Young Marketers Graduation - Canifa Repositioning - Nhóm 2

1. YOUNG MARKETERS
ELITE DEVELOPMENT PROGRAM
GRADUATION ASSIGNMENT

2. 2022: REVENUE 2,500 BILLION VND
2024 – 2026: 30% VALUE SHARE OF READY-TO-WEAR
FASHION FOR FAMILY/ALL IN VIETNAM
THE BRIEF

3. AGENDA
Category Audit
Competitor Landscape
Brand Audit
Customer Understanding
Brand Design

4. The
Fruitful
Market
To
Conquer
A fruitful market at Vietnam
VND183,172Bn | 8.7%
In value by 2023 | CAGR
Branded
19%
Unbranded
81%
Occupied by
Unbranded brands
Counterfeits
Only 1% by Canifa, 18% by other brands.
CATEGORY AUDITBrand AuditCategory Understanding

5. In
fashion industry,
LIFESTYLE
COMES FIRST
Quality and Price come
after in the customer
drivers for selection
CATEGORY AUDITBrand AuditCategory Understanding

6. Kido, Libe
PT2000
Blue Exchange
SEGMENTATION based on lifestyle
Unbranded / Counterfiets
PremiumMid-priceMstream
Formal,
Elegant
Massimo Duti, ….
Viettien, Owen: for male
(work)
Elise, Hnoss: for female
(work, party)
Thai Tuan: ao dai
Specific occasion (work,
party, …)
Performance wear
Sport, work-out
Basic
Casualwear
Local brand (SSStutter,
Routine, Ben & Tod)
Daily use
Fashionable
Casualwear
Pull&Bear
Mango
Stradivarius
Daily use
Trending fashion
Moschino
Kenzo
Party, special occasion,
“Dress for me” time
Local brands (PUSW,
SWE, Boo, …)
Ivy Moda
Yame
The biggest segments by frequency of use & common lifestyle are our appealing prize
Brand AuditCategory Understanding

7. While many play on fashion, only a few stands out with quality
Unbranded / Counterfiets
PremiumMid-priceMainstream
Basic
Casualwear
Local brand (SSStutter,
Routine, Ben & Tod)
Daily use
Fashionable
Casualwear
Pull&Bear
Mango
Stradivarius
Kido, Libe
PT2000
Blue Exchange
Daily use
• Crowded segment with too many brands
• Consumers tent to look for fashionable items & unintentionally
compromise quality
• Canifa is also performing in this segment as an affordable,
fashionable casualwear brand (POP) with good quality as POD
Fashionable Casualwear
• Only a few key competitors playing in this segment
• Consumers looks for basic, never-out-of-style clothing but only
Uniqlo offer quality w. Barier-free Comfort – new entrance
Basic Casualwear
SOG #1: Fashionable Casualwear
By uptrading unbranded/ alternative with quality
SOG#2: Basic Casualwear
By satisfying their needs for comfort as quality, at an
affordable price
Brand AuditCompetitive Landscape

8. Brand AuditBrand Audit
Brand root strength Business Performance Current Brand Idea
While “trendy” is at the core of Canifa’s fashion,
Canifa’s key weapon - woolen clothes has proven the brands’ quality as ultimate comfort w. affordability
With continual communications effort with Fashion Shows, the
endorsement of woolen product, & frequent promotion, Canifa built up
strong attributes of “trendy”, “for youth”, “quality” & “affordable”
Established in the North, the woolen clothes become
Canifa’s signature with ultimate comfort (soft fabric,
durable, body-fit form driven by advance textile tech).
Source: Q&Me Report, Domestic Brand, 2018
Woolen clothes – the signature Trendy & Quality are advantages

9. Brand AuditBrand Audit
New launch of fashionable foreign brands is
taking away Canifa’s share. Identified threat
of Uniqlo with proven quality.
Stably dominating Canfia’s business,
Kid is the only segment which is growing
given limited offers in the market
Endorsed by the woolen clothes, Canifa
maintains strong stand in the North. Yet the
lack of relevant offer with proven comfort
for the South hinders its growth
30%
27%
42%
1%
Menswear
Womenswear
0%
-3%
7%
Male Female Kids
Vol Growth 2018 vs 2019Rev. Contribution 2019Canifa Revenue 16-19
0%
50%
100%
2016 2017 2018 2019
Miền Bắc Miền Nam ONLINE
2017 2018 2019
Sales by region
South Rev vs Dis. Growth
Reinforce the growth of Kid Segment & Building up RTB
to convincing the nation-wide customers about our Comfort are key opportunities
Source: Canifa Sales Report, 2020
Brand root strength Business Performance Current Brand Idea
Slowing down
Business Performance
Key SOB
Kid Segment
Key SOB
The North – proven quality

10. Brand AuditBrand Audit
Brand root strength Business Performance Current Brand Idea
Dynamic Vietnam
Vietnam: smartly inject national pride in, clear brand ambition to win
nation-wide given core strength of wide distribution w. 100+ stores
Dynamic lifestyle is a generous offer which does not leverage on Canifa’s
advance technology in fabric design, as well as perceived quality from
woolen product line.
While speaking directly to the young about lifestyle,
“dynamic” is not emotionally appealing to the family segment
While strongly build up “fashionable casual wear” lifestyle,
the core brand strength – Comfort is diluted
The current positioning is still promising, yet
Comfort & emotional link with Family segment need to be reinforced for growth

11. Brand AuditKey Findings Summary
Key
Opportunities
Winning
Weapons
Strategic
Focuses
Promising SOG in fashionable
casualwear by converting/ up-
trading unbranded/ low-
quality-brand users
Aggressive reaction needed to
prevent Uniqlo/ other high-
quality foreign brand entrance
in basic casual wear
Proving superior comfort with
relevant offers with clear RTB
to the South
Kid segment is strong
traffic driver to win the
whole family
Ultimate Comfort by
natural fabric &
advance textile tech is
core POD
Perceived trendy
fashion & affordability
support conversions
1. Up-trading unbranded users by offering superior comfort as POD, with fashionable & affordable
as POP
2. Preventing new entrance by capturing quality-oriented customers with superior comfort at
affordable price
3. Continually build up fabric design/ textile technology innovation to strengthen brand RTB &
product offers across segments
4. Build up emotional link with the family segment to strengthen brand loyalty
Wide distribution
(100+ stores) enable
the accessibility to all
urban/ sub-urban
areas

12. The future
core customer segment15%
The
Early Gen Z
Dominant segment
Of Vietnam
Population
41%
The
Millennial
Family
Customer Understanding
• Age: 25 - 35
• Occupation: White-collar workers
• Income: ABC; Location: urban & sub-urban
• Married: just start building up a family and the 1st child
• Key decision maker who not only buy clothes for herself (30%), but mostly
her kids (50%) & husband (20%)
• Shopping every 1-2 months, basket size VND~1.5Mn - Price sensitive
• Prepare clothes for her kids based on development routine activities for
them to enjoy a day.
• Age: 18 - 24
• Occupation: Students, First Jobber
• Income: BC+; Location: urban & sub-urban
• Single/ in relationship
• Buy for themselves first
• Shopping every 1-2 months, basket size VND~500K-1Mn
• Reserved budget & stay tuned with new fashion trend
• Proactively engage with their professional/ hobby-based network; enjoyfully join other
extracurricular/ outdoor activities as progressiveness routine
CORE
PROMISING

13. Most performing activities during a day
is routine activities
10 hours working every day 8 hours of schooling, extra curriculum act.
2 hours of walking / transporting
Rough fabric design
cause my skin to be allergic
The unfitting clothes do not soothe
with your body type
Smelly, humid when in the outfit for
a while in day
In daily routine activities, there’re discomfort in clothes that don’t worth
happenning occasionally, which unbranded/counterfeits products cannot solve
2 hour of relaxing
Customer Understanding

14. Customer Understanding
These worthless discomfort around routine activities hold me/ my children back
from being enjoyful in each day of mine/ my kids
Insight

15. Functional Benefit:
Ultimate Quality to Remove All Worthless Discomforts
The softest fabric design
that feel smooth on skin
The innovative fabric/ textile
design that adaptively monitor
your body type
Natural materials
that support deodorization
Emotional Benefit:
Enjoyment in everyday routine
Product Feature:
Brand Offer

16. To Whom What needs Differentiated By
• Every member in the
young family, with
mom as key decision
maker (25-35)
• The early Gen Z (18-24)
• Urban/ Sub-urban
• BC+
Ultimately Comfortable
Clothes to remove all
worthless discomfort for
enjoyment in everyday
routine
• High-quality fabric
which make the clothes
feel soft & durable;
• Innovative technology
that make it adaptively
fit with the person’s body
type and weather factors;
and prevent other
burdens (smell, etc.)
• Affordability
Reasons to believe
• Fabric Technology:
developed from the
Vietnamese natural
materials, with advanced
technology
• Well-known Vietnamese
brand who understand
Vietnamese the most
Ultimate comfort for enjoyment
in everyday routine
Brand Positioning

17. Embrace enjoyment
in everyday routine
/ Eliminating worthless discomfort in clothes
For you to enjoy routine in life /
Brand Idea

18. Brand Key
Root Strength
Fabric Technology | Vietnamese understanding | Natural Materials
Competition
Unbranded/ Counterfeits
brands with fashion yet low
quality fabric, poor
experience.
Target
Vietnam young family,
urban/sub-urban 25-35 with
kids
Early Gen Z (18-24)
Insight
The worthless discomfort around routine
activities hold me/ my children back from being
enjoyful in each day of mine/ my kids
Essense
Embrace
enjoyment in
everyday
routineBenefits
Comfortable
clothes for the whole
family’s/ the young
enjoyment in daily
routine
Values,
Belief, Personality
Caring, family-oriented,
empathy, young,
open, adaptive,
innovative
Differentiator
High-quality fabric
from natural
materials; design to be
comfort with Vietnam’s
environment
Reasons
to believe
Advanced fabric
technology,
Vietnamese brand,
natural materials

19. Sell at least 01 item per month for
every member of urban/sub-urban
family in Vietnam
2022
2,500Bn Revenue
3.9% total family in Vietnam served
2027
24,960Bn Revenue
30% Mkt Share of family segment
14.7% total family in Vietnam
Business Ambition

20. Thank you!
Le Tuan Trung | Dam Minh Hieu | Huynh Tran Ngoc Hieu