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Gen Z's Fashion Preferences

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0% found this document useful (0 votes)
189 views38 pages

Gen Z's Fashion Preferences

Uploaded by

Munch Much
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 38

TABLE OF CONTENTS

TABLE OF CONTENTS 1
1. Industry Overview 2
1.1 Fashion industry 2
1.2 Sustainable fashion industry 2
1.3 Secondhand industry 3
2. Customer: 3
2.1 Customer analysis: 3
2.2 Target Audience’s Persona: 5
2.3 Customer Journey: 5
Table 1. Service 1: BUYING NEW CLOTHES (ONLINE - WEBSITE) 5
Table 2. Service 1: BUYING NEW CLOTHES (OFFLINE - STORE) 7
Table 3. Service 2: SECOND-HAND 8
Table 4. Service 3: UPCYCLING 8
3. Competitors 9
Table 5. Competitors analysis 9
4. Company 11
4.1 Vision 11
4.2 Mission 11
4.3 Brand name 11
Figure 1. Brand’s logo 11
4.4 Characteristics (Prioritize Sustainability) 11
5. 7Ps 12
5.1 Service (Product): 12
5.2 Price: 13
Table 6. Brand’s price offering 13
5.3 Place (Online, Offline) 13
5.4 Physical Evidence (Exterior design, Interior design, Website design) 14
Figure 2. Brand’s exterior design 14
Figure 3. Brand’s interior design 15
Figure 4. Brand’s staff uniform 15
5.6 Promotion 16
5.7 People (Requirement, employee’s benefit, Training, Uniform) 16
5.8 Process: Blueprint 17
Figure 5. Online store trading process 18
Figure 6. Offline store trading process 19
Figure 7. Second-hand process 19
Figure 8. Upcycling workshop process 20
6. Service quality tracking 20
Table 7. Service quality tracking 20
7. Customer relationship development 21
Table 8. Customer relationship development 21
8. Potential Problem: 23
9. Appendix : 28
Appendix A : 28
Appendix B: 29
10. References 35

1
1. Industry Overview
1.1 Fashion industry
According to Statista's analysis, Vietnam's fashion sector is predicted to rise from its
estimated value of 5.6 billion USD in 2023 to 7.8 billion USD in 2026. (1) In Vietnam, there
are more than 200 foreign fashion labels that hold about 33% of the market share. The
domestic fashion market, comprising 67% of the market, is thriving with thousands of local
designers and manufacturers. (2) The largest segment of this market is women's apparel, with a
predicted market value of US$3.39 billion in 2024. Additionally, the market is expected to
increase at a compound annual growth rate (CAGR) of 3.83% from 2024 to 2028. (3)
One of the issues facing the fashion business is the environment. 93 billion tons of trashy
clothing and accessories—half of which are made of microplastic—will result from fashion
trends in 2023. If not handled appropriately, this can lead to ocean pollution, species
extinction, and carbon footprints of 8–10%. (4) In addition to taking a century to recycle,
fashion wastes resources by creating an excessive number of needless items that are not fully
utilized or recycled and have a severe environmental impact. In landfills, an estimated 85% of
the clothing manufactured each year will end up as waste. (5) The average time it takes for
materials to decompose: cotton: 3 months; wool: 25-40 years; leather: 25-40 years; nylon:
30-40 years; rubber: 50-80 years; lycra: up to 200 years; polyester (in over ½ of our clothes):
up to 200 years. Moreover, the fashion industry's predicted 50% increase in water
consumption by 2030—roughly 7,000 liters of water, or the equivalent of a person's daily
water intake for five to six years—raises the possibility of severe water shortages, especially
in countries that produce cotton.(6)

1.2 Sustainable fashion industry


Sustainable fashion is growing as a response to the issues endangering the fashion industry's
future. According to a 2022 survey, 62% of Vietnamese consumers—particularly young
ones—are willing to pay for apparel made sustainably. (7) Consequently, it is evident that
Vietnamese apparel producers understand the need for sustainable production practices, as the
demand for eco-friendly clothing is growing. The global market for sustainable fashion is
projected to rise from USD 7.80 billion in 2023 to USD 27.95 billion in 2030, at a compound
annual growth rate (CAGR) of 20%.(8) Since many fashion brands have come to understand
the value of sustainable fashion, they have changed and are pursuing this objective, typically
Levi's, Faslink, Kilomet109, Metiseko, etc.
There are still several obstacles facing the sustainable fashion sector. First, the cost of
environmentally friendly items is higher than that of conventional products for a number of
reasons. The market for sustainable products is smaller than that of traditional products;
additionally, the cost of sustainable products is higher since sustainable industries support
ethical and fair labor practices. The cost of making environmentally friendly items is higher
than that of traditional products practically everywhere, from the acquisition of raw materials
to the shipping of the finished product, due to the necessity to adhere to tight regulations. (9)
Second, some people still lack a comprehensive understanding of environmental preservation

2
or believe that clothing made of sustainable materials is less fashionable and elegant than
conventional ones, which makes them reluctant to wear sustainable clothing.

1.3 Secondhand industry


Research by RedSeer Strategy Consultants (India) indicates that the Vietnam second-hand
market is expected to grow significantly from its present value of 1.1 billion USD (2023) to
over 5 billion USD by 2026. (10) According to a recent eBay survey, reverse commerce, or
reselling, is becoming more and more popular among today's customers and sellers. 83% of
Vietnamese consumers have purchased used goods and want to do so in the future, and Gen Z
is the generation driving the increasing desire for secondhand goods ownership. (11) Gen Z
purchases 80% of used goods, and fashion accounts for 76.8 million of the most reused
things. (12) Moreover, almost two-thirds of shops that provide resale services believe that
resale will be essential to their long-term business plan. (13)
Importing used goods has several obstacles (14), one of which is the inconsistent quality of the
products. It's challenging to guarantee that every item in an imported batch is exquisite. In
actuality, each used dealer should be aware of the following particular shipment percentage:
Goods 1: Make up the majority of a 100 kg box, roughly 15-20%, and are typically the most
exquisite and superior quality items.
Goods 2: Approximately 50–60% of the packages are made up of goods of ordinary quality.
Goods 3: Low-quality items that are frequently broken, outdated, and yellowed are offered at
discount prices in thrift stores.
Secondly, Vietnam's second hand product market is booming, with many outlets offering a
wide range of styles and pricing. This creates a diverse business environment and presents
hurdles for entrepreneurs looking to find uniqueness and innovation to draw in clients. Lastly,
the issue of phony and counterfeit goods on the secondary market is one that is prevalent
right now. The prevalence of subpar and fake goods has increased, putting firms in greater
danger of financial loss. The procedure of looking for and choosing a source of products
becomes crucial in order to avoid this circumstance and guarantee that the goods you are
importing are of high quality.

2. Customer:
2.1 Customer analysis:
In the fashion industry, Gen Z is the generation that consumes the most. For that reason, the
target customer of this business will be Gen Z. Born into prosperity, Gen Z represents a
generation of consumers who are more environmentally and socially responsible. According
to the. In the Global Sustainability Study 2022 (15), 54% of Gen Z said that environmental
sustainability was important to them when they considered purchasing some things.
However, there is a contradiction that, although Gen Z is very concerned about sustainability
in fashion, they are the top consumers of fast fashion, with evidence that about 72% of
college students admit that they often spend on fast fashion items.

3
So what creates this contradiction?
According to the Global Sustainability Study 2022 (15), 33% of consumers hesitate when
buying sustainable products due to affordability. They tend to be less likely to buy
sustainable alternatives because they are too expensive, including fashion products.
Besides, in depth interviews show that 6/8 Gen Z do not choose sustainable fashion products
because of the style. All of them know that sustainable products are made from eco-friendly
materials, which is good for the environment, but it is not really good for their fashion needs.
They expect that at a higher price than fast fashion, they will receive trendy products, not
basic, daily clothes like sustainable brands are doing.
Therefore, sustainability is important, but price and style always alternate that important
value. In conclusion, our Gen Z has an insight that: “I want to sustain, but sustain clothes are
usually expensive, and the style is quite normal and unisex. Meanwhile, I can only afford to
pay lower fees and look for more trendy and unique styles for special occasions.”

How about sustainable fashion’s products with trendy styles and affordable prices?
Karla Martin - managing director of Deloitte's apparel department: "At the same price, the
same style, consumers will choose more sustainable items.(16)" This led to the conclusion
that our business’s strategy will concentrate on sustainability value, and the product that will
be sold will have a lower price and the same styles with other competitors in the Vietnamese
fashion market for Gen Z.

How does Gen Z define Sustainable Fashion?


“For Gen Z, in addition to using products made from sustainable materials, there are also
methods to increase the wearability of clothes to show “respect for clothes”.” (17)
So, it can be concluded that, in fashion, Gen Z is not only sustainable in choosing clothes
made from sustainable materials but also through methods that increase the wearability of
clothes. The evidence is that according to A Synthesio Report (18), 37.6% of buyers choose
sustainable fashion as the top of mind fashion trend, followed by 16.9% of upcycling and
secondhand in the top 5 with 10%. Therefore, businesses can provide services that cover all
methods of increasing the life of a product of clothing based on sustainability, which is the
core value of business.

Psychological and behavioral aspects of Gen Z when selling and buying second hand?
According to research by ThredUP 2023 (19), up to 64% of Gen Z tend to look for old items
that are being resold before deciding to buy new items. However, they are still willing to buy
new items if no one resells them. Besides, 84% of Gen Z will consider the resale value of the
product. If the sellability and resale value are high, Gen Z will have a higher tendency to buy.
Therefore, our business can simultaneously launch new collections and resell old items to
increase its profitability, which can be consistent with the main goal of sustainability while
still ensuring profits and business development.
In addition, 7 of 10 in-depth interviewers admitted they often had difficulty passing items.
When passing products, most of them will have to spend their own time doing the whole
process, including choosing the platform for passing the items, taking pictures, displaying,

4
communicating, and delivering. If the photos are not good, buyers will not trust them. There
is also a possibility of encountering unwanted situations when their customers are not
satisfied with the product.
Because they have to go through many steps to resell a piece of cloth, they are less motivated
to sell things, leading to constant postponement of reselling things. This is a waste and
doesn't really address their sustainability needs.
Therefore, our business will help them take care of all the steps and pursue their sustainability
goals.

2.2 Target Audience’s Persona:


Geographical:
- Age: 22-27.
- Income: A, B, C.
Psychological:
- Recognizing the importance of environmental sustainability.
- Facing a dilemma when it comes to balancing sustainability with affordability and
style.
- Being interested in extending the lifespan of clothing through methods (secondhand,
upcycling).
- Struggling with the time-consuming and complicated process of reselling their
clothes, feel overwhelmed by multiple steps.

Behavioural:
- Seeking out fashion products that align with sustainable value, the allure of affordable
prices and fashionable designs often outweighs their sustainability concerns.
- Joining in activities to resell their clothes (secondhand) and upcycle clothes to
increase sustainability.
- Postponing the secondhand process.

5
2.3 Customer Journey:
Table 1. Service 1: BUYING NEW CLOTHES (ONLINE - WEBSITE)

Touchpoints Pain Points Possible Solutions


- Eye-catching visuals: high-quality photos
for the new collection
- Social media (Posts, - Micro-influencers: Choose influencers
- Not aware of new
ads) who are popular with Gen Z
collection
- Influencer - Segmentation & Personalization: Based on
Awareness - Does not follow brand's
Marketing past purchase history, the brand will
social media
- Email Marketing segment email.
- Inbox overload
- Website browsing - Website banners & pop-ups: on the
homepage & website to announce the new
collection.

- Difficult for customer to - Take product pictures from many views.


- Website product imagine how the clothing Allow customer to give feedback by
pages (Descriptions, will look on them uploading real photos of them wearing
photos, reviews) - Limited information to clothes
Consideration
- Customer reviews choose the correct size for
- Social Media them. - Size guide with clear instructions
comments - Unable to understand
information - Provide clear information on material
- Difficulty with checkout
- Customer support process: lengthy checkout
- Streamlined checkout
(chat, email) process discourages
- Transparent shipping information
Decision - Shopping concerns purchase
- Communicate concentration on brand’s
- Unsure about brand - Shipping concerns
USP
vs competitors - Unsure about brand vs.
competitors

- Secure online - Security concerns during


Purchase - Offer guest checkout option
payment gateway checkout

- Order confirmation
email
- Email marketing for
- Order tracking issues - Provide tracking application to update
other service
Post-purchase - Concerns about return status
- Shipping
process - Clear return policy information
notification email
- Return policy
information

6
- Social media
sharing options - Does not feel incentivized - Offer social media sharing pillar content,
Advocacy
- Review platform to share repost feedback
integration

Table 2. Service 1: BUYING NEW CLOTHES (OFFLINE - STORE)

Customer Actions Touchpoints Pain Points Possible Solutions

Awareness - Front store window - Customer doesn't notice the - Utilize eye-catching visuals
displays feature featuring new collection. and clear messaging, "New
key pieces from the new Arrivals" in window displays
collection. (Posters, and signage.
OOH) - Train staff to greet customers
- Staff are actively and inform them about the new
informing customers collection.
about the new arrivals.
Consideration - Physically examining - Limited information on - Train staff to be knowledgeable
the clothing (quality, fit, eco-friendly materials. about the new collection's design
materials). - Difficulty visualizing how features, fit, and eco-friendly
- Interacting with staff for the clothes will look on them. materials.
styling advice and - Offer a variety of fitting room
product information. sizes with good lighting and
- Trying on clothes in mirrors.
fitting rooms.
Decision - Staff assistance with - Difficulty choosing between - Train staff to provide helpful
product comparisons and different options. and unbiased advice, catering to
recommendations. - Feeling pressured by sales individual customer needs.
- Ability to try on staff. - Offer a comfortable and
multiple sizes and styles. pressure-free shopping
experience.
Purchase - Secure checkout process - Long wait times at checkout. - Ensure adequate staffing at
with friendly and efficient - Limited payment options. checkout counters to minimize
cashiers. waiting times.
- Ability to pay with - Offer a variety of secure
various methods (credit payment options for customer
card, debit card, etc.). convenience.
Post-Purchase - Clear information on - Confusion about return or - Provide clear and concise
return and exchange secondhand process. return/exchange policy
policies provided at - Lack of knowledge on information on receipts or

7
checkout. garment care. signage near the checkout area.
- Opportunity to ask - Train staff to answer questions
questions about care about garment care and provide
instructions for care instructions with each
eco-friendly materials, purchase.
service.

Table 3. Service 2: SECOND-HAND

Customer Actions Touchpoints Pain Points Possible Solutions


Bring or deliver Physical store,
Efforts necessary to Provide a paid pickup
1. Collection secondhand clothes to website, delivery
transport clothing service
the shop or online. service
2. Quality The physical store, Potential rejection of Provide clear quality
-
Assessment inspection team items guidelines upfront
Physical store, Dissatisfaction with Transparent pricing
3. Pricing Confirm quoted price
website, pricing team quoted price mechanism
Laundry, repair, and (No pain point for
4. Preparation - -
photography team customers)
Website, e-commerce (No pain point for
5. Listing - -
platform customers)
Website, e-commerce
Uncertainty about - Provide regular
6. Sale - platform, customer
selling time frame updates on item status
service
Reclaim unsold items or Physical store,
7. Reclaim of Effort required to - Offer delivery option
receive payment for sold website, payment
Proceeds reclaim unsold items for reclaimed items
items processing

Table 4. Service 3: UPCYCLING

Customer Actions Touchpoints Pain Points Possible Solutions


Clear explanations,
Learns about the Website, social media, Unfamiliar with the
Awareness examples, and benefits
upcycling workshops word of mouth concept of upcycling
on the website
Checks the workshop Confusion about the Detailed workshop
Consideration Website
schedule and details workshop format and descriptions, FAQs,

8
requirements and contact information
Reassurance that the
Concerns about skill
Purchases a ticket for Website, payment workshops are
Purchase level or experience
the workshop gateway beginner-friendly, with
needed
step-by-step guidance
Patient and clear
Feeling overwhelmed
Physical location, instructions,
Participation Attends the workshop or lost during the
workshop facilitators one-on-one assistance
process
when needed
Encouragement and
Dissatisfaction with
Creates an upcycled Workshop materials and positive reinforcement,
Creation the final product or
product tools showcasing successful
lack of confidence
examples
Care instructions, ideas
Uncertainty about
Shares the experience Social media, word of for using the product,
Sharing how to care for or use
and product mouth and sharing on social
the upcycled product
media
Considers attending Email reminders, social
Forgetting about
another workshop or Website, social media, media updates, and
Loyalty future workshop
recommending it to word of mouth incentives for repeat
opportunities
others attendance
3. Competitors
Table 5. Competitors analysis
Same style

ONONMADE LSEOUL BUPBES

Exclusive designs that are


Product Contemporary, Trendy,
trend-conscious and target a Feminism, futuristic
Style Minimalist and Monochromatic
high-end fashion market.

People who value unique Females who are


Target Young stylish customers
designs and are aware of fashion-conscious and follow
Audience interested in fashion-forward
current trends. current trends.

- Clothes Exchange Group - Public Group on Facebook: - Clothes Exchange Group


Ancillary on Facebook: This group is provide vouchers, offer other on Facebook: This private
Services a self-passing clothing support activities group is a self-passing
community exclusively - Exchange: Items eligible for clothing community

9
accepting their products. exchange must remain in exclusively accepting their
Ononmade will not accept their original condition products.
any problems during the
delivery of customers'
purchases.
- Return policy: Exchange
model/size within 3 days for
cases that meet requirements

1,249,800VND -
Price range 790,000VND - 3,990,000VND 750,000VND - 6,500,000VND
3,623,000VND

Sustainable None None None

- Social media engagement: - Social media engagement:


Showcase products and Showcase products and
- Social media engagement: campaigns by using Social campaigns by using Social
Showcase products and Media (Facebook, Instagram, Media (Facebook, Instagram,
campaigns by using Social TikTok,...) TikTok,...)
Media (Facebook, Instagram, - Influencer Partnerships: - Influencer Partnerships:
Tiktok,...) Collaborate with fashion Collaborate with fashion
- Influencer Partnerships: influencers and bloggers who influencers and bloggers who
Collaborate with match their brand aesthetic to match their brand aesthetic to
KOLs/Influencers to boost awareness and boost awareness and
Marketing
showcase their products reputation. reputation.
Strategies
wider to their target - Pop-up shops and events: - Pop-up shops and events:
audiences. Organize pop-up stores or Organize pop-up stores or
- Exclusive Online Content: fashion shows in hip areas or fashion shows in hip areas or
Offering unique viewpoints at well-known festivals to at well-known festivals to
on new collections or raise brand awareness and raise brand awareness and
behind-the-scenes content to provide clients with provide clients with
generate interest about their immersive experiences that immersive experiences that
items. allow them to interact with allow them to interact with
the brand in person. the brand in person.

Most of these brands cater to young, style-conscious consumers seeking trendy apparel. For
these brands, the key priority is to offer a diverse, well-designed product portfolio along with
a competitive price range to attract new customers. Nevertheless, engagement and loyalty
come from a constant online presence and unique services and tactics to encourage repeat
purchases or new referrals. New entrants face stiff competition from established players with
strong brand equity, efficient supply chains, and loyal customer bases. However, the brands

10
mentioned above have not focused on sustainability factors, and none of these brands pay
much attention to handling second-hand items for their customers.
What should Sàvvy do? Differentiating through niche offerings, innovative sustainable
practices, or disruptive business models could be potential strategies, but would require
significant resources to gain market share in this crowded yet evolving fashion landscape.

4. Company
4.1 Vision
“To lead towards a fashion-forward, sustainable future by providing a curated platform for
buying, selling, and upcycling clothing, while fostering a community dedicated to
environmental awareness and conscious consumption.”
4.2 Mission
At Sàvvy, we're committed to defining fashion for the environmentally conscious Gen Z
consumer. By offering a seamless service for buying and reselling Sàvvy’s used clothing and
accessories, we enable our customers to express their style while minimizing their
environmental impact. Our focus on sustainability ensures quality and affordability, so that
every purchase made through Sàvvy supports both our customers' fashion aspirations and our
planet's well-being.

4.3 Brand name

Figure 1. Brand’s logo

"Sàvvy" can suggest expertise or proficiency in the fashion domain. It implies that the
company has a deep understanding of fashion trends, styles, and preferences. "Sàvvy" can
connote ethical and responsible behavior. The company is Sàvvy about its social and
environmental responsibilities, taking proactive steps to protect the environment.

This color represents sustainability, nature, and growth, aligning well with Sàvvy's
commitment to environmental protection.

4.4 Characteristics (Prioritize Sustainability)


a) Sustainability: We are dedicated to minimizing our environmental footprint by
promoting the reuse and recycling of clothing and accessories, contributing to a
circular economy.
b) Transparency and Trust: We prioritize transparency and trustworthiness, providing
clear information about each item's origins, condition, and environmental impact

11
c) Affordable Pricing: Our pricing strategy reflects our commitment to accessibility,
with affordable options available to accommodate Gen Z's budget-conscious lifestyle.

5. 7Ps
5.1 Service (Product):
Overall, Sàvvy has 3 services, including trading our new collections, collecting and reselling
second-hand items and upcycling them, to meet the needs of customers who go beyond using
trendy items but are also sustainable.

Firstly, it is about trading our collections. We release new collections every three months,
offering trendy styles tailored for special occasions. To reflect the brand's sustainability, items
are crafted from eco-friendly materials such as Scoby leather, organic cotton, recycled cotton,
and alpaca wool. Our designs ensure sustainability without affecting style. Each collection is
a testament to our commitment to sustainability and ensuring our customers feel fashionable.
In addition, Sàvvy also has some customer support policies (Appendix A) to bring the best
experience to customers. For us, a good customer experience is the most important.
Secondly, our brand recognizes the challenge of trendy clothing often being worn only a few
times before being neglected. Sàvvy target customers will continuously pursue trends, and
abandon outdated items when the trend passes. So their closets are always crowded and in
need of cleaning. On the other hand, caring about sustainability, they choose not to throw old
clothes away to protect the environment. Through in-depth interviews, we have concluded the
customer's desire to resell such clothes. However, to resell goods, they have to go through
various stages, ranging from taking product photos, checking product quality, posting to sales
groups, responding to messages, negotiating prices, etc. However, some individuals don’t
have enough time and experience to perform all the steps, making them hesitate when
reselling goods. To address this, we've launched a comprehensive service for used items.
The process starts with collecting the used items. We only began collecting second-hand
products in the last month after launching the collection that includes those items. Customers
can simply bring their used clothing to our stores or deliver it online, where our expert team
conducts thorough quality assessments. Sàvvy classifies the quality of second-hand products
into two categories. Category one is the items that meet these three requirements for
secondhand: The fabric, color, and form is not frayed or stretched; hygiene standards, which
comprise washable stains, and fragrant; and minor defects such as slight tears, chipped
threads, buttons, and zippers are not rusty or loose. Those that do not meet these requirements
will be classified into category two. In the secondhand reselling service, we only accept items
belonging to category one. Upon inspection, customers are promptly quoted a fair price based
on the quality of their items. After confirmation, our brand handles the entire resale process,
ensuring a seamless experience for our customers. To ensure hygienic conditions, we will
wash the clothes, mend small tears, repair fraying and stretching, and iron. Sàvvy will then
photoshoot the product and display it on the official website. These items will be available for
sale for three months, and customers are unable to take them back during this timeframe. This
policy is designed to avoid customers using Sàvvy as a third party to check quality and
pricing. If an item remains unsold after this period, customers can reclaim it.

12
Finally, for category two items, we ensure sustainability by upcycling them. The process will
be the same as a second-hand service; however, we will not resell these items but hold
workshops to upcycle them. Throughout the year, we organize engaging workshop events
focusing on transforming used materials into upcycled accessories. The number of workshops
held will vary from 2 to 3 times, depending on the amount of materials received. All steps
will be simplified to address customers' worries about lacking experience and skills when
participating in a workshop. The products will be simple, and Sàvvy will provide materials
and frames that are as easy to make as possible to provide the best experience for customers.
Customers can purchase tickets for these events through our website, fostering a sense of
community engagement and furthering our commitment to sustainability.
Through these initiatives, our brand not only addresses the challenges associated with trendy
clothing but also champions sustainability and responsible consumption within our
community, ensuring that every garment has an opportunity for a second life.

5.2 Price:
Table 6. Brand’s price offering
Service Price

New collection Purchasing price: 800.000 - 1.500.000 VND

Used items Second hand Passing price: 80% - 95% of the purchase price
(depending on the quality of the item)
Charging fee: 10% passing price

Upcycling Passing price: 10% - 40% purchase price (depending


on the quality of the item)
Workshop fee: 150.000 - 500.000 VND
Our purchasing prices for new items range from 800,000 to 1,500,000 VND, while for used
items, we offer competitive passing prices, ranging from 80% to 95% of the purchasing price,
depending on their quality. Additionally, for second-hand items, we charge a 10% fee on the
passing price. For those looking to embrace sustainability, our upcycling service provides a
competitive passing price that ranges from 10% to 40% of the purchasing price, contingent
on the quality. The participation fee ranges from 150,000 to 500,000 VND per workshop.

5.3 Place (Online, Offline)


Sàvvy runs the business mainly through two channels: offline and online. Offline, we only
have one store in District 1, HCM City. The store is located in the central district, which is
facilitated by multiple thoroughfares and various modes of transportation. Besides, with its
prime location in the city center, the store can reach a large potential customer base, including
both residents and international tourists. Moreover, occasionally, this store is a place to have
an upcycling workshop.

13
On the other hand, the online channels will include our official website and social media. On
this website, customers can buy new collections and second-hand outfits. Moreover, this
website is also a place for customers to register to resell used clothes. Our website offers
various payment methods, ensuring customers have a relieving shopping experience. We will
post Sàvvy's activities, events, and programs on Facebook, Instagram, and TikTok to keep the
customer updated. All social media channels must only be used for the brand’s content and
information updates.
5.4 Physical Evidence (Exterior design, Interior design, Website design)

Figure 2. Brand’s exterior design


From the outside looking in, Sàvvy store appears to be a fashion boutique with a clean,
modern look that appeals to most aesthetic sense. Its exterior is designed on the criteria of
minimalism with the predominant colors being white and black, fostering a high-quality and
elegant image. The front of the shop features large glass doors and windows, inviting natural
light to flood in and offering a glimpse of the chic fashion displayed within.

14
Figure 3. Brand’s interior design
Regarding the interior, the brand still puts customer comfort and convenience as a priority.
The store is expected to be extremely spacious, illuminated by bright, true-to-life lighting
showcasing the vibrant colors of the clothing. Clothes will be arranged logically based on
different criteria of style, color, and appropriate use. In addition, there are numerous fitting
rooms available, each offering privacy without intimidating body-shaping mirrors in order
not to lose transparency. Besides, plants are also added in some corners of the store, not only
adding a touch of greenery but also instilling a sense of sustainability in customers. Every
detail is carefully considered, including the strategic placement of the logo on product
packaging, ensuring a cohesive brand experience from start to finish. In a virtual
environment, the website will be the main place the brand communicates with customers.
Therefore, its interface must still follow the brand's general style: minimalism and be easy to
use.

15
Figure 4. Brand’s staff uniform
In terms of other tangible evidence, Sàvvy also paid attention to staff uniforms. Research
shows that a satisfactory uniform must be practical and stylish, ensuring it's easy to wear and
fits well while avoiding any dullness. Especially in the fashion industry, most customers who
come to the store want to stand out and be the most beautiful. Therefore, a white shirt with
the brand logo and beige or black trousers will be considered a suitable option. The design is
simple, elegant, and professional, but not too complicated to overwhelm or negatively affect
customers' feelings when they are trying on the brand's designs. Founded with sustainable
criteria as a foundation, Sàvvy's packaging will also use eco-friendly materials such as carton
boxes. This commitment to sustainability reflects Sàvvy's dedication to reducing its
environmental footprint while delivering quality products to its customers.

5.6 Promotion
We have three activities, namely advertising, sale promotion, and public relations, to promote
our brand. First is advertising, we advertise on both offline and online platforms. To
effectively promote our services,we employ a comprehensive strategy encompassing a
variety of mediums. Through carefully crafted posters, engaging social media posts, and
eye-catching banners, we ensure our message reaches our target audience, wherever they may
be. Offline, our posters are strategically placed in high-traffic areas to capture attention, while
online, our social media presence ensures widespread visibility. By utilizing both traditional
and digital channels, we maximize our reach and effectiveness in communicating the value of
our offerings to our audience.

In terms of sale, for non-member customers, Sàvvy introduces a "Buy More, Save More"
pricing structure where the more you purchase, the bigger the discount. On top of that, we're
offering free standard shipping on all orders to provide a hassle-free experience. Moreover,
we’re also running frequent giveaways and gift offers exclusively for our customers.

16
Plus,when hitting certain spending thresholds, customers will receive free gifts with the order.
Meanwhile, for the membership customer, they earn points equivalent to 20% of their
purchasing price and 15% of their passing price, with every 1000 points translating into a
30% voucher worth up to 450,000 VND. Besides, there are also birthday vouchers, holiday
vouchers, and birthday and holiday greeting messages for every customer after they join any
of Sàvvy’s services. We will not apply discount programs, as customers may postpone
purchases and wait for sale seasons, consequently diminishing the attention and demand for
our secondhand service offerings.

Lastly, there is promotion by public relations. Sàvvy will engage in social discussions on
relevant Facebook groups like Local Brand Vietnam and Local Brand MarketPlace to connect
with our target customers. Additionally, we plan to collaborate with renowned fashion
magazines to publish articles featuring our brand. Our goal is to craft compelling narratives
and visuals that represent our brand's personality, values, and commitment to sustainability in
the fashion industry. To amplify our reach, we will partner with influencers whose values and
identity align authentically with our brand's ethos. By aligning with like-minded individuals,
we aim to expand our audience and resonate with consumers who share our vision for
sustainable fashion. We also use affiliate marketing by inviting influencers/KOLs to try our
collection and record clips reviewing their shopping experiences and using our services on
social media.

5.7 People (Requirement, employee’s benefit, Training, Uniform)


In order to ensure service quality, Sàvvy has specific criteria during the recruitment of staff.
Regarding administration staff, administration staff holds a crucial role in shaping the brand's
value and image, which significantly affects customers during their awareness stage. Here,
there are two gaps that are most likely to appear, which are "Gap 1: Not knowing what
customers expect" and "Gap 2: Not selecting the right service quality designs and standards.".
Consequently, these administration personnel must possess awareness of changes in the
fashion industry, and be sensitive to current trends. Besides, they also need to have adept
management capabilities, strategic planning proficiency, employee evaluation, strong
communication skills, etc.
Additionally, the attitude of service staff has also been proven to have a great influence on
customers' purchasing experience (20). As a result, numerous standards are established for
service staff to maintain, ensuring that customers consistently maintain a positive perception
of the brand. Firstly, always keeping an attitude of enthusiasm and hospitality is a must since
it can make customers feel comfortable when shopping. Furthermore, possessing a
comprehensive understanding of products and brands, along with fundamental knowledge of
fashion, is important to address customers' needs for advice and facilitate informed
decision-making. Besides, communication and sales skills are necessary to ensure the quality
of internal information transmission and convince customers to choose the service. Fulfilling
these requirements helps mitigate the likelihood of gaps 3 and 4, which are mainly about
being unable to deliver service as expected and miscommunication, respectively. In

17
alignment with the theory of service marketing (21), such insurance also demonstrates the
brand's fulfillment of empathy, assurance, and responsiveness criteria.

5.8 Process: Blueprint


The processes of all three services are designed to optimize the customer experience. Brands
always try to solve pain points and fill all customer expectations. For instance, in the
blueprint for the online store customer service table, customers in general will always want to
be welcomed and appreciated. Understanding that need, as soon as they enter Sàvvy's website
or ecommerce pages, a greeting from the chat box will immediately appear to show the
brand's welcoming spirit. Besides, Sàvvy also realized that trendy design and attractive prices
are the things target customers are most interested in when looking for the brand. Therefore,
images of the latest collections and current promotions will also pop-up on the screen to
attract and capture customers' interest as soon as they visit. Details about each service will be
presented through the blueprints below:

18
Figure 5. Online store trading process

Figure 6. Offline store trading process

19
Figure 7. Second-hand process

Figure 8. Upcycling workshop process

6. Service quality tracking


Table 7. Service quality tracking
SERQUAL Reliability Assurance Responsiveness Empathy Tangibles
Dimension

Hard - Show estimated - Legal paper for - Average - Positive or - Merchandising and
Measures delivery time for the sources and response times to negative visual display
new orders and names of the customer inquiries mentions of compliance audits.
secondhand items. sustainable fabric (email, social customers - Website real-time
- Provide a chat box materials . media, etc.) - Send birthday updates and
for feedback on late - Resolution rates - Estimate wait cards and performance
delivery or product for customer times for holidays metrics.
errors on the complaints/issues customers who use vouchers for - Payment Methods:
website. - Employee secondhand customers who include all types of
- Clear grading training hours and service (Starting register for digital wallet and
system for certification rates. when customers membership Banking, make it
secondhand clothes. send their clothes programs. easier for customers
to Sàvvy until during the payment
process.

20
their used clothes
are sold.)
- Show the
number of
secondhand items
sold on the
website.

Soft - Consistent use of - Knowledgeable - Prompt -Understanding - Visually appealing


Measures sustainably sourced, staff that can responses to of Gen Z retail store design
eco-friendly provide expert customer inquiries customers' aligned with the
materials as advice on across all channels unique needs for target customers
advertised sustainable (in-store, website, self-expression - High-quality,
- Efficient and fashion, materials, social media) through fashion fashionable design
seamless and trends - Ability to - Appreciating of new clothing
secondhand clothing - Professional and quickly resolve customers' collections
collection, quality courteous staff that any issues or sustainability -
check, and resale makes customers complaints related values and Professional-looking
process feel comfortable to products or environmental marketing materials,
- Clear and easy to - Robust quality services concerns website, and social
understand policies control processes - Efficient - Customized media presence
for returns, that ensure resale processing of style advice and - Clean, organized
exchanges, and items meet secondhand recommendation layout of retail space
resale transactions standards clothing s based on and proper display
- Punctual delivery - Transparency into assessments and individual of merchandise
of new orders and sourcing, quoting of resale preferences
resale items to manufacturing, and values - Flexible
customers upcycling - Rapidly policies that
practices. restocking popular make
items when they reselling/upcycli
sell out. ng simple and
hassle-free

7. Customer relationship development


Customer loyalty is crucial. Understanding the customer journey and forming strategic
partnerships are key (22), (23) . Sàvvy's customers can be segmented into 4 stages:

Customers as Strangers: These individuals represent prospective clients who have not
engaged with Sàvvy in any capacity. They may possess some awareness of Sàvvy's industry
or have encountered the brand incidentally, yet they have not made a purchase or
demonstrated any inclination towards it.

21
Customer as Acquaintances: These individuals are those who have undergone preliminary
engagement with Sàvvy. They may have visited Sàvvy's website, downloaded a brochure, or
completed a singular purchase. At this step, the membership program will be offered to
customers, although their loyalty to the brand is not guaranteed.
Customer as Friends: These are recurrent customers who express contentment and
repurchases occasionally with Sàvvy's offerings and exhibit confidence in the brand. They
may subscribe to Sàvvy's services, consistently procure Sàvvy's products, or advocate for
Sàvvy to others.
Customers as Partners: These represent Sàvvy's utmost devoted clientele, characterized by
a profound connection with the brand. They may engage in co-creation of products with
Sàvvy, offer invaluable feedback, or serve as influential advocates for the brand.

Table 8. Customer relationship development


Customers as Customer as
Customers as Friends Customer as Partners
Strangers Acquaintances

- Purchase weekly, - Purchase and


monthly, or recommend to the
-None purchased -Purchase products for
Define occasionally (each others. Write and give
history. the second time.
Brand fashionable feedback to products
season). and brands.

-Registering customers
-Registering customers to a membership
to a membership program and adding
-Registering customers program and adding points for each time
to a membership points for each time purchase. With the
program and adding purchase. With the accumulative points,
- Offering vouchers
points for each time accumulative points, customers can switch
and promotions for
purchase. With the customers can switch to to tangible products or
first-time purchase.
accumulative points, tangible products or discounts for their next
- Offering second
Financial customers can switch discounts for their next purchase.
hand products, with
Bonds to tangible products or purchase. -Offering discounts
a lower price along
discounts for their next -Offering discounts monthly, or
with quality
purchase. monthly, or occasionally to these
assurance.
- Offering second hand occasionally to this customer
products, with a lower customer segment. segmentations.
price along with - Offering second hand -Giving fashion
quality assurance. products, with a lower accessories as a gift
price along with quality back occasionally to
assurance. this customer segment.

22
-Create a marketplace -Create a marketplace
-Create a marketplace
where buyers can resell where buyers can resell
where buyers can
their old purchases of their old purchases of
-Encouraging an resell their old
the brand to the brand the brand to the brand
upcycling purchases of the brand
itself. itself.
workshop where to the brand itself.
they learn about the -Encouraging an
-Encouraging an -Encouraging an
imperative of upcycling workshop
upcycling workshop upcycling workshop
sustainable fashion. where they learn about
where they learn about where they learn about
Social Bonds It is also a place the imperative of
the imperative of the imperative of
where (community) sustainable fashion. It
sustainable fashion. It is sustainable fashion. It
people meet people is also a place where
also a place where is also a place where
with the same (community) people
(community) people (community) people
passion for fashion meet people with the
meet people with the meet people with the
design but also care same passion for
same passion for same passion for
about sustainability. fashion design but also
fashion design but also fashion design but also
care about
care about care about
sustainability.
sustainability. sustainability.

-An upcycling
workshop is a place -An upcycling -An upcycling
-An upcycling
for you to renew workshop is a place workshop is a place for
workshop is a place for
old materials to for you to renew old you to renew old
you to renew old
your unique materials to your materials to your
Customization materials to your unique
fashionable unique fashionable unique fashionable
Bonds fashionable accessories
accessories design accessories design accessories design with
design with bits of help
with bits of help with bits of help from bits of help from
from fashion designers
from fashion fashion designers in fashion designers in
in the industry.
designers in the the industry. the industry.
industry.

Structural
None None None None
Bonds

8. Potential Problem:
8.1 Service provider gap 1: Not knowing what customers expect
A: Trading new collection:
Problems:
- Companies might not be effectively gathering information about customer
preferences. This includes a lack of understanding regarding desired styles, materials,
and price points (24) .

23
Recommendation:
- Conducting in-depth customer research through surveys, focus groups, and social
media engagement allows companies to move beyond assumptions and truly
understand preferences for styles, materials, ethical practices, and price points. Social
media, in particular, offers a valuable platform for real-time feedback and trend
analysis.

- Establishing multiple communication channels like online surveys, chatbots, and


in-store consultations fosters a two-way dialogue. This empowers customers to
express their desires and concerns regarding both sustainability and design aesthetics.
Personalized communication through chatbots or consultations allows for tailored
recommendations based on individual preferences and buying habits.

- Leveraging customer data through analytics is key. This data can be used to
personalize product recommendations, curate collections that resonate with specific
customer segments, and tailor marketing messages that are more relevant and
engaging.
B: Secondhand service:
Problems:
- Secondhand clothing services face a unique challenge in the fast-paced world of
fashion (25). Unlike their new-clothing counterparts, they can not simply update their
inventory with the latest trends. The rapid churn of trends, as highlighted in a 2021
McKinsey (26) report where the "life cycle of trends has shrunk by 50% over the past
20 years,"means a significant portion of their stock can quickly become outdated,
failing to attract trend-conscious customers.

- Second Hand stores struggle to meet fast-fashion demands due to unpredictable trends
and limited inventory control, potentially leading to customer loss and declining sales.
Recommendations:
- Prioritizing the creation of a sustainable and timeless collection is equally important.
This can be achieved through market research and consultations to identify popular
styles and designs, with a focus on formulating a unique selling proposition based on
the available secondhand materials.

- Considering seasonal fluctuations in clothing preferences and tailoring product


selection accordingly demonstrates responsiveness to the market.

- Highlighting the inherent sustainability and distinctiveness of secondhand clothing


sets them apart from fast-fashion alternatives, attracting a customer base that values
these qualities.
C: Upcycling workshop:
Problems:

24
- Limiting the choice of accessories to participate in workshops can discourage
participation. Offering only one type of accessory per workshop restricts potential
participants who might be interested in upcycling different items.

- Topics outside of current styles might lead to low attendance as they don't capture
customer interest. Workshops focused on declining trends might have a low impact,
failing to resonate with a wider audience. Most importantly, missing out on
high-demand accessories leaves customers unsatisfied and potentially looking
elsewhere for workshops that address their upcycling desires.

8.2 Service provider gap 2: Not selecting the right service quality designs and standards
A: Trading new collection:
Problems:
- Sustainable fashion often prioritizes natural dyes, which can have lower colorfastness
compared to synthetic dyes. However, natural dyes can still be colorfast, depending
on the specific dye and the fabric it's applied to. Customers, unaware of proper
washing, drying, and storage methods for these eco-friendly materials, may damage
their garments. This leads to frustration, a perception of reduced value for the
clothing, and potentially, negative brand association.
Solutions:
- Provide detailed care labels attached to each garment, specifying washing
instructions, drying methods, ironing recommendations, and storage tips to prolong
the color longevity of items.

- Develop digital care guides accessible through QR codes on clothing labels or the
company website. These guides can include visual instructions, videos, and FAQs for
a more engaging experience.

- Partner with companies that offer sustainable laundry detergents and fabric care
products. Offer these products alongside the clothing or provide educational content
about their usage.
B: Secondhand service:
Problems:
- Inappropriate pricing without clear quality assessment criteria, stores struggle to
accurately price secondhand items. This can lead to overpriced items that deter
customers and underpriced items that damage the store's perceived value and
profitability (27).

- The difficulty in classifying products by quality further hinders efficiency.


Inconsistent quality assessment makes it challenging for stores to effectively manage
inventory and curate a consistent shopping experience. This can lead to customer
dissatisfaction and difficulty in reselling items at appropriate prices (27).

25
Solutions:
- Sàvvy hinges on a clear, standardized, quality classifying system for grading clothes
based on condition, material, and style. This ensures fair pricing and consistent
product descriptions for customer trust.

- Regular online and offline market research allows Sàvvy to benchmark pricing
against competitors.

- Trend Analysis: Staying informed about fashion trends, including seasonal shifts and
local preferences, helps Sàvvy assess resale potential and optimize pricing strategies.
C: Upcycling workshop:
Problems:
- Participants who attend workshop, might expect extensive one-on-one guidance from
designers, while designers might offer more general advice and inspiration.

- Workshops may attract participants with varying skill levels. Designers might struggle
to cater to both beginners and experienced upcyclers simultaneously(28).
Solutions:
- Clearly define designer involvement: Be upfront about the level and format of
designer assistance participants can expect (e.g., group feedback sessions, design
consultations, brainstorming ideas).

- Offer tiered workshops: Consider offering workshops with different levels of designer
interaction (e.g., beginner workshops with basic guidance, advanced workshops with
personalized consultations)(28).

- Schedule one-on-one consultations: Offer optional add-on sessions for participants


who desire more personalized designer input.

8.3 Service provider gap 3: Not delivering to service designs and standards
A: Trading new collection:
Problems:
- Sàvvy's collection presents a compelling fusion of trendiness and sustainability, which
are typically perceived as conflicting elements in the fashion industry. While the
brand's commitment to sustainability may attract environmentally conscious
consumers, the incorporation of trendy designs could raise doubts about the
authenticity of its sustainability claims. This apparent contradiction can lead
customers to question the brand's integrity, fearing that it might be engaging
misleading marketing tactics. As a result, trust in the brand's communication and the
value it promises could erode, creating a disconnect between Sàvvy's message and
consumers' perceptions of its practices.
Solutions:

26
- Sàvvy's fusion of trendy and sustainable styles can win over eco-conscious
fashionistas, but transparency is key. Clear communication about sustainable
practices, material origins, and classic-with-a-twist designs can build trust and dispel
misleading marketing tactics.
B: Secondhand service:
Problems:
- Despite the presence of a website through which Sàvvy can showcase secondhand
products and efficiently distribute them to price-conscious customers who prefer
purchasing pre-owned items(29) . Sàvvy cannot distribute their secondhand product
lines directly but must go through online sales channels. It may confuse customers or
hurt new product sales. Customers might struggle to differentiate between used and
new items, potentially anchoring their price expectations on the lower-priced
secondhand options(30) . The presence of secondhand items could create a cluttered or
confusing atmosphere, diminishing the experience of purchasing new products. This
could reduce the perceived value and overall appeal of new products(31) .
Solutions:
- To professionalize the online display process, meticulously categorize products by
clothing type, brand, style, and color to allure customers. Utilize product images and
descriptions adeptly: Capture aesthetically pleasing photos and compose elaborate
descriptions for each product, enabling customers to make informed selections
effortlessly. Concurrently, designate customer service personnel to monitor order
statuses, real-time update and address inquiries regarding product availability.
C: Upcycling workshop:
Problems:
- Lack of professional and supportive staff assisting with material distribution,
troubleshooting, or equipment use might not possess sufficient knowledge about
upcycling techniques, hindering their ability to effectively assist participants.
Solutions:
- Provide upcycling-specific training for support staff to ensure they can effectively
assist participants with materials, troubleshooting, and equipment use.

8.4 Service provider gap 4: Not matching performance to promises


A: Trading new collection:
Problems:
- Customers who receive clothing that does not match the description (e.g., condition,
material quality, sustainability claims) experience disappointment and frustration.
Inaccurate descriptions undermine customer trust in the brand's commitment to both
sustainability and transparency. This can be particularly damaging for sustainable
fashion brands, which rely heavily on ethical consumer trust. When customers
perceive a disconnect between the advertised product (sustainable, high-quality) and
the reality (damaged, poor material), it creates cognitive dissonance, a mental
discomfort that can lead to negative brand associations.
Solutions:

27
- Be specific and transparent about the sustainability credentials of the clothing.
Highlight certifications and sourcing practices without resorting to vague or
exaggerated language.

- Encourage customer reviews to gain insights into customer perception of product


descriptions. Utilize this feedback to continuously improve product descriptions and
ensure clear communication.
B: Secondhand service:
Problems:
- Failing to meet customer expectations regarding product quality poses a significant
challenge for secondhand service providers. When customers receive secondhand
products that fall below their quality expectations, they experience disappointment
and frustration(32).
Solutions:
- Establishing clear and detailed criteria for evaluating items is crucial. This includes
factors like material quality, level of wear and tear, and any existing damage.

- A rigorous inspection process conducted by trained staff is essential. Staff should be


well-versed in the established quality standards to ensure only high-quality products
reach the sales floor.

- Building trust requires transparency. Detailed and honest descriptions of each item,
highlighting any flaws or imperfections, are essential.
C: Upcycling workshop:
Problems:
- Participants, drawn in by promises of unique creations and designer guidance, might
envision a personalized upcycled garment. However, a pre-defined project and limited
customization options can stifle creativity and lead to disappointment. This isn't just
bad for customer satisfaction (potentially leading to negative reviews and lower
enrollment). It also underutilizes the designer's expertise and hinders learning
opportunities. Participants might not be able to explore various techniques or adapt
them to their own project, ultimately limiting the value of the workshop experience.
Solutions:
- Provide a selection of pre-selected accessories with some room for individual choice.

- Break down upcycling techniques into modules that participants can choose from and
incorporate into their projects (e.g., patchwork techniques, embroidery options,
deconstruction and reconstruction skills).

- Encourage the designer to guide participants in applying techniques to their chosen


customizations, promoting individual creativity.

28
9. Appendix :
Appendix A :
I. Return conditions:
– Customers must provide full video/photos taken when opening the package, along with the
purchase receipt.
– The product remains in its original state including brand labels and accompanying
accessories if any, has not been modified, is not dirty or affected by chemicals, has not been
washed or ironed, and has no strange smells. and shows no signs of use.
– In case of return, the original shipping fee will not be refunded.
II. Product return cases:
1. Sàvvy commits to free returns:
– If the product has a technical error from the manufacturer.
– If Sàvvy delivers the wrong model or not enough quantity as in the order.
2. Sàvvy's requirements for customers who want to support size exchange:
– The product to be exchanged must be in sufficient quantity for delivery.
– Customers pay for 2-way shipping fees and additional costs, if any.
3. Sàvvy's requirements for customers who want to exchange a product different from the
original order:
– In case the exchanged product has a higher value, the customer needs to make up the
difference.
– In case the exchanged product is of lower value, Sàvvy will not refund the difference.
– Customers pay for 2-way shipping fees and additional costs, if any.
III. Products not eligible for return:
– In case the product has its tag cut off or is damaged due to improper use, Sàvvy will not
accept returns.
– After 48 hours from the time the customer receives the goods, if Sàvvy does not receive
feedback on the status of the product, Sàvvy will consider the product accepted.
Sàvvy has the right to refuse any return request if the customer does not comply with the
regulations on Sàvvy's return policy.
IV. Time specified for return:
– Customers need to return the product within 7 days from the date of receipt. After this
deadline, Sàvvy has the right to refuse any return request from the customer.
– Customers can go directly to Sàvvy's store to return products or use express delivery
service.
– Each order can only be returned once.

29
Appendix B:

30
31
32
33
34
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35
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