This report outlines the critical dynamics between the USA’s leading retail brands and their Vietnamese garment suppliers throughout 2023. It focuses on the top 15 brands, their purchasing volumes, average price points, and supplier relationships. These insights provide a snapshot of the strategic sourcing and market positioning that underpin the denim apparel trade from Vietnam to the USA.
Denim imports from Vietnam to the USA have remained robust in 2023, with the top 15 brands accounting for 79% of the market share. [private_special]
Market Share Insights
The pie chart analysis indicates that American Eagle leads the market with 15.2% of the imports, closely followed by MGF Sourcing (which is sourcing on behalf of a number of brands ) and Target with 12.9% and 12.6% respectively. Torrid also claims a significant portion at 10.5%, asserting its strong market presence.
Levi’s, a brand synonymous with denim, maintains a notable 9.4% share, emphasizing its enduring appeal. The rest of the market share is distributed among brands such as Hidden Jeans (6.7%), Pacific Sunwear (6.2%), and Madewell shipments to their own brands (5.4%), down to Encore Jeans which holds the smallest share among the top fifteen at 2.9%.
Note: It is important to note that some buying houses like MGF buy in their own name and supply to other brands. Strictly speaking they are not final buyers.
[private_special]Note: This report only reflects the shipments that were made to United States. If any shipments were made by these brands to other destinations, they would not be covered here.
Purchasing Analysis of Top USA Companies Buying Denims From Vietnam
Introduction
The denim trade between Vietnam and the USA continues to thrive, with key players making significant purchases throughout 2023. The following is an analysis of the purchasing behaviors of these top USA brands, quantifying their transactions in terms of volume and value, and providing insight into their average expenditure on denim apparel.
Volume and Value Overview
- American Eagle: With the largest volume of denim imports, American Eagle has purchased 19.5 lakh pieces, amounting to a total import value of $22.3 million. This indicates American Eagle’s strong market presence and consumer demand fulfillment strategy.
- MGF Sourcing: Following closely, MGF Sourcing has imported 16.6 lakh pieces with a higher total value at $24.15 million, suggesting a premium sourcing strategy or selection of higher-end denim products. It needs to be remembered that MGF works for various brands and therefore they are not final consumers. They normally work for AEO, Express, Target and other brands.
- Target: Target procured 16.2 lakh pieces valued at $12.22 million, positioning itself as a value-focused retailer with a significant volume of denim imports.
Average Price Point Analysis
- Madewell: Standing out in terms of the average price, Madewell’s purchases average at $19.22/piece indicating their positioning in the premium segment of the market.
- J Crew: On the higher end, J Crew shows a substantial average price point of $18.41/piece reflecting their strategy to procure premium denim apparel.
- Target: With one of the more cost-effective strategies, Target averages at $7.5/piece demonstrating their focus on value for their customer base.
Key Insights
The data reveals that while American Eagle leads in volume, MGF Sourcing leads in value, indicating different strategies among the top buyers. The average price points range significantly from $7.5 to $19.22 per garment, showcasing the diverse market positioning from value to premium segments among these brands.
Analysis of Garment Suppliers for USA’s Top Retail Brands
Introduction
This section provides a detailed analysis of the relationships between USA’s top retail brands and their garment suppliers from Vietnam, focusing on the volume and average price points of the denim apparel procured in 2023.
Note: YDVL is the Crystal Group , Gatexim is Saigon 3
Supplier Contributions
- Hualida Thai Binh and Yi Da Viet Limited for American Eagle: Hualida Thai Binh supplied American Eagle with a significant quantity of 16.71 lakh pieces at an average price of $11.13 per piece. Yi Da Viet Limited supplied a smaller quantity of 2.12 lakh pieces but at a higher average price of $13.44 per piece, indicating a mix of volume and premium sourcing strategy.
- Gatexim and Phong Phu for MGF Sourcing: MGF Sourcing sourced 8.22 lakh pieces from Gatexim at $13.9 per piece and 7.73 lakh pieces from Phong Phu at a higher average price of $15.38 per piece, again suggesting a strategy focused on quality and premium positioning.
- Tp Group and Yi Da Viet Limited for Target: Target worked with Tp Group for a supply of 9.31 lakh pieces at an average price of $4.97 per piece and with Yi Da Viet Limited for 1.64 lakh pieces at $8.84 per piece, balancing between high-volume value procurement and selective premium purchases.
- Phong Phu for Torrid: Torrid exclusively sourced from Phong Phu, with 13.04 lakh pieces at a consistent average price of $13.88 per piece, indicating a focused strategy on a singular source that meets their quality and pricing requirements.
- Yi Da Viet Limited for Levi’s: Levi’s, known for its premium denim, sourced 12.16 million pieces from Yi Da Viet Limited at a higher average price of $9.12 per piece, affirming its commitment to quality and brand reputation.
Key Insights
The analysis shows a diverse range of sourcing strategies among the top USA brands, with some opting for high-volume procurement at competitive prices and others focusing on higher-priced, premium-quality denim. The choice of suppliers and the average price points paid reflect each brand’s market positioning and customer base.
In 2023, the collective efforts of the top 15 USA retail brands have culminated in a significant share of denim apparel imports from Vietnam, with a total purchase volume of nearly 12.9 million pieces. However, the actual quantities will be much higher given that many smaller exporters are not considered neither are other brands. [/private_special]
