Friday , July 12 2024

Luxury brand reps nearly triple Vietnam profits

Vietnam’s distributors of luxury brands such as Louis Vuitton, Chanel, Dior and Hermes posted VND3.8 trillion ($156.57 million) in 2022 profits, up 270% year-on-year, according to latest data from a market research company.

The combined revenues of 12 companies that distribute 34 luxury brands surged 67% to VND25 trillion, Vietdata announced in a report. The grouping’s other notable brands included Rolex, Calvin Klein, Charles & Keith, Zara.

Of the companies that distribute a variety of brands, Tam Son ranked top with a VND4.75 trillion revenue and a profit of VND849 billion.

The company distributes the largest number of top-tier brands brands in Vietnam, including Hermes, Kenzo, Boss, Patek Philippe and Vacheron Constantin.

Other brands such as H&M, Gucci, Louis Vuitton, Chanel, Dior and Adidas all have direct legal entities distribute their products in Vietnam.

Among them, Louis Vuitton ranked top in revenue at VND2.36 trillion, while Dior secured the first place in profit at VND558 billion.

Vietdata said that the number of ultra rich people in Vietnam surged in the 2017-2022 period, with 1,059 people now having a net worth of over $30 million, according to data from U.K. based property consultancy Knight Frank.

The Vietnamese population is considered young with an average age of 32, which translates to high demand for luxury products, Vietdata added.

Another market research platform, Germany-based Statista, said that Vietnam’s luxury market is estimated to be over $957 million last year and is set to grow more than 3% annually by 2028.

Nick Bradstreet, Asia Pacific Retail Director of Savills, said in a report that the economic recession in China made brands realize that they cannot just rely on one country but need to diversify.

Southeast Asia is a natural choice with prominent markets including Singapore, Thailand and Vietnam, he added.

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