Update: 08:27 | 12/09/2022
Japanese retailer Aeon launched a new label in Vietnam, focusing on cheap everyday clothing, as an answer to brands like H&M or Uniqlo.
The new lineup, called My Closet, features around 400 items that cost 50%-75% that of its competitors, targeting 16- to 24-year old women, a group of consumers that is growing fast in terms of population and spending.
AEON mall in Binh Tan District, Ho Chi Minh City.
Its T-shirt, for example, costs around VND150,000 ($6). That of other Western or Japanese brands is usually priced at VND200,000-300,000.
"We aim to make it Aeon's first fast-fashion" foray, Aeon Vietnam General Director Yasuyuki Furusawa told Nikkei Asia.
Vietnam is becoming Aeon’s "most important market" as it tries to expand beyond Japan, with the local capacity of handling clothing production thanks to a cheap and abundant labor force, which can minimize risk of supply disruption and bring costs down.
It is also considering selling those items on Vietnamese e-commerce sites as well as in neighboring countries, Nikkei reported.
Aeon entered Vietnam in 2014, and has opened around 200 stores in the country, including supermarkets and six malls.
Its rivals, Uniqlo and H&M, entered the market in 2019 and 2017, respectively. They have less locations than Aeon, but are growing fast thanks to the rising middle class that have more money and are eager to shop.
Vietnam has a population of nearly 100 million -- behind only Indonesia and the Philippines in the Association of Southeast Asian Nations -- with a young average age of 33. Its economy grew at over 7% a year before the pandemic, and has been bouncing back as coronavirus curbs are removed.