Market size of 60 billion yen, a blank price range.

■ Rising demand for high-quality baby and kids' products.
・Latest news: "Branshes enters Vietnam for the first time, expanding to two Aeon stores due to rising demand for high-quality baby and kids' products."
・Branshes, which manufactures and sells baby and children's clothing, "began full-scale sales of children's clothing in Vietnam in May. The brand is being rolled out within Kids Republic, operated by the Vietnamese subsidiary Aeon Vietnam."
・Sales will "start sequentially from two flagship stores: 'Aeon Mall Tan Phu Celadon' in Ho Chi Minh City and 'Aeon Mall Long Bien' in Hanoi."

■ Branshes targets local families.
・In Vietnam, "due to economic growth, demand for high-quality baby and kids' products is rising rapidly among the child-rearing generation, and Branshes is providing children's clothing that incorporates Japanese quality and trends to local families."
・The products handled "focus on a daily casual lineup that can be worn in everyday situations. They offer a wide range of color variations and silhouettes that can be enjoyed by both boys and girls, with sizes ranging from 100cm to 160cm. The reference price range is approximately 900 to 2,700 yen."
・Moving forward, "the company plans to analyze market reactions and customer needs at the two stores in Ho Chi Minh City and Hanoi, and consider expanding the number of stores in Vietnam. They also intend to proceed with product development specialized for the local climate and trends."

■ Market size of children's clothing in Vietnam.
・As an aside, when walking through the streets of Vietnam, one often sees colorful and cute clothing stores for babies and kids. The storefronts are decorated with soft-feeling fabrics and a rich variety of designs that make you want to buy them as gifts for someone.
・Let's look at the market size of children's clothing in Vietnam. According to data from research organizations (Euromonitor/Vyansa Intelligence, etc.), the Vietnamese children's clothing market has reached a scale of over 60 billion yen. Vietnam's GDP growth rate is extremely steady at 6.0–6.5% per year, and with the expansion of the middle class, the desire to "give children better quality clothing" is pushing the market up at a pace of over 10% year-on-year.
・Many of the products in circulation are made in China or use Chinese-made fabrics. Vietnam's sewing industry (the world's third-largest apparel exporter) is extremely active, but in fact, it relies on China for over 67% of its clothing fabric. Chinese textile technology has evolved dramatically in recent years, and fabrics supplied from the latest automated factories are often very soft, yet inexpensive, with excellent design and color development. The intuition I felt on the streets is likely due to this improvement in supply chain quality.
・In fact, strict safety standards are imposed on infant and children's clothing sold in Vietnam, not just in terms of appearance. Under Ministry of Industry and Trade Circular No. 21 (National Technical Regulation on Formaldehyde and Aromatic Amine Content in Textile Products), it is legally mandatory for textile products for infants under 3 years old to keep the content of formaldehyde, which causes skin irritation and allergies, to a very strict level of "30mg/kg or less." As a result, even clothing lined up in local shops is guaranteed a certain level of safety and quality.
・In the fiercely competitive Vietnamese market, where can Japanese apparel (like Branshes) find a winning position? Currently, the Vietnamese market is polarized between the "low price range (several hundred yen per item)" handled by traditional markets and individual shops, and the "high price range (5,000 yen or more)" developed by Western foreign brands. The price range set by Branshes, "approximately 900 to 2,700 yen," is close to the volume zone where leading local brands (such as Canifa and Yody) are positioned, and it is an exquisite price range for the expanding white-collar class (middle to upper-middle class) to buy "slightly better things" on a daily basis.
・Furthermore, under the Vietnamese Consumer Protection Law, the rights of Vietnamese consumers to demand transparency in product information and safe labeling are legally strengthened. The peace of mind that Japanese brands possess, such as "thorough inspection and needle detection" and "elimination of allergenic substances," which clear Japan's strict voluntary standards, may be the greatest differentiation as a "gift for someone else's precious child"—this is Branshes' path to victory. In the background, there is a strong gift culture in Vietnam of giving clothes for childbirth celebrations of relatives and colleagues, and for children's birthdays (such as International Children's Day). When I receive the good news that a friend has had a child, or when I meet friends with families after a long time, I feel that I would definitely like to include Branshes children's clothing as a gift option.