Vietnam is quickly becoming a major consumer market. This is due to a growing young population, with 62% of people of working age and 49% between 20 and 39. The middle class is also expanding rapidly, expected to grow by 36 million people by 2030, leading to more disposable income and increased spending on items like fashion.
The Vietnamese lingerie market is complex and competitive. It's fragmented, with international brands, cheap unbranded goods, and local brands all fighting for market share. Unbranded products still comprise 76% to over 95% of the market, but the branded segment is growing fast.
Market Overview & Scale
Market Valuation and Growth Trajectory
The Vietnamese lingerie market is growing remarkably, with an expected annual growth rate (CAGR) of 8.51% from 2024 to 2032, much higher than the global average. While specific local market values vary, the Vietnamese apparel market is generally estimated at over USD 5.34 billion, with lingerie around 36,000 trillion VND (about USD 1.4 billion). The men's underwear and sleepwear segment grew from USD 30 million in 2018 to USD 44 million by 2023, showing the sector's strength.
Market Segmentation: Branded vs. Unbranded
Unbranded goods dominate Vietnam's apparel market, making up 76% of the fashion market and 95% of men's underwear, sold mainly in traditional markets to price-sensitive buyers. However, the branded segment is growing much faster at 24% CAGR, compared to 11% for unbranded goods, as consumers shift to brands for better quality and value. In e-commerce, over 237 brands now account for 26.8% of "Lingerie Sets" revenue, with the top 10 holding a large share.
The market is shifting towards premium products. Growth comes from attracting consumers who are moving away from unbranded goods, not from competing on price. Success means being the most trusted branded option, making brand building, quality assurance, and good storytelling essential.
Competitive Landscape: The Key Players
The market is a dynamic arena contested by several distinct categories of players:
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International Incumbents: Brands like Triumph, Wacoal, Pierre Cardin, and Jockey are strong in the premium sector, sold through department stores and specialty shops at higher prices.
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Fast Fashion Giants: Global brands like Zara, H&M, and Uniqlo have entered Vietnam, using their brand recognition and supply chains to compete in the affordable fashion and underwear segments.
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Domestic Champions: Vietnamese companies such as Aristino, Viet Tien, and InsideMen are strong in men's basics and office wear, benefiting from their manufacturing experience and national distribution.
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E-commerce Leaders: New online-first brands like Basil and Melingerie are quickly gaining market share on platforms like Shopee and Lazada.
Market Catalysts: The Forces Fueling Growth
The Demographic Advantage: A Golden Population and Ascendant Middle Class
Vietnam has a large and youthful population, with 62% of its citizens being of working age. The country is increasingly urbanized, housing nearly 100 million residents and a growing middle class, which drives significant growth in consumer spending. Data shows a clear trend of rising household expenditure on clothing and footwear, which reached VND 310 trillion in 2023. This growing consumer class is not just buying more; they are willing to pay more for branded goods that offer quality and value.
The Digital Commerce Explosion
E-commerce is changing Vietnam's retail scene and shaping consumer preferences. Vietnam leads Asia-Pacific in online shopping frequency, with 67% of consumers shopping with mobile phones. Consumers spend over eight hours weekly shopping online, nearly double their monthly visits to physical supermarkets.
Major e-commerce sites like Shopee, Lazada, and Tiki are key for finding products, comparing prices, and buying. Social media, especially Facebook, Instagram, and TikTok Shop, are strong sales channels, driven by influencers and user content. 71% of Vietnamese consumers have bought directly through social media.
The Evolution of Consumer Consciousness: From Function to Fashion and Feeling
Vietnamese consumers now see underwear as more than just a basic need; it is about personal style, self-care, and health. This shift is due to a greater focus on comfort and health. Product features are now more important, and purchase decisions are influenced by material quality and performance. Terms like "cool," "sweat-wicking," and "stretchy" are key indicators of quality.
Sustainability is also a growing concern; 74% of Vietnamese consumers are willing to pay more for recycled or sustainable materials. This creates a new type of consumer who seeks "holistic value"—products that are well-priced, comfortable, healthy, aligned with values (like sustainability), and easily accessible. Brands need to communicate value across all these aspects, not just price.
The "Buy Vietnamese" Movement
There is a growing wave of support for high-quality domestic products. Vietnamese brands are gaining significant shelf space in major retail chains like Co.opmart and GO!, accounting for up to 30% of lingerie offerings. This reflects increasing trust in local brands that deliver quality, tell a relatable story, and build authentic connections with the community.
Navigating the Headwinds: Key Market Challenges
The Price War with Unbranded Goods
A major challenge for quality-focused brands is intense price pressure from the large unbranded segment. These low-cost products, often from China, flood traditional markets at prices as low as 10,000-20,000 VND per item. This creates a difficult competitive environment as quality brands can not compete on price alone. Brands must either enter this high-volume, low-margin "red ocean" or create a unique, value-driven offering for the growing branded segment ("blue ocean").
The Dominance of Traditional Distribution Channels
While e-commerce is growing fast, many apparel sales still happen through traditional channels like wet markets, small shops, and regional wholesalers. Entering these networks is difficult and costly. They are often controlled by long-standing relationships and complex credit systems, presenting a high barrier to entry for new or smaller brands that lack significant resources or connections.
The High Cost of Building Brand Trust
Building a trusted brand in a crowded market is hard and costly. It needs continuous marketing, good content, and real community involvement. Online brands face more challenges as positive reviews are crucial, and bad reviews or poor service can quickly ruin a brand's reputation since consumers trust each other.
Overcoming Consumer Price Sensitivity
Despite the rise of quality-conscious consumers, a significant portion of the market remains price-sensitive, viewing underwear as a basic commodity. Brands need to educate consumers about the benefits of higher-quality lingerie, explaining that better materials and construction lead to greater comfort, hygiene, and durability, which justifies a higher price. This is about changing perception and educating on value, not just selling.
These challenges demonstrate that competing solely on price is unsustainable, and having a high-quality product is the most significant asset for a brand. Quality in materials, craftsmanship, and design is essential to overcome market obstacles.
Decoding the Vietnamese Lingerie Consumer
Where Do They Shop? An Omnichannel Analysis
Modern Vietnamese consumers shop across various channels based on their needs:
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Online Channels: Digital platforms are central to retail in Vietnam. E-commerce sites like Shopee, Lazada, and Tiki are key for finding products, comparing prices, and buying. Social media, especially Facebook, Instagram, and TikTok Shop, are also strong sales channels, driven by influencers and user content.
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Offline Channels: Traditional retail is still important, despite the rise of digital shopping. Traditional markets sell cheap, unbranded goods, offering a familiar shopping experience. Supermarkets like Co-opmart and Big C/GO! are growing for mid-range local brands. Specialty stores and boutiques serve the premium market, offering a personalized experience for luxury items.
What Drives Their Purchase Decisions?
Vietnamese lingerie consumers are looking beyond just price, focusing more on value:
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The Evolving Role of Price: Price is still important, but not the only factor for the growing urban middle class. Surveys show that consumers are willing to spend more on important items like clothing, shifting their focus from "cheapest" to "best value for money."
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Comfort & Material: When buying underwear, consumers prioritize comfort and fit. This means they look for specific material properties. Digital searches show high interest in terms like "cool," "sweat-wicking," and "stretchy" as indicators of quality and comfort.
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The Power of Social Proof: Since online products cannot be physically examined, reviews and recommendations play an important role. Many positive reviews and testimonials make customers more likely to buy, as they build trust.
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Style & Aesthetics: Style is still important, even though function and comfort come first. People prefer trendy but versatile designs that are simple and good for everyday wear. Consumers want fashionable pieces that will last, not just fleeting trends.
Here is a table to illustrate the decision factors, using a Likert 5 scale:
Purchase Factor |
Gen Z / Young Millennial (Online Shopper) |
Urban Middle-Income Family |
Rural / Price-Sensitive Shopper |
Price |
3 |
4 |
5 (Highest Priority) |
Comfort / Material |
5 (Highest Priority) |
5 (Highest Priority) |
3 |
Online Reviews / Social Proof |
5 (Highest Priority) |
3 |
1 (Lowest Priority) |
Style / Design |
4 |
3 |
2 |
Brand Reputation |
3 |
4 |
1 (Lowest Priority) |
Taste: A Look at Style and Color Preferences
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Men's Preferences: The Vietnamese male consumer prefers functionality and classic design. The most popular styles are briefs and boxer briefs, which offer a balance of support and comfort. The color palette is decidedly conservative, with neutral tones such as black, grey, and dark blue dominating the market.
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Women's Preferences: The women's market is diverse. There's a demand for comfortable, breathable cotton underwear for daily wear, and a growing desire for elegant, sensual pieces with lace, embroidery, and premium materials for special occasions or self-care.
Brand Perception and Loyalty
Brand loyalty for lingerie in Vietnam is new but growing. Consumers are starting to prefer local brands that offer consistent quality, a clear brand story, and community engagement. This is a key chance for new brands to build a strong following before the market becomes more established.
Strategic Blueprint for Vietnamese Brands: A Go-to-Market Framework
Define a Defensible Niche: Avoid the Red Ocean
Competing with big international brands or cheap imports is risky. A new Vietnamese brand should find and focus on a specific, underserved niche to build a loyal customer base and expertise.
Potential Niches:
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Sustainable Lingerie: 74% of Vietnamese consumers are willing to pay more for sustainable goods. Brands can focus on eco-friendly products and use organic cotton, TENCEL Modal, or recycled fabrics to create a strong eco-friendly value, attracting customers.
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Plus-Size & Inclusive Wear: The global body positivity trend creates a strong demand for inclusive sizing, which is currently unmet in Vietnam. Brands can gain loyal customers by offering many sizes and marketing that celebrates diverse body types.
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High-Performance Athleisure Underwear: With Vietnam's strong health and wellness trend, there is a great opportunity to create athletic underwear. This underwear would use advanced fabrics that wick moisture, control odor, or regulate temperature.
Build a Powerful and Authentic Brand Narrative
A strong, authentic brand story is key to creating an emotional connection with consumers.
Potential Angles:
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Vietnamese Heritage & Craftsmanship: A story highlighting local textile traditions, modern Vietnamese design, and artisan skill can build national pride.
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Wellness & Self-Care: Market the brand as an investment in health and well-being, highlighting how quality, non-toxic materials improve skin health and comfort.
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Transparent Sustainability: Create a story about a transparent supply chain. Show the product's journey from raw material to finished garment, emphasizing eco-friendly methods and ethical production.
Master the Digital Ecosystem
Since online channels are popular, an online-first strategy is crucial for reaching modern Vietnamese consumers. This means more than just listing products on marketplaces.
Key Actions:
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Invest in High-Quality Visuals: Online, a product's look is important. High-quality photos and videos are a must to show quality and boost sales.
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Build a Community: Utilize Facebook Groups, Zalo, and Instagram to develop a brand community. This approach transforms customers into advocates and fosters a loyal 'family' connected to your brand's mission.
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Leverage KOCs/KOLs: Work with trusted micro-influencers (KOCs) and larger influencers (KOLs). Their real reviews and endorsements are more convincing than regular ads and help build online trust.
Anchor on Quality as the Core Competitive Advantage
The product itself should be the brand's main focus. To justify higher prices and build trust, a brand must commit to quality using superior materials, excellent craftsmanship, and durable designs. Quality is essential for the brand's story, marketing, and long-term success, requiring a strong partnership with a capable manufacturer.
K&G Garment: Your Strategic Production Partner for the Domestic Market
Deep Local Insight & Experience
K&G Garment, founded in 2012, has over 10 years of experience in Vietnam's apparel market. Unlike foreign companies, K&G deeply understands Vietnamese consumer tastes, including fit, style, materials, and cultural nuances. This local insight helps us create high-quality products that appeal to the target market.
Empowering Vietnamese Brands with Flexible OEM/ODM Solutions
K&G Garment helps Vietnamese brands with manufacturing solutions, offering OEM and ODM services.
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OEM: For brands that have a distinct design vision and detailed technical specifications, K&G acts as the production engine. K&G produces high-quality products based on the client's exact designs, letting brands keep creative control.
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ODM: For startups or brands looking to enter the market faster and reduce initial R&D expenditure, K&G offers its ODM service. We offer in-house design expertise and customizable styles, assisting startups and brands in reducing R&D costs while focusing on marketing.
K&G Garment helps local entrepreneurs and brand builders by handling material sourcing, production, manufacturing, and quality control. This partnership lets brands focus on building their identity and connecting with Vietnamese consumers.
Conclusion: Navigating the Ocean of Opportunity
The Vietnamese lingerie market offers great opportunities due to good demographics and economic growth. But it also has challenges like price wars, tough distribution, and the high cost of building trust, which can sink unprepared businesses. You can learn more about the lingerie market overview in the next 5 years to grasp the information and make appropriate decisions in the future.
This report provides a strategic guide to the market. But a map is not enough; brands need a strong manufacturing partner. This partner must understand the local market, meet global standards, and offer the quality and flexibility needed for success.
Call to Action
Are you ready to conquer the domestic market? Let K&G Garment be the steadfast manufacturing partner behind your success. Contact us today to turn your vision into reality.
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E-mail: manufacture@kgvietnam.com
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Telephone/WhatsApp:(+84) 888969887