Electronics retailer reaches business goals with relative ease.
Chairman and CEO of Vietnamese mobile phone retailer Mobile World (MWG), Mr. Nguyen Duc Tai, has announced plans to open one thegioididong.com store every two days and more dienmay.com stores over the next couple of months. The company has predicted that consumption will increase by between 10 and 35 per cent from now to the end of the year, and this is behind the push to open more stores.
In October the company opened 28 stores nationwide - nearly one a day on average. It also achieved its annual profit target in just the first nine months of the year. After-tax profits stood at VND488 billion ($23 million) for the first nine months, on revenues of just VND10.9 trillion ($519 million), for a 66 per cent increase year-on-year.
After-tax profits in September were VND62 billion ($2.88 million). As at October 31 there were 304 thegioididong.com stores and 15 dienmay.com stores. In the third quarter revenue was VND3.9 trillion ($183 million) and after-tax profits were VND176 billion ($8.18 million), an increase of 215 per cent compared to the third quarter of 2013. Revenue from its online business in the first nine months was VND608 billion ($29 million), double the figure for all 2013 and 80 per cent of the revenue target for the year. Revenue is expected to be VND800 billion ($38 million) by the end of the year.
Mr Tai told a media briefing in Ho Chi Minh City last month that thegioididong.com holds a market share of 28-30 per cent and will end its expansion when it reaches 40 per cent.
The company plans to focus on developing its consumer electronics and home supply chain dienmay.com next and targets leading the market with a share of 8-10 per cent.
MWG has made the list of Top 500 retailers in the Asia-Pacific region for the five consecutive years. It has a total of 219 mobile phone stores around Vietnam, earning $395 million in revenue in 2013.