In the fashion watches market, which remains scattered and disorganised, newcomer Mobile World aims to establish a new order.
The HCM City-based company, better known as The Gioi Di Dong, says it plans to rearrange the market though it only entered the US$750 million market in March this year.
The company sells watches through a unique ‘shop-in-shop’ model at its mobile phone and consumer electronics shops. Watches are displayed like normal retail products so that shoppers can select them freely. It is concentrating on VND3-5 million ($130-215) watches and brands such as Michael Kors, Fossil and Casio, the largest market segment.
Data from the last six months is arguably proof that Mobile World is going the right way.
Since starting in March the company now has a 15 per cent fashion watch market share with record retail sales for any Vietnamese seller: Some 50,000 pieces were sold in September across its 100 outlets.
Sales of $150-400 smart watches and $120-250 fashion watches averaged 500-700 units per shop per month, equivalent to average monthly revenues of $30,000-45,000 each. This beat the expectations of the company and domestic distributors.
The company plans to grab a 50 per cent share of the market by 2020 and increase the number of stores to 500 by next June to possibly sell three million units during the full year.
Mobile World believes it can develop a watch retail chain very quickly based on its existing network of over 2,000 stores. Technology-based management, a devoted service culture and outstanding after-sales service are its advantages, besides a large existing customer base.
An executive from Japanese watchmaker Citizen, who has met Mobile World officials but asked to remain unnamed, said: “We deeply appreciate the retail capacity of Mobile World in general and their ability to sell watches in particular. Both sides are taking steps towards strategic co-operation in future.”
The No.1 retailer in Vietnam is confident that its entry into the fashion watch market can match the success it has achieved in other businesses. Thegioididong.com has more than half of the mobile phone market share and Dienmayxanh.com has a 45 per cent share of the consumer electronics market.