A Hot Trend Sweeps Asia
Vincci Shoes Conquer ASEAN
One Malaysian fashion brand is ruling the hearts of ASEAN, with footwear as well-made as Western brands, designed with Asians in mind.
Vincci Shoes Conquer ASEANBy Monique Hou
From CommonWealth Magazine (vol. 434 )
With few exceptions, one must-have item on the shopping lists of Taiwanese women visiting Malaysia is a pair of shoes from the fashion brand Vincci, or VNC as it is also widely known in Southeast Asia. Comparable in quality to Western brands at a fraction of the price, comfortable to wear and chicly designed – that’s the consensus of consumers when it comes to Vincci footwear.
Vincci is the Malaysian brand that managed to become hot and shoot to popularity in Asia faster than any other label this year. Aside from shoes, the Vincci label also covers accessories such as bags and watches.
“The shape of Asian feet is different from Western feet. Also the climate in the subtropics is humid and hot, so shoes need to be light and airy. Here in the subtropics we can use more diverse materials. That’s Vincci’s niche in the ASEAN market,”Vincci footwear designer Verica Chen told the Nanyang Siang Pau, Malaysia’s major Chinese-language newspaper.
Domestic Demand Sparks Double-Digit Growth
The Vincci brand belongs to Padini Holdings, Malaysia’s largest listed company in the fashion business.
Padini began as a garment manufacturer and trading company in Malaysia’s apparel industry. To date, the company has built nine fashion labels ranging from street fashion, maternity clothes and kids’ clothing to shoes, bags and watches, sold at almost 200 branded outlets and department store counters. Padini brands, foremost among which are Vincci women’s shoes, have sales channels in Brunei, Cambodia, Egypt, India, Indonesia, Oman, the Philippines, Saudi Arabia, Syria, Thailand, and the United Arab Emirates. Padini is a classic example of an ASEAN behemoth.
Despite the worldwide recession, Padini's sales continued to grow at a double-digit rate in the first half of the year. Revenue totaled 99 million ringgit (about NT$890 million), yielding revenue growth of 17 percent and net profit growth of an astounding 235 percent. Over the past five years Padini’s revenues and profits have continued to grow at double digit rates, driven by a strong increase in internal demand within the ASEAN region.
Last year Padini posted revenue worth NT$3.45 billion, roughly on a par with Taiwanese notebook maker Twinhead International, which ranks 613th among Taiwan’s Top 1000 Enterprises, or Cathay Real Estate, no. 281 in Taiwan's service industry. Most of Taiwan’s companies would look at Padini’s 15-percent net profit with envy.
In its 2008 financial report, the company declared that it intends to step up its overseas sales and marketing especially in the ASEAN region, and expects revenue in the coming five years to grow faster than in the past five years.
Translated from the Chinese by Susanne Ganz
Chinese Version: Vincci女鞋 通吃東協十國