Fast Fashion Store Image, Customer Satisfaction and Loyalty on the Young Vietnamese Perspective

Introduction

Fast fashion was introduced in Vietnam in the 1990s and dominated by local retailers like NINOMAXX, Blue Exchange, SEA collection, NEM, CANIFA, etc. During the last few years, fast fashion has been booming in the country which has become rapidly the hub for global fast fashion retailers such as H&M, Zara, Old Navy, UNIQLO, Topshop, F21, Pull & Bear, OVS, etc. Among newcomers, Zara and H&M are reported to have a good start in Vietnam as both generate good performance since their presence. High annual economic growth rate sustained for a long period leading to a gradual increase of disposable income and the middle class in the context of the quick pace of globalization in conjunction with its young population who has been particularly changing their consumption behavior toward fast fashion brands has made Vietnam a fertile market for these global fashion retailers. The kind of clothing which follows luxury fashion trend with affordable price reflecting the desire of the young population in different countries and Vietnam is not an exception. Millennials (who are 18-39 years old) represent one-third of the population with international exposure, high standards of fashion, and Internet access have sped up the penetration of global fast fashion into Vietnam.

It is reported that more than 200 international fashion brands, representing 60% of the market share in Vietnam from the middle to high-end (Association of Vietnamese Retailers, 2018). According to Euromonitor International (2018), sales of apparel in Vietnam has nearly doubled from 2012 to 2018. They are forecast to grow to VND Billion 69,964 in 2022 (Table 1).

*: Forecast

Source: Euromonitor International, 2018

Note: Exchange rate collected in World Bank 2019 for 2012-2018; estimated by the author for 2019-2022;