(Tiểu luận) report analysis of the managementenvironment of dirtycoins

For the shop employees, their main task is to help customers find suitable products and increase the revenue of the brand.. Furthermore, they aspire to go beyond the bounds of convention

NATIONAL ECONOMICS UNIVERSITY

REPORT ANALYSIS OF THE MANAGEMENT

ENVIRONMENT OF DIRTYCOINS

Teacher: Dr Đào Thanh Tùng

Subject : Principles of Management

Group 9 members:

Phạm Minh Đức 11221401

Trịnh Gia Linh 11223821

Phạm Vũ Ánh

Dương

11221628

Trần Đăng Khoa 11223013

Phương Đình An 11220062

Chung Chí Thiên 11226006

1 OVERVIEW ABOUT DIRTYCOINS 3

2 ENVIRONMENT IN DIRTYCOINS 4

2.1 GENERAL ENVIRONMENT 4

2.1.1 Political-Legal dimension 4

2.1.2 International dimension 5

2.1.3 Economics dimension 5

2.1.4 Sociocultural dimension 6

2.1.5 Technological dimension 6

2.2 SPECIFIC ENVIRONMENT 7

2.2.1 Customer 7

2.2.2 Strategic partner 8

2.2.3 Suppliers 9

2.2.4 Competitors 10

2.2.5 Regulators 10

2.3 INTERNAL ENVIRONMENT 12

2.3.1 Owner 12

2.3.2 Board of director 13

2.3.3 Employees 13

2.3.4 Physical Environment 13

2.3.5 Organizational Culture 14

3 ASSESSING ORGANIZATIONAL ENVIRONMENT 14

4 RECOMMENDATION 15

REFERENCES 17

1 OVERVIEW ABOUT DIRTYCOINS

DirtyCoins is a Vietnamese local brand that specializes in designing and 1 offering stylish merchandise There are numerous indigenous brands in the fashion industry in Vietnam, including well-known ones such as Levents, TeeLab, Outerity,

In order to succeed, DirtyCoins had its own goals and routes to take in order to become the largest local brand in the nation DirtyCoins was founded in 2017 with a prototype called The Yars Shop and focuses mostly on the GenZ (young generation) market in Vietnam It is a brand that strives for a powerful, confident look while remaining quite approachable Its merchandise combines elements of Western and Eastern culture with unique and creative design patterns To produce DirtyCoins' unique style, the materials for the goods are selected based on a number of factors in the flow of daily life and blended with inspiration from contemporary art

The three primary departments of DirtyCoins, which number in the hundreds, are as follows:

About supervision and human resources, they are in charge of creating the

work schedule and overseeing the management of the staff They also monitor the behavior of the staff, keep track of their sales, and do monthly evaluations Their main task is working on member recruiting and addressing issues that may arise for the staff In this department, there will be shop managers and shop employees For the shop managers, their main task is to manage their employees to work effectively and efficiently For the shop employees, their main task is to help customers find suitable products and increase the revenue of the brand

About the marketing department, working on public relations and partnering

with well-known brands They are in charge of promoting products on the store’s website and other social platforms such as Tiktok, Instagram, Facebook,

About the R&D department, they will distribute their money into different

parts.The department responsible for product management and inventory keeps track

of sales and reports to the marketing department on which products generate good or negative revenue They will check in on the shop's inventory count from time to time and ensure the products' quality and quantity They will be the people who find a third party to corporate in each project of the brand and in other production activities With numerous employees, DirtyCoins all dedicated to the slogan "showing personalities and contributing values to the streetwear culture.'' When all the employees work in a dynamic and collaborative setting, they are constantly creative Their goal is to assist DirtyCoins in overtaking other streetwear manufacturers in Vietnam Furthermore, they aspire to go beyond the bounds of conventional fashion brands in order to become a symbol of the culture and way of life of young

Vietnamese people

1Tổng quan về Dirty Coins

3

In 2017, DirtyCoins opened its first location; thereafter, numerous others sprung up all throughout the nation DirtyCoins won the WeChoice Award for Most Favored Fashion Brand in 2020 They also gained millions of Instagram and Facebook followers They had to close a few stores during the COVID-19 quarantine in order to reduce costs Their company made a strong recovery after the pandemic.2

In terms of the company's performance, during a nearly 1 year period from 8/2022 to 7/2023, DirtyCoins' total revenue was more than 100 million VND on e-commerce selling platforms Compared to the same period in the year before, this showed a tremendous increase with more than 30% decrease in revenue However, DirtyCoins is still in the Top 10 local brands with the highest revenue in this period 3

2 ENVIRONMENT IN DIRTYCOINS

2.1 GENERAL ENVIRONMENT

2.1.1 Political-Legal dimension

Regarding politics, DirtyCoins, similar to those Vietnamese, yet different from

other famous streetwear brands, has very little correlation with political issues since,

so far, they have had no intentions of showing where they stand politically

Take Supreme for example, on Nov 4, 2016, less than a week before the Election Day showdown between Hillary Clinton and Donald Trump, Supreme took to Instagram to encourage their followers to vote “This might be the most important decision of your life, make it count Go Vote Tuesday, November 8th,” 4

2Dirty Coins website: About

3Metric-Báo cáo áo Dirty Coins

4Supreme Endorses Hillary Clinton For President

Regarding legal, like any other industries, DirtyCoins priorities Intellectual

Property Rights (IPR) They stated in their Terms and Conditions that “All intellectual property rights (registered or unregistered), information, content and all designs, texts, graphics, software, images, videos, music, sounds, translator, source codes and softwares are our property The entire content of the website is protected by

Vietnamese copyright laws and international conventions Copyright protected.” To other legal aspects, DirtyCoins also clearly stated them in their Terms and Conditions

5on their website Moreover, DirtyCoins have made a mistake when using images from a famous artist without her/his permission The scandal related to stealing

@kingjediah's design from DC in 2018 is a lesson about copyright In order for customers not to turn their backs on the brand and also for DirtyCoins to develop in the domestic market, contributing to bringing Vietnamese fashion to a new level, DirtyCoins needs to raise awareness about copyright and put more "enthusiasm" into each of its products

2.1.2 International dimension

Though Dirty Coins is very popular among the Vietnamese younger generation due to their unique and stunning designs, they have not yet made many moves to promote their products to the international market The only thing that they have done

is establishing “worldwide shipping” service at the beginning of 2023 The service is 6 mostly for Vietnamese DirtyCoins overseas lovers and is hoped to have minimal impact on foreigners by the appearance of the product in their countries

2.1.3 Economics dimension

In recent years, the living standard of Vietnam has increased quite steadily despite Covid, which is great news to all businesses, including DirtyCoins Other statistics like the inflation rate or CPI have the tendency of slower increment According to the General Statistics Office of Vietnam, the average CPI in 7 months of 2023 will only increase by 3.12% over the same period in 2022 Base utilization increased by 4.65% over the same period last year, both down from the respective levels of 3.29% and 4.74% in the first 6 months of 2023 However, July CPI increased by 0 45% compared to last month; an increase of 1.13% compared to December 2022 and an increase of 2.06% compared to the same period last year 7

5Terms and conditions of DirtyCoins

6Dirty Coins : News

7 Xu hướng giảm dần của lạm phát, Tổng cục Thống kê (2023)

5

The youth of Vietnam (mostly genZ) also tends to increase their amount of expenditure on fashion, enhancing the rapid revenue boost of DirtyCoins 8

2.1.4 Sociocultural dimension

DirtyCoins does not only bring clothes but also brings the lifestyle of younger society, modern youth, mainstream hip hop and the underground community

As a Vietnamese brand, DirtyCoins has successfully adopted the modern style

of European countries into the Asia vibe to create a style that is refreshing to the underground community and to the Vietnamese GenZ society

With the widespread impact of the rap community via TV shows – Rap Viet and KOR; the preference of the younger society shifts towards the underground style more than ever before and DirtyCoins is one of those that satisfies the demand of the community

2.1.5 Technological dimension

During the past two decades, the world has marked a significant increase in the application of technology in operating on all convenient means Through the advancement of technology, hardware devices and the internet, Dirty Coins businesses are also gradually making more significant contributions to the economy than before Besides the technology that is used in the manufacturing process that helps their products to have medium to good quality that is sweat-absorbent, well

heat-preserved, etc, DirtyCoins has also utilized successfully the online media and trading platforms Technology has made it easier for businesses to handle daily operations accurately and stably It brings useful and intangible benefits to every business Communication activities between brands and customers are gradually shifting, with activities on social media replacing traditional channels in mind

DirtyCoins mostly focuses on social media with a large number of followers on

Instagram9 (the first streetwear brand to achieve 1 million followers in Vietnam)

In addition, Dirty Coins does not apply points accumulative for purchases on e-commerce platforms (Shopee, Lazada, Tiki); they only have this service on their website and those official social media platforms (Facebook, Instagram, Tik Tok)

2.2 SPECIFIC ENVIRONMENT

2.2.1 Customer

8Xu hướng tiêu dùng của GenZ trong thời đại công nghệ s ố, TNEX

9DirtyCoins’ Instagram

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DirtyCoins is a local brand with one main target is to become the top retailer of streetwear for Vietnamese people Since their clothes are made based on hip hop style, which is energetic and dynamic, suitable for the young generation

Their customers are people who are in the GenZ generation (who are born during the time of 1997-2012) They continue to divide their customers into two main groups based on their ages and their preference The first group is people at the age of

13 to 17, accounting for about 70% of sales The second group is people at the age of

18 to 23, accounting for about 20% of sales 10% belong to other age groups 10 For a number of reasons, DirtyCoins can be said to be successful in luring young people to purchase their items The first justification is that the fashion they select is inherently beautiful Young individuals today prefer grungy street style because they believe it helps them appear cooler to others As a result, DirtyCoins made the appropriate style and design choices that naturally capture the interest of the young

The second reason for the success of DirtyCoins is their direction for choosing

to become a local brand A local brand means that this brand serves a limited number

of customers based on their geographical location This also points out that the brand will understand how much their customer is willing to pay more for a product Customers always want to have cheap but high-quality products, however their willingness still changes based on their income DirtyCoins understand this point so that their price range just fluctuates between 150.000VND to 550.000VND, a flexible range for customers to choose11

2.2.2 Strategic partner

One important factor that contributes to the success of DirtyCoins is their partners There are two main ways that DirtyCoins choose to let their partners help them promote their image to the public The first way to utilize the fame of influencers such as rappers, KOLs or fashionistas As we can see, Hieuthuhai is a prime example12 for this case He chose to wear DirtyCoins from the beginning of King of Rap and after that he became a model promoting for this brand His fans and fans of the show also know more about this brand From the chart, the highest revenue was achieved in August 2022, at the same time when RapViet and King of Rap took place Following that, from September 2022 to November 2022, the revenue of DirtyCoins is still at a record high

10 Business Canvas Model, Duy An (2021)

11 DirtyCoins website: Shop

12 Giải mã độ hot của Dirty Coins, Saostar (2020)

(Revenue of DirtyCoins from 8/2022 to 05/2023 on every e-commerce marketplace) Another method that Dirty Coins also has partners from other areas such as gaming and animation There are two collaborations that are well-known to most DirtyCoins’ customers: One piece and GAM esport Collabing with One Piece, a famous manga that most young people knew about, was the biggest success that DirtyCoins had made Three out of five top products on e-commerce marketplaces that DirtyCoins sold last year belonged to One Piece collaboration 13

The same feature that both their partners have is that they are naturally attractive and well-known to the young so that the brand does not have to explain and use other methods to let their customers understand their collaboration When the customers see the collaboration, they will easily and immediately know what is going

on

13 Báo cáo áo Dirty Coins, Metric

8

2.2.3 Suppliers

Most local brands nowadays do not have their own textile factories They will hire a third party to help them in producing their products DirtyCoins do the same thing They choose Hop Phat textile factory to become their partner due to many reasons.14

Hop Phat textile factory themselves have been working with other famous local brands such as DVRK, LinLin Canvas, 5THEWAY, They have experience in making clothes and bags and they also upgrade their technique throughout the times to satisfy their partners

Hop Phat textile factory has modern facilities to work continuously without worrying about unexpected problems They also have policies to compensate if anything bad may happen Besides, they have employees well-qualified in designing that specialize in branding Moreover, employees of this factory also support their partners and as well as their customers 24/7 with enthusiasm

Hop Phat also has standard materials to produce high-quality products They make sure that their materials come from a clear origin and are checked before using

in the production process 15

2.2.4 Competitors

In Viet Nam, there are many local brands that are well-known to the youth In this section, we will analyze some features that DirtyCoins have to compete in this market

Regarding price, even though the price of DirtyCoins is not as expensive as

other famous brands, they are still thought to be expensive due to other unnamed shops For example, Underbroken shirts are quite popular on e-commerce markets with a cheaper price, about 81.000VND On Shopee or Lazada, they have a variety of clothes with prices ranging from only 50.000VND Even though their materials may

be shoddy, they are still favored by the young

Regarding design, it can not be denied that DirtyCoins’ clothing have special

and alluring designs, other local brands can also do this SWE is a typical example for this SWE is also a brand focusing mainly on streetwear, a redoubtable opponent to DirtyCoins Their designs are different from DirtyCoins, however they still impress people in a fresh way

14 Thời trang Dirty Coins hợp tác lâu dài cùng Hợp Phát

15 Hợp Phát website