Vietnamese producers aim for high grade market

In the eyes of many Vietnamese people, Vietnam-made products mean those of dubious quality for low to medium income earners. Some Vietnamese producers have been trying to change their reputation by “conquering” the high grade market sector.

Making “perfect” products

In late 2009, Phu Nhuan Jewelry Company established Cao Fashion Company, to introduce jewelry and handbags trademarked as “Jemma.” These products are designed by South Korean and Italian designers and aimed at young consumers. Company representative note that Jemma products have three key ingredients: beauty, low prices and high quality equal to that of imported goods.

Recently, Vietnamese consumers become familiar with Gosto, a trademark for high grade products by Biti’s, which specializes in making leather footwear, clothes and handbags. Biti’s has set up a division specializing in managing, designing, producing and trading the products with this trademark.

With a design centre already located in District 7 in HCM City, Biti’s has also invested in a production line that specializes in making high grade products at its factory in Dong Nai province.

Gosto Business Director Le Diem Thuy remarked that, with 30 years of experience in making footwear for world famous brands, Biti’s feels confident in producing high grade products under its own trademark.

Gosto workers are highly skilled, providing perfection in all details. Any worker can make 20 pairs of shoes per day, but at Gosto, workers complete just two pairs.

Only 60-100 pairs of shoes are made in each design and handbags are also made in limited quantities. Only two collections are introduced to the market yearly. Thuy revealed that Gosto will also provide men’s products made in consultation with a French designer who once worked for Chanel.

Viet Tien Garment Company has also invested in developing its three high grade trademarks TT-up, San Sciaro and Manhattan. Similarly, Cuu Long Jewellery Company also has a trademark for high grade products.

Cuu Long Director Le Dinh Hung asserted that their high grade products will focus on jewelry with precious stones.

Jemma brand products are selling at 1-3 million dong each, Gosto shoes sell at 400,000-2.3 million dong, and Gosto wallets are priced at 900,000-4 million.

Thinking big

Previously, Vietnamese brand names did not develop distribution networks or sales at big trade centres, simply because they thought they would not have room in spaces reserved for foreign big brands.

Nowadays, the companies think big. High end trademarks have been trying to penetrate big trade centres. San Sciaro products, for example, are available at the Parkson chain, while Gosto, Jemma, Mattana, TT-up, Manhattan are selling at Zen Plaza, Diamond, Parkson and Paragon.

“The presence of Vietnamese brands at big trade centres, together with other foreign brand names, shows the confidence of Vietnamese producers,” observed Deputy General Director of Viet Tien Garment Company Phan Van Kiet.

Many Vietnamese brands are also targeting the international market. According to Thuy, Gosto uses ‘S’ to symbolize the shape of Vietnam in the center of its name, while the other letters spell out “go to,” urging consumers to make Vietnam a destination, if not in person, then with their money.

With ambitious plans to develop trademarks, producers understand that it is impossible to change viewpoints overnight. The majority of Vietnamese people still purchase foreign made goods when they need high grade products.

Thuy said that Vietnamese producers have no other choice than to persuade domestic consumers to have confidence in Vietnamese goods by offering products with high quality. Cuu Long Company said that its trademark is carved on all its products to help consumers gradually become familiar with the company.

VietNamNet/NLD

Tags: Vietnam business news, Vietnamese products