Vietnam’s products make their brands
Vietnam is considered one of Southeast Asia’s most booming high-end product markets, worth nearly US$1
Louis Vuitton, Chanel, Dior, Hermes, and other luxury goods businesses will have a total profit of more than 3,800 billion VND in 2022, a sharp increase compared to the previous period.
Data from Vietdata, a portal that offers macro, commercial, and research data on a wide range of topics, indicates that companies in Vietnam that distribute and directly trade luxury products would generate close to VND 25,000 billion in revenue overall and more than VND 3,825 billion in profit after taxes in 2022. These two numbers increased by 67% and 2.7 times, respectively, compared to 2021. The business results of this group last year increased very strongly compared to the previous period; businesses all recorded trillions of VND in revenue.
The above numbers are compiled from 12 businesses distributing and directly trading about 34 luxury brands such as Louis Vuitton, Chanel, Dior, Hermes, Rolex, Calvin Klein, Charles & Keith, Zara...
In the group of businesses distributing many brands, including Mitra Adiperkasa, DAFC, and ACFC (belonging to IPPG), Tam Son, Maison, the business with the highest business results is Tam Son, with a revenue of more than 4,745 billion VND and a profit of about 849 billion VND in 2022. This is also the distributor of most brands, including Hermes, Kenzo, Boss, Patek Philippe, Vacheron Constantin, Chopard, Bang & Olufsen, Lalique, Diptyque...
The other brands with direct commercial entities in Vietnam are Adidas, H&M, Gucci, Louis Vuitton, Chanel, and Dior. Among these, Louis Vuitton has the highest revenue, reaching more than 2,360 billion VND. But the champion in profit is Dior, with more than 558 billion VND.
Viewdata reports that between 2017 and 2022, the proportion of Vietnam's super-rich individuals grew quickly, reaching 1,059 people with net worths of over USD 30 million (last data from Knight Frank - a global real estate consultancy located in the UK). Furthermore, Vietnam's average population age is 32, which is considered a promising age in the market for luxury product consumption. Besides the high demand, Vietnamese consumers' domestic shopping demands are also influenced by the challenges of visiting overseas.
"Even though luxury fashion is not aimed at the masses, only a small segment of customers is willing to pay, the revenue of these items is always extremely high," Vietdata analyzed.
Data from German market research firm Statista also shows that Vietnam's luxury market revenue is estimated to reach more than 957 million USD in 2023. Until 2028, the annual growth rate is predicted to be 3.23%.
Mr. Nick Bradstreet, Asia Pacific Retail Director of Savills, stated in a report on the Southeast Asian luxury brand market that the economic downturn in China forced firms to recognize the necessity for diversification rather than reliance on a single nation. "Southeast Asia is a natural choice with prominent markets including Singapore, Thailand and Vietnam," he stated.
Around the world, in 2021 and 2022, the world's leading luxury goods brands, such as LVMH and Hermes... announced skyrocketing revenues despite recession risks, thanks to the trend of compensatory shopping and the behavior of the rich not following the rules of economics. However, demand for luxury goods consumption begins to slow down in 2023. In the third quarter, sales of Louis Vuitton and Dior slowed down while Gucci and Yves Saint-Laurent even decreased.
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