SPORTSWEAR IN VIETNAM - ANALYSIS

Country Report | Mar 2019

HEADLINES Market Sizes

Sportswear records 12% current value growth to reach VND7.9 trillion in 2018 Sales of Sportswear
Vietnamese consumers pay higher attention to sportwear designs Retail Value RSP - VND billion - Current - 2004-2023

Performance apparel records highest current value growth of 14% in 2018 7,918 Forecast
adidas Vietnam Co Ltd continues to lead sportswear with a 6% value share in 2018 20,000

Over the forecast period, sportswear is predicted to record a 13% current value CAGR
(an 8% value CAGR at constant 2018 prices) tor each VND14.3 trillion in 2023
15,000

PROSPECTS
Rising trend of health and wellness stimulates growth of sportswear 10,000

Towards the end of the review period, Vietnam witnessed a rise in the number of
people being diagnosed with obesity, especially amongst the young generation aged
under 18 years and living in big cities such as Hanoi and Ho Chi Minh. As a result, the 5,000
Vietnamese Government began to promote healthy lifestyles with daily exercise and
moderate and healthy diets. Therefore, an increasing number of Vietnamese became
aware of their health and wellness, and started to adopt exercise more frequently to
stay fit. In the past, most Vietnamese people were unaware of the presence of 0
2004 2018 2023
sportswear, and tended to wear comfortable outfits such as t-shirts or shorts when
exercising. However, with the improvement in living standards, Vietnamese consumers
are realising the distinguishing benefits of sportswear from normal clothing, including
breathable materials to support their exercise activities as well as to prevent possible Sales Performance of Sportswear
injuries. As such, sportswear registered a strong performance with double-digit current % Y-O-Y Retail Value RSP Growth 2004-2023
value growth.
Over the forecast period, sportswear is predicted to continue to record strong current
12.0% Forecast
value growth due to the government’s encouragement and promotion of healthy 20%
lifestyles. In addition, sportswear players are expected to take advantage of the
increasing trend towards health and wellness to educate Vietnamese consumers about
the benefits of the different types of sportswear during exercise to boost sales. 15%

Vietnamese consumers pay higher attention to sportswear designs

During 2017-2018, the number of fitness centres grew strongly in urban areas, 10%
especially big cities, corresponding to the increasing health and wellness trend in the
country. These fitness centres are successful at attracting a high number of people to
sign up for membership. Moreover, Vietnamese consumers are becoming increasingly
aware of their appearance, including when practising sports. Furthermore, young 5%
people not only wear sportswear to the gym and when partaking in sporting activities
but also in their daily lives. They believe that wearing sports-inspired apparel gives
them a youthful and active appearance, especially amongst male consumers.
Therefore, they are increasingly willing to pay for sportswear that makes them 0%
2004 2018 2023
fashionable. As such, players in sportswear introduced various designs for their
sportswear collections to attract consumers’ attention as well as to enhance their sales.
This trend is expected to carry over into the forecast period as fitness continues to be a
Sales of Sportswear by Category
lifestyle trend amongst Vietnamese consumers mainly due to the strong development
Retail Value RSP - VND billion - Current - 2018 Growth Performance
of social networks as well as the government’s policy. Players are expected to
concentrate on developing new designs to respond to the more sophisticated demand
Sports Apparel
from consumers. 4,059.5
Sports Footwear
COMPETITIVE LANDSCAPE 3,858.8
0% 10% 15%
adidas Vietnam Co Ltd maintains leadership of sportswear SPORTSWEAR 7,918.3 CURRENT % CAGR % CAGR
YEAR % 2013-2018 2018-2023
In 2018, adidas Vietnam Co Ltd strengthened its leadership of sportswear, gaining GROWTH
further value share due to its extensive retailing outlets and the sound strategies of
marketing and advertising activities. With a strong distribution network across the
country, adidas Vietnam has been successful in registering an established presence in
sportswear. In addition to its strong distribution network, the company is also very
active in various marketing and promotional activities such as its popular event “adidas
Power Women Series – Piloxing Barrer” during 2017-2018. As such, adidas is one of the
top-of-mind brands in sportswear in Vietnam.

© Euromonitor Interna onal 2019 Page 1 of 2

Over the forecast period, adidas Vietnam is predicted to continue to lead sportswear in Competitive Landscape
Vietnam, mainly due to its popular brand name, dynamic marketing activities, and wide
distribution network and high-quality products.
Company Shares of Sportswear
% Share (NBO) - Retail Value RSP - 2018
International players show stronger presence in branded sportswear
adidas Vietnam Co Ltd 5.5%
In 2018, sportswear is mainly dominated by unbranded sportswear imported from
nearby countries such as China and Thailand. The presence of branded sportswear Nike Inc 3.3%
remained low at the end of the review period, and only concentrated in big cities such
Kering SA 1.6%
as Ho Chi Minh and Hanoi. Among branded sportswear, international players show a
stronger presence in comparison with local players. This is due to the fact that local BasicNet SpA 1.4%
players lack experience in producing high-quality sportswear, and are therefore unable
to serve consumer demand for fashionable and high-quality products. While VF Corp 1.2%
international brands such as Nike and adidas continue to focus on the high-income New Balance Athletic Sho... 0.9%
segment, local brands such as Bitis target low- and mid-income consumers.
Fila Holding SpA 0.6%

Skechers USA Inc 0.5%

Others 84.9%

Brand Shares of Sportswear

% Share (LBN) - Retail Value RSP - 2018

adidas 3.4%
Converse 1.8%
Puma 1.6%
Nike 1.5%
Kappa 1.4%
Vans 1.2%
adidas Kids 1.2%
Reebok 1.0%
New Balance 0.9%
Fila 0.6%
Skechers 0.5%
Others 84.9%

Increasing share Decreasing share No change

© Euromonitor Interna onal 2019 Page 2 of 2