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Tag: Mobile World

  • Mobile World to close 200 unprofitable stores in Q4

    Mobile World to close 200 unprofitable stores in Q4

    Leading electronics retailer The Gioi Di Dong (Mobile World – MWG) has said it might close 200 stores with moderate sales this quarter.

    Its October income statement reveals plans to close the underperforming stores to optimize costs.

    It said: “These are stores that have low sales and profit. We will be closely monitoring their performances to adjust appropriately.”

    The company currently has over 5,600 stores, 1,158 of them belonging to electronic goods seller The Gioi Di Dong, 2,281 of them to appliances seller Dien May Xanh, 1,700 to supermarket chain Bach Hoa Xanh, and 540 to An Khang Pharmacy stores.

    Mobile World chairman Nguyen Duc Tai mentioned the possibility of reducing the sizes of the The Gioi Di Dong and Dien May Xanh chains at a recent meeting with shareholders,

    With demand expected to remain low until the economy recovers, it cannot afford to keep underperforming stores open, he told them.

    “Many of MWG’s stores cannot even break even, their performance is much poorer than before.”

    However, he claimed revenues would not be affected since they will merely “move from one store to another.”

    Mobile World’s stores are densely distributed with some situated only a few hundred meters away from each other, he said.

    Gross revenues for October were VND11,190 billion (US$446.3 million), the only month this year in which there saw year-on-year growth.

    The Gioi Di Dong and Dien May Xanh contributed over VND7,800 billion, a 5% decline from a year ago.

    But it was 8% higher than September sales thanks to the launch of the iPhone 15.

    In the year to date the two chains’ revenues totaled VND70,200 billion, 21% down year-on-year.

    But Bach Hoa Xanh’s revenues rose 13% to VND25,300 billion.

    Its October, sales jumped 29% from the previous month to VND3,000 billion, or an average of VND1.7 billion per store.

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  • Electronic retailer Mobile World grows revenues in Indonesia

    Electronic retailer Mobile World grows revenues in Indonesia

    Erablue, the electronics retail chain of The Gioi Di Dong (Mobile World ) in Indonesia, has increased its monthly sales to VND30 billion from VND17.5 billion (US$0.7 million) in the latter part of 2022.

    With five stores, it reported monthly revenues of VND25 billion ($1.05 million) in the first half of this year.

    The VND5 billion ($0.2 million) per store represents higher sales than in Vietnam, Doan Van Hieu Em, CEO of two of the country’s leading electronics retailers, The Gioi Di Dong and Dien May Xanh, said. The latter also sells home appliances.

    While the amount is only equivalent to 0.5% of that of a Dien May Xanh store, it is enough to achieve positive EBITDA (earnings before interest, tax, depreciation, and amortization), he noted.

    Erablue is a joint venture between The Gioi Di Dong and Erafone Artha Retailindo, a subsidiary of Indonesia’s largest technology product retailer.

    It opened its first store in Jarkata late last year before expanding to Tangerang, an area considered a new economic driver.

    Erablue, which opened its sixth store this month, targets 25 more by the end of this year, halving the plan it made at the beginning of the year.

    Em said it is very hard to find showroom-sized properties in Indonesia, and the joint venture has to rent five to seven adjacent buildings and turn them into a big enough place for an Erablue store.

    But the potential of Indonesia’s electronics market is double or even triple that of Vietnam, he added.

    The Vietnamese electronics retailer has determined that sales and after-sales services, especially delivery and installation, will be a strong point of Erablue stores.

  • Mobile World to expand into Indonesia this year

    Mobile World to expand into Indonesia this year

    Mobile World is all set to enter Indonesia, its second overseas foray after setting up shop in Cambodia five years ago.

    “We are trying our best to open our first Indonesian store this year,” CEO Doan Van Hieu Em told shareholders last weekend.

    Vietnam’s biggest electronics retailer opened a BigPhone smartphone store in Cambodia’s Phnom Penh in 2017. Three years later it changed the name to Bluetronics and expanded to selling other electronics products too.

    By the end of last year it had 50 stores in the neighboring country and revenues of nearly VND500 billion ($21.9 million), or 0.4 percent of overall sales.

    The company had earlier been eyeing Laos and Myanmar, but it is unclear now if they are still in its plans.

    Mobile World targets growth in post-tax profits of 30 percent this year to VND6.35 trillion.

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  • Mobile World eyes 60 pct market share

    Mobile World eyes 60 pct market share

    Leading electronics retailer Mobile World is eyeing a 16 percentage point increase to obtain a market share of 60 percent by 2022.

    The company also wants to raise its smartphone share from 48 percent last year to 55 percent by 2022, according to a recent report put out by brokerage SSI Securities Corporation after its analysts met with Mobile World representatives.

    It plans to achieve these targets by opening 600 new Dien May Xanh Supermini outlets this year, aiming to reach buyers in rural areas.

    After launching this new type of outlet last July, the company has built a network of more than 300 outlets already. These outlets are small, under 150 square meters, and can be operated by four staff. It sells smartphones and household electronic items.

    SSI analysts said that retail chains like Nguyen Kim and FPT Digital Retail will have difficulty competing with this type of outlet since they have limited logistics resources and lack the ability to manage such large number of stores.

    Mobile World is also planning to increase its number of grocery stores by 281 this year to 2,000 and considering the establishment of an e-commerce platform.

    February was a challenging month for Mobile World, having had to temporarily shut down 100 outlets amid the latest Covid-19 outbreak.

    In the first two months, its revenues rose 5 percent year-on-year to VND21.5 trillion ($938 million), compared to a growth rate of 18 percent in the same period last year.

    SSI analysts estimate Mobile World’s revenues will rise 16 percent to VND126 trillion this year, with post-tax profits rising 30 percent to VND5.1 trillion.

    Last year, Mobile World had over 4,000 outlets in Vietnam and 37 in Cambodia. It opened nearly three new outlets a day on average. The company plans to become the top retailer in Southeast Asia by 2030.

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  • Mobile World reports surging sales, expands fresh-food business

    Mobile World reports surging sales, expands fresh-food business

    Mobile World says sales grew by 39 percent in the first eight months of the year to VND58.7 trillion ($2.5 billion).

    Profit after tax was up 36 per cent to VND1.97 trillion ($84.34 million) year-on-year.

    HCMC-based Mobile World Investment Corporation (MWG), established in 2004 as a seller of mobile phones, has since diversified into a host of other areas including foods, beverages, meat and seafood, and vegetables.

    Dien May Xanh, its electronics retail arm, accounts for 55 percent of sales followed by mobile phone stores The Gioi Di Dong and then department store chain Bach Hoa Xanh.

    Bach Hoa Xanh, incorporated in 2015, sells vegetables, seafood, meat and fast-moving consumer goods (FMCG). While with VND2.37 trillion ($102 million) it only accounts for 4 percent of the company’s sales, the business is growing at 251 percent.

    It has 405 outlets, with the two largest being in HCMC’s Thu Duc and Binh Tan districts.

    Bach Hoa Xanh plans to focus on the eastern and southern parts of HCMC and the neighboring provinces of Binh Duong, Long An, Dong Nai, and Ben Tre in future.

    By the end of this year it plans to have another 95 stores. A Mobile Word spokesperson said that stores that do not do well would be shut down.

    Based on the firm’s proclaimed plan of having 550 stores with average monthly revenues of VND790 million ($33,850) each by the end of this year, Ho Chi Minh City Securities Corporation (HSC) estimated Bach Hoa Xanh sales to reach VND4 trillion ($171 million) this year.

    But MWG found the department store business less attractive than the two other segments, saying at 14 percent the profit margin of Bach Hoa Xanh is lower than the 17 percent for the cellphone business and 16.7 percent for the electronics business.

    A major reason is fresh food is more difficult to manage than the others due to the short shelf life.

    Doan Van Tieu Em recently took over as CEO of MobileWorld Joint Stock Company, the subsidiary that manages the cellphone and electronics businesses.

    His predecessor, Tran Kinh Doanh, is now CEO of the department store business.

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  • Vietnam’s Mobile World sales rises

    Vietnam’s Mobile World sales rises

    Vietnam’s Mobile World saw a 43 per cent jump in revenue in the first five months of this year.

    The mobile device and consumer electronics retailer posted net sales of VND37 trillion (US$1.61 billion) and an after-tax profit of $55.8 million, 44 per cent up year-on-year.

    Of its divisions, electronic retail arm Dien May Xanh accounted for 56 per cent, mobile phone retail chain The Gioi Di Dong 41 per cent, and its fledgling grocery chain Bach Hoa Xanh 3 per cent.

    According to Mobile World’s CEO Tran Kinh Doanh, the company plans to expand Bach Hoa Xanh to 1000 stores in Ho Chi Minh City, and more in other provinces.

    The Gioi Di Dong chain has scaled down its network to 500 stores this year after closing six stores.

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  • Vietnam’s The Gioi Di Dong closed stores

    Vietnam’s The Gioi Di Dong closed stores

    Despite revenue growth, Vietnam retailer Mobile World has shuttered six The Gioi Di Dong stores.

    It closed the outlets last month following one earlier closure with a plan to maintain 1065 stores nationwide. The company says it has decided not to expand its store network to focus on revenue growth, but with the closing spree revenue for The Gioi Di Dong last month dropped 5 per cent from a year earlier to US$126.85 million.

    Now The Gioi Di Dong looks set to open only 500 locations by the end of this year instead of the previous goal of 1000 stores, according to chairman Nguyen Duc Tai.

    Mobile World is also struggling with its grocery business, Bach Hoa Xanh, which has added only 3 per cent to the company’s profit.

    In the first quarter of this year, revenue reached $1.31 billion, up 43 per cent year on year, to produce profit of $45.94 million, up 44 per cent.

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  • FPT Retail to hold IPO in mid-December

    FPT Retail to hold IPO in mid-December

    FPT Digital Retail is set to launch an IPO on the Ho Chi Minh City Stock Exchange on Friday week.

    Details of the IPO pricing have not been disclosed, but the retail arm of Vietnam’s largest IT company plans to use the proceeds over the next three years to open 100 stores officially licensed by Apple.

    FPT secured the nation’s first licence from Apple in 2012 to set up a store network specialising in such products as the iPhone and Macbook under the brand F.Studio. There are now 10 outlets run by FPT Digital Retail. Apple products make up 40 per cent of the the chain’s offerings, and the retailer plans to increase the network tenfold.

    Meanwhile, a survey has shown that more than a third of Apple products in the Vietnam market are “unauthorized” and do not have a guarantee from the manufacturer.

    While Apple has a representative office in Vietnam, there is yet to be an official Apple Store. Sales of Apple products in the Vietnam are currently valued at $1 billion annually. Apple iPhones accounted for 7 per cent of the total 14 million smartphones sold in Vietnam last year, ranking third after Samsung Electronics (28 per cent) and Oppo (25 per cent), according to IDC Vietnam.

    Vietnam has 15 Apple-authorized stores run by local retailers, including the 10 F.Studio outlets and those of Mobile World Group. This compares with 527 authorised stores in Singapore, 480 in Thailand and 364 in Indonesia.

    FPT Retail general director Nguyen Bach Diep has told an investor roadshow in Ho Chi Minh City that the market listing date will be no later than April 30.

    CEO Nguyen Viet Anh says the company expects total revenues of about US$600 million this year, 10 per cent of this from online sales, while its profit is estimated to be VND293 billion (about US$13 million) by year-end.

    Splitting from FPT’s retail and distribution sector in 2012, FPT Retail is now the second-largest information and communications technology retailer in Vietnam, holding 18 per cent market share after Mobile World Group with 45 per cent.

    FPT Retail’s nationwide store network will reach 480 outlets by the end of this year, up 25 per cent year on year.

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  • Vietnam’s Mobile World plans pharmacy chain

    Vietnam’s Mobile World plans pharmacy chain

    Vietnam’s Mobile World is recruiting pharmacists, with a plan to expand into pharmacy retailing.

    In a job ad on Pharmalink, Mobile World is seeking experienced pharmacists to set up business, train employees and help operate a pharmacy chain.

    Mobile World’s representative confirmed its plan to test new business model without revealing the numbers of stores to be set up.

    In shareholders’ meeting in March, Mobile World’s president Ngo Duc Tai shared the group’s expansion plan by merger and acquisition (M&A) deals in groceries, pharmacy and others, with a budget of US$110 million.

    Ngo revealed that in upcoming years, the group might test medicine retailing via M&A with some pharmacy chains which already has 10-15 stores, and would expand to 500 stores.

    In August, Mobile World finished its first M&A deal with Tran Anh electronics chain.

  • Vietnam’s Mobile World plans 300 grocery stores

    Vietnam’s Mobile World plans 300 grocery stores

    Vietnam’s Mobile World – the electronics retailer – says it plans to open 300 more grocery stores under the Bach Hoa Xanh banner this year.

    The convenience store chain targets time-poor Vietnamese housewives who prefer small stores to crowded supermarkets or hypermarkets.

    bach-hoa-xanh-inside

    With 50 stores in Ho Chi Minh City’s Binh Tan district alone, Bach Hoa Xanh stores each achieve more than VND1 billion (US$44,300) in monthly sales, prompting the rapid expansion strategy.

    Nguyen Duc Tai, chairman of Mobile World, expects Bach Hoa Xanh stores to replace wet markets and become the leading player of this grocery sector, a market worth an estimated $60 billion annually.

    Mobile World Is Vietnam’s third-largest retailer, behind only supermarket Coop Mart and hypermarket chain Big C.

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  • FPT Vietnam to sell stake

    FPT Vietnam to sell stake

    One of Vietnam’s largest private tech firms, FPT Corporation is planning to sell a large stake in its retail and distribution units, providing an opportunity for regional players to buy into the fast-growing Vietnamese market.

    Funds from the sale will be used to help with mergers and acquisitions (M&A) in the information technology area.

    At a shareholder meeting, the company said it will reduce its holdings in FPT Shop, a mobile device retailer, and FPT Trading, which makes, imports and sells telecommunications and electronic products.

    FPT Shop has reached its target of having 250 outlets by this year, and the distribution arm’s profit margins are steady 46 per cent, the meeting was told. FPT still expects the major part of its revenue to come from retail and distribution, estimated at VND28.58 trillion (US$1.27 billion) – about 63 per cent of turnover.

    “The IT industry has a lot of potentials, and the opportunities are universal,” says deputy-CEO Nguyen The Phuong.

    He says some of the money raised will be used to increase the company’s stake in FPT Telecom.

    FPT chairman Truong Gia Binh last year unveiled his goal to invest US$50 million through M&A every year, in both local and international companies. The targeted markets include the US, Japan, Singapore and Europe. Two years ago, the company acquired RWE IT Slovakia for an undisclosed amount and rebranded it to FPT Slovakia.

    One of the main competitors of FPT Shop, Mobile World, has expressed an interest in buying the retail unit. Another candidate could be Thailand’s Central Group, which bought 49 per cent of Vietnamese electronics retailer Nguyen Kim early last year and reportedly wants to also acquire Pico, another local electronics store.

    FPT Vietnam has retained VietCapital Securities and Japan’s Nomura Securities for advisory services on the sale.

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  • Vietnam mobile phone market heats up

    Vietnam mobile phone market heats up

    The Vietnam mobile phone market is heating up, with major retailers pushing smaller businesses to the wall as new branded stores open almost every week.

    With limited marketing budgets, smaller retailers, the traditional mainstay of the mobile phone business, are unable to complete, reports TalkVietnam.com.

    Mobile World, which has a 39 per cent market share with its 603 Thegioididong outlets nationwide, has unveiled a plan to open a further 400 stores.

    Other retailers such as FPT Shop, VienthongA and Viettel Store are also scrambling to open more shops. FPT has more than 250 outlets already, VienthongA has more than 200, and Viettel Store has more than 300.

    FPT and VienthongA aim to open 50 to 100 stores this year, and new player VinPro plans to double it 100 outlets this year.

    Meanwhile, small phone retailers are now focusing on selling top-up cards for mobile phones, accessories and used phones. Some also sell such products as portable speakers, Wi-Fi transmitters and sports cameras to stay solvent.

    Small mobile phone shops hold between 30 and 35 per cent of the market, but their share will shrink, says FPT Retail Digital general director Nguyen Bach Diep.

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  • Mobile World crossing borders

    Mobile World crossing borders

    As well as electronics and mobile phones, its usual products, Vietnamese chain Mobile World is planning to distribute groceries in its first stores in Cambodia, Laos and Myanmar.

    CEO Tran Kinh Doanh says the stores will open early next year.

    Meanwhile, he has revealed two goals – to become one of the biggest eCommerce firms in Vietnam, and to bring in revenue of about VND34,000 billion (US$1.51 billion) this year. This would provide an after-tax profit of VND1400 billion – up VND400 billion on the past financial year.

    With 70 stores and a distribution network covering 42 provinces and cities, Mobile World last year earned VND25,000 billion, giving an after-tax profit of VND1000 billion. Both revenue and profit grew by 60 to 70 per cent. Online sales contributed less than 10 per cent of total revenue.

    Mobile World opened more than 200 cellphone stores last year, taking its total to 550, and this year it plans to expand its network to all 63 provinces and cities in Vietnam to become the second-largest electronic and mobile phone retail chain in the nation.

    It decision to join the food market with 13 stores was announced late last year. The corporation has 17,000 employees, expecting to grow this to about 26,000 people.

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