Phone and electronics retailer plans to open first outlet in Vietnam's neighbor next year.
The Mobile World JSC (MWG) plans to open its first store in Cambodia by 2017.
Mr. Dang Thanh Phong from MWG told VET that its plan is to research the feasibility of expanding its retail of mobile phones and consumer electronics to Cambodia and will do so on its own rather than as a joint venture. The move comes as Vietnam’s smartphone market approaches saturation point.
The dienmayxanh retail chain will use a mini model to help MWG secure market share in Cambodia, with mini shops occupying a retail space of 300-400 sq m compared to the usual 800-1,000 sq m.
Customers at the dienmayxanh mini shops will be in rural areas, with best selling, small products such as small TVs and refrigerators being sold.
MWG expects each mini shop to earn VND4 billion ($175,438) in its first year of operation, which would see the company increase its local electronics and home appliances share to 30 per cent by 2017.
Euromonitor International forecast that online retail in electronic devices will grow strongly from 2015 to 2020. As such, MWG continues to launch expansion plans for its two retail chains - thegioididong.com and dienmayxanh.com - to have 1,000 shops by the end of this year, which will be used for the delivery of goods purchased online.
The company is now piloting a third retail concept, a mini-supermarket chain under the name Bachhoaxanh. MWG’s Chairman Nguyen Duc Tai said the pilot has seen good results and he believes it will be successful, with revenue expected at $4 million this year.
2015 saw impressive growth in MWG’s business. It earned revenue of VND25.4 trillion ($1.14 billion) and net profit of VND1.07 trillion ($48 million). In 2016 it revenue is targeted to reach VND34 trillion ($1.52 billion), with net profit at VND1.4 trillion ($62.2 million).
Mr. Tai has announced that the company’s goal is to be the leading brand in e-commerce in Vietnam by 2020. It plans to launch an e-commerce trading platform by the end of this year, and its strategy is to be the most customer-centric retailer in Vietnam, organizing its operations around improving the customer experience and maximizing customer satisfaction.
It has more than 1 million daily visitors to its websites, making it Vietnam’s largest online electronics retailer, and applies an Omni-channel strategy, which closely integrates the online and offline aspects of its business. For example, leveraging its nationwide store network, the company provides a 30-minute delivery service for online orders for customers in many locations.
- Nguyen Duc Tai
- Mekong Capital