Canifa Case Study

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In 2014, every minute the company sells five products, calculated in a year there are more than 2.5 million products sold from CANIFA. With the average price of 250,000 VND per product, the total sales of CANIFA are more than 600 billion. Not only that, in the first 4 months of 2015, sales results are even more noticeable when the number of products sold raised 8 products per min.

With CANIFA’s moves in the recent period, the most desirable thing that the CANIFA the textile industry still wants to get a foothold in the hearts of consumers in Vietnam before exploring new markets.

- COMPANY GENERIC STRATEGY

- Vision, Mission and Core Value

From the inception, the leader of CANIFA had determined the mission to build a reputable company, profitable and expect to exist through contributions to the community. In 2000, with the goal of becoming a leading company in the field of operation, the company's vision was written specifically "Hoang Duong Company wishes to become an organization to innovate and prosper, customers trust, membership in the organization proud and social recognition”.

When the time CANIFA appeared, the lives of the people of Vietnam have been markedly improved. They started to pay more attention to the quality and origin of products. Meanwhile, the imported products of unknown origin appeared widespread, some domestic brands did not have a consistent strategy to build Vietnamese fashion brand... It is the opportunity to help CANIFA quickly noted. CANIFA seems to throw away the thirst the winter fashion of Hanoi people, who previously were only familiar with simple sweaters, poor in designs and focused on functionality rather than a fashion item. Thus, up to date, fashionable wool product line is still the leader in terms of market share CANIFA.

The CANIFA’s four core values are Respect – Creation – Honesty – Sharing. Choosing a trusted brand to buy for the whole family is the way that many customers of CANIFA do currently. The fact shows the wisdom of CANIFA the orientation right from inception: Fashion for All. This orientation metaphors even in the brand name: CANIFA = Cani + Family (Cani is inherited name "Canishop" in the former Soviet Union).

Do not stop at basic fashion segment, CANIFA has recently had an ambitions to expand its product range while investing in high-quality materials and lines more distinct. Winter 2014 CANIFA launched Australian wool collection in winter 2014. The authors of wool collection, no one else, are the two chief designers Ly Hoang Minh, Ha Tien and two winners of Project Runway competition – a competition for fashion designers broadcast on VTV3 by CANIFA main sponsor. Obviously, the participation in major financial supporting in fashion programs on TV is a wise direction of CANIFA. By doing this way, it not only helps promote the brand image but also blows into the brand new innovative ideas and unique design from the young generation. Ms. Ngoc said “CANIFA has combined with a number of foreign experts and updating the world's fashion trends to continue to make their mark on differentiating their products”.

- Product Line Strategy

CANIFA’s product has some specific characteristics that catch customers’ attention.

Firstly, the main materials that CANIFA uses to create products are traditional wool and fibre … In October 23th 2013, CANIFA cooperated with Woolmark Company – one of the biggest wool companies in the world, and introduced a product line made from lamb fur. This event is a great landmark in fashion industry in Vietnam. The wool CANIFA uses is high quality, easy to maintain and hard to scratch. Customers who wear CANIFA products may feel warm but not closely woven. Besides wool, CANIFA clothes are made from felt. CANIFA’s materials are continually improved to please all kinds of customers.

Secondly, because CANIFA is a brand that produces clothes for all, its design is basic, simple and suitable for customers from kids to middle-aged people. Six months before new season, CANIFA’s designers start to work and research to introduce new types of products that adapt to the atmosphere. It is a smart strategy because basic clothes are necessary in daily life. Although it does not bring many different types and designs, it still attracts customers because of its basic but high quality clothes.

Finally, the application of CANIFA’s clothes is high. With one jumper, customers can wear with many types of clothes like skirt, jeans… to be match with the environment they go. These products usually have pastel colors or jeans color. These colors are suitable for many skin colors and customers’ characteristics and easy to combine with other clothes. In addition to clothes, CANIFA also sells bags, shoes and accessory to complete customers’ outlook.

In the past, CANIFA introduced two very successful product lines. They are metallic jumper and stone wash. These brings CANIFA a large amount of profit, strengthens this company’s positioning in the market.

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The metallic trend has been very popular recently. To be in tune with this trend, in the Fall of 2013 CANIFA introduced minicollection which contains clothes made from metallic wool for the holiday. The fine texture of these metallic jumpers puts customers at ease and makes them become beautiful even in the cold winter. Besides the function of warming the body, this kind of jumper helps girls who do not have perfect body hide the imperfection behind big wool fibre. Besides jumpers, CANIFA also introduced cardigan, skirt, … made from metallic wool.

Other impressive product line of CANIFA is Stone wash – T-shirt line for males. This product was introduced in 2014, applied Stone Wash technology and In Discharge printing technology. This line brings the message: ‘Be free- Be yourself’. These T-shirts are made from cotton which does not cause uncomfortable feeling when wearing it. Using Stone Wash to process with color, to make the fibre softer and nicer, and the in discharge printing technology to make the image clearer, this product lines attract young man who want to be dynamic, positive and nimble.

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To conclude, CANIFA’s product line strategy has been successful in creating the position in the market and the customers’ mind. It aims at basic and simple clothes with high quality materials.

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