Background

Footwear is one of the key industries in Vietnam.Vietnam is now one of the top
ten exporters in the world of footwear. Vietnam's footwear products are of high
quality, very prestigious in the international market. Compared with products of
other countries, Vietnam's products are more durable but poor in design and
style. Therefore, Vietnamese products have not yet prevailed in foreign markets.
The urgent problem for Vietnamese footwear enterprises at this time is to
improve their products and to have marketing promotion measures to be able to
compete with foreign enterprises, especially China and Taiwan.

Bitis is one of the leading footwear brands in Vietnam and also a prestigious
brand in the international market. However, in recent times, Bitis has lost its
market share abroad due to many reasons. Therefore, it is necessary to regain
market share for Bitis because this is a very reputable brand of Vietnam.
However, in the immediate future, we should focus on the US market because it
is one of the world's economic centers, a large-scale market. If successful in
occupying this market, the ability to develop in other markets is very large.
Because Bitis' types are so diverse and abundant, in order to achieve high
efficiency in regaining market share, we can choose one type of product as a
pioneer, from which to develop other types of products, we can choose The
product is summer fashion footwear because it is a product that can serve many
classes, has a large market scale, is easy to improve and is also a product that is
under pressure from the competitors.

From the above reasons, the group decided to select the topic "Researching the
possibility of developing the footwear market of Bitis company in the US market"

Executive summary
Bitis company
After more than 33 years of production and business activities with many ups and
downs and challenges, Biti's has grown and grown up along the country,
becoming a prestigious, reliable and familiar brand for consumers. use and be the
pride of the Vietnamese people for a "National Brand" in the field of prestigious
and quality footwear.

From a small production establishment that started in 1982 and became a

cooperative named Binh Tien specializing in producing rubber sandals in District 6
with a few dozen workers and above all, a heart for the country's economic
development. Enthusiastic owners, Biti's has experienced a period of subsidized
economy with many difficulties. However, more than 33 years have passed, as a
"relentless step", Binh Tien Consumer Goods Manufacturing Co., Ltd. (Biti's) has
gradually built for itself a modern production and export strategy. , creating a
brand of Biti's Shoes associated with the needs and tastes of consumers.
Currently, Biti’s company has become a strong unit, showing a breakthrough in
the field of footwear business; have enough human, material and financial
resources to develop the industry and bring about higher achievements.

A distribution system of Biti's products stretching from the South to the North
with 07 branch centers, 156 marketing stores and more than 1,500 retail
distribution intermediaries, creating stable jobs for more than 9,000 employees.
at Biti's Corporation and Dona Biti's Corporation with an annual output of over 20
million pairs, a wide range of products, rich in designs and models such as high-
end sports shoes, fashion women's shoes, leather western shoes , canvas shoes,
EVA foam slippers, indoor comedy ... In China, Biti's has set up 04 representative
offices with 30 total sales, more than 300 sales points to gradually bring Biti's
products to dominate the border market. full of this potential. With a potential
Cambodian market, Biti’s has an official distributor of Cambo Trading Company to
distribute Biti’s products throughout the territory of Cambodia. Biti’s has
exported to 40 countries around the world such as Italy, France, England, USA,
Russia, Japan, South America, Mexico, Cambodia, .... In addition, Biti’s is also
trusted by international customers with famous brands such as Decathlon, Clarks,
Speedo, Skechers, Lotto, ... choosing to become processing partners with many
large value orders.

With the motto of "Creating for the mission to survive and develop the company",
at present, Biti’s is interested in developing a long-term and sustainable
investment strategy. The company believes that the future investment areas such
as hotel, resort, tourism, trade center ... with the prestige and service quality will
be the leading guideline for all business activities of the company. Biti's.

Bitis footwear product

Bitis footwear includes: foam slippers, sports sandals, men's and women's leather
shoes, wooden clogs

Foam slippers: straps and soles made from Mousse, this type of sponge is soft,
supple, lightweight and suitable for all ages.

Sports sandal: the straps are made from high quality materials. mainly horizontal
straps, sporty styling. The sole is made from TPR or made of rubber, with high
friction resistance to slip, serving for picnic, camping. Moreover, it is very suitable
for students when going to school.

Leather sandals: The straps are made of high-quality, soft materials, the colors are
mostly black, brown. The sole is made of soft, durable PU suitable for summer,
young and dynamic design.

Wooden Clogs: The straps are made from high quality materials like PVC. The sole
is made of natural wood, lightweight for travel. The pattern on the sole is
designed prominently and deeply in East Asia.

Market potential
Among countries in the Americas with trade relations with Vietnam, the US is still
the largest trading partner, with the total import-export turnover of the first 8
months of 2012 reaching US $ 16.23 billion, up 17.18% over the same period.
period 2011. The US is the largest footwear market in the world according to the
American Footwear Industry Association (FIA), the US annually consumes about
1,461 billion pairs of shoes, of which about 85% of these shoes are imported. .
Thus, the US market is a potential import market. In the past few years, the US
mainly imported footwear from EU countries such as Germany, France and the
United Kingdom. Since the US lifted its embargo on Vietnam, Vietnamese
footwear enterprises have begun to penetrate this market. However, the
turnover is very small. Therefore, the US has become the largest export market of
Vietnam.

The proportion of import-export turnover between Vietnam and the US market

accounts for 76.6% of total import-export turnover between Vietnam and the
American market. By commodity, Vietnam's textile and garment export reached
over 4.95 billion USD, accounting for 38.16% of total turnover, up 8.15% over the
same period in 2011; Footwear accounted for 1.45 billion USD, accounting for
11.19%.

According to the Vietnam Leather and Footwear Association, the US market still
has plenty of room to exploit. In particular, US importers are shifting from China
to Vietnam to take advantage of tax advantages for some export products from
Vietnam, especially in the context of trade war. trade between the US and China.
Many businesses said that the export of goods to the US market would continue
to increase sharply after the US government launched a new stimulus package.
The purchasing power increased and the price of goods entering the US also
increased, this is a very favorable opportunity that many businesses are urgently
exploiting.

Conclusion
Through the process of studying and analyzing SWOT at Bitis Company to prepare
for the business investment of footwear products in the US market. We make the
following decisions:

Economic integration is an objective trend in international economic relations.

This process affects all economies. Vietnam has actively participated in the
process of international economic integration. However, it not only brings
opportunities but also many small challenges for businesses.

The footwear industry currently has a large turnover (VND 2 billion / year), but
the turnover is small. Part of the reason is that businesses have focused too much
on import and export but left the domestic market open. On the other hand, the
inability to take initiative in the source of raw materials is also the cause of this
situation of Vietnamese footwear export enterprises. Besides the aforementioned
factors, the outstanding weakness of Vietnamese footwear products is that the
designs are not yet abundant.

Bitis is a leading and reputable Vietnamese footwear enterprise. Bitis soon

realized its advantages and disadvantages. Bitis has been constantly trying to
improve its products. Although it has not brought much success, Bitis must
continue to invest more to overcome the weakness of the industry in order to
increase the competitiveness of Chinese and Taiwanese footwear products..

At the same time, through the analysis of SWOT, we can see that Bitis is fully
capable of investing in the US market with its inherent capital, such as experience,
brands, products and services. But besides that, if want to penetrate into the US
market, the company also needs to improve the design, workmanship, be more
active in the source of raw materials and other inputs.

Threat
The liberalization of trade and investment in the world, as well as the reform of
export management policies and mechanisms, are increasingly relaxed. That leads
to the export of footwear in the future will certainly face challenges and fierce
competition in the US market. The footwear export market of Vietnam in general
and of Bitis in particular is facing a fairly large competitor. That is China.

Barriers in law and techniques for trade. The United States is said to have a
complex legal system and many technical barriers to trade. Consecutively in
recent years, Vietnamese businesses often have difficulty in labor and
environment standards when exporting oysters to the United States. Examples
include anti-dumping and countervailing lawsuits, technical barriers and food
safety