Founded in 2005, Duy Anh Fashion & Cosmetics (DAFC), part of the retailer IPP Group, started out as the official distributor in the country for Salvatore Ferragamo and Bally. Two years later Burberry was on board, and in 2011 Rolex, Bvlgari, Cartier, and Tudor followed suit. DAFC is now the distributor of over 40 global fashion and cosmetics brands. Last year it reported revenues of VND970 billion ($43.3 million), and they are growing at 10 percent a year, according to industry research and consulting firm VIRAC. In 2015 and 2016, DAFC’s revenue were VND800 billion ($34.1 million) and VND862 billion ($36.8 million), respectively. Another big name on Vietnam’s high-fashion scene is the International Company Limited Tam Son, part of multidisciplinary firm OpenAsia Group. Also founded in 2005, Tam Son also acted as a distributor for major brands like Hermès, Bottega Veneta, Saint Laurent, Hugo Boss, and Kenzo. It is also a distributor of several … [Read more...] about Two firms lord it over Vietnam high-fashion scene
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Vinamilk is usually one of the highest spenders among promoters In terms of business fields, fast-moving consumer goods (FMCG) is the field where marketing and promotion plays a vital role, with direct impacts on firms’ revenue and profit performance. In this field, Vietnam’s top milk company Vinamilk is taking the lead in image promotion cost. In the first half of this year, the company’s sales expenses amounted to VND5.494 trillion ($243 million), with 82 per cent of the value equal, or VND4.557 trillion ($201.6 million), going to advertising, market survey, and promotion activities. On average, Vinamilk spent more than VND25 billion ($1.1 million) each day on sales promotion, higher than in the same period of 2017. Earlier, in 2016 and 2017, the company’s sales expenses surpassed VND10 trillion ($442 million) annually. In another case, Vietnam’s largest brewer Sabeco spent VND1.170 trillion ($51.7 million) in sales expenses in the first half of this … [Read more...] about Firms spend heavily on brand promotion
The Hanoitimes - Vietnam’s US$33 billion food delivery market has remained appealing to investors with more new service providers deciding to jump on the bandwagon. Malaysia-based ride-hailing firm Grab has recently launched GrabFood in Ho Chi Minh City, setting to break into the lucrative food delivery market in Vietnam. The company has 500 partners which are restaurants and food shops in the city. Vietnam’s food delivery market is forecast to value at over US$38 million in 2020 Grab is no stranger to the food delivery market in Vietnam. In fact, many restaurants already use their ride-hailing app for deliveries. With GrabFood, however, the company hopes to expand their role by acting as the intermediary between restaurants and customers, giving Grab a distinct advantage over other, more established food delivery services in Vietnam. Earlier, the market also saw a newcomer, Lala, which is invested by Ho Chi Minh City-based information technology and service provider … [Read more...] about Vietnam’s food delivery market heats up with new players
The Association of Vietnam Retailers says that there has been an exponential increase in the number of people ordering food online in Hanoi and HCMC in the last few years, and it is foreign firms that are cashing in on delivering it. The food delivery market is now dominated by Delivery Now, and Vietnammm.com. Delivery Now is a product of Foody Corporation, once a Vietnamese food service startup that was acquired by Singapore-based internet firm Sea LTD last year, while Vietnammm.com is a subsidiary of Takeaway.com, one of the world’s largest online food ordering websites based in the Netherlands. Invested in by Ho Chi Minh City-based Scommerce Group, an information technology and services firm, Lala is considered a rising star in food delivery sector by industry insiders, having the advantage of hi-tech knowhow from its parent firm. Lala connects its users directly with restaurants before its shippers from Ahamove, also a child of Scommerce Group, delivers food. Delivery Now has … [Read more...] about Will Vietnamese firms miss the food delivery bus?
Vietnam’s e-commerce sector grew by more than 25 percent last year and can maintain this growth rate in the next two or three years, according to the Vietnam E-Commerce Association (VECOM). It says online sales is set to hit $10 billion by 2020, accounting for five percent of the country’s total retail sales. Yet the four top firms that have built up the nation’s e-commerce so far, Lazada, Tiki, Shoppee and Sendo, have repeatedly reported accumulated losses. Market observers explain that in a “primitive market with high growth rates,” top companies are not afraid to accumulate losses in order to entrench themselves in positions of strength by focusing on expanding their market share at “at all costs.” Singapore-based Lazada entered Vietnam in 2012 when it was still owned by Germany's Rocket Internet. In April 2016, China’s Alibaba Group Holding Ltd bought a controlling stake in Lazada for about $1 billion to support its expansion plans in … [Read more...] about E-commerce booms in Vietnam but top firms stay in the red