Of these 84 products sold offline, 36 are sold in MWG’s chain, for an offline market share of 43 per cent. Of the 16 products sold online, nine are sold via MWG’s websites, for an online market share of 55 per cent.
MWG also released its business results for the first of 2018. It recorded net revenue of VND44.5 trillion ($1.9 billion), an increase of VND13.3 trillion ($571.4 million) year-on-year, or 43 per cent. Net profit after tax was VND1.5 trillion ($64.5 million), up VND500 million ($21,510), or 44 per cent.
Online revenue reached VND5.5 trillion ($237 million), more than double the revenue in the same period of 2017. Net revenue, net profit after tax, and online revenue are all on track to meet the company’s annual targets for FY 2018.
Phones, tablets, laptops and accessories accounted for 55 per cent of MWG’s net revenue, followed by electronics, white goods and small appliances, with 40 per cent. Groceries and FMCGs contributed 3 per cent of net turnover and the remaining 2 per cent was from other services.
Retail sales of phones and tablets in Vietnam during the first half grew 4 per cent year-on-year, while MWG recorded 20 per cent year-on-year growth for these products.
The strong performance is reflected in its increasing market share. MWG’s share of phones and tablets was 45 per cent in the first half, compared to 40 per cent in the first half of 2017. It targets approximately 50 per cent from 2020 onwards.
Most thegioididong stores were closed in the first half and converted into Dien May Xanh mini stores in order to further exploit revenue potential. Stores selected for conversion are located in areas with high population density, good traffic, and opportunities for expansion.
For example, a Dien May Xanh mini store requires an area of 350-500 sq m, and if there is a chance of converting a thegioididong store of 150sq m into a Dien May Xanh mini, the company only needs to rent an additional 200-350 sq m and the shop can be expected to double its revenue in a short period of time.
Besides the additional rental costs, these converted shops incur only negligible increases in other overheads to generate the higher turnover.