Insight:
- The trend of sports activities in the Vietnamese market is increasing considering the number of sports shops mushrooming in the country and several global sports equipment brand franchises operating in Vietnam.
- This is viewed as a ‘profit-oriented’ market in the years to come and thus investment will be from both local and international businessmen.
Market context
According to estimates by the World Health Organization (WHO), the rate of overweight people in Vietnam is expected to increase steadily by 2028, and 1 in 5 people in Vietnam will be overweight after 2025.
Therefore, even in Vietnam, where the overweight and obese population is relatively small, awareness of obesity and adult diseases is increasing. In addition, due to the influence of social media, people’s interest in physical beauty is increasing, especially among the younger generation.
On the other hand, the statistics published last year by the General Department of Sports Vietnam show that 35.6% of the Vietnamese population and 26.7% of households practiced sports regularly (in the year 2022). Not only the number of people exercising in Vietnam is on the rise, but also the requirement for sportswear.
The pandemic has brought about a temporary slump in the sportswear market of Vietnam but it bounced back remarkably, according to Euromonitor market research agency. As of 2023, revenues from both activewear and sportswear have already surpassed sales of these products before the COVID-19 period. The interest in health and beauty has led to exercise, and fitness products and the fitness market have also developed thanks to this.
According to Statista, revenue in the Vietnamese footwear market reached nearly 2.21 billion USD in 2023, with an estimated annual growth rate of 5.72% (CAGR from 2023 to 2028). In 2023, the Textiles and Other Footwear segment dominated the market with sales of 0.71 billion USD.
It is estimated that the Vietnamese market will generate about 22.21 USD in revenue for the Footwear industry. In 2024, the sportswear market is predicted to grow by 2.9%.
Smart, personalized, ecological and multifunctional equipment is favored and chosen by many customers. In addition, major sports equipment manufacturers such as Nike, Adidas, Puma, etc., are constantly innovating and bringing consumers many quality, fashionable, and trendy products.
The sportswear market in Vietnam is developing rapidly due to a skilled workforce, low labor costs, signed Free Trade Agreements (FTAs), and the State also supporting businesses to develop production and distribution with many activities that bring business efficiency to units such as the program “Bringing Vietnamese goods into the global supply chain”, the event “Connecting the international supply chain of goods” – Vietnam International Sourcing Expo.
Related News
Great potential and market development opportunities
Preliminary data shows that there are currently nearly 4,000 gyms, thousands of swimming pools, and artificial turf fields across the country. There are not only grassroots football tournaments but also many running and cycling competitions held regularly, with various scales and levels.
Hundreds of Vietnamese sports equipment manufacturers and distributors have also invested to become exclusive distributors of event products, apparel, footwear, etc.
Thanks to social media and a rising awareness of fitness, Vietnamese individuals are showing a greater interest in physical beauty that goes beyond just looks. This combination of health awareness and beauty trends is driving the fitness industry forward, leading to an expansion in the sportswear market.
The Vietnamese sportswear market is showing significant growth potential. The demand for sportswear, footwear, and accessories is increasing as Vietnamese people are increasingly interested in health and fitness.
Stable economic growth, a young and dynamic population, and the Athleisure fashion trend also contribute to the development of this market. In addition, the development of e-commerce facilitates online shopping for sportswear.
These factors bring many opportunities for businesses. National manufacturers can rely on their market knowledge and offer competitive prices to successfully challenge international brands.
Companies may also target specific market segments, upgrade product technology, and partner with other countries to gain new technologies. Besides, seeking to use global sports events for advertising products’ brands is worth including in the number of strategies advanced.
Although the Vietnamese sportswear market is assessed to have a lot of potential for development, experts believe that gaining market share in the industry will be a fierce competition with the presence of big players in the world.
Meanwhile, domestic enterprises are neglecting this segment, and even many domestic brands with a foothold in the Vietnamese market only focus on fashion and office wear.
Market challenges
Despite the great potential, the Vietnamese sportswear market still faces significant challenges. Fierce competition from international brands with advantages in branding, technology, and finance is no small pressure. It is imperative for domestic brands to strive for a presence in the market and contend yet most importantly strategize.
Moreover, the brand assurance issues persist in the sense that there is a widespread challenge of counterfeit goods, whose effects are greatly felt by the authentic products and their clients. This limitation it self is a problem that is difficult to manage and eradicate – it calls for the involvement of the government, the business and the public.
In addition, there are still many restrictions involving production and the effectiveness of operation within the local supply chain. With the growing needs of the market, it means that companies should focus on increasing production capabilities, enhancing the supply chain, and streamlining processes.
Conclusion
The final statement can be made that the sportswear market in Vietnam is growing at a remarkable pace, mainly attributed to increasing health consciousness, fitness craze and the purchasing capability of the consumers. In order to tap the potential and thrive in this market, it is important for enterprises to concentrate on enhancing their brand image, product diversification, product quality and supply chain management. In addition, taking advantage of the understanding of the domestic market and competitive labor costs are also important factors for success.
