Criticizing Zara, H&M “beats drums and gongs” however is sluggish to alter, and the top when sleeping on victory

“French style”, “Vietnam’s second largest style model”, “workplace style empire” – these are lovely phrases that folks use to speak about NEM within the years 2002-2010. Now, what reminds folks of NEM might be simply dangerous money owed of a whole bunch of billions of dong, inflicting “collectors” VietinBank and BIDV to battle to “unload” 5 instances seven instances.

From Icon to Decay

NEM style model was based in 2002 by businessman Truong Viet Binh, with the positioning as a model specializing in designing and manufacturing workplace style for girls, in French model. From the primary retailer situated on Dangle Luoc Road (Hanoi), Mr. Binh has gone in a short time in increasing the size of NEM nationwide, with 59 shops in 2018.

From the very starting, NEM has centered on the high-end section, merchandise for high-income folks with the primary costumes from 500,000 to over 1,000,000 VND. The model additionally claims to launch over 500 style fashions per 30 days.

Nevertheless, what helps NEM turn out to be a shiny model within the eyes of ladies comes from the technique of protection all through tv stations. If IVY MODA builds its model by echoes of style reveals, NEM is the costume sponsor for MCs on VTV, HTV, BTV, and many others., a companion of many well-known packages corresponding to “Me love Vietnam, “Ladies’s colours”… or TV sequence which have made a big effect corresponding to “Working sentence”, “Heartbeat”, “Love story”,… Probably the most well-known of which is the picture of the solid. VTV’s climate editor, every time on the air, wears a distinct outfit with the model title NEM.In accordance with the reporter, at one level, the corporate employed a well-known TV actor to be a supervisor for the TV present. me.

The success and recognition of NEM at the moment introduced this model into the “eyes” of Japanese buyers. On the finish of 2017, Mr. Binh bought NEM to Stripe Worldwide Group. The Japanese style group extremely appreciates this deal, saying that NEM is the second largest style retailer chain in Vietnam, with a brand new opening charge of 10 shops a 12 months, income progress of 20% per 12 months. As well as, Stripe Worldwide additionally expects NEM to attain its income goal of $26 million in 2017 (equal to about VND600 billion).

Behind the debt of several hundred billions of the fashion empire NEM: Criticizing Zara, H&M beats drums and gongs, lazy to change and the ending for those who sleep on victory - Photo 1.

Nevertheless, not lengthy after that, on the finish of 2017, NEM was “unnamed” due to a debt of 1,729 billion VND in social insurance coverage and medical health insurance for 198 staff. And but, in 2018, NEM Buying and selling Joint Inventory Firm – a member of the ecosystem of the NEM style model was named by Vietnam Joint Inventory Business Financial institution for Trade and Commerce (VietinBank) for dangerous debt. Particularly, the discover stated that, as of August 22, 2018, the excellent mortgage of this firm at VietinBank was practically VND 111 billion, together with VND 61 billion of principal and VND 50 billion of curiosity. The authorized consultant is founder Truong Viet Binh.

By March 2021, the Joint Inventory Business Financial institution for Funding and Growth of Vietnam (BIDV) additionally supplied to promote the debt of one other firm associated to Mr. Binh, with a beginning worth of VND 473 billion together with: VND 257 billion of principal debt, 216 billion dong of overdue curiosity and penalty charges. That is Archplus Structure and Development Joint Inventory Firm, represented by Mr. Binh. Mr. Binh additionally mortgaged three million shares (7.5% shares) of NEM Style JSC for the above mortgage. Nevertheless, to this point, this debt has been so sluggish that BIDV has needed to decrease it to VND 257 billion and put it up on the market for the ninth time.

Within the scenario of being flooded with debt, NEM additionally confirmed its decline by extraordinarily dismal enterprise outcomes. The monetary report of NEM Buying and selling Joint Inventory Firm in 2016 reveals that gross sales income reached VND 219 billion, a rise of 1 and a half instances in comparison with 2015, however after deducting working bills, the corporate nonetheless lack of 2.7 billion dong. The earlier 12 months additionally misplaced practically 2 billion dong. Notably, on the finish of 2016, the corporate’s complete liabilities stood at VND 534 billion, of which VND 500 billion was short-term debt, practically 10 instances increased than fairness (over VND 52 billion).

The NEM model is step by step absent from TV reveals. Retailers on the primary streets are additionally solely sporadic prospects to purchase items.

From the main place out there, what has induced the icon of workplace style to step by step decline?

The touchdown of international manufacturers

After procuring facilities in Bangkok or Singapore have step by step been saturated, Vietnam has turn out to be a brand new and potential “cake” for international style manufacturers due to its younger client base and the power to spend so much. and the “foreigner” pattern.

In 2016-2017, Zara and H&M respectively landed in Vietnam, opening shops in main procuring facilities in Hanoi and Ho Chi Minh Metropolis. In December 2019, Japanese style model Uniqlo opened its first retailer in Ho Chi Minh Metropolis. Cotton:On – Australia’s largest world style model, with a system of greater than 1,400 shops in 19 international locations – additionally formally entered the Vietnamese market. Mid-range manufacturers corresponding to GAP, Topshop, Mango… additionally constantly broaden their programs.

In accordance with the Announcer, when Zara and H&M first entered the Vietnamese market, NEM representatives expressed their confidence that they weren’t anxious as a result of every style model has its personal buyer section. The consultant stated that possibly these manufacturers got here to Vietnam within the model of “beating drums and gongs”, consistent with the Vietnamese folks’s pattern of crowds, strangeness and international folks, but when they had been placed on the size, they’d not return. in comparison with some Vietnamese manufacturers. On the identical time, Vietnamese shoppers don’t are typically loyal to a model, they’ll look to a sure model when selecting a product they like.

Behind the debt of several hundred billion of the fashion empire NEM: Criticizing Zara, H&M beats drums and gongs, lazy to change and the ending for those who sleep on victory - Photo 2.

Lengthy traces of individuals ready to purchase issues at Uniqlo.

Nevertheless, the international giants have achieved various success. H&M’s web income in 2018 in Vietnam was greater than 28 million USD (equal to 664 billion VND). The 2018 monetary report of Mitra Adiperkasa (MAP) – the corporate that manages the Zara model, additionally reveals that its income elevated by greater than 1.7 instances the extent of 2017. In the meantime, Uniqlo’s hundreds of sq. meter shops. all the time crowded with prospects, in stark distinction to the scene of pigs in NEM’s amenities.

To not point out, the event of e-commerce has helped style merchandise from China – with numerous, fashionable and low cost designs to flood into Vietnam, making NEM’s small piece of cake even smaller.

Inventive backward

NEM made a breakthrough within the early phases of speedy growth, however the model appears to have fallen asleep on the successful aspect and stopped making new breakthroughs.

Additionally born similtaneously NEM, Canifa achieved many successes due to its improvement technique for almost all: males, ladies, youngsters with fundamental costumes. Canifa follows the pattern however nonetheless ensures the standard, particularly the sturdiness that makes shoppers belief. Vascara, Juno, Couple TX, Hnoss, Elise… additionally rapidly modified in response to the pattern. Manufacturers promote model recognition, use social networking platforms to get nearer to shoppers, particularly younger folks. Manufacturers like Cocosin, HOI VU… additionally know construct their very own neighborhood from which to advertise interplay with prospects and construct loyal prospects.

In the meantime, what did NEM do?

NEM has remained caught within the “previous” design model for a few years, particularly the workplace style group – which is the power of the model.

Concerning branding, after working out of breath within the unique sponsorship technique for MC VTV, NEM additionally stated no to the advertising and marketing pattern that’s masking all fields in the present day – promoting by influencers/KOLs (these with have an effect on).

By way of gross sales and distribution, NEM is exhibiting its backwardness. Lately, e-commerce has created a procuring revolution for shoppers, inflicting hundreds of manufacturers from small to giant, from house or overseas, to ask one another to open real cubicles on the ground to serve the wants of shoppers. buyer procuring wants. Even longtime opponents corresponding to ELISE, Format, and many others. have owned cubicles with tens of hundreds of views. Nevertheless, NEM remains to be trustworthy to the normal gross sales methodology, or stops at closing orders through Fb, livestream.

Due to this fact, though NEM’s Fanpage can accumulate multiple million followers, the model picture is step by step fading within the hearts of the primary era 8x-9x, and naturally not within the choice of GenZ, GenY in the present day. now on.

Lack of buyer belief

All the time claiming to be a Vietnamese model with French design, however in early November 2019, Market Administration Workforce No. 17 (Hanoi Market Administration Division) seized a cargo of four tons of international garments being minimize. The label became a Vietnamese model, and was labeled with NEM and IFU labels. Our forefathers usually stated “as soon as distrustful, ten thousand instances distrustful”, this incident has additionally enormously affected the repute and picture of NEM.

Regardless that, at the moment, NEM was beneath Stripe Worldwide’s administration, however with 30% fairness nonetheless within the palms of Mr. Truong Viet Binh, the founder was nonetheless current and vital at NEM. In accordance with many specialists, the Japanese company nearly entrusts the founder to function utterly by himself, with out making any drastic strikes to handle dangers.

In spite of everything, style is all the time altering, and the market is continually rejecting, so how can we save a model that refuses to resume itself?

Hoang Thuy

By Enterprise and Advertising and marketing