H&M has been open in Vietnam for one year, while Zara celebrated its two-year presence in Vietnam recently. Both fashion brands have prospered here thanks to the number of Vietnamese fashion fans.
H&M collects VND1.8 billion a day
H&M’s 2017 finance report showed that its newly opened markets, including Vietnam, brought good profits. In the last three months of 2017, the fashion brand earned VND179 billion in Vietnam.
The business has been gong smoothly this year with revenue of VND176 billion in the first quarter and VND148 billion in the second quarter, or VND1.8 billion a day.
Most recently, H&M announced the opening of two new shops, slated for September 8. The shops will be located at Vincom Nguyen Chi Thanh in Hanoi and Crescent Mall in HCMC.
If counting the two new shops, H&M has six shops in Vietnam with three each in large cities of Hanoi and HCMC. Vietnam is witnessing the most rapid network expansion among H&M markets.
One year ago, when the Swedish brand opened the first shop in HCMC, thousands of young people were seen queuing at the shops.
Fredrik Famm, CEO of H&M Southeast Asia, commented that being a young and developing market, Vietnam has made a great contribution to H&M growth in the region.
Zara earns VND5.3 billion a day
Having fewer shops in Vietnam, Zara earns three times more than H&M, about VND5.3 billion a day.
Zara’s shops in Vietnam are under the management of Inditex’s partner in Indonesia – Mitra Adiperkasa (MAP).
MAP set up Mitra Adiperkasa Vietnam to run Zara and three other legal entities to sell products at Pull & Bear, Stradivarius and Massimo Dutti in Vietnam.
In 2017, according to MAP, with the opening of new Pull & Bear, Stradivarius and Massimo Dutti in September and Zara in Hanoi in November, the total revenue of the entire Mitra Adiperkasa in Vietnam soared to VND1.1 trillion.
In the first half of 2018, MAP Vietnam’s revenue continued to increase by 133 percent compared with the same period last year to VND950 billion.
MAP does not report the revenue for every brand, but analysts believe that most revenue is from Zara.
Having fewer shops than H&M, every Zara shop seems to have better business results than H&M. The Spanish brand has not made any announcement about its expansion plan in Vietnam.