Vietnamese Fashion Brands in 2025: Reborn to Survive and Thrive

2024 has presented a mixed picture for the fashion industry, with many brands regretting of closing down, while some achieved specific milestones in joy and pride. The overarching theme of the picture is perhaps the majority’s confusion about how to navigate turbulence. Economic headwinds, rapid shifts in consumer preferences, along with intense competition of different types of sellers (from factories to brands, from local to international players, from incumbents to emerging names, from physical to online platforms) have exposed the limitations of industry practices.

The Industry’s Popular Formulas Are Outdated

Over-expansion, once a primary growth driver, has become a liability. For a long time brands have equated growth with retail network expansion, which comes down to searching for convenient locations for potential customers. But today, with abundant choices and easy access to information, customers will not discover a new store simply because it exists. Brand presence and advertising can drive awareness but are unable to generate meaningful traffic and sales without an attractive offering that justifies a visit.

The relentless pursuit of "newness" in design to attract everyone and satisfy every need has become a trap, especially for mass fashion brands. Experimenting new products, new functions, new trends with no consideration of customer need and brand fit puts businesses in the game of luck, exhausts resources and risks diluting brand image. Newness is essential in fashion but it must be aligned with a cohesive brand identity to avoid customer confusion and churn. 

Unrelated messaging across collections and product lines has failed to build consistent brand image and reinforce brand narrative. The short-term communication approach has prevented brands from fostering  long-term relationships with customers, particularly Gen Z who seek inspiration and engagement. These customers are drawn to a new generation of brands with narrative threads weaving through collections and products, like LEVENTS, which inspires individuals to embrace themselves and pursue their passions and STRESSMAMA, which celebrates self-love and spreading positive energy to the world. Their branding efforts were recognized with the WeChoice Award 2024 for Z-Local Brands.

Increased media spending for awareness has not translated into corresponding revenue growth, either short-term or long-term. CEOs and marketing managers are well aware of the often-vague results of these investments.

Reborn to Survive and Thrive: Define/Redefine Who Brand Is, Who Brand Is for, and What Makes Brand Different and Special

In a slow-growth market (with a projected apparel market CAGR of 3.53% from 2025-2029, according to Statista) and a rapid increase in new entrants, brands have to capture market share from others to drive sustainable growth. “To be better than you were yesterday” is not enough. Brands have to answer the crucial question: “What make you different and special in the sea of sameness?” 

Successful brands in the market have clear answers. Uniqlo is different and special with its delivery of affordable lifewear that makes life better with Japanese quality and innovative technology. The brand's recent appointment of former luxury houses Creative Director Clare Waight Keller signals its intention to add on elevated style for customers to their different and special offer. UNIQLO's 2024 combined revenue in South Korea, Southeast Asia (including Vietnam), India, and Australia reached US$3.5 billion (+20.2% year-on-year), with operating profit totalling US$629 million (+24.8% year-on-year).

Coolmate is a significant online DTC player in menswear. The brand offers young men affordable, quality basic menswear with seamless online shopping experience. The company’s sales continuously increased from 2019 and achieved US$ 14 mil (VND 363 billion) in 2023 and successfully raised US$ 6 mil (VND 152 billion) from Vertex Venture SEA & India. Despite functional messaging and heavily relying on technical marketing that may limit further growth, Coolmate’s up-to-now attainments is attributed to the strategy that set Coolmate different from other brands.

To answer what makes them different and special, brands have to define/redefine who they are today and who they want to reach. They need to be reborn.

© 2020-2024 Narrativ.Design. All rights reserved. The author is the Brand Partner at Narrativ.Design. She has understanding of branding and creative aspects of fashion with a great passion for fast-changing industries. You can reach her at connect@narrativ.design