PREMIUM FOREIGN BRANDS EXPAND PRESENCE IN VIETNAMESE MARKET

A slew of premium foreign brands, from toys to fashion and mother and baby products, have entered the Vietnamese market to tap into rising incomes.

Pop Mart, a leading Chinese maker of collectible toys, launched its first official store in Crescent Mall, District 7, Ho Chi Minh City, on May 18. The move marks a new milestone in the brand's development strategy in the Southeast Asian market.

Jeremy Lee, a go-to-market director of Pop Mart, said, "The grand opening of the first store not only marks Pop Mart's expansion but also affirms our commitment to the Vietnamese market, which is full of potential and diverse in cultural heritage. The store is the beginning of our long-term strategy for Vietnam."

Following the launch of the first official store, Pop Mart will open another store in Ba Na Hills theme park in the beach city of Danang this summer.

Likewise, Motherswork, a premium mother and baby retailer based in Singapore, also penetrated the Vietnamese market with the opening of an offline store in Ho Chi Minh City late last month. Motherswork specialises in selling premium mother, baby, and kids’ products, with two stores in Singapore, eight in China, and now one in Vietnam.

Sharon Wong, founder and CEO of Motherswork, said, "This launch marks a significant step in our mission to empower mothers not just in Vietnam but across Asia with the tools, knowledge, and community they need to care for their children confidently.”

In March, Cartier also launched its flagship boutique at the Union Square Shopping Mall in Ho Chi Minh City. The new store, which is one of the largest brands in the Southeast Asian market, features the complete product range, from watches to jewellery, accessories, eyewear, and bags.

The rising affluent class is one of the main factors behind the expansion of premium foreign brands. A report by New World Wealth reveals that Vietnam is forecast to see a 125 per cent increase in wealth over the next 10 years. Vietnam is home to 19,400 millionaires, with 58 centimillionaires, and is seen as a relatively safe nation compared with others in Asia Pacific.

According to the Wealth Report 2024 compiled by property consultants Knight Frank, Vietnam’s ultra-high net worth individuals (UHNWI) population stood at 752 in 2023 compared with 734 in 2022, meaning 18 people joined the ranks of the “ultra-wealthy” last year. Knight Frank predicts the number of wealthy individuals in Vietnam to rise by 30 per cent during the five years to 2028, bringing the total number of UHNWIs to 978.

Source: VIR