Mr. Tran Kinh Doanh, CEO of the Mobile World Investment Corporation (MWG), talks with VET about the company's business plans to 2020.
■ MWG’s goal is to become the leading e-commerce company in Vietnam by 2020. Can you tell us more about the goal?
The company is actively preparing to reach the goal. Our e-commerce trading platform is expected to be launched by the end of this year. Most young customers enjoy using smartphones and the internet so are familiar with online transactions. Our goal is to take the leading position in the market.
■ What role do the Dienmayxanh and Bach Hoa Xanh chain stores play in reaching this goal?
By the end of this year our Dienmayxanh consumer electronics chain plans to earn revenue of VND12 trillion ($526.3 billion) and the figure is to double to $1 billion in 2017. The chains will hold a 30 per cent share in the electronics retail market. Bach Hoa Xanh will be the focus of development from 2017 to 2020.
MWG plans to open its first store in Cambodia in 2017. Our plan is to research the feasibility of expanding the retail of mobile phones and consumer electronics to Cambodia and we will do so on our own rather than as a joint venture. Vietnam’s smartphone market is approaching 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.
In Vietnam, customers at Dienmayxanh mini shops will be primarily in rural areas, with best selling, small products such as small TVs and refrigerators being sold. We expect 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.
■ Mobile retailing seems to be no longer a sustainable model. MWG’s current advantages, including location, genuine products, promotional programs and quality services also may no longer be advantages. What do you think about this?
I believe we have an advantage in applying the online business model with many after-sales programs, delivery points, and warranty services. Thegioididong.com is currently selling specific products and will then provide certain services of high quality. The demand for the shops is high.
■ MWG leads the way with a 10 per cent market share and has taken the No. 1 position, according to the latest report on Vietnam’s online retail industry from Euromonitor International. What are your thoughts on this result?
The result correctly reflects the company's efforts, in particular the approach to online customers. We have consistently introduced innovation and improvements to satisfy the needs of customers. We have paid attention to each activity, such as website interface, support for buying products via call centers, delivery, and payment. Everything we provide is to help customers buy products easily and conveniently.
■ Vietnam’s e-commerce industry is considered to have potential but is difficult to succeed in. Many foreign giants in the industry have invested in Vietnam but withdrawn. Why will MWG be successful?
Each company has a different view of and approach to business. We specialize in retailing and have experience in the market. This is why we believe we will succeed.