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TBS Group’s decoding about steady success of Leather and Footwear industry
13-10-2017

TBS Group’s decoding about steady success of Leather and Footwear industry

According to Mr. Nguyen Thanh Son, Vice President and General Director of Leather and Footwear Industry in TBS Group: “The foundation for TBS Group to succeed is built on 6 golden words Design – Sample – Price – Quality – Shipment – Audit. That means we have to try to find solutions to design and produce models as customer’s requirements quickly; organize production to get consistent prices, stable product quality as customer’s demand; deliver the goods on time, and ensure the environment of production, safety, health, income for employees and always have social responsibility. “

The footwear and handbag markets have huge growth potential, with the current global footwear consumption of 24 billion pairs a year and 2.5 billion bags a year.

International economic experts say that 2017 will be better than 2016 and that China continues to focus on high technology and reduce investment incentives in the textile and footwear sector. Footwear and handbag orders are slowly moving from China to Vietnam.

However, besides the opportunities provided by this market trend, the leather and footwear industry is facing many difficulties and challenges in terms of market volatility and the domestic supply of materials. The supporting industry is underdeveloped, the labor force fluctuates, the quality of manpower is variable, the demands of the partners for high-quality products and services, as well as the price of supply are all concerns.

In fact, despite occupation of 77% of the total 800 companies in footwear and handbags, the domestic footwear companies only meet 35% of export turnover on a relatively small scale. In particular, the TBS Group is a prominent domestic firm playing a sizeable role in the industry with FDI enterprises and is a partner for world-class fashion brands.

TBS’s leather footwear and handbag industry has grown steadily for 25 years. Chartered capital of TBS reached 770 billion VND. In 2016, TBS reached over VND 10.5 trillion in total revenue (leather and footwear reached VND 6.8 trillion, while handbags reached VND 3.8 trillion), an increase of 11% over 2015. TBS gained new clients such as Vera Bradley and PVH, and order growth rate is 15-20% per year.

Currently, the handbag division has mastered the OEM (Original Equipment Management), and the TBS footwear division is in the process of moving from OEM to Original Design Management (ODM) . In the supply chain, TBS ranks fifth in the footwear industry and fourth in the handbag industry in Vietnam with sustainable development, constant pioneering, and maintaining a strong position in the industry.

WHAT HAS HELPED TBS GROUP MAINTAIN GROWTH FOR 25 YEARS?

Mr. Phan Van Phuong, Director of R&D Center 1 of TBS Group, said: “Our fashion partners always set strict requirements in terms of quality and service. That requires us to create value and differentiation to each product. And that difference comes from vision of the leader and the staff of TBS. We are not only experts, know how to create quality products and services, but we also cleverly put into it the cultural values, beliefs and spirit of the collective. At the same time, we always ask questions about problems that are not well understood and work together to find a solution for them. This attitude has helped us to consolidate our trust and confidence with partners and customers.”

By focusing on developing relationships with key strategic partners, improving product and service quality, TBS Group is an inseparable part of the supply chain of brands such as Skechers, Decathlon, and Wolverine in the footwear industry, and Coach, Lancaster, and Tory Burch in the handbag industry.

At the same time, thanks to a good customer base, TBS has abundant orders flowing in, distributed throughout the year. Among them, Decathlon is a large and prestigious partner in the market with 1200 supermarket systems. This partnership ensures large and stable orders, helps TBS optimize capacity and profit, as well minimizes business risks.

At present, TBS has expanded to 19 leather and footwear factories nationwide with more than 38,000 employees, including 1,814 professional staff and 1,490 managers, who are visionary and knowledgeable leaders in the industry.

TBS is the only Vietnamese company that owns four international R&D centers: the footwear industry development center, the sole industry development center, the handbag development center, with a total of 1,833 employees; these serve to perform essential research and development activities, meeting the strict requirements of partners.

TBS Group – Together we Build our Success

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