Most recently, L.II.N Clothing, a womenswear brand with more than 1.4 million social media followers, announced it would close after more than a decade in operation.
According to its founder, the decision came after prolonged consideration and was not due to a loss of passion, but rather to fundamental changes in market conditions.
Earlier, Hanoi-based womenswear brand Her25 also officially announced the end of its 12-year journey. Many customers expressed regret in comments beneath the announcement.
Since late 2024, a series of Vietnamese fashion labels have exited the market. These include Lep in Hanoi, which ceased operations after eight years; Casta, which closed 22 stores after 13 years; and Ho Chi Minh City-based Edini, which shut down its everyday fashion line after 12 years.
Footwear brand Mot, along with fashion labels The Peachy and Hnoss, have also closed. A common theme cited by these brands is their inability to keep pace with rapid changes and the intensifying race to the “rock-bottom” price segment.
Sharing how to weather the storm of low-cost fashion, Hoang Chau, founder of Chautfifth, said the key lies in “value for money”, creating real value that justifies what customers pay.
Rather than chasing short-lived trends, the brand has opted to retain best-selling designs and upgrade existing styles, refining materials and colours to match consumer tastes while optimising costs. At the same time, it has diversified sales channels to reduce risk and avoid reliance on a single platform.
Chau stressed that quality is only the minimum requirement. To retain customers, brands must also deliver durability, practicality and a compelling brand story, not just visual appeal.
Le Hoai Viet, a lecturer at Ho Chi Minh City Open University, said Vietnamese consumers’ purchasing power remains strong but increasingly selective, with shoppers more willing to spend on value rather than volume.
He argued that to win customers, domestic brands cannot rely solely on design or materials. They need robust operations, sustainable financial strategies and clear positioning. Brands lacking a distinct identity are more likely to become saturated and disappear amid intense competition.
Meanwhile, the rapid expansion of e-commerce is adding further pressure on traditional fashion business models. Although Vietnam’s market holds significant potential, Viet said only brands with resilience, flexibility and long-term investment will be able to survive.
