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The firm plans to expand its operations in Vietnam before its rivals, Fast Retailing and Ryohin Keikaku, do. Specifically, it intends to open stores in more cities besides Hanoi, including HCMC and Da Nang within the fiscal year of 2019. It expects to have 23 more stores in Vietnam this fiscal year compared to the last.
“When small cities develop, offices will come along. That’s where our group sees opportunities for new stores,” said Tsutomu Harigae to Nikkei Asian Review, general director and CEO of Stripe Vietnam.
Stripe also bought Vietnamese apparel firm NEM Group in 2017, which helped it gain popularity among locals, especially among working women in their 20s and 40s under the NEM brand.
The company aims to have its sales increased by 30 percent on year to $46.4 million in Vietnam, and sales of $71.6 million and an operating profit margin of 25 percent in the country in the long run.
Stripe is not the only Japanese clothing brand planning to up its game in Vietnam. Last year, Uniqlo also announced its plan to open the first store in HCMC this fall, and has begun to recruit staff earlier this month.
Japanese household products and apparel chain Muji also plans to open its first outlet in Ho Chi Minh City early next year.
Vietnam’s fashion revenue is expected to grow 22.5 percent a year in the 2017-2022 period, reaching $988 million yearly by 2022, according to German research firm Statista.
Vietnam’s revenue from the fashion segment amounted to $486 million in 2017 and $557 million in 2018, and is projected to reach $661 million this year.