SPORTSWEAR IN VIETNAM

Euromonitor International
March 2017
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 3
Table 1 Sales of Sportswear: Value 2011-2016 ........................................................ 3
Table 2 Sales of Sportswear: % Value Growth 2011-2016 ....................................... 4
Table 3 NBO Company Shares of Sportswear: % Value 2012-2016 ........................ 4
Table 4 LBN Brand Shares of Sportswear: % Value 2013-2016 ............................... 4
Table 5 Distribution of Sportswear by Format: % Value 2011-2016 .......................... 5
Table 6 Forecast Sales of Sportswear: Value 2016-2021 ......................................... 6
Table 7 Forecast Sales of Sportswear: % Value Growth 2016-2021 ........................ 6

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SPORTSWEAR IN VIETNAM
HEADLINES
 Sportswear continues to record dynamic growth in 2016, increasing by 11% in current terms
to reach VND6,350.0 billion
 Sportswear becomes fashionable due to a strong increase in living standards and higher
attention to sports
 Performance apparel continues to record the highest current value growth within sportswear
in 2016
 The brand Nike continues to lead sportswear in 2016, posting a 15% value share
 Sportswear is expected to grow at a strong CAGR of 8% at constant 2016 prices over the
forecast period, which is due to an expected better economic performance by the country

TRENDS
 In 2016, sportswear continued to perform strongly, rising by 11% in current terms. Growth
was mainly thanks to the government’s policy of encouraging the Vietnamese to take part in
exercise. Furthermore, together with a better economic performance from the country,
Vietnamese consumers tended to buy branded and popular products, not only for their new,
trendy designs and good quality but also to show off their social status. On the other hand,
companies such as Nike Inc and adidas Vietnam Co offered many promotional events with
discounts of up to 50% throughout this year to stimulate demand. These factors helped to
boost the value performance of sportswear in 2016.
 Vietnamese parents used to wish their children paid attention to studying instead of taking
part in sports or outdoor activities; however, since the government’s policy of encouraging
exercise was launched, more attention is being paid to sports and to supporting children to
join a sports team via school or a club. Moreover, many new sporting events have been made
available by government, non-government organisations and companies in major cities such
as Hanoi, Ho Chi Minh City, Nha Trang and Da Nang. These events always receive a warm
welcome from the Vietnamese, especially the younger generation aged 15-30 years old.
 Although sports-inspired apparel accounted for the majority value share of sportswear in
2016, performance apparel and performance footwear posted stronger current value growth
over the review period, which was due to government policy and higher awareness among the
Vietnamese about the benefits of taking part in sports. Outdoor apparel and outdoor footwear
remained the smallest categories within sportswear in 2016, which was due to low demand in
Vietnam.
 Soccer is the most popular sport among the Vietnamese, not only in the major cities but
everywhere in the country. According to FIFA’s list, the Vietnamese men’s football team
continued to be a leading side within the ASEAN region in 2016 and was ranked 136th
overall, while the women’s soccer team was ranked 34th. Moreover, in the same year,
Vietnam qualified to take part in the VK U20s World Cup, and this is a huge milestone that
shows major improvement within Vietnamese soccer. On the other hand, there are some
popular domestic teams such as BecamexBinh Duong, Dong Nai, Dong Thap, FLC Thanh
Hoa and Hoang Anh Gia Lai, and they were active during the year and received a great deal
of interest from the local population. In other words, soccer is the key sport that helped to
contribute to value growth of apparel and footwear in 2016.

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 Clothing and footwear for running continued to be a major area within sportswear in 2016.
There was a strong preference for running among young and middle-aged Vietnamese as the
main exercise for keeping healthy and fit. In 2016, there were many running events, such as
La Vie Color Me Run or the City Run Marathon, created by non-government organisations or
companies in order to encourage the population to take part in exercise, as well as for
marketing purposes. Moreover, running shoes were also a favourite choice of Vietnamese
consumers, as they are convenient and useful for many occasions, such as for walking,
running or even for going outside.
 In 2016, due to greater awareness about healthcare and performance, more and more
Vietnamese were tending to workout at fitness clubs/health clubs/gyms. As a result, the
number of these clubs and their members increased slightly, especially in major cities across
Vietnam. Moreover, during the review period, huge promotional events created by many
fitness clubs or gyms to attract the interest of consumers, for instance, a discount of 90% for
3-months’ membership of California Fitness & Yoga, or up to a 50% discount for one month in
many local gyms.
 In 2016, following new sports fashion trends from around the world, the younger generation of
Vietnamese aged from 15 to 30 years old often wore street-style sports gear due to youthful
and active designs. Indeed, during the review period, more and more consumers chose to
wear sports-inspired clothing and footwear, not only for outdoor activities but also in their daily
lives, such as at the workplace, going outside or even while exercising at the gym.
 Within the same year, sportswear continued to be dominated by counterfeit products, which
had a strong negative effect on value growth of sportswear. To counter this, manufacturers
such as adidas Vietnam Co and Nike Inc offered promotional events to attract and stimulate
customers into buying branded products at a lower price but of a high quality. As a result,
there was a shift from buying unbranded products at traditional markets towards branded
goods through modern channels in major cities such as Ho Chi Minh City and Hanoi.
 In 2016, as in most apparel categories, internet retailing of sportswear became more popular
in Vietnam and more consumers were buying online due to its convenience and lower prices;
however, for footwear, consumers still preferred visiting a store in order to try products on
before making a decision. On the other hand, most companies and other sports retailers such
as Nike, adidas and Sport1 (DucTrung Sport Co Ltd) paid attention to developing their online
channels to take advantage of demand and reach more potential customers in rural areas.

COMPETITIVE LANDSCAPE
 In 2016, Nike maintained its leading brand position within sportswear, posting a value share of
15%. Dynamic marketing activities and new youthful designs for its running shoes were the
key components leading to the success of Nike Inc in the last two years of the review period.
Indeed, the company paid attention over the review period to developing and improving the
design of its running shoes for lines such as Nike Air Max and Nike Air Zoom Pegasus 33,
and for its sports-inspired footwear such as Nike Air Presto Essential. These new product
lines usually received a warm welcome from both genders, and especially from the younger
generation living in big cities.
 In 2016, adidas posted the highest value sales growth of 27%, which was due to a strong
expansion of its distribution network and dynamic marketing campaigns throughout the year.
For example, the brand also organised the adidas women’s monthly workout called bounce hit
in October 2016 as a campaign to attract female consumers. On the other hand, Nike Inc also
paid attention to opening new stores at excellent locations in major cities and to expanding
the reach of its Neo brand within the country.

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 Due to higher living standards and huge promotional campaigns by popular international
brands such as Nike and adidas, local brands struggled to compete with these giants, mainly
due to low financial capabilities.
 During 2014 and 2015, in order to meet huge demand for women’s apparel and footwear,
including running shoes, adidas launched a new product specifically for women named
PureBoost X. This product was manufactured using technological innovations from adidas,
such as Floating Arch and Stretch Web. Moreover, PureBoost X is also made with flexible,
fresh and thin materials that are suitable for running and easy to clean.
 Over the review period, the brand Biti’s attracted a lot of attention from Vietnamese
consumers thanks to its new campaign named Biti’s Hunter, which launched its new running
shoes line that used lighter materials. As part of this campaign, consumers had a chance to
try Biti’s Hunter shoes and wear Oculus glasses to try and win a prize within a 3D platform.
Oculus glasses were still a new technology as of 2016, and Biti’s was the first local brand to
use these glasses for its marketing campaign to launch a new product in Vietnam.
 Sales of private label sportswear remained negligible in Vietnam in 2016, which was due to
the dominance of fake or low-quality products imported from China and the limited distribution
networks of private label manufacturers.

PROSPECTS
 Sportswear is expected to increase strongly at a CAGR of 8% at constant 2016 prices over
the forecast period. Expected growth is mainly thanks to better awareness among Vietnam
consumers of sports and higher living standards in major cities. Moreover, together with an
improving economic outlook and strong internet development, these factors are predicted to
contribute to a strong value performance from sportswear over the forecast period.
 Although more people are tending to buy branded products through modern channels such as
supermarkets, hypermarkets and sports retailers, the majority of the Vietnamese population
still purchase counterfeits due to their lower prices and wide distribution network.
Furthermore, counterfeits are also available in some sportswear stores, as it is very hard to
recognise the difference between real and fake products. Hence, counterfeits are still the
biggest threat to growth of sportswear over the forecast period.
 Sport-inspired apparel and sports-inspired footwear are expected to continue to be the largest
categories within sportswear over the forecast period, which is due to convenience and
acceptable prices. Meanwhile, performance sportswear and performance footwear are set to
record strong performances at constant 2016 prices over the forecast period, which is due to
increasing participation in sport and better awareness of such products among Vietnamese
consumers. Outdoor apparel and outdoor footwear will continue to be the smallest categories,
but both are set to record growth over the forecast period.
 Vietnam is predicted to become a manufacturing hub over the forecast period. Both Nike and
adidas are predicted to move their factories from China to Vietnam in order to reduce their
production costs. Moreover, Vietnam is also a potential market for investment activity, which
is due to its huge population and better economic outlook.

CATEGORY DATA
Table 1 Sales of Sportswear: Value 2011-2016

VND billion

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2011 2012 2013 2014 2015 2016

Sports Apparel 1,755.6 2,032.4 2,388.9 2,649.0 2,935.0 3,273.9

- Performance Apparel 596.0 692.0 824.1 918.9 1,029.2 1,163.0
- Outdoor Apparel 232.6 267.0 311.0 343.4 377.7 414.7
- Sports-inspired Apparel 927.0 1,073.4 1,253.8 1,386.6 1,528.1 1,696.2
Sports Footwear 1,612.9 1,884.4 2,232.1 2,484.4 2,763.7 3,076.2
- Performance Footwear 493.9 577.8 695.1 778.7 868.2 965.5
- Outdoor Footwear 113.9 131.5 153.9 170.5 188.4 207.2
- Sports-inspired 1,005.2 1,175.1 1,383.1 1,535.2 1,707.1 1,903.5
Footwear
Sportswear 3,368.5 3,916.8 4,621.0 5,133.3 5,698.7 6,350.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Sportswear: % Value Growth 2011-2016

% current value growth

2015/16 2011-16 CAGR 2011/16 Total

Sports Apparel 11.5 13.3 86.5

- Performance Apparel 13.0 14.3 95.1
- Outdoor Apparel 9.8 12.3 78.3
- Sports-inspired Apparel 11.0 12.8 83.0
Sports Footwear 11.3 13.8 90.7
- Performance Footwear 11.2 14.3 95.5
- Outdoor Footwear 10.0 12.7 82.0
- Sports-inspired Footwear 11.5 13.6 89.4
Sportswear 11.4 13.5 88.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 NBO Company Shares of Sportswear: % Value 2012-2016

% retail value rsp

Company 2012 2013 2014 2015 2016

adidas Vietnam Co Ltd 11.2 11.7 13.6 17.6 20.1

Nike Inc 14.1 13.9 14.2 15.2 16.3
BasicNet SpA 1.3 1.4 1.5 1.5 1.5
Kering SA - 1.4 1.5 1.5 1.5
New Balance Athletic 0.6 0.7 0.9 0.9 1.0
Shoe Inc
VF Corp 0.6 0.6 0.7 0.7 0.7
Fila Holding SpA 0.5 0.5 0.5 0.5 0.5
Skechers USA Inc 0.5 0.5 0.5 0.5 0.5
PPR SA 1.3 - - - -
Others 69.8 69.4 66.7 61.6 58.0
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 LBN Brand Shares of Sportswear: % Value 2013-2016

% retail value rsp

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Brand (GBO) Company (NBO) 2013 2014 2015 2016

Nike Nike Inc 12.2 12.5 13.5 14.5

adidas (adidas Group) adidas Vietnam Co Ltd 6.2 7.9 11.7 14.0
Reebok (adidas Group) adidas Vietnam Co Ltd 4.6 4.6 4.7 4.8
Converse Nike Inc 1.7 1.7 1.7 1.8
Kappa BasicNet SpA 1.4 1.5 1.5 1.5
Puma Kering SA 1.4 1.5 1.5 1.5
adidas Kids (adidas adidas Vietnam Co Ltd 0.9 1.1 1.2 1.2
Group)
New Balance New Balance Athletic 0.7 0.9 0.9 1.0
Shoe Inc
Vans VF Corp 0.6 0.7 0.7 0.7
Fila Fila Holding SpA 0.5 0.5 0.5 0.5
Skechers Skechers USA Inc 0.5 0.5 0.5 0.5
Puma PPR SA - - - -
Others Others 69.4 66.7 61.6 58.0
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Distribution of Sportswear by Format: % Value 2011-2016

% retail value rsp

2011 2012 2013 2014 2015 2016

Store-Based Retailing 97.0 96.7 95.8 94.3 94.4 93.6

- Grocery Retailers 33.3 31.9 31.8 31.6 31.0 30.2
-- Modern Grocery 4.8 4.9 5.8 5.8 6.0 6.2
Retailers
--- Convenience Stores - - - - - -
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 1.9 1.9 2.3 2.3 2.4 2.5
--- Supermarkets 2.9 3.0 3.5 3.5 3.6 3.7
-- Traditional Grocery 28.5 27.0 26.0 25.8 25.0 24.0
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small - - - - - -
Grocers
--- Other Grocery 28.5 27.0 26.0 25.8 25.0 24.0
Retailers
- Non-Grocery Specialists 60.3 61.3 60.0 58.5 59.2 59.0
-- Apparel and Footwear 25.4 26.4 25.4 22.6 22.6 22.5
Specialist Retailers
-- Leisure and Personal 28.4 28.2 28.1 29.9 30.0 32.0
Goods Specialist
Retailers
--- Sports goods stores 28.4 28.2 28.0 29.9 30.0 32.0
--- Other Leisure and - - - - - -
Personal Goods
Specialist Apparel
Retailers
Other Non-Grocery 6.5 6.7 6.6 6.0 6.6 4.5
Apparel and Footwear
Specialists
- Mixed Retailers 3.5 3.5 4.0 4.2 4.3 4.4
-- Department Stores 3.5 3.5 4.0 4.2 4.3 4.4

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-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
Non-Store Retailing 3.0 3.3 4.2 5.7 5.6 6.4
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- Internet Retailing 3.0 3.3 4.2 5.7 5.6 6.4
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 Forecast Sales of Sportswear: Value 2016-2021

VND billion
2016 2017 2018 2019 2020 2021

Sports Apparel 3,273.9 3,526.4 3,790.4 4,073.2 4,376.1 4,702.1

- Performance Apparel 1,163.0 1,267.6 1,374.1 1,486.8 1,605.8 1,732.6
- Outdoor Apparel 414.7 438.8 461.6 485.2 509.4 534.4
- Sports-inspired Apparel 1,696.2 1,820.0 1,954.7 2,101.3 2,261.0 2,435.1
Sports Footwear 3,076.2 3,309.5 3,563.3 3,839.7 4,141.0 4,469.8
- Performance Footwear 965.5 1,037.9 1,117.8 1,205.0 1,300.2 1,404.2
- Outdoor Footwear 207.2 219.6 231.5 243.5 256.0 268.7
- Sports-inspired 1,903.5 2,051.9 2,214.0 2,391.2 2,584.8 2,796.8
Footwear
Sportswear 6,350.0 6,835.9 7,353.8 7,912.9 8,517.1 9,171.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 7 Forecast Sales of Sportswear: % Value Growth 2016-2021

% constant value growth

2016/2017 2016-21 CAGR 2016/21 TOTAL

Sports Apparel 7.7 7.5 43.6

- Performance Apparel 9.0 8.3 49.0
- Outdoor Apparel 5.8 5.2 28.8
- Sports-inspired Apparel 7.3 7.5 43.6
Sports Footwear 7.6 7.8 45.3
- Performance Footwear 7.5 7.8 45.4
- Outdoor Footwear 6.0 5.3 29.7
- Sports-inspired Footwear 7.8 8.0 46.9
Sportswear 7.7 7.6 44.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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