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Children’s wear Market Research
B+ BOOTential
Report
June 9th, 2014
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Children’s Wear Market Research would include 3 main parts
Market Overview
Recommendations
Segmentation, Targeting and Positioning
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What’s happen in Viet Nam childrenswear market?
Market Size & Trend
Competitive Landscape
Prospect
▪ In 2012, childrenswear market size is 5.000 billion VNĐ and witnesses current value growth of nearly 10%
▪ Baby and toddler wear enjoys the fastest value growth
▪ Childrenswear remains highly fragmented with many small brands and unbranded items
▪ Many Vietnamese consumers start to shift to domestic brands
▪ Childrenswear is projected to see a growth of 3%
▪ Both international and domestic manufacturers are expected to introduce new products in terms of design and price to cater for different needs and demands
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In spite of decrease in children population, kids apparel still reach 5.1 thousand billion VNĐ in 2012 with growth of 10%/year
Childrenswear
47,9
2010
53,0
10%
100%
MenAnd Women
2009
5,1
47,2
4,6
42,7
3,8
33,3
2011 2012
40,6
4,1
36,5
37,1
6.714
7.044
20.904
6.750
6.84710-14
5-9 6.711
7.248
20.993
7.146
20.850
2012
6.815
6.761
7.034
20.928
7.253 7.352
2009 2010 2011
0-4
Although the number of children decrease generally between 2009 and 2012…
Revenue of childrenswear market size still increase by 10%/year
Children populationThousand people
Revenue of VietNam apparel marketThousand billion VNĐ
Souce: Euromornitor International Report
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Girl’s Clothing has the highest revenue and sale units, while Baby and Toodler Wear experienced a highest growth
Girl’s Clothing
Boy’s Clothing
Baby and Toodler Wear
2012
5,06
2,42
1,57
1,07
2011
4,57
2,19
1,42
0,96
2010
4,10
1,97
1,28
0,8512%
10%
10%
Girl’s Clothing
Boy’s Clothing
Baby and Toodler Wear
2012
41,59
17,87
12,35
11,37
2011
40,50
17,44
12,10
10,96
2010
39,41
16,99
11,84
10,58 3.7%
2%
2.4%
The reason of differences between growth ratio of revenue and sale units may be:- Increase in price
(inflation or …)- People tend to spend
more for experience items
Revenue of kids apparel in categorisesThousand billion VNĐ
Revenue of kids apparel in categorisesMillion units
Souce: Euromornitor International Report
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Childrenswear remained a highly fragmented market, with the market share of leader players only 0.5%
Brands 2009 Company 2010
Nike Inc 0.4%
Adidas VietNam Co Ltd
Nike
Reebok
2011 2012
0.5% 0.5% 0.5%
Others
0.2% 0.2% 0.2% 0.2%
99.4% 99.3% 99.3% 99.3%
Childrenswear market share in VietNam
Percentage
Souce: Euromornitor International Report
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There are 3 main players in childrenswear market with differences competitive advantages
▪ Very famous brands such as Nike, Adidas,…
▪ Usually sold at their retail outlets or through department stores in shopping
centers
▪ Superior quality and diversified products portfolio
▪ Customer target is mostly higher income consumers living in big cities
such as Ho Chi Minh and Hanoi city
▪ From neighbouring countries, for instance, China, Thailand and Cambodia
▪ Cheap prices (15-20% lower than local brand) and eye-catching designs
▪ Acceptable quality, affordable price to many Vietnamese parents.
▪ Concentrate more on new designs
▪ Many privates brands with distribution advantages
Europe Imported Brand
Imported unbranded products
Local brands
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Childrenswear is expected to see a growth of 3%/year due to the roll-over of the economic downturn
60,0
2016 2017
5,6
57,3
5,3
52,1
57,4
5,5
54,5Men and women
Childrenswear
2013 2014 2015
5,2
49,9
55,1
62,9
5,8
60,2
66,0
4%5%
5%5%
4%2%4%2%
Childrenswear market expected growthThousand billion VNĐ
“The roll-over of the economic downturn starting from 2011 till now may leave a negative impact on growth of childrenswear in the short term as the budget for clothing will be tightened and Vietnamese consumers are predicted to prefer to purchase economy and standard childrenswear rather than premium. However, it is expected that with the efforts of the government, the economy should start to recover in the next couple of years. Thus, this threat may only be short-term” – Euromornitor International Report
Souce: Euromornitor International Report
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While Girl’s Clothing is expected to have highest revenue growth, Baby and toddler wear enjoy the best performance of sale units
1,15
5,45
2,56
1,61
1,12
5,29
2,65
1,65
2013 2014 2015
Baby and Toodler Wear
Boy’s Clothing
Girl’s Clothing 2,48
1,59
1,09
5,16
2.7% 2.6%
1.2% 2.4%
3.2% 3.5%
12,80
45,70
18,80
12,90
12,30
44,00
19,50
13,40
2013 2014 2015
Baby and Toodler Wear
Boy’s Clothing
Girl’s Clothing 18,30
12,60
11,80
42,70
4.2% 4%
2.3% 3.8%
2.7% 3.7%
Souce: Euromornitor International Report
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Segmentation
24/50 chon Quality > Design > Price 9/50 chon Quality > Price > Design 7/50 Quality > Design = Price 12 Other
Quality As 1st Priority Price or Design as 1st Priority0
5
10
15
20
25
30
35
40
45
Chart Title
Segment 1 Segment 2 Segment 3 Segment 4 Other
Design as 2nd Prior-
ity
Middle Income
Middle Low Income
Price as 2nd Prior-
ity
Middle High In-
come
High Income
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Segment 1: – Middle Low Income with Design as 2nd Priorities
Market Size Guestimation: Account for 18% of sample size Pricing Average Price/ Items: 105,000/ item Price Range: 75,000 – 150,000/item Spending Power: Average Spending/ Season: 1,350,000 Spending Range/ Season: 1,200,000 – 2,500,000
• 66.7% shops 4-5 times/ season
Frequency
• 55.6% Spend 300,000 – 499,999/ purchase• 33.3% Spending: < 300,000/ purchase
Spending/ Purchase
• 44.4% 1-2 items• 55.6 % 3-4 items
Volume of Products:
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Segment 2: Middle Income with Design as 2nd Priorities
Market Size Guestimation: Account for 26% of sample size Pricing Average Price/ Items: 185,000/ item Price Range: 125,000 – 267,000 Spending Power: Average Spending/ Season: 1,638,000 Spending Range/ Season: 1,000,000 – 3,000,000
• 69% shops 2-3 times/ season
Frequency
• 69% Spend 500,000 – 799,999/ purchase• 23% Spend 800,000 – 1000,0000
Spending/ Purchase
• 77%: 3 – 4 items
Volume of Products:
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Segment 3: Middle High Income with Price as 2nd Priorities
Market Size Guestimation: Account for 26% of sample size Pricing Average Price/ Items: 130,000/ item Price Range: 125,000 – 267,000 Spending Power: Average Spending/ Season: 2,052,000 Spending Range/ Season: 1,200,000 – 4,000,000
• 77.8% shops 4-5 times/ season
Frequency
• 56% Spend 500,000 – 799,999/ purchase• 23% Spend 300,000 – 499,999
Spending/ Purchase
• 78%: 3 – 4 items
Volume of Products:
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Segment 4: High Income with Quality as 1st Priority
Market Size Guestimation: Account for 26% of sample size Pricing Average Price/ Items: 327,000/ item Price Range: 200,000 – 1,000,000 Spending Power: Average Spending/ Season: 2,375,000 Spending Range/ Season: 1,600,000 – 3,000,000
• 75% shops 2-3 times/ season
Frequency
• 75% Spend 800,000 – 1000,000/ purchase
Spending/ Purchase
• 62.5%: 3 – 4 items• 37.5%: 1 – 2 items
Volume of Products:
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Segmentation
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