem of competition in the footwear industry today is the lack of supply of standard raw materials at reasonable prices, so enterprises are also struggling to retain customers.

According to Ms. Nguyen Thi Tuyet Mai, Deputy General Secretary of the Vietnam Textile and Apparel Association, for many years now, many textile and garment enterprises have been promoting the exploitation of the domestic market and have made a name for themselves in the market. However, in reality, it is not easy for enterprises to expand their market share because they have to compete with imported goods. In addition to the high-end imported segment, cheap Chinese goods are dominating the market, especially on online sales channels, causing great difficulties for Vietnamese enterprises.

Need a synchronized solution

According to experts, focusing on the domestic market not only helps businesses reduce their dependence on exports, but also gives consumers more opportunities to access products that meet international standards, produced by reputable and experienced businesses. This is a parallel direction, both promoting domestic advantages and preparing for global competition. To conquer the domestic market, businesses need to apply modern technology, improve production processes, enhance product quality, and meet the increasingly high demands of consumers.

Ms. Tran Thanh Truc, Head of Sales Department, Tay Do Garment Joint Stock Company, said that the company's products have met the export market requirements of Japan, the US, Europe, etc. well and is focusing on the domestic market. The company wants to bring consumers quality products at the most reasonable prices. Currently, domestic consumption accounts for 5%, contributing about 10% of the company's total revenue. To exploit this market segment, the company regularly implements discount and promotion programs; actively participates in domestic consumption stimulus programs implemented by the Ministry of Industry and Trade, Can Tho City, as well as connecting with the program "Vietnamese people prioritize using Vietnamese goods". In parallel with the retail store systems, the company is researching and developing additional e-commerce sales channels to suit new consumption trends. In the production stage, the company prioritizes the application of new technologies and modern machinery to minimize costs. Along with that, strengthen vocational training for workers to have a skilled workforce to produce quality products, meeting the increasing demands of consumers.

A business store of Tay Do Garment in Ninh Kieu ward, Can Tho city.

According to Tran Huu Linh, Director of the Department of Domestic Market Management and Development (Ministry of Industry and Trade), developing the domestic market is not only a temporary matter but also a long-term strategy. This is a direction that goes hand in hand with exports, both taking advantage of the huge consumption potential and helping businesses improve their global competitiveness. However, businesses must eliminate the mindset that Vietnamese customers are easy-going and focus more on researching consumer tastes, designing to keep up with trends, and developing suitable products to enhance their reputation and brand in the domestic market. In addition, businesses must also focus on traceability, developing domestic retail chains, and improving product quality according to international standards. “The Ministry of Industry and Trade will support businesses in connecting production with the market through conferences like this, bringing supply to meet demand, thereby developing products that meet practical needs. The domestic market is very large and has potential. If exploited well, the textile, garment and footwear industry will develop more stably and sustainably in the future," Mr. Tran Huu Linh added.

It is expected that the cooperation of management agencies, associations and enterprises will create new momentum for Vietnamese textiles, garments and footwear to increasingly affirm their position in the domestic market. Consumers will have the opportunity to use quality products; enterprises will increase their competitiveness and enhance the national brand.

Article and photos: KHANH NAM

Source: https://baocantho.com.vn/det-may-va-da-giay-tim-huong-phat-trien-thi-truong-noi-dia-a190346.html