A research on domestic market development strategy of Thai Tuan textile& garment company in global crisis context

19 CHAPTER II: ANALYSIS OF DOMESTIC MARKET DEVELOPMENT OF THAI TUAN TEXTILE & GARMENT COMPANY .... 52 CHAPTER III: SOME SOLUTIONS CONSTRUCTION AND DEVELOPMENT STRATEGIES OF DOMESTIC MARK

GRIGGS UNIVERSITY

Global Advanced Master of Business Administration

CAPSTONE PROJECT REPORT

HCMC - 2011

Class GaMBA01.C0509 Group No 4:

LE KHANH DAT

LE MINH HUY DANG THANH TUNG MAI KIM TRUC

NGUYEN THI HONG NHANH

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ACKNOWLEDGEMENT

To complete this capstone project report, our group, group No 4, wants

to say thanks to all teaching and office assistant staffs of Center for Educational Technology and Career Development (ETC) of Hanoi National University who provided convenient conditions for us to pursue modern knowledge of business administration Moreover, they support us so much to complete global advanced master of business administration program successfully

Beside, group No 4 also sends warm thanks to cooperative program assistants at ETC center at Ho Chi Minh City (GASA), all colleagues of GaMBA01.C0509 class have paid so many attentions, contributed and supported ideas to our capstone project report

Finally, we want to say thank to board of management of Thai Tuan Textile and Garment Company who supported and provided important material and data of their company which we can use to complete this capstone project report

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TABLE OF CONTENT

Acknowledgement 2

Table of content 3

list of table 7

Introduction 8

CHAPTER I: THEORETICAL FUNDAMENTAL OF DOMESTIC MARKET DEVELOPMENT ON TEXTILE PRODUCTS 11

I Some issues of strategic management theory and market development 11

1 Some strategic management theories 11

a Strategy concept 11

b Strategic management concept 12

c Basic strategy models 12

2 Some basic concepts of consumer products market 12

d Product consuming 12

e Market development 13

3 The role and importance in the marketing of products, market development of the business: 14

4 Some strategies to penetrate and develop markets 16

a Products Development 16

b Customers Development 16

c Market development in geographic scope 16

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II The global economic crisis and the global textile industry crisis 17

1 The world market 17

2 Domestic market 18

III The need for strategic planning to develop the domestic market 19

CHAPTER II: ANALYSIS OF DOMESTIC MARKET DEVELOPMENT OF THAI TUAN TEXTILE & GARMENT COMPANY 20

I Introduction of Thai Tuan Textile Joint Stock Company 20

II Business situation of garment industry: 20

III Business situation of Thai Tuan Textile Joint Stock Company 22

1 Productive ability 23

2 Corporate Governance 24

3 Trademark 24

4 Marketshare 25

5 Products 25

6 Achievements 26

7 Competitors 26

IV The Situation of domestic market development of Thai Tuan Textile JSC (Business results) 27

V The successes and limitations of Thai Tuan Textile Company in the development of domestic market 29

VI The advantages and difficulties in developing domestic market, Thai Tuan Textile Company 33

1 External factor evaluation matrix 33

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a Opportunities (O) 33

b Threats (T) 35

2 Internal Factor Evaluation 39

a Strengths (S) 39

b Weaknesses (W) 41

VII SWOT Matrix 42

1 Use strengths to capture opportunities (SO) 45

2 Use strengths to overcome Threats (ST) 46

3 Overcome weaknesses to take advantage of opportunities (WO) 49 4 Minimize weaknesses to avoid threats (WT) 49

5 Quantitative Strategic Planning Matrix - QSPM: 50

VIII Conclusion of chapter 2 52

CHAPTER III: SOME SOLUTIONS CONSTRUCTION AND DEVELOPMENT STRATEGIES OF DOMESTIC MARKET THAI TUAN TEXTILE & GARMENT COMPANY 54

I Opportunities and challenges for Thai Tuan Textile Company in the development of domestic market 54

II The solutions to develop domestic market of Thai Tuan textile company 57

1 Product strategy 57

2 Selling price strategy 58

3 Contribution strategy 59

4 Promotion strategy 60

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5 Human Resource Strategy 60 III A number of recommendations and proposals for Thai Tuan textile company 61

1 The group of solutions to develop, complete production and

improve product quality 62

2 Group of solutions to consolidate and expand market 62

3 Group of solutions to consolidate and brand positioning 63

4 The measure of human resource development and training and attracting talent 63

IV Conclusion of chapter 3 65 References 67

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LIST OF TABLE

Table 1- Data and forecast production and import and export of textile and

garment of Vietnam in the 2006-2013 period 21

Table 2 - Summary of business activities 27

Table 3 - External factor evaluation matrix 33

Table 4 - Internal Factor Evaluation 39

Table 5 - SWOT Matrix 45

Table 6 - Current import clothing supplement data in 2002 - 2007 54

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INTRODUCTION

In economic integration and opening up, businesses have to confront numerous difficulties Strategy and market development is also an especially important step for the business enterprise The Vietnam Textile and Apparel companies are actually integrated into the world market mechanisms very challenging opportunities and, in conditions no longer supported by the state

Textile industry has always been a leader in the industry, has an important role in the strategy of export of Vietnam to the world market It serves the essential needs

of man, and the industry work to solve many of society The export growth rate is high, textile industry has made no small contribution to export growth chemistry

In recent years, the garment industry has overcome difficulties in a spectacular way, one of the industry-leading export nations Entering 2010, the garment enterprises have identified the 'door' opened

Activities in the field of fabric and clothing manufacturing, fashion Corporation Thai Tuan Garment and Textile (Thai Tuan Textile & Garment Corp.) is known as one of the leading textile enterprises providing textile products and services fashion

in Vietnam

Established in late 1993, Thai Tuan incessantly expanding manufacturing operations of its business from the construction of textile factories, workshops, plant dyes to the establishment and development expenditure Branch, Showroom system, the center of fashion and sewing workshops To date, Thai Tuan has 3 branches, eight showrooms, more than 3,500 agents and 300 distributors spread across the country

Along with expanding investment and production activities - business is the development of powerful computer facilities and equipment, especially the increase

in human capital Besides enhancing the transfer of advanced technology from

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Japan and Europe, human resources are focused on development of Thai Tuan expressed considerable number of the company's staff of about 1,300 people to date compared to first time only 30 people

For years, companies have contributed to the richness and diversity of the market with many models and types of products, typically the product line silk, Silk Elastic, non-elastic, voiles, high-quality materials level for girls branded LENCII many customers are known and trusted, especially the high-end products such as digital print, embroidery and silk

Besides, Thai Tuan also has launched fashion label luxury apparel available SILKI with designs costumes and walk around the family for young women and middle-aged In developing its strategy, Thai Tuan undertakings "Get the local market as the foundation and promote development through export." To ensure product quality to meet market demand for both domestic and export, Thai Tuan continuously and producing innovative designs, new fabrics to satisfy customers Thai Tuan's orientation to 2010 "will become the company offers clothing fabrics and top fashion in Vietnam" and beyond - to become a corporation specializing in providing services and fabric top fashion district Asia in the future

With the criterion "Customer is the existence of the Company In production, get quality criteria In business, cooperation has mutual benefit On foreign policy, placed on top of trust ", Thai Tuan always put the interests of customers to the forefront and always respect the relationship of cooperation in business

Over the past 15 years, Thai Tuan efforts in production and business activities, needs and bring added value to customers, participate in organized programs and activities concerned community and social

With the enthusiasm of business owners along with the contributions and attachment of the collective enthusiasm of officials and public employees, Thai Tuan was honored with the Labor Medal Third, a lot of merit from the Prime

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Government, the awards are prestigious and quality brand products by state institutions and society to recognize the title "Vietnam Golden Star", "Vietnam High Quality", "Strong Brands Vietnam "," typical enterprise Vietnam Textile and Garment Industry."

Strategy, a word of military origin, refers to a plan of action designed to achieve

a particular goal In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while strategy is concerned with how different engagements are linked How a battle is fought is a matter of tactics: the terms and conditions that it is fought on and whether it should be fought at all is a matter of strategy, which is part of the four levels of warfare: political goals or grand strategy, strategy, operations, and tactics Building on the work of many thinkers on the subject, one can define strategy as "a comprehensive way to try to pursue political ends, including the threat or actual use of force, in a dialectic of wills – there have to be at least two sides to a conflict These sides interact, and thus

a Strategy will rarely be successful if it shows no adaptability

Business perspective: match the capacity to make a difference and the external environment

Quinn (1980): "Strategy is a pattern or plan to integrate the major goals, policies, and action sequences into a cohesive whole is a strictly"

Johnson and Scholes: "Strategy is the direction and scope of an organization in the long term to gain a competitive advantage for organizations through the format

of its resources in a changing environment, to meet market demand and satisfy the expectations of stakeholders”

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b Strategic management concept

Definition: Strategic Management is a set of management decisions and actions determine the long-term performance

Duties:

 Create a vision

 Set goals

 Develop strategies

 Implementing and operating strategies

 Evaluate and adjust

c Basic strategy models

The mission and purpose  external analysis (opportunities and threats)  select and build strategies within  Analysis (Find resources capabilities and core competencies)  Business Strategy  global strategy firm strategy  Making changes strategic fit strategy, structure and control organizational structure 

design control strategy function

2 Some basic concepts of consumer products market

d Product consuming

Products comsuming is the final stage of production process, is crucial for the existence and development of the business Product consumption is the purpose of producing goods, is getting the product from production to consumption places It is the circulation of goods, intermediate bridge between a manufacturer and distributor

of consumer and one side Adapt to each management mechanism, the consumption

of products are managed by different forms

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In the economy centrally planned, state managed primarily by economic imperative The administrative intervention into economic production and business operations of enterprises but do not take responsibility for their decisions The problem of production such as: Manufacturing what? How? For whom? All state regulations, the consumption of products is the only organization to sell goods produced on schedule and prices fixed in advance

In the market economy, businesses themselves must decide three issues important to the production of consumer products need to be understood in the broad sense and narrow sense Broadly, consumption is an economic process includes many stages from the market research, identify customer needs, orders and production organization to the organization of professional sales, contact sales process the purpose of achieving the highest efficiency

In strict sense, consumption goods, labor services, moving services is the product of ownership of goods, labor services, services performed for customers and collect money or goods to be sold to collect money

After that, enterprises must identify the target market (defined market segments, target customers, sales growth is expected and desired .) Then make a new approach for each customer they aim to target (for each of the buyers will have different buying behavior, there are many factors governing the purchase decision )

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After identifying clear client goals, approaches; the enterprise must provide the roadmap and achieve the expected results if the execution of that approach This is important because it will help enterprises make timely adjustments tactical, even strategic adjustments to match the corresponding actual habits, buying behavior of customers to target enterprises

In business as well as in scientific research, success does not necessarily have to

do right from the beginning Success will come to those who do wrong but just realized the wrong fix continuously until the first method is correct

3 The role and importance in the marketing of products, market development of the business:

Product consumption plays an important role, determining the existence and development of the business When the product is consumed by the enterprise, ie it was accepted by consumers Consumption of the products shown in the enterprise sales, business reputation, quality of products, the adaptation to the needs of consumers and the perfection of the service activities In other words the sale of products reflects fully the strengths and weakness of the business

Product consumption as a basis to develop plans for what to produce, produce much volume, how the quality If not based on consumption in the market that produces massive, regardless of their consumption will lead to dull excess, unsold products, causing delays in production, leading to risk of bankruptcy Also decided

to sell their products the supply of inputs through production

Consumption activities is crucial to the operations of businesses such as market research, investment in equipment procurement, property, production organization, the circulation If the service does not consume the product will not be possible to reproduce the process, because business will not have the capital to carry out business activities mentioned above

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Marketing of products to help businesses recover funds, cost recovery and profit

It helps enterprises have the resources necessary to perform subsequent reproduction, the consumer will be well organized motivating factor production and increased turnover of capital Therefore consumption of products was conducted as well how much the business cycle much shorter, the faster capital turnover, the higher efficient use of capital

So in addition to highly profitable measures to reduce production costs to enterprises to promote the sale of products, increasing the volume of freight traffic, increasing sales Speeds as high consumption of products, time products are in circulation is declining which means that will reduce circulation costs, transfer costs, inventory, storage, loss, loss etc create conditions for enterprises reduce product costs and selling prices, increase competition and ensure the expected profit

The process of market development strategy also requires businesses to understand the engine of choice and the factors favored customer in the market, through which discovered the basis of competitive advantage, helping companies industry sees opportunity in the market through the analysis of the needs of each customer group That may offer similar product but with different uses, different packaging, different price, etc to cater to the different needs of different customers

More importantly, by identifying themselves a niche market segment, will easily lead to successful strategies for the enterprise market based on the capability and real advantage of the business suit needs of the market Conversely, if companies choose the wrong market, the strategy is a theoretical or always difficult to implement successfully, because businesses can choose a market too big for their ability , or a market that require the most urgent, most decisions of customers, the enterprises are not able to respond better than other competitors

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The strategy of the enterprise market is also the basis for enterprises to identify and assess the market, it helps businesses track the market performance, judging the

changes in future market needs to catch up market

4 Some strategies to penetrate and develop markets

a Products Development

New products are an important factor in the development and survival of the company Due to ongoing market facing stiff competition, with constantly changing needs of clients and with the advances in technology, so a company must have a strategy to launch new products as well as improving the existing products in order

to stabilize revenue

b Customers Development

Once the company has built good relationships with customers are viewed as costs to attract customers initially were no more If you do a good job of retaining customers, the company will inevitably lose some customers, but certainly not the company will start with a "cast net" new Next challenge is to expand the number of profitable business with existing customers You can call this activity is to develop

or expand your customer profitability

c Market development in geographic scope

The purchase amount is too large, too spread out geographically, and needs to buy their products too varied To the enterprise, the ability to meet the needs of their

markets are also different because they differ in capacity and expertise

So, instead of spreading the capacity to serve all the market needs, each enterprise should determine for themselves a share of the market they can serve best, most beneficial Most businesses today have left the overall market strategy, they began to market-oriented selection Thus, there may be market segments they

market demand

II The global economic crisis and the global textile industry crisis

1 The world market

Textile industry in the world today are affected by the buyers rather than producers, and retailers of textiles and garments in large economies of developing leading buyers such as Wal-Mart, Sears, JC Penny, Liz Claiborne and Gap holding a key role in promoting the development of the market

Since early 2009, many developing economies no longer apply quotas on imported textiles However, these regulations exist that many WTO members to implement anti-dumping actions, and expected number of these actions continue to increase

The credit crunch, the dwindling demand and strong competitive pressure on the market has caused a huge range of textile companies in many countries fall into bankruptcy, closure or temporary or permanent production Business perfunctorily Therefore, employment levels in the global textile industry has declined

On the global textile market, China is still a major force, but not without competitors China remains the largest textile and garment exports in the world The end of quotas on textile and apparel imports from China to major markets like the U.S and Europe is important, however, the higher wages of workers and the yuan

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rise prices has made Chinese textile products are no longer attractive in price as before Many commercial sources of analysis that the textile exports of China are expected to fall 15% this year Many countries other textile and apparel exports have lower labor costs, China as Bangladesh, Sri Lanka and Vietnam have started to expand market share Besides, many large import market in the world such as USA,

EU and Japan also wants to reduce the dependence of textile and garment imports from China and has moved into the cooperation in other Asian manufacturers Early third quarter of 2009, the decline of textile and garment retailers across the developed world has hit bottom, and the market is expected to recover in 2010 In

2008, the amount of global textile market is worth approximately 460 billion and estimated to reach $ 700 billion in 2010 Achieving a sustainable recovery, three things have in the textiles sector in particular and other sectors generally increase profits, global market recovery in demand and prices

2008, exports from the landmarks difficult to pass $ 9.2 billion More worrisome, the worse evolution of global markets, the growth of textile industry 2009 - 2010 will be very difficult Consequences of the crisis will not only in 2008 that lasted longer if not good policy for investment and production

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III The need for strategic planning to develop the domestic market

- With 87 million people and 4 million visitors each year, the domestic market are textile and garment enterprises towards the Vietnamese, in the context of economic recession and exports difficult However, after years

of outward, the task now dominate the market, which was not simple

- Gold Population - the young generation takes high proportion

- Vietnam Economic growth in many years, the shopping needs of residents has been increasing

- Strong domestic market bases and is developing a foreign market

- Rapidly changing needs of the young generation and the competition of foreign goods such as market-opening provisions of the WTO should have strategic planning to develop the domestic market and expand export

markets is a step steady and consistent

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DEVELOPMENT OF THAI TUAN TEXTILE & GARMENT COMPANY

I Introduction of Thai Tuan Textile Joint Stock Company

Thai Tuan Textile Company is one of not many textile companies have developed strategies and products dominate the local market very early Since it was founded in late 1993, Thai Tuan continuous efforts to expand production and business activities from the construction of textile mills, dyeing, sewing, developing distribution networks, branches, Showroom system and abroad Growth in sales

and distribution channels average 15 - 20% over a year

II Business situation of garment industry:

Vietnam's garment industry has made remarkable progress in recent years Textile and apparel exports of Vietnam also achieved growth results are quite impressive In this article, we will analyze the strengths - weaknesses and opportunities - challenges ofVietnam's garment industry in recent years

Vietnam's garment industry can avail a number of strengths First, the equipment

of the garment industry has been renovated and modernized to 90% The products have a better quality and more difficult markets like the U.S., EU, and Japan accepted

Besides, the textile business has built up a relationship more closely with importers, many large corporations in the world consumption Firms themselves are also customers in Vietnam evaluated as advantages in labor costs, skills and good computer skills

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Table 1- Data and forecast production and import and export of textile and

garment of Vietnam in the 2006-2013 period

Source: BMI (7/2009) (www.businessmonitor.com/)

Finally, Vietnam is highly appreciated by political stability and social safety, attractive for traders and foreign investors that Vietnam itself is actively involved in economic integration region and the world also expanded market access for exports

in general and textile and garment exports in particular

III Business situation of Thai Tuan Textile Joint Stock Company

Return to 2010, despite the many difficulties and challenges, but has been the positive signal for the Vietnamese textile and garment sector in general and in particular of the Corporation The biggest challenge export market of textile apparel industry will have plenty of stiff competition from countries such as China's strong exports, India, Bangladesh

However, the corporation has been striving to fulfill the plan targets within 06

months of 2010 following specific:

Compared Actual / Budgeted

vnd

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2 Earnings

before tax

Million vnd

and DEPUTY DIRECTOR

Mr Su Quoc Tuan

Thai Tuan Textile & Garment Company has 3500 retail outlets The products are variety on types and styles of fabrics and casual clothing brand which dominated the domestic market and meet the needs of domestic consumption and export Deputy Director of Thai Tuan Textile and Garment Company, said: "To create products with high distinction, we have improved the investment in technology, equipment, focus resources and develop the domestic market and create favorable conditions for sustainable business development."

The fundamental basic to achieve this is to invest in building new factories to produce high quality products meet international standards, invested in building a modern factory with Japanese technology Copies, to expand the distribution system

at home and abroad, has gradually developed its own brand on the international market, product quality control management system, ISO9000 international quality,

2 Corporate Governance

- Strengthening the management, conduct organizational restructuring, reorganizing departments, merging firms produce under the motto "Compact, efficient and specialized."

- Applied strictly to the comprehensive saving measures, particularly the cost of production, consumption costs Perform well the administration costs

- The application of new technologies in production technology Lean methods from 2008 to now make the effect of labor productivity improved markedly (average increase of 20% compared with before)

- Implementation of intensive investment in machinery and specialized equipment to replace many workers use the same time meet the increasing quality

of customer

3 Trademark

But deeper with ordinary customers, but the Thai Tuan took pains to insist the quality is top competition criteria Thai Tuan provide only quality fabric is tested, committed no skin irritants Thus, the Thai Tuan fashion overcame prejudice

"criticism" of Vietnam

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Thai Tuan pays great attention on cultural factors such as each region, the habit

of dressing to make the product best suited to the tastes of consumers in Vietnam Especially the size factor, the design of products tailored to the size and style of Vietnam THATEXCO promote fashion products designed to enhance the value of the product, brand building for many consumers in many different segments The product's brand THATEXCO is present in all distribution channels from modern stores and agents with the uniform design to consumers easily identified

4 Marketshare

Thai Tuan Textile Company is the most successful enterprises dominate the local market, many years, companies have implemented development strategies with local market growth to 40% Apart from three branches, eight showrooms, more than 3,500 agents and 300 distributors spread across the country, companies are continuing to expand and develop distribution channels, bringing the product into the trade center Besides the construction of chain stores, the exclusive agent to sell their clothing products, Thai Tuan also coordinate with other apparel stores with distribution of garment products to Vietnam consumers hands a wider population

5 Products

Thai Tuan brand name is easy to detect in domestic market, notably in the

products that our competitors do not focus on Thai Tuan is the first company which introduced new products to the market such as silk printing digital (in texture,

pattern, digital), printing products vignettes for each shirt, single product Thai Tuan Textile & Garment Company has unveiled its products to be excellent silk, brocade posture, acetate spandex, silk three-color, two-layer veil, veil and silk Taffeta non snow

Some fashion brandnames controlled by Thai Tuan Company are THATEXCO: SILKI, LENCII, SOSSHI, HAPPINESS, MENNI’S focus on different customers

games

6 Achievements

 ISO Certification 9000:2000

 Certificate of main industrial products HCMC

 The award of Vietnam High Quality Goods chose by consumers eight consecutive years

 The title of Brand Vietnam, Vietnam Trademark id most Favored

 Vietnam Gold Star Award…

7 Competitors

The domestic textile enterprises: Vietnam Progress, May 10, Nha Be, Phuong Dong, Vietnam Thang Hanosimex, Success competitive in a position to support the goal of "contributing to the overall growth in revenue and profit margins of the Vietnam Textile and toward domestic consumption,

"the companies selected for their strengths and fine products with particular characteristics to coexist and to stand together on the domestic market For example, Thai Tuan is proud to lead the product brocade, silk, silk

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especially products with cool features, anti-wrinkle, elegant traditional uniforms for girls of Vietnam, Vietnamese floating known for the fabrics and work shirts for men;

Competition in their home for Chinese textiles and clothing: Fabric China now account for 60% of the domestic market, if import duties are calculated, Chinese cloth fabrics in the country just over a few thousand dollars / m, while the models much more diverse Dealing with cheap textiles and clothing is rampant today, for Thai Tuan's book in particular and the U.S textile and apparel enterprises generally have emphasized the technological elements to create high quality products, but also balance the competitive price as the call of Vietnam Textile and Garment Association, "Vietnam enterprises have to turn yourself into a manufacturer, designer, rather than the process, and prices for product is not the deciding factor”

IV The Situation of domestic market development of Thai Tuan Textile JSC (Business results)

Table 2 - Summary of business activities

14 Earnings before tax 19,225,539,147 41,892,688,660

15 Corporate income tax 5,639,603,584 10,852,516,527

16 Deferred corporate income tax (644,377,237) (18,188,992)

16 Earnings after tax 14,230,312,800 31,058,361,125

Source: Income statement report 2010 - www.thaituanfashion.com

Those can be implied:

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Global sales of Thai Tuan Textile Company to reach 537,368 billion, up 19.68% over 2009, exceeding 17% compared to the proposed plan Net profit reached 199,226 billion, 0:54% reduction compared with 2009, down 10% compared to the plan Domestic sales reached approximately 20% increase over 2009, exceeding 8% higher than planned Labor income increased

V The successes and limitations of Thai Tuan Textile Company in the development of domestic market

Not only focus on exports, the Vietnam's garment enterprises are actively back from exploiting the potential domestic market Response by the campaign "The priority for Vietnam of Vietnamese", in 2010, revenue from domestic market continues to grow, reaching approximately 15,364.6 billion, up 20% compared to

2009 In particular, the units have domestic sales accounted for a large proportion of Phong Phu Corporation, Fashion Trade of Vietnam Limited Liability Company, May Viet Tien Company, Viet Thang Garment Corporation, Nha Be Textile Company…

Thai Tuan Textile Company is one of not many textile companies have developed strategies and products dominate the local market very early Since it was founded in late 1993, Thai Tuan continuous efforts to expand production and business activities from the construction of textile mills, dyeing, sewing, developing distribution networks, branches, Showroom system and abroad Growth in sales and distribution channels average 15 - 20% per year

So far, in the domestic market, Thai Tuan has three factories, three branches in Hanoi, Da Nang, Can Tho, 10 showrooms and over 300 distributors and agents provide more than 3,500 retail outlets spread all over the country Especially, in

2009, although Vietnam's economy had been affected by the global economic downturn but the company had still been outstood the target

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Clearly identify the customers that the company is targeting women 22 - 45 years, the company has shaped the current key products such as Jacquard Fabric, Plain, brocade, silk, silk, Silk shirts, voiles made from polyester, spandex, viscose, with advanced production technology transferred from Japan and Europe Therefore, Thai Tuan fabrics are preferred to local consumers and appreciated Besides, Thai Tuan also proved very nimble in seizing the psychological customers when deciding to make products available to the fashion apparel brand ROSSHI, senior brand SILKI costume includes sample work Family and costume designs bring chic, elegant Tuan Thai market supply school uniforms collection of dress materials high marks LENCII impressive style, personality, and striking and luxurious brands in White for the old American student

Not only the ambition to conquer the local market, Mr Quoc Tuan, Deputy General Director, said Thai Tuan's orientation in the coming years will become the Group has a strong brand in providing products and services fabric domestic and international fashion Thai Tuan basis for achieving this is to invest in building new factories to produce high quality products meet international standards, to expand the distribution system at home and abroad, gradually building own brand on the international market, product quality control management system, ISO9000 international quality, ISO 14000, SA8000, 5S, team of more than 1400 staff members are trained in and foreign professional to work now the rate of export sales accounted for 45% of the total revenue of the company

In the context of increasingly fierce competition of the goods both at home and abroad, to survive and develop, Thai Tuan has released research quality product line, which is distinctive from the competition high and increasing human emotion, friendly environment The company has built research centers and product development with nearly 100 employees, including 50 designers, research and technology Thai Tuan has launched in to market 100 new products with nearly 2,000 patterns per annum The company also offers business philosophy is very

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specific: in production get quality criteria, the business cooperation of mutual benefit and trust placed on foreign policy priority Thai Tuan Textile Company has well aware of the responsibilities of a business community and society As soon as the organizers launched the program "Accompanying textile business because island people of the Fatherland", the company has registered to participate right from the first day According to Thai Tuan, participate in programs that help empower people to protect soldiers on the night sea air of the country

To develop the domestic market, domestic textile enterprises encountered some difficulties:

 Firstly, to sell product at domestic market, enterprises have to open their own stores or sell through agents Financial burden in the form of storage and distribution channels, with the spread of contraband and pirated goods are too large for the textile and garment enterprises in Vietnam

 Secondly, Vietnam's garment industry depends so heavy on imported raw materials, mainly from China With nearly 70% of raw material imports, the textile business Vietnam was not active in production

planning and manufacturing resources to cater for export and domestic consumption

 Thirdly, Vietnam's garment enterprises will be fiercely competed in their host country by textile and apparel enterprises from China, India,

Pakistan because of the reason: the import tariffs of 50% for garments and 40% for the fabric will be reduced from 10-15%

 Fourth, when joining WTO, the system of foreign retailers, with great potential for capital and experience to penetrate into Vietnam and then not only the retail company in Vietnam that the retailer's traditional businesses will also reel

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Solution:

Thai Tuan Company recognizes and assesses the importance of the domestic market and has made a first strong step to seize this market So, Thai Tuan Textile and Garment Company has been implementing the following issues:

 Stimulate domestic consumption

 To boost production, improve the quality and availability of products for the domestic market

 Promoting ancillary industries of textile development and progress to gradually reduce the import of raw materials to avoid being dependent

on imported raw materials

In order to successfully occupy and expand the domestic market, textile industry should have the following measures:

 To the textile industry side: Positive invest in cotton growing areas, more investment in the spinning quality to gradually increase the localization rate, lower production costs Need to adjust the production structure suitable for domestic demand

 To the textile businesses side: investment in renewing equipment and technology oriented approach to high technology to improve product quality, increase labor productivity Invest heavily in building and

branding companies and brands as a stimulus, to the domestic market as

a springboard to overseas markets

 Textile and garment should invest in model designing

In the context of increasingly fierce competition of the goods both at home and abroad, to survive and develop, Thai Tuan company has released research quality product line, which is distinctive from the competition high and increasing human emotion, friendly environment The company has built research centers and product

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development with nearly 100 employees, including 50 designers, research and

technology Thai Tuan average year-to-market 100 new products with nearly 2,000 patterns The company also offers business philosophy is very specific: in

production get quality criteria, the business cooperation of mutual benefit and trust placed on foreign policy priority CP Group Co Thai Tuan well aware of the

responsibilities of a business community and society

VI The advantages and difficulties in developing domestic market, Thai Tuan Textile Company

1 External factor evaluation matrix

O (Opportunities)

1 Support policy support from the

State budget, ODA

2 Society: The campaign "The

priority for Vietnam of Vietnamese"

3 Export demand rise

4 Incentives for exports

5 Increased capital investment

T (Threats)

1 Competition: product, price

2 The labor share

3 Counterfeit goods,

4 Demand and psychological

5 Economic environment: the recession, bankruptcy of enterprises and industries, high interest rates

6 Policies, legislation may not be advantageous

Table 3 - External factor evaluation matrix

a Opportunities (O)

i Industry