Contents

EXECUTIVE SUMMARY.................................................................................2
I.

OVERVIEW...............................................................................................3

II. INDUSTRY ANALYSIS..............................................................................3

III. COMPANY GENERIC STRATEGY............................................................4
3.1...........................................................Vision, Mission and Core Value
4
3.2...........................................................................Product Line Strategy
5
3.3.....................................................................................Pricing Strategy
6
3.4............................................................................Distribution Strategy
6
3.5........................................................Marketing and Customer Service
7
IV. COMPETITORS ANALYSIS AND POSITIONING.....................................8
V. SWOT ANALYSIS AND RECOMMENDATIONS.....................................10
CONCLUSION...............................................................................................12

EXECUTIVE SUMMARY
The report provides an analysis and evaluation of the current strategy and
prospect of Glory Sun Corporation (CANIFA).
In part I, the report shows an overview of the companys situation and its
strategies product line, pricing, distribution and marketing and customer
service.
In part II, it shows an industrial analysis of textile industry. The textile and
garment industry is one of the key industries in the national economy,
especially in terms of retailing clothes. The analysis indicates the potential
conditions which come from a abundant human resource, a huge and
developing domestic consumption market, export quotas and tax incentives.
Therefore, the retailing situation of CANIFA seems to be very well-matched
with the outlook of the industry.
In part III, we analyze deeply the firms generic strategy including five
components which are (1) Vision, mission and core values, (2) Product line
strategy, (3) Pricing strategy, (4) Distribution strategy, (5) Marketing and
customer service. The report finds the positive prospects of the company in
its current position.
In part IV, the report evaluates the competitive advantages of CANIFA over
its closest competitors such as PT2000 and Ninomaxx. The results based on
competitive strength assessment in Casual Wear Sector indicate its
competitive advantages including high-quality products with reasonable
price and widely distributed network. From which, we draws the position of
the company in the market.
In part V, the report concludes by SWOT analysis and recommendations
discussed include: (1) maintaining their strengths to catch opportunities of
expanding to oversea market, (2) Downsizing their weakness by finding a
great sources of machines and raw materials, (3) Defending from threats by
carrying out better plans, training employees and increase more fashion
designers.

I.

OVERVIEW

Glory Sun Corporation (Hoang Duong) founded in 1997 in Czech Republic in

the field of fashion goods with the goal of providing wool for the Eastern
European market. By the end of 1998 when the market fell into difficulties,
Hoang Duong leadership turned its sights on Vietnam market. They realize
the market with more than 70 million people at that time was lack of quality
fashion brands. Therefore they decided to put the business model of
Canishop return to their homeland. Three years later (2001), the market
appears a fashion line from Vietnam with a very Western name: CANIFA. The
brand CANIFA was born to exploit the growing demand of the domestic
market by product line wool, yarn with rich design and high quality and
diversification in product line.
With the experience gained in Eastern Europe market, fashionable wool is
the first product line that CANIFA choose when turned on doing business in
the domestic market. In 2007, CANIFA started to complete customer chain by
positioning chain Fashion For All by formally entering 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.
On this case, we focus on CANIFAs strategy and its competitiveness in the
current textile industry. With the goal of becoming a leading company in the
field of operation, the company's vision was to become an organization to
innovate and prosper, have customer trust, become membership in
organizations and society recognition. In order to achieve the setout target,
CANIFA company have had many strategies in product line, pricing,
distribution and marketing and customer service such as diversification in
models, reasonable price, extensive branch network, promotion and
warranty service.
II.

INDUSTRY ANALYSIS

Textile industry is one of the key industries in the national economy of our
country and it provides an indispensable item in the daily life of the people.
The demand for labor in the textile industry is annually huge. Each year,
textile industry creates about 2.2 millions different kinds of jobs for workers.
The export turnover of the textile industry in recent years has always ranked
the second in the total number of branches in exports (behind the export
turnover of oil). This helps to earn a huge source of foreign currency,
contributing considerably in the part on state budget. Textile industry of our
country has convenient conditions for developing such as a young and
abundant workforce, even the domestic consumption market is quite large
(over 80 millions) creates the relatively large potential consumer market.
The Vietnam climate is suitable to develop natural raw materials for the
textile industry. Because Vietnam joined the World Trade Organization (WTO),
it created more favorable conditions for the textile industry to further
develop our country. The member countries of the World Trade Organization
have abolished export quotas and tax incentives for Vietnam's garment
sector.
After more than 20 years of continuous growth with an average speed of
20% per year. Until 2011, textile has become one of the largest economic
3

industry nationwide in scope and stature with 4,000 enterprises, turnover

reaching 20 billion US dollars, accounting for 15% of GDP and become the
industry leader in terms of export turnover, reaching $ 14.5 billion,
accounting for 18% of total export turnover, bringing Vietnam into the top
five countries largest textile exports.
Vietnam's garment has also confirmed its position on the international
market in the presence of hundreds of countries and conquered demanding
markets such as the US, EU, Japan, Korea ... According to general perception,
although the world and country economy will continue to experience
difficulties in 2012, 2013, with internal resources and efforts to overcome
difficulties of enterprises, Vietnam's garment industry is projected to grow at
the rate of 25% this year, expected revenue reaching about 25 billion
dollars, of which exports are expected from 19 to 19.5 billion dollars. In the
period 2016-2020, the garment sector will grow in depth and reach
consumers by taking the initiative.
The domestic market is considered a cure of many textile businesses during
the economic crisis. In 2011, the economy is difficult, but revenue from the
domestic market of textile enterprises still grew. The reason why consumers
return to the domestic consumer products is launched including: reasonable
prices, diversity, promotion services, good warranty, and most importantly,
ensuring that products are healthier than the Chinese products.
The retailing situation of CANIFA is suitable for the development of textile
industry in Viet Nam for some certain factors. In 2001, capturing the demand
for using wool and fiber products highly in the world, Vietnam was
determined to build one factory with industrial workers and to develop
quality management system according to the proactive way. Glory Sun
Corporation - CANIFA has bravely invested in machinery, technology and
especially sent staff to study abroad in order to raise the level of technical
and management experience. The brand CANIFA fashion was born to exploit
the growing demand of the domestic market by wool and yarn products with
rich design and high quality.
In 2014, every minute the company sells five products, calculated in a year
there are more than 2.5 million products sold from CANIFA. With the average
price of 250,000 VND per product, the total sales of CANIFA are more than
600 billion. Not only that, in the first 4 months of 2015, sales results are
even more noticeable when the number of products sold raised 8 products
per min.
With CANIFAs moves in the recent period, the most desirable thing that the
CANIFA the textile industry still wants to get a foothold in the hearts of
consumers in Vietnam before exploring new markets.
III.

COMPANY GENERIC STRATEGY

III.1. Vision, Mission and Core Value

From the inception, the leader of CANIFA had determined the mission to build
a reputable company, profitable and expect to exist through contributions to
the community. In 2000, with the goal of becoming a leading company in the
field of operation, the company's vision was written specifically "Hoang
Duong Company wishes to become an organization to innovate and prosper,
4

customers trust,
recognition.

membership

in

the

organization

proud

and

social

When the time CANIFA appeared, the lives of the people of Vietnam have
been markedly improved. They started to pay more attention to the quality
and origin of products. Meanwhile, the imported products of unknown origin
appeared widespread, some domestic brands did not have a consistent
strategy to build Vietnamese fashion brand... It is the opportunity to help
CANIFA quickly noted. CANIFA seems to throw away the thirst the winter
fashion of Hanoi people, who previously were only familiar with simple
sweaters, poor in designs and focused on functionality rather than a fashion
item. Thus, up to date, fashionable wool product line is still the leader in
terms of market share CANIFA.
The CANIFAs four core values are Respect Creation Honesty Sharing. Choosing a
trusted brand to buy for the whole family is the way that many customers of
CANIFA do currently. The fact shows the wisdom of CANIFA the orientation
right from inception: Fashion for All. This orientation metaphors even in the
brand name: CANIFA = Cani + Family (Cani is inherited name "Canishop" in
the former Soviet Union).
Do not stop at basic fashion segment, CANIFA has recently had an ambitions
to expand its product range while investing in high-quality materials and
lines more distinct. Winter 2014 CANIFA launched Australian wool collection
in winter 2014. The authors of wool collection, no one else, are the two chief
designers Ly Hoang Minh, Ha Tien and two winners of Project Runway
competition a competition for fashion designers broadcast on VTV3 by
CANIFA main sponsor. Obviously, the participation in major financial
supporting in fashion programs on TV is a wise direction of CANIFA. By doing
this way, it not only helps promote the brand image but also blows into the
brand new innovative ideas and unique design from the young generation.
Ms. Ngoc said CANIFA has combined with a number of foreign experts and
updating the world's fashion trends to continue to make their mark on
differentiating their products.
III.2. Product Line Strategy
CANIFAs product has some specific characteristics that catch customers
attention.
Firstly, the main materials that CANIFA uses to create products are traditional
wool and fibre In October 23th 2013, CANIFA cooperated with Woolmark
Company one of the biggest wool companies in the world, and introduced a
product line made from lamb fur. This event is a great landmark in fashion
industry in Vietnam. The wool CANIFA uses is high quality, easy to maintain
and hard to scratch. Customers who wear CANIFA products may feel warm
but not closely woven. Besides wool, CANIFA clothes are made from felt.
CANIFAs materials are continually improved to please all kinds of customers.
Secondly, because CANIFA is a brand that produces clothes for all, its design
is basic, simple and suitable for customers from kids to middle-aged people.
Six months before new season, CANIFAs designers start to work and
research to introduce new types of products that adapt to the atmosphere. It
is a smart strategy because basic clothes are necessary in daily life.
5

Although it does not bring many different types and designs, it still attracts
customers because of its basic but high quality clothes.
Finally, the application of CANIFAs clothes is high. With one jumper,
customers can wear with many types of clothes like skirt, jeans to be
match with the environment they go. These products usually have pastel
colors or jeans color. These colors are suitable for many skin colors and
customers characteristics and easy to combine with other clothes. In
addition to clothes, CANIFA also sells bags, shoes and accessory to complete
customers outlook.
In the past, CANIFA introduced two very successful product lines. They are
metallic jumper and stone wash. These brings CANIFA a large amount of
profit, strengthens this companys positioning in the market.

The metallic trend has been very popular recently. To be in tune with this
trend, in the Fall of 2013 CANIFA introduced minicollection which contains
clothes made from metallic wool for the holiday. The fine texture of these
metallic jumpers puts customers at ease and makes them become beautiful
even in the cold winter. Besides the function of warming the body, this kind
of jumper helps girls who do not have perfect body hide the imperfection
behind big wool fibre. Besides jumpers, CANIFA also introduced cardigan,
skirt, made from metallic wool.
Other impressive product line of CANIFA is Stone wash T-shirt line for
males. This product was introduced in 2014, applied Stone Wash technology
and In Discharge printing technology. This line brings the message: Be freeBe yourself. These T-shirts are made from cotton which does not cause
uncomfortable feeling when wearing it. Using Stone Wash to process with
color, to make the fibre softer and nicer, and the in discharge printing
technology to make the image clearer, this product lines attract young man
who want to be dynamic, positive and nimble.

To conclude, CANIFAs product line strategy has been successful in creating

the position in the market and the customers mind. It aims at basic and
simple clothes with high quality materials.
III.3. Pricing Strategy
Although CANIFA is one of the most well-known brands in Vietnam, the price
of its products is reasonable for all kinds of consumers. The price for FallWinter products of CANIFA is ranging from 500.000 to more than 1.000.000
VND and for Spring-Summer products is ranging from 200.000 to 600.000
VND, which are consistent with the quality provided. This is due to the
diversity of customers age (2-45 years old) and easy-to-wear (basic, casual)
clothes. Thus, it is one of the key factors of CANIFA that helps this brand
become the optimal choice for different people at different income, as well
as their own personalities or sexes. It can be said that the stability of price
has impressed to customers and really grab at them in the early time
when this brand appeared on the market.
Additionally, CANIFA sells not only clothes but also shopping experiences.
They mainly concentrated on both the design and arrangement of each
store, the appearance and the integral part of success is customer services.
The CANIFAs products sometimes are set higher price than rivals products.
However, they do not lose their market position because these prices are
made from the relative quality, diversified designs. Besides, CANIFA has
several promotional programs to attract more customers whenever an
occasion comes such as Christmas or Tet holiday. Most products are brought
out with appealing prices discounted 30% to 70%; on the other hand,
shoppers could buy 3 products with 2 highest price products, the other can
be seen as a gift.
III.4. Distribution Strategy
CANIFAs distribution strategy had been expand via opening its two main
distribution channels: agencies and online sales.
CANIFA distribute its big agencies on central streets such as CANIFA Chua
Boc, Ba Trieu street to sale directly to customer with variety of designs and
sizes which display products according to the Westen style. Most of stores
concentrate on the busy, high-traffic and dynamic streets in the developing
7

cities and densely populated areas which can bring them stable profit. The
stores always creat a comfortable, pleasant experience and modern in-store
shopping, the staff is trained carefully and have ability to perform consulting
skill to customers. That creates good impression and makes CANIFA become
attractive brand. CANIFA constantly expands distribution channels and
develops store systems with the desire to give consumers more
opportunities to own the Vietnamese high-quality products. Nowadays, the
scale of CANIFA is relatively large with the retailing chains through the
country. From the first two stores in Hanoi, CANIFA had 66 stores and was
planning to increase this number. Some new CANIFA shops are likely range in
size from 100 square feet to 400 square feet. On an area of over 300m2,
CANIFA 43 Thai Ha is equipped with advanced systems with a combination of
modern and eye-catching display methods to help customers easily identify
and choose appropriate costumes. It is also the second store in the system
which has CANIFA Kids Corner area reserved for children with funny stuffed
animals, intelligent games,...
Online sales introduce the product line, the latest fashion collections on the
Internet via the website which help customers quickly update on fashion
trends and the company's new products. This channel expands sales area
with potential clients, customers wishing to use the products but cannot
afford to purchase directly in stores. They give services associated with
transport and delivery to customers with 2 - 4 days after ordering at the
website: http.//www.canifa.com very conveniently.
In general, it can be seen that CANIFA is develop a successful distribution
strategy which can bring stable revenues and appropriate with its target
customers.
III.5. Marketing and Customer Service
a. Sales Promotion
The most popular marketing strategy of CANIFA as well as other firms is
sales promotion, including: price-pack deals, coupons, premiums or
patronage rewards, etc.
b. Public Relations
CANIFA is so strong with its public relations as well as its social media
marketing strategy which is divided into three main points:
Sponsoring for popular fashion events or shows
CANIFA sponsors for popular events such as Project Runway Vietnam,
Vietnam Next Top Model, and Dancing with BiBi, etc. CANIFA took part in
Project Runway Vietnam 2013 and 2014 desiring to discover new potential
factors for domestic fashion industry. The grand winner would receive an
award of 300 million VND and have a chance of being a designer of CANIFA.
In 2013, the design pattern of collection A joyful summer of contestants
were selected by CANIFA to bring to the public gaining a lot of attention.
Sponsoring this two fashion shows, CANIFA succeeded to gain a lot attention
from customers.
CANIFA Kids, a brand of CANIFA, sponsored for Do Re Mi, an annual music
show for children in 2012. It follows contestants not only on stage
performances but also in the process of training and outdoor activities.
8

CANIFA Kids also sponsored costumes for Dancing with BiBi in 2012 & 2013,
which is popular for the convenience products for many occasions.
Therefore, CANIFA gained a lot of attention from parent segment.
With the popularity of magazines, internet, television as well as the
reputation of those events, CANIFA came closer to the mass public. Its a
kind of push marketing.
Recently, CANIFA are preparing their own fashion show called CANIFA
Fashion Street in the City that will be held on December 24th, which shows
the updating of CANIFA about famous trendings among young people.
Volunteering
In the process of forming and developing, CANIFA is always aware of the
responsibility for community. In recent years, it attended many volunteering
events: Love to The Central, Gio Lanh Dau Mua, Shares with Japanese, etc.,
which brought the memory in people mind. The warm journey of winter
came to children in the Minh Hoa district, Quang Binh province, where is
heavily influenced by the typhoon no.10. CANIFA Fund also visited children in
many other kinder-gardens, primary schools and secondary schools in Man
Than, Can Cau, Can Ho, Lu Than, Ban Me , Nan Sin with many warm clothes
and scholarships gifted.
Press conference
In order to encourage the movement Vietnamese uses Vietnamese Goods
which was gaining social concerns and supports, CANIFA developed ongoing
strategies towards customers such as The loyal CANIFA member on
December 12, 2009 at the company's head office: 121 Chua Boc street,
Dong Da district, Hanoi city. Accordingly, the customer involved in the
program of Loyalty in 3 levels: Silver card, Titanium card and Gold card with
the benefits for each type of card including:

Be regularly updated information about the promotions and sale-offs.

Participate in the program specifically for intimate clients.
Other benefits under each program and specific activities.

This kind of customer service is now still gaining a mass interest from
customers but with 2 levels of card: Green and Gold.
In addition, CANIFA has their own the periodic customer research activities to
update about customer needs and tastes.
c. Direct Marketing
CANIFA direct marketing is also strong: Online network with its own website
(CANIFA.com) and its Facebook fanpage with more than 560,000 followers.
CANIFA has an effective marketing and customer service strategy.
Obviously, sponsoring for fashion programs on TV is a wiser direction
of CANIFA than other rivals. It not only helps to promote the brand
image but also blows into CANIFA the brand new innovative ideas and
unique design from the young generation.
IV.

COMPETITORS ANALYSIS AND POSITIONING

Glory Corporation has been seen as a leading position in field of textile and
fashion in Vietnam. However, CANIFA now is facing a range of competitors
during the rapid growth period of the casual wear sector, such as two closest
competitors - PT2000 and Ninomaxx. Other competitors included local
clothing stores, small designed chains, and international brands.
Following the same segment towards young customers, CANIFA has a
competitive advantage over PT2000 and Ninomaxx. All 3 competitors have a
variety of product lines, bringing basic fashion with high applicability for the
majority of customers. The basis for CANIFAs competitive advantages is
more reasonable prices along with high-quality and diversified kinds of
products which are attractive for all but also have its own style. The unique
feature of CANIFA which no rivals can compete is wool-made products. Until
now, wool-made product line of CANIFA is still the leader in terms of market
share.
The fast growth of CANIFAs distribution system has proven its successful
strategy, compared to two competitors. From two first stores in Hanoi, until
now, CANIFA has opened 66 stores and is planning to increase this number.
Ninomaxx, one of the most well-known brands for a time period, built a
network of more than 200 stores in Vietnam, but now the company has to
rearrange to less than 50 stores. In 2013, Ninomaxx closed a series of large
stores, shrinking production and changing business models due to losses in
business. Thus, table 1 indicates Ninomaxx as the weakest rival in part. On
the other hand, PT2000 focuses on younger target customer than two other
rivals. Although it can be seen that PT2000 is expanding market share to
dominate the market, there are only 20 distribution stores over the country.
The narrow distribution network, relatively higher price, and undeveloped
large marketing strategy are reasons why PT2000 have smaller market share
than CANIFA.
Moreover, average sales revenue of CANIFA is substantially larger than
average sales revenue of Ninomaxx and PT2000. Such larger sales volumes
and stores of CANIFA very likely result in CANIFA having very competitive
advantages over two closest competitors.
Table 1: Competitive Strength Assessment for the Leading Rivals in the
Casual Wear Sector in Vietnam
Rating Scale: 1 = Very Weak; 10 = Very Strong
Key Success
Factors/
Strength
Measures
Brand
Recognition
Shopping
environment
Product Quality
Distribution
network
Management

CANIFA
Importan
ce Weight Ratin
g

Weighte
d Score

Ninomaxx

PT2000

Rating

Weight
ed
Score

Ratin
g

Weighte
d Score

0.15

1.35

1.20

1.35

0.15

1.20

1.05

1.35

0.20

1.80

1.40

1.60

0.12

0.96

0.84

0.72

0.10

0.70

0.60

0.60
10

Price
Competitivenes
s
Customer
Loyalty
Total

0.15

0.90

1.20

1.05

0.13

1.04

0.78

0.91

1.00

7.95

7.07

7.58

Based on the results of data analysed of company strategy, our analysis

shows that CANIFA position is in the middle among many famous fashion
brands in Vietnam. Despite the age of only more than a decade, CANIFA
attracts a mass of customers by products with suitable price, high quality,
and nice design. CANIFAs competitive position is getting stronger and
stronger.
However, CANIFA as well as other Vietnam fashion brands still face many
difficulties when competing with foreign brands despite great efforts made.
CANIFA, starting as a wool product maker, cannot develop strongly because
its products can be sold only in autumn and winter, while CANIFA shops are
deserted in summer. If CANIFA or any other Vietnamese business focuses
only on making seasonal products, its production costs will be high, and they
will not be able to compete with other rivals, especially foreign brands.

V.

SWOT ANALYSIS AND RECOMMENDATIONS

a. SWOT Analysis

Strength
1. Various products for men, women, children with many types of clothes
11

2. Numerous stores throughout country

CANIFA is famous fashion brand in Vietnam recent years. One of the
advantages lead them to the succeed is wide products range for every
genders, every ages with many models for each seasons. Customers can
easily find what they want from CANIFA with various choices and satisfied
clothes. Large number of stores across The North to the South is other
strength of CANIFA which makes customers easier to find the place that they
can buy clothes from CANIFA.
Weakness
1. Machines and materials need to be imported to ensure the quality
2. All business activities focus on domestic market
To produce good products, CANIFA need the high quality machines and
resources from over sea and its the obstacle for them to increase the sale of
products to market. Shortage of quality materials in domestic market can not
satisfy enough demand of buyers. CANIFAs main target market is not foreign
market which show that they have not exploited the larger market with
many potential customers.
Opportunities
1. Supports from Vietnamese government to domestic companies
2. Products with high quality and low price match with VN customers taste
As a Vietnam company, CANIFA takes advantages from government.
Government has created a campaign Vietnamese people buy Vietnamese
products which helps Vietnamese companies like CANIFA get access to sell
more to customers. Government also create more chances for domestic
companies include CANIFA to CANIFA has opportunities in maintaining their
high quality with low price in the market. Traditionally, Vietnamese people
would like to buy products type of looking good, good quality at cheap price.
Threats
1. Many competitors in fashion market from domestic to foreign brands
2. Deficiency of Labor forces in fashion design industry
Beside opportunities around, CANIFA needs to face up with the threats from
competitors in domestic and foreign brands. Many others brand name like
H&M, Mango from over sea or May10, Viettien can slow down the growth of
CANIFA. Other point of deficiency in fashion design force creates threat to
the long-term development of CANIFA. To superior the rivals, skilled
employees are needed to maintain or even improve the quality of products.
b. Recommendations
Product Line Strategy
Launch a new line of products (lingerie, shoes) or new line of materials (silk)
More attractive designs (still keep the basic), update the worlds fashion
trends
Pricing Strategy

12

Sell product just-in-time to reduce inventory cost, therefore reduce producing

cost
Distribution Strategy
Expand to oversea market through Trading agreements that government has
signed
Add horizontal marketing system
Marketing and Customer Service
Try celebrity endorsement

13

CONCLUSION
Made-in-Vietnam fashion products have become more preferable by
Vietnamese customers thanks to their good quality and materials, though
the designs have not been really diversified. Vietnam brands need to
strengthen competitive strategy to archive their competitive advantages to
compete not only with other domestic brands but also with foreign brands in
fashion market.
CANIFA, the brand with potential development need to craft and execute its
strategy to reach the vision being the first choice of Vietnamese consumers
for safe, high-quality and trendy casual wear.

14