market opportunity T

Department of E-commerce and Digital Economy assessed that in the period of 2020-2021,
Vietnam witnessed many positive changes from the online shopping and business habits of
the consumer community and businesses throughout the country, the growth rate growth of
retail e-commerce in 2020 at 18%.

Vietnam is one of the dynamic e-commerce markets in Southeast Asia. According to the
Southeast Asia Digital Economy report researched and published by Google, Temasek and
Bain & Company in early 2021, during the period of social distancing, users start looking for
solutions to problems that suddenly arise. born through the Internet.

Accordingly, in Southeast Asia, Vietnam is the country with the highest percentage of new
Internet users, accounting for 41%. Up to 94% of these new users plan to continue using
those services even after the pandemic. These are solid foundations for e-commerce
development.

According to the White Paper, in 2020, Vietnam has about 49.3 million consumers
participating in online shopping and becoming the country with the highest percentage of
online shopping participants in the region.

The Covid-19 pandemic has contributed to changing the consumption habits of many
Vietnamese when switching to online shopping. The percentage of Internet users
participating in online shopping also increases from 77% in 2019 to 88% in 2020 (footwear,
1
clothing, cosmetics with the rate of 43%).

Exercise has become an important part of many people's daily lives. With the
development of the economy, exercise has become one of the expenditures and
investments with many benefits that it brings from physical to mental.

Survey conducted by Q&Me in May 2021 to understand more about exercise behavior of
Vietnamese people, with the number of respondents of 1,406 people who regularly do
basic exercise. The three main forms of practice are gymnastics, sports and martial arts
(fitness 85%, sports 37%, martial arts 11%). As for spending on exercise, 72% of people
surveyed pay the cost while 28% are those who practice for free. 32% pay less than

1 "Vietnam ranks first in Southeast Asia in terms of online shoppers." 16 thg 7. 2021,
https://kinhtedothi.vn/viet-nam-dung-dau-dong-nam-a-ve-luong-nguoi-mua-sam-truc-tuyen-
427322.html.Accessed October 25, 2021.
VND300,000 / month, 26% paid from 300,000 VND to 500,000 VND / month, 7% payment
of VND 500,000 - 700,000 VND / month and 6% pay over VND700,000 / month 2

The way to practice Vietnamese people choose.

In parallel with the increase of sports habits, increasing popularity, the demand for
sports clothing and equipment also increases rapidly. Along with the highest online
shopping habits in Southeast Asia from 77% up to 88%, the global online sportswear
market is trending towards innovation, is increasingly expanding, and has the potential

to grow. highly developed society.

According to the Vietnam National Textile and Garment Group, the sportswear market is
increasingly growing thanks to the promotion of the growing awareness of healthy
lifestyles, the increasing trend of accessing sports and fitness through different brands.
Social website is developing outstandingly, promoting information and propaganda work,
collaborators, sports instructors , as well as sports activities such as World Football

Championship, Olympic Games and Cricket World. The industry results to be around
$239.95 Billion in 2018 and is expected to reach a CAGR of 10.4% from 2019 to 2025.
Total sportswear market is expected to reach 479 billion dollars worldwide by 2025.

2 "Vietnamese people are spending more and more on fitness activities...." Jun 6, 2021,
https://baomoi.com/nguoi-viet-ngay-cang-chi-tieu-nhieu-hon- cho-hoat-dong-the-duc-the-
thao/c/39091857.epi. Accessed October 25, 2021.
Over time, sportswear plays an increasingly important role. As a low-growth clothing and
footwear segment, sportswear has grown from around 18% in the apparel sector in 2007
to around 26% in 2019. The sportswear market has given saw a compound annual
growth rate (CAGR) of 6.5% over the past 5 years, one and a half times the clothing
market.

That is a sign of prosperity in the clothing industry in general and sportswear in

particular. continued strong growth over the years is the not-so-distant future that can be
seen in this industrial market.

Sportswear market size in billion USD with a CAGR of 6.5%. (Source Statista)

In the context of the pandemic outbreak, despite the challenges, sportswear still seems to
be a category of goods with good resistance to COVID-19 when consumers want to buy
While their health and well-being increases, sportswear has the advantage of growing well as
consumers tend to lead an active lifestyle.

Sportswear seems to be the king after COVID-19. Sportswear brands get to connect with
customers and launch business through more profitable channels. 3

The outbreak of the pandemic has made the need to improve human health become
essential. Each market segment has its own unique requirements, but overall sportswear will
continue to be developed and increasingly important to meet people's tastes.

End-User Perspectives

The sportswear market is divided into three categories based on the end-user: men,
women, and children. In 2018, the men's sector had a market share of more than 50%.
The segment is being driven by the growing popularity of sports like basketball, cricket,
and soccer. In the future years, the female and children's categories are predicted to
grow in market share. From 2019 to 2025, the women's end user category is expected to

grow at the fastest rate of 10.7%.

3 "Sports fashion: investment opportunities in a new context - Vinatex." November 30, 2020,
https://vinatex.com.vn/thoi-trang-the-thao-co-hoi-dau-tu-trong-boi-canh-moi/. Accessed October 25,
2021.
 The sportswear market

Distribution Channel Insights

Due to the significant number of sportswear retail shops, the retail segment held the
greatest market share in 2018. The fastest-growing segment, on the other hand, is predicted
to be the online channel, with a CAGR of 10.9 percent from 2019 to 2025. This growth can be
attributed to the increasing number of smartphones and internet users, fast-paced lifestyle,
and growing popularity of e-commerce. Furthermore, easy exchange and refund options
offered by online portals are contributing to the segment expansion.