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

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

Huong Thi Lan Bui (Eastern International University, Thủ Dầu Một, Viet Nam)
DOI: 10.4018/IJSSOE.2019010101

Abstract

Fast fashion has become a trend in emerging markets in Asia such as China, India, Malaysia, and Vietnam for over a decade. During the last few years, Vietnam has become the hub for global fast fashion retailers creating fierce competition in the Vietnamese clothing market. Most of past research on fast fashion brands focuses on the global supply chain whereas its interest on the consumer behavior of their target markets is quite limited. This research work explores the store image of fast fashion stores specifically perceived by the Vietnamese target customers as store image has long been considered a key marketing differentiator for retailers over competitors to lure shopper patronage. It further investigates the inter-relationship among each component of the fast fashion store image with store satisfaction and loyalty with the structural equation modeling analysis. The author's findings indicate that the commercial and corporate image components positively influence store loyalty via customer satisfaction as a mediator.
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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).

Table 1.
Sales of apparel in Vietnam in value (VND Billion) during 2012-2017 and sales forecast during 2018-2022
Year201220132014201520162017
Sales in current VND (Billion)33,298.837,064.840,973.645,091.949,506.154,282.4
Exchange rate USD/VND (VND)20,82820,93321,14821,69821,93522,370
Sales in 2010 constant USD (Billion)1.53661.67321.7961.90612.04762.1604
Year*20182019202020212022
Sales in current VND (Billion)57,525.860,646.263,651.266,762.369,964.9
Exchange rate USD/VND (VND)23,00023,38523,85324,33024,816
Sales in 2010 constant USD (Billion)2,18312,21932,23882,25702,2735

*: Forecast

Source: Euromonitor International, 2018

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

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