Leather shoe in Viet Nam are considered one of the main industry give development of economic in Viet Nam. About 240 businesses are running. Leather shoes are the one of spearhead in exporting attract 500.000 works.
In sort, although foreign goods wins an advantage position but Viet Nam still have some kind of famous brands such as: Vina Shoes, Bitis, Sai Gon Shoes, Hong Thanh, Long Thành .v.v. These are some kind of brands are believed about quality, pricesâ€¦by consumers.
Customer’s requirement about leather shoes more and more difficult, our group researched about their needs and wants deeply to make a decision about products, prices, places, promotes.
This search focused on the age from 22 – 35 years old, almost this age are going to work, have stable income and rich requirement. After inquiring, our group decided to choose current good leather shoes for customer’s health is the main product to put on the market.
According to survey, our group realized that:
Consumer’s habit almost from 22 – 45 years old will choose leather shoes to go to work mainly than go out. These leather shoes usually are European – Style shoes, high heels, sport shoes. Besides, a few putting on doll- shoesâ€¦ This group primarily buy 2 pair of shoes/year and satisfied with their choice. But also have a few point unsatisfied such as: hurt, so hard to maintain, bad smellâ€¦
Impression about brand name, nowadays, consumers in HCMC just knew and used leather shoes of some kind of brands in Viet Nam like: Hong Thanh, Kim Thành, T & Tâ€¦ The reason why to choose these brands are prestige, high qualityâ€¦
We have a lot of reason to recognize shoes trend of consumers like: base on fashion trend, color trend, interested about environment, heath. Now a day, consumer cares about health, keep their foot usually comfortable. Analyses these attribute and some uncomfortable of consumer about leather shoes after that we find out some solutions to improve leather shoes in Viet Nam.
Almost consumers buy leather shoes at store, shopping centre, so distribution will focus on these places. Establish some store at shoes reserved areas in HCMC or near some places have a lot of company, department, training staff have a separate style to attract customers.
Promotion, some forms of promote are cared: Advertise, PR, Fair, Eventâ€¦ So promotion should focus on these points. Organize some events related to Foot health, specific” Festival Foot Health” with introducing product showcase, Foot Health consultant showcase, small sport contest, fashion shoes. Target market is officers. Appeal everybody for protecting environment by using Artificial Leather Shoes.
The target to research:
The target of this research collects some necessary’s information in order to be based on:
Overview about leather market at HCMC
Some markets, products should focus
About 4Ps: Products, Prices, Promotes, Places
Target market and location research:
Target market: From 22 – 35 years old: still young, almost go to work.
From 36 – 45 years old: to advance in one’s career, have a higher income.
Method of research:
To research customer’s habit, our group uses the method by interviewing consumers with questions test according to ages, sex at HCMC.
Chapter 1: Overview about leather shoes market in Viet Nam
Introduce about leather market:
Viet Nam leather shoes market take a place in fourth of the eight country largest exporter in the world just after China, Hong Kong and Italia. But 90% of our products are to do out work. We are facing with a difficult problem about brand, develop strategy and lose advantages.
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Some domestic leather shoes businesses have 2 big disadvantages: First is material didn’t raise the sense of initiative. So it depends on customers and suppliers from China, Taiwan and Korea. Second is low technology, don’t have competition and businesses have to do out work for a joint-venture company or 100% foreign capital. So competition, potential of leather shoes actually belong to Taiwan, Korea companies laid in Viet Nam. They exploited a lot of advantages about labors, paid workâ€¦
Each year, Viet Nam just can provide 5000metricton cowhide and 100metricton buffalo hide but domestic materials aren’t salvaged and low export value. 60% these hide are exported to Chine and Thailand, the rest of hide don’t have enough standard to produce export’s product. So, each year, Viet Nam sent 170m to 230m USD to import false-hide and 80m to 100m USD to import hide from Thailand, Taiwan, Korea.
Viet Nam export a big of shoes but domestic market be vacated, concede to foreign businesses, domestic products just appropriate 30% but foreign appropriate 70%. Just have some domestic businesses satisfied customer’s requirement in HCM market like: some retailer on Lý Chính Tháº¯ng, Ho Xuân HÆ°Æ¡ng, Nguyá»…n Trãi streets. While domestic leather shoes just have 2 decisive colors: Brown, Black. But China choose simili hide to be spoilt for choice.
Some businesses produce Leather Shoes in HCMC:
ADDS : 55 Hai Bà TrÆ°ng, Q.1, TP.HCM
TELL : 08 -3 8.230.135- 3 8.550 .486 Fax: 08 – 3 8.224.432
Email : firstname.lastname@example.org
PRODUCT : MANUFACTURE LEATHER SHOES
LIMITED LIABILITY BINH TIEN COMPANY (BITIS)
ADDS : 22 bis Lý Chiêu Hoàng , Q.6, TP.HCM
TELL : 08 – 3 8.555.071 – 3 8.554.704 – 3 8.550.486 Fax: 08 – 3 8753443
Email : email@example.com
PRODUCT : MANUFACTURE LEATHER SHOES, PU SOLE
GIA DINH COMPANY
ADDS : 1/27 QL13 Hiá»‡p Bình PhÆ°á»›c _TÄ
TELL : 08 – 3 7269110 Fax: 08 – 3 7.268.115
Email : firstname.lastname@example.org
PRODUCT : MANUFACTURE LEATHER SHOES FOR WOMEN
SAI GON COMPANY
ADDS : 419 Lê Hong Phong, Q.10
TEL : 3 8.320.781- 3 8.353.820 Fax:3 8.390.401
Email : email@example.com
PRODUCT : MANUFACTURE LEATHER SHOES, CANVAS SHOES, HAND BAG
And some stores like: HONG THANH, LONG THANH, HONG ANH, T & Tâ€¦
With a population of over 86m people, domestic market demand about million shoes per year to consume 612m USD. People in HCMC at least consume about 1 pair of sandals and 1 pair of shoes per year. Especially, at HCMC, the town has the biggest population and has a biggest average income. This is potential market for leather shoes. Now a day, people at HCMC didn’t wait till corrupting shoes or too old to buy a new one. They don’t want to use shoes for all function so they divided each function like: play sport with sport shoes, go to work with European – style shoes.
Ability to compete of product in Viet Nam:
Domestic leather shoes have to compete with contraband goods from China and the competition between domestic businesses and capital foreign in Viet Nam. Their products have more advantages about quality, value, exploit.
To update the figures, capital foreign businesses at Viet Nam appropriate over 55% total value of export.
Chapter 2: Report and analyses the result of research
2.1 Result of the survey:
Customer’s habit, their requirement for leather shoes:
2.1 Diagram of Every month income
This group from 22 – 45 years old have numerous income is from 4m – under 6m (33%) and 2m – under 4m (32%), 6m – under 8m (13%), under 2m (10%), over 10m (7%), 8m – under 10m (5%).
C:Documents and SettingsAdministratorDesktopbiá»ƒu Ä‘ountitled.bmp2.2 Diagram of the purpose for using leather shoes
The most purpose to use leather shoes is go to work appropriate 64%, second is go out (18%), third is go to party (10%) and the last one is go to school (8%).
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Diagram of the places where customer usually buy shoes
This diagram show us the most places where people buy shoes is Store (65%), next is Shopping centre (28%), Suppermarket appropriate (3%), the last one is market and other just (2%).
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Diagram of showing reason for buying new shoes
In this diagram, Inspiration is the reason have a lot of people choose (44%), second is shoes are damaged (23%), old – fashionable is (20%), festivals is (8%), the other is (3%) and the lowest reason is (2%) for giving gift.
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Diagram of showing the level to recognise brand name by pubicsize
To recognize by relatives, friends appropriate (61%), (18%) on news and magazines, by billboard, poster and the other are (7%), on the internet (5%), and pass on TV is (2%)
2.6 Diagram showing reasons for choosing the current trade mark
Through the diagram, the reason for choosing the current trade mark is 58%, 28%, 13%, 10%, 5% and 3% because of quality, design, trade mark, price, rank declaration and other reason, respectively.
2.7 Diagram showing unpleasant factors when wearing leather shoes
The diagram shows that 30% of people are not satisfied when wearing leather shoes because of leg ache, 28% because of difficult maintenance, 23% because of air tightness and heat, 18% because of disgusting smell, 15% because of heloma and finally, 8% because of other reasons.
2.8 Diagram showing number of shoers bought in one year
The above shows that most of people (43%), buy 2 pairs of shoes in 1 year, 25% of people buy 3 pairs and 1 pairs, 3% buy 4 pairs and 2% buy 5 pairs and more than 5 pairs of shoes.
2.9 Diagram showing level of satisfaction to current shoes
27% people think that the shoes are normal, 58% feel satisfied and 15% feel very satisfied.
2.2 Consumption habit
The main researched age group of this survey is from 22 to 45 years old; most of them have job, get income and have diversified and high demand of leather shoes. They pay much attention to European-style shoes, high heeled shoes and sport shoes according to gender and most of them are satisfied with their choice of current shoes.
Because this age group has job and income acceptable price of one pair of leather shoes depends on their income. The higher the income is the more amount of money spent on shoes and number of shoes bought in 1 year is.
According to the survey, this group often buys shoes in shops (65%), plazas (28%) which are trustable, comfortable with good service, etc not much in markets or supermarkets and they buy a new pair of shoes because of impulsivity (43%).
When they buy leather shoes factors such as price, design, quality and trade mark are important ones for them to select the product and among these factors, quality (55%) and design (47%) are considered very important.
In addition, when asked about importance of attributors of the leather shoes they all think that attributors such as aeration, comfort, softness, dehumidify, ability of deodorization, especially softness and comfort are very important.
2.3 Trade mark impression
According to result of research most of customer at the age of 22 to 35 said that they usually choose leather shoes of trade marks such as Vina Shoes, Hong Thanh, T&T because of competitive advantage of price and quality. People at the age of 36 to 45 tend to use leather shoes of Vietnamese enterprises such as T&T, Hong Thanh or Long Thanh because they pay much attention to their quality and long time trade mark.
While choosing Vietnamese shoes the customers not only feel assured about quality but also enjoy many after-sale promotion services such as close customer card, price discount card, coupon and guarantee card.
Besides, according to the result of the survey, customers at the age of 22 to 35 and 36 to 45 know trade mark of the shoes through their relatives or friends (61%), through newspapers and magazines (18%), internet, panel and poster (7%).
2.4 Shoe wearing trend
Product trends in foot wear sector are majorly short-term or season-depending. There are many basics for shoe wearing trend of the customers such as:
Environment care- many design patterns aim to create on customers natural feeling and only use natural-original dyestuff and non toxic materials including materials for sole.
Health care- kinds of footwear can improve posture, stature and even help users lose weight.
Color trend and fashion inspiration are changed annually to attract attention of the customers.
Nowadays, the human life becomes more and more prosperous and people pay more attention to their health. Therefore, contributors of the shoes also make a great impact on the customers in aspect of buying shoes. Simultaneously, they also affect every their steps much. One suitable pair of shoes will help the customers feel more confident and comfortable when they walk.
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Chapter 3: Market penetration through distribution channel and promotion
Current shoe distribution channel in the market:
Majority of famous shoe trade mark are distributed through modern distribution channel such as supermarkets, plaza and shoe shops. For example, Bitis, Hong Thanh and Long Thanh, etc all has showrooms for their products. In the supermarket, there are products of leather shoes and most of them are marketable.
– Showrooms: only exhibits products of the company. The customers often think that when buying in such showroom they will be able to choose true, high quality products and the price are better than that in other distribution channel.
– Ssupermarkets: products of leather shoes displayed in supermarkets are not diversified, thus limiting ability of selection of the customers.
– Plazas: attract middle-class customers onward, so they are only suitable for trade marks with high price such as Adidas, Converse, Lacoste, Boniaâ€¦
Suitable selection of distribution for leather shoes
According to the survey, 65% of customers often buy leather shoes in showroom, 28% buy them in plazas and only 3% buy them in the supermarkets. Therefore, it is suitable to select showrooms and plazas to be distribution channel and distribution chain have to be synchronous in the aspects of product display, employee uniform, professional style. The company will directly manages distribution chains through distribution intermediate, which makes it easier to control the products and directly learn about demand of the customer.
– The show room has large area and convenient for displaying kinds of products and models. It is necessary to set the showrooms at suitable places so that the customers can see them easily (Nguyen Trai, Nguyen Dinh Chieu, etc). Targeted customers are now office staff, thus it is possible to locate shoe shop near office blocks.
– In plaza, the area displaying products is pretty narrow; therefore, it is essential to focus displaying kinds of shoes suitable for the customers, update information of their demand to gain perfect exhibition and have catalogue.
It is also necessary to actively take part in fairs where products are consumed in a great quantity and the customers can be able to know about the trademark of the enterprise.
According to result of interview, majority of customers said that they knew the trademark of shoes through newspapers or friends. Because it is a new kind of product the team decides to use promotion tool-PR.
Stage before launching the product: main form- PR in the newspaper.
Newspapers and magazines relating to health and fashion such as Women, Marketing and Family, etc.
Contents of newspapers and magazines mentioning topics relating to health of foot such as “are you wearing shoes in the right way?”, “High heeled shoes: the enemy of your foot”, etc.
Posting time: consecutive 3 weeks before launching the product.
Objective: create concerns for the customers, make an impact on their thoughts, awareness, then stimulating their demand of a kind of shoes good for their health.
Stage of launching new product: continue PR in the newspapers.
Contents of the newspapers and magazines: still post newspaper issue with the content “Have you known new health shoes?”; the article is written in the form of an interview with famous doctors to contribute on confidence among the customers.
Posting time: at the same time when the new product is launched.
Objective: provide customers information of the product and create a good impression among them: shoes for health.
Stage of new product post-introducing:
Organizing the event “For the health of foot”
Date: 1day in Sunday, creating favorable conditions so that officers can attend.
Location: 23/9 or Le Van Tam Park
Content: opening stores
+ Consultancy store: with consultants on how to wear shoes in the right way, how to choose shoes suitable to our foot.
+. Showroom: showing, introducing and selling new products: shopkeepers consult and introduce “shoes for health” so that customers can make trial use and buy products if they have demand.
+ Marathon competition: contact to companies, send invitation letter for participating in marathon competition held in the event (companies are paying attention to officers’ health). Competitors are provided with shoes.
Purpose: is a chance for them to use products, proving in spite of movement, their feet are free from being hurt, hot and uncomfortable smell caused from foot sweat.
+ Competition of official and sport fashion shows in which models are officers from companies: they wear new shoes to perform. Through the competition, it is known that in addition to advantages of keeping out feet safe and absorbing wetness, design of shoes are fashionable and can make us look taller.
– The event aims at helping customers make assess to the product, “to see with their own eyes”, using products and participating in events to verify functions of shoes”.
Frequently introducing products to fair: such as “Vietnam High Value”, exhibitions, etd to make promptly assess t o customers.
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