High Fashion Cluster Modern AoDai By: Phomsavath Philachanh Jeu Limmany Tran Thi Xuyen Nguyen Thi Linh Giang

Location: Van Phuc Village, Ha Dong, Ha Noi Area: 500 m2 (with 10 floors building and 2 floors factory) Total Investment: $2,5 million SMEs: 37 (30 domestic companies, 7 multinational) Employee: 2000 (1400 main workers, 500 workers from SMEs outside and 100 officers) Products: High fashion modern Aodai for high class woman Market: Domestic market (4 cities) and Russia for 1 st period Cluster Overview

Put Aodai Vietnam into a new peak Cluster’s mission

Main Content: Level of market Market size and trend Competitors SMEs join cluster Marketing and Sale Objectives Market Analysis

Market for AoDai has 2 level: – Primary Market: High salary women – Secondary Market: AoDai for men and children, AoDai for Doll or Toy Level of market

Market size Market size and trend 1Hanoi Ho Chi Minh City Big marketDomestic market 2Danang Hue Medium market Domestic market 3Russia Small market International market

Market trend Market size and trend NoNoCities Population Business Growth Rate Trends of Ao Dai 1Hanoi Ho Chi Minh City 8,000,000 10,000, % - 8% Increase follow the business growth rate 2DaNang Hue 752, ,000 3Russia 141,894,7724.1%

In international market: China In domestic market: Trach Xa Village – Products: 800,000/year – Revenue: USD500,000/year – Strengths Long history Sophisticated design Having a lot of great tailors – Weakness Not productive(1-2suit/day) Low salary of workers(USD2/day) Competitors

SMEs join cluster

Marketing Objectives: + Holding 10 fashion events for 1 st year. + Establishing 6 agents in 4 cities (2 in Hanoi, 2 in HCM city, 1 in Hue and 1 in Danang) people click into cluster website in 1 st year million people in Vietnam (especially in 4 cities) know about cluster in 1 st year. Sales Objective: $9000/month for each SMEs in cluster for 1 st year Marketing and Sale Objectives

The 1 st P: Products and Service strategy Marketing Strategies Type of Products In the 1 st periodLater Common products 70% Produce only base on order of customers Customized products 30% At that time, value of products can be increased because of exclusivity.

The 2 nd P: Pricing strategy Marketing Strategies Type of ProductsIn the 1 st periodLater Common products $x Customized products Double $xHigher because of exclusivity

The 3 rd P: Places (Agents) Marketing Strategies PlacesIn the 1 st periodLater Hanoi24 Ho Chi Minh city24 Danang12 Hue12 Moscow12 Other cities in Vietnam1 China1 in Beiijing 1 in Shanghai

The last P: Promotion Promotion tools: – Direct Mail using a good brochure with designs – Trade Shows, fashion events – Advertising, media, televisions – Internet Marketing Strategies

The last P: Promotion Promotion plan (Main marketing activities) 1 st : Holding event/fashion show for sample products 2 nd : Do market survey (both domestic and international market) 3 rd : Advertising through media about the cluster 4 th : Fashion show in 4 cities 5 th : Fashion show in Moscow Marketing Strategies

Objectives - Developing and expand market of modern and high quality AoDai - Make well-known Ao Dai brand-name & image Current status - Thousand year history - Ha Dong District has the fastest growth rate in comparison with other districts in Hanoi. Difficulties/risks - Current AoDai industry decreases - AoDai is not suitable for ordinary days, just for ceremony days (need to change this bias) R&D Plan

Staffing -785 families working in textile silk in Van Phuc Village -Total Employee: 2000 (1400 main workers, 500 workers from SMEs outside and 100 officers R & D Budget: $ R&D Plan

Facilities: + Expand scale; + Find and buy good sewing machine + textile machines, tinting machine + spinning machine + Cut machine + machine embroidery + Equipment necessary (desks, printers, photocopiers, personal computers, cabinet documents...) Operation Plan

Staffing: + recruitment plan + Study tour + skills training + capacity development Operation Plan

Storage & Warehouse: + Plan about number of Storage and Warehouse and space of them( 2 factory about 500 m2 include to production and storage) + Find place to build or rent Storage and Warehouse near location of production (about 2100m2, 500 m2 for factory and 1500 for building and car parking, lobby) + Buy equipment to security (camera, fire…) Operation Plan

Organization Chart

Time table

Objectives: – In 1 st year, cash flow of cluster will be positive with over $ – In 1 st year, cluster will be profitable with over $ (BEP 93%) Finance

Important figures – TOTAL PROJECT COST: $2,3 millions – 1 st year sale: nearly $4 millions – 1 st year profit: over $ (increase continuously) Finance

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