YME7 - CANIFA
- 1. Young Marketers Elite Development 7 --- Anh Nguyen - James Tran - An Mai - Viet Nguyen - Huy Nguyen
- 2. ABOUT CANIF A Functional benefits: - Ensured quality (great durability, certified by an assessment system exclusively designed for Vietnamese customers by combining reliable global and Vietnamese standards) - Authenticity (natural & organic material) - Great application (mix with various styles) Brand feature: Durability, Affordable, Simple, Family-based Brand Personality: Easy-going, Comfy, Conscious, Mature BrandPhilosophy: CANIFA believes that casual clothing motivates individual to embrace themselves with love and positivity every new day. CANIFA is a leading casual wear brand that provided high-quality items at reasonable price and align with global trends. CANIFA’s products are basic, yet varied and easy-fitting to serve both men and women, from baby and kids to all other ages, for different occasions and distinctive personalities. That is what they call “Fashion For All” Brand Mission: To make fashion become more accessible and enjoyable to everyone by providing clothing with assured quality and suitable for all shapes, ages, genders and needs. To enhance, enrich Vietnamese people’s daily life by delivering the happiness of wearing clothes newly everyday. 01.ABOUT CANIFA
- 3. PORTFOLIO PORTFOLIO PORTFOLIO DEMOGRAPHICS (1) CANIFA Men & Women (masterbrand): Provide clothing designed to mix with all styles on a wide range of daily occasions. RTB: Light material brings comfort, Elegant and simple patterns, Applicable forms for all casual activities. (2) CANIFA Kids (brand focus): Bring comfortness and dynaminism for kids in multiple daily activities. RTB: Easy to move form and shape, Soft materials with high-tensional fiber, Colorful and vibrant colors, Wide selection of playful patterns and animal prints. (3) CANIFA Babies: Offer adorable and affordable babies clothing items for all baby’s ages and stages. RTB: Softer and gentler organic cotton textiles for sensitive skin, All-sized clothes for different stages of development, Playful patterns and colors. Wool & Cashmere (key product), Cotton, Khaki, Jeans All materials are familiar with Vietnamese, suitable for multiple daily use and fit with Vietnam’s climate. Casual Sweater, Coat, Sweater, Cardigan T-shirt, Shirt, Polo shirt, Skirt, Pants, Shorts Homewear Home suit, T-shirt, Pants, Shorts Active Active T-shirt, Active pants Accessories Socks, Swimsuit, Bell, Office supplies Special Offers Drytech, Anti UV, Heattech Cashmere products, Australian wool-made items Collections Sporty Look, Active In Style (men & women) CANIFAxDisney, Spring Summer (boys), Frozen (girls) Own The Style, #SayIt CANIFA aims at basic and simple clothes for with many types of clothes for all seasons. However, their summer clothing items are not well perceived due to the lacking of attractive and trendy designs. CATEGORIES TEXTILES
- 4. SEGMENTATION SEGMENTATION SEGMENTATION DEMOGRAPHIC SEGMENTATION PRIMARY Young adults & middle youth Female, married, have kids, family-oriented. SECONDARY Babies, kids, tweens, later-lifers and seniors (01-12 and 45+ years old) Teenagers and mid-lifers (13-18 and 45-64 years old) AGE GROUP 01. PSYCHOGRAPHIC SEGMENTATION02. GEOGRAPHIC & INCOME ACTIVE Living in big cities, urban areas Northern Vietnam Middle income RESTRAINED Living in small provinces, rural areas Low to Middle income ● Focus on images, appearances and trends. Enjoy spending money on new & strong-branded products and convenience services. ● Prefer actively involve with brands. → Key consumers of most global fashion brands. (1) IMPULSIVE SPENDER ● Focus on products' quality. Seek value for money. ● Be frugal in shopping habits, well aware of spending power. ● Often stick to usual purchases rather than impulse ones. ● Rarely buy nonessential products and make impulsive shopping decisions. (2) TRADITIONAL SECURE & MINIMALIST SEEKER Current focus group of CANIFA: Traditional secure & Minimalist seeker
- 5. KEY TAKEOUT 1. Target consumers of Canifa should be kept as current ○ Kids as the main revenue drivers but their parents as targeted shopper. Noticing, Adult quantity and sales contribution is equal as of Kid so CANIFA should keep leveraging both segments. ○ Young millennials (male and female equally) as the highest source of growth, as gradually they could become parents and evolve to buy kid’s clothes in the future 2. Market development for Southern region is needful and online channel development is necessary to establish While the segmentation & designs focus on millenials, Kid shares the biggest revenue contribution vs. Male and Female. Northern area has the highest contribution towards total revenue with average 85% YOY, however Southern also rising which bring the positive signal on market development Revenue of Male & Female slightly drops in 2019 vs. 2018 while only Kid keeps it form but can’t cover the loss from other segments.
- 6. BRAND STATEMENTS We enhance Vietnamese people lives. (2001 - 2006) CANIFA entered Vietnam market with key product made from wool. Being the only local brand that created affordable cold protective garments in diverse styles, CANIFA soon gain awareness from consumers of all ages and was well perceived as “durable, affordable fashion” brand. CANIFA’s entering Vietnam market has brought significant change to the local fashion industry: - Challenged conventional perceptions towards Vietnam fashion industry (local brands lack diversity in product design, inconsistent branding activities). - Enhanced the quality standard of Vietnamese people about clothing. CANIFA attempted to elevate brand image: more trendy, dynamic and somehow more luxurious. They targeted the younger & more fashionable group to create aspiration and reinforce the positioning “fashion for all”: - Developed product innovations: Drytech – (anti-humidity product line), Anti UV, Heattech,… with assured/certified quality. - Collab with Luigi Ciocca (Premium Italian Cashmere Collection), Ly Giam Tien & Hoang Minh Ha, Le Ha. - Sponsored for Vietnam Next Top Model (2012), Project Runway (2013) to attract new groups of consumers and recruit “young blood”. - Participated in International Fashion Week (2015) - Merged with ONOFF (2017), CANIFA for babies (2018), Co-organize Model Kid Vietnam (2019). To compete against the proliferation of foreign fast-fashion brands (Zara, H&M, Chinese imports...), in 2007, CANIFA started to complete customer chain by positioning chain Fashion For All: - Entered the fashion market for children from 2-12 years old with CANIFA Kids. CANIFA customers, many young girls, after 5-7 years with the brand, who have become mothers, continue to catalog CANIFA to choose clothes for your child. This expanded CANIFA consumers’ age demographics (2-45 yrs old). - Started producing seasonal clothes with other textiles and materials (kaki, cotton, jeans) which had always been familiar with Vietnamese. - Although possessing a fast-fashion brand’s business model, CANIFA was not big on trends. They prioritized creating clothes with durability (products with longer lifespan) and less significant change on product variants to meet with low/middle budget of target consumers.. “ ” We make fashion accessible to all Vietnamese people (2007 - 2013) “ ” We keep adapting to bring the best quality for all Vietnamese. (2014 - now) “ ”
- 7. In 2017, CANIFA was able to gain significantly 41% of its 2016 revenue probably due to 1. The merging with ONOFF+ 2. Fashion Street Festival communications but couldn’t keep the momentum in 2018 with the drop contributed mostly from North. In 2019, besides the drop from North, there was barely any movement in South and Online revenue, hence, it’s high time CANIFA identified its sources of growth and capture consumers’ need better to expand its business. BRAND STAGNANT ON REVENUE Growth rate: unstable, decreased 9% on total revenue on 2019. Possible reasons: ● The proliferation of foreign fashion retail (Zara, H&M, Pull and Bear,...) were eager to gain more from this booming fashion market ● Hot season extended further than usual -> Canifa key product of wool didn’t suit the need North dominated on revenue of CANIFA due to: - Knitwear which plays a role as Canifa’s key product is suitable for Northern weather. - The diversified presence of Canifa store in the North brings it closers to consumer.
- 8. I S S U E S Business Issues: Need to win more of choices over foreign brands from users Marketing Issues: 1. Brand: lacking of emotional values and connection with users 2. Product: a. Compared to fast fashion competitors, design is not as trendy or up-to-date, little significant changes in product variants b. Knitwear is the only Canifa’s well-known product
- 9. Vietnam Domestic Apparel Market is highly potential when people spend significantly for clothing and forecasted to grow more in 2020. CATEGORY OVERVIEW Vietnam is having highest growth rate of Middle Income population in ASEAN around 10% Clothing is on top 2 categories that Vietnamese people willing to pay more Vietnam with its young demographic and growing incomes, is considered a hugely promising market. Foreign brands are attracted to its 15-20% annual growth. The shift from middle to higher incomes is expected to lure in more internationale fashion brand in the future. The change in the level of wealth of Vietnamese people enables them to buy international standard products and International brand help to build up/educate consumer about valuation, people willing to pay more for higher-quality fashion Middle market can the be potential Source of Growth for Canifa (cause the expanding of middle class) KEY TAKE OUT
- 10. With CAGR YOY 10% SIZE OF FASHION MARKET Including Clothes and Footwear in 2018 3.8 TỶ USD 3.5 TỶ USD Within Fashion, Clothes accounted for H&M announced revenue of VND 763 billion for 2018, Zara reported revenue of VND 1.7 trillion from two stores in Hanoi and HCM City in 2018. LOCAL BRANDS INTERNATIONAL PLAYERS Already presented in market for 5-10 years, strong local understanding & price-fit Joined market since 2017, especially trio Zara, H&M and UNIQLO are loved by consumers KEY PLAYERS IN FASHION CATEGORY 73% users making purchase on Fashion goods on online sites/ platforms
- 11. Consumers in Vietnam tend to pay attention and spend heavily on international and well-known brands. Proofs are long queues on Uniqlo’s opening and Zara, H&M with Tet’s promotion. The international fast fashion brands, especially trio Zara, H&M, ... brings significant impacts to the market, compete on imageries, under the attributes of “fashionable”, “international quality" & “reasonable””, UNIQLO - which attributes is Family Clothing, Reasonable Price, Good Quality. In long-run, Vietnamese brands needs to utilize its understanding about Vietnamese culture and behaviors to define its own space and win the competition driven by International brands above. KEY TAKE OUT
- 12. 1. Before the entering of the well known H&M into Vietnam, the fashion shoppers can buy and import product on their own from other countries because there are usually big sales in these countries. The popular sales even go up to 70-80%, even “buy 1 get 1”... resulting the worry for shopping directly in VN of “Will i regret paying too much?” 2. Sales or Promotion are to solve this but quickly out of stock or out of size 1. Not owning any manufacture factory, collectively bought from 800 independent supplier including Vietnamese ones 2. Collections are regularly updated, store updates are frequent. The H&M business concept is to offer fashion and quality at the best prices with sustainability as an added value. *H&M achieve this by buying directly from manufacturers and by having efficient logistics and our own warehouses, not by compromising on our sustainability requirements. 1. Brand message: We want consumers to feel they dress nicely and comfortable with what they’re wearing 2. Brand feature: Ensuring material, shape and, products are highly applicable and have high endurance, transparent of production places, care about the environment 3. Brand Philosophy: “Our products are manufactured on sustainability” 4. Brand mission: Up to 2020, all of cotton material must come from sustainable sources 5. Segmentation: Demographic (Every age and every family members), Category (Latest trend and seasonal needs) 6. Target audience: Women, Men, Kids 7. Brand personality: Young, spontaneous, modern, trendy, responsible WEAKNESS TIME OF EMERGING: 2017 BRAND STRATEGY 02.COMPETITORS ANALYTICS
- 13. UNIQLO is a clothing apparel company from Japan with a focus on quality and textiles. UNIQLO has continued to aspire towards excellence in quality, design and technology through its products and journey of pursuing perfection. - Mainly Female and Male adults - Aged 18 - 40 - Middle and upper middle class. - Looking for affordable and high-quality clothing that fits their lifestyle. - Geographic: Urban and suburban population - Demographic: All age categories and both genders 1. Brand message: “Everyone can dress casual”. 2. Brand Positioning: “Unique Clothing Warehouse” - Unique label creating their own clothing which transcend age, gender, ethnicity, and all other ways to define people. 3. Brand Philosophy: “Made for all” - UNIQLO believes that everyone can benefit from simple, well-designed clothes as most people are looking to being and feeling better everyday. 4. Brand mission: “Unlocking all barriers of Clothing” 5. Brand feature: High quality, Performance-enhanced, Basic casual wear, Affordable 6. Brand personality: Friendly, Honest, Comfortable, Self-embracing 7. Brand architecture: - Demographic: Women and Men, Boys and Girls, Baby. - Categories: Outwear, Tops, Bottoms, Inner-wear, Home wear & Accessories BRAND STRATEGY SEGMENTATION TARGET AUDIENCE 02.COMPETITORS ANALYTICS
- 14. TARGET AUDIENCE - Mainly Female and Male adults - Age 18 - 35 - Middle and upper middle class. - Up to date with the latest development in the fashion industry and want fashionable, trendy and unique outfit at affordable prices. - Geographic: Urban and suburban population - Demographic: All age categories and both genders 1. Brand message: The fast fashion retailer that provide an excellent customer experience to all 2. Brand positioning: Zara has positioned itself as a accessible fashion pioneer, who provide trendy and high-fashion products to affordable fashion brand for the young people. 3. Brand philosophy: “Process innovation dominates the global economy” - which means it is unneccessary to come up with a new product but rather inventing a new process of production to become the fastest. 4. Brand mission: Give customers what they want and get it to them faster than anyone else. 5. Brand Feature: Ensuring the availability of new fashion, new design, new trend at affordable prices on store 6. Brand Personality: Confident, Good-looking, Unpretentious, Stylish 7. Brand architecture: - Demographic: Zara Man, Zara Women and Zara Kids - Categories: apparels, shoes, accessories - Besides, Zara TRF offers trendier and sometimes edgier items to younger women and teenagers BRAND STRATEGY With its dramatic introduction of the concept of “fast fashion” retail, Zara has been credited credited as having the first successful in this business model. Zara aspires to create passion for fashion amongst a broad spectrum of consumers, spread across different cultures and age groups. SEGMENTATION 02.COMPETITORS ANALYTICS
- 15. COMPETITION CONCLUSION Within the category attributes, each of the brands has its own strength but at the same time remaining the requirements. We have factor of attributes: ● Rationale: Good quality, Affordable, Fashionable, Good design ● Target: For youth, For adults ● Differentiator: Innovative, Luxurious, New A robust supply chain, high-quality, innovative, affordable clothes that transcend gender, age and ethnicity are the factors contributing Uniqlo’s iconic brand value. Zara’s success was built from extremely trendy with the most innovative into fashion designs at a competitive price, as well as the well managed supply chain that are all integrated. “Our products are manufactured on sustainability” A wide range of product with good quality and affordable prices, along with the diversified presence have moved H&M into a fierce competition in the fast fashion market. *Source: Self conduct quick survey “Unlocking all barriers of Clothing” “Process innovation dominates the global economy”
- 17. SECONDARY: UNIQLO, H&M, ZARA 1. Objective: Converting users seeking for international brand by owning lower segment (lower SEC, currently buying other brands). 2. Maintain the current users of CANIFA to create motivation for them so they can engage with CANIFA by attaching emotional/ inspirational value with the brand. Expansion in Suburban and Southern market (Distribution coverage) Rebuild an unique brand positioning that match with group target audience of Canifa that can enable the brand to win both international & unbranded market Increase brand awareness among target audience to continuously build up brand equity with Vietnamese understanding, high quality with affordable price DEFINE SOURCE OF GROWTH KEY STRATEGIES TO GROWTH PRIMARY: SUBURBAN/URBAN 1. To tackle the market where international brands are not present. Buying behavior of users is buying at small shops, online shops. 2. Target: To convert users from buying unbranded products, market product with not as good quality to CANIFA products (nice quality, a bit higher price...) by quality standard ATTACK DEFEND
- 18. Focus on products' quality. Seek value for money. Be frugal in shopping habits, well aware of spending power, Often stick to usual purchases rather than impulse ones. Rarely buy nonessential products and make impulsive shopping decisions. TARGET SEGMENTATION TRADITIONAL SECURE & MINIMALIST/SIMPLICITY SEEKER YOUNG MOM (25-35YRS) 1. Income A, B+ , who always cares about her family, and who makes the main decision to buy clothing for whole family 2. Urban/Sub-Urban 3. Behavior: wisely spending - seeking for good quality (good looking, durable) with affordable price 1. Income A, B+, do not want to take much effort to choose clothing 2. Urban/Sub-Urban 3. Behavior: Safe choice - seeking for safe solution/design that don’t make them feel overwhelmed and not confident. CASUAL PEOPLE (22-30YRS)
- 19. Vietnameses do not take pride in their originality, instead, they tend to feel inferior towards Vietnam identity. Therefore, they prefer wearing international fashion brand’s item to hopefully reach the global standard, thus have a sense of confidence and up-to-date. Understand that truth, CANIFA won’t sell national pride, but to leverage one specific good characteristic of Vietnamese and transfer it to CANIFA’s new positioning. “As a progressive Vietnamese, I am not inclined on wearing luxurious clothes for showing off or being trendy because they make me hard to move and be active in daily occasions. I prefer choosing the simple & comfort brand to express my diligent, relentless attitude as I am moving forward to achieve successful stage in my life.” STARTING POINT POSITIONING INSIGHT THE DILIGENCE & RELENTLESSNESS OF PROGRESSIVE VIETNAMESE
- 20. POSITIONING The practical simplicity Vietnamese fashion brand for progressive lifestyle CORE VALUE Soft and Comfort Vietnam Innovative Uniquely Vietnamese Light and comfortable for progressive Vietnamese lifestyle Innovation with products made from Vietnam Ingredient for VNese market with advanced technology applied For Vietnamese multiple occasions and cultures TRANSLATE TO CANIFA POSITIONING REASON TO BELIEVE The design & material is comfortable & simple Made from the Vietnam natural materials (bamboo, coffee…) Wool products and affordable cold protective garments are CANIFA root and expertise since 2001. Made for assured quality, high comfort and flexibility. Designed and devoted by the aesthetic mind of Vietnamese people Global quality checked Manufactured in Vietnam with internationally standard quality
- 21. AMBITION FOR SUSTAINABILITY BRAND DISCRIMINATOR BRAND PERSONALITY FUNCTIONAL BENEFITS EMOTIONAL BENEFITS PURPOSE (BRAND POV) HUMAN TRUTH PRODUCT TRUTH THE PEOPLE WE SERVE ROOTS THE PEOPLE WE SERVE TRADITIONAL SECURE & MINIMALIST SEEKER For the people who focus on product’s quality, fashionable design and lastly, value for money. They nurture their hopes and power in their daily hectic life and that includes good and comfort clothes. HUMAN TRUTH As life’s evolving, complexity and expectation are growing made me feel there’s lot of daily burdens in different moments and occasions. These are the barriers that prevent me from staying progressive in life. PRODUCT TRUTH Great comfort, high flexibility and practical simplicity to casually wear in multiple occasion, eventually help them to progress in life. FUNCTIONAL BENEFITS Comfortable and assure quality products that enables people to casually wear it in all occasions of their daily life. BRAND DISCRIMINATOR Canifa is the only fashion brand shares the strong cultural & people understanding and offers a fit-design and high quality products to Vietnamese progressive people. Canifa is made for Vietnam. EMOTIONAL BENEFITS Assured quality and flexibility that empowers people to casually active and overcome all the barrier, help them to stay progressive in life. BRAND PERSONALITY Positive, Progressive, Vital, Established and Hoping for Vietnamese people PURPOSE (BRAND POV) Enriching Vietnamese people to stay progressive in life and keep a diligent, relentless attitude by providing practical simplicity fashion blending with strong cultural understanding. Made from natural materials with sustainable sourcing and long-lasting designs. Made in Vietnam and Made for Vietnam people. Wool products and affordable cold protective garments are Canifa’s root and expertise since 2001. Made for assured quality, high comfort and flexibility, we truly care for the life being of VIetnamese progressive people
- 22. THANK YOU