Currently, tourists not only visit and explore scenic spots but also tend to search, experience and shop for typical local products or famous brands.
Lao Dong had a conversation with Mr. Nguyen Le Vu Linh - CEO of fashion brand IVY moda to listen to shares about the impact of tourism on fashion in recent times.
Hi CEO Nguyen Le Vu Linh, how do you evaluate the impact of the tourism industry on fashion in Vietnam in recent times?
- Since 2021, the Vietnamese fashion industry has gone through a difficult period due to the economic recession after COVID-19. However, from the third quarter of 2024, good signs began to appear. In particular, people travel more, making them want to buy more clothes and clothing, causing the fashion industry in general to somewhat recover and develop.
Recently, we have opened stores in major tourist cities such as Hoi An, Da Nang, Phu Quoc, Nha Trang... to reach this customer base.
A typical example is that we have a store in Hoi An - an attractive tourism center in Central Vietnam. The store has only operated normally during the pandemic, so we have the intention of closing down to save costs. But last year, when domestic tourism developed again, more visitors came to Hoi An, leading to growth in revenue.
In your opinion, how will the domestic tourism development trend affect the fashion industry in 2025?
In 2025, the trend of domestic customers traveling during the holidays will boost their demand for fashion shopping related to going to the beach and vacationing more, focusing on peak months such as June-July.
In previous years, this trend decreased due to high airfares, making people save costs. For example, there was a time when ticket prices to Phu Quoc were 25-30% higher than those to Bangkok, causing customers to flock abroad and domestic tourism to decrease.
But this year, starting from the holidays, many Vietnamese tourists travel domestically, causing shopping demand to increase.
We understand that customers want new clothes to take photos when traveling. After the trip, they can resell these products or have other options to optimize. When the tourist season begins, they will buy from the end of April, the beginning of May and last until July. Products related to sea trips and vacations will have great appeal to customers. In addition, many customers also shop to travel abroad.
With product points of sale in Hoi An, which customers are the main customers?
Most of the customers are still domestic customers. When they see our stores in such locations, they are quite surprised because many people do not think that a domestic brand will choose to sell at famous tourist destinations, which have many handmade and family-run clothing stores...
However, when going out, customers' spending mentality is more comfortable. Customers often want to buy products such as maxi dresses for taking photos. Even though they have prepared things to take photos, many people still choose to buy more.
In addition, we also welcomed a small number of foreign visitors, mostly from Asian countries such as India, China... with a small stature, suitable for products designed for Vietnamese people.
Do stores edit, decorate or launch specific products to serve tourists at each destination, sir?
We have thought about this quite early, but have not been able to do it because of the COVID-19 pandemic. In fact, many retail stores around the world, not only in fashion but also in F&B, have locations decorated to suit tourist locations. For example, Championships open stores in Hue, Da Nang... with designs suitable for local culture...
Currently, we have planned to have a store with a design that is typical of local culture in Hoi An this year and stores at other tourist destinations.
Why didn't the brand choose a store right in Hoi An ancient town to reach more tourists?
- Our store in Hoi An is located on Ly Thuong Kiet Street, where there are many garment stores. Tourists will walk here to get to the old town, so the store can reach more customers, and have an optimal cost of premises compared to renting inside the old town.
We did not choose a location in the old town because it reached more foreign visitors than Vietnamese visitors. The brand targets Vietnamese customers, so choose a location that is most convenient for Vietnamese customers to access. Hopefully in the future, after being redecorated with a separate theme, the store will stand out and attract more customers.
Does your business intend to open any other tourist attractions in Vietnam?
With the current positive signals, we may open more stores at other tourist destinations, including Phu Quoc in the future.
Thank you for sharing!
