MWG plans foreign expansion
MWG plans foreign expansion
MobileWorld (HOSE: MWG) plans to expand its operations abroad, as the domestic market of smart phone trading has become saturated.
Accordingly, MWG will open its first mobile phone and electricity houseware store in Cambodia in 2017, creating a fundamental for opening a retail chain in the future, according to newswire Cafef.vn.
In addition, MWG will issue numerous strategies to control its market shares in mobile phone and electric houseware retail in the domestic market, as well as retain its development speed from previous years.
Notably, MWG will also pilot its e-commerce website named Vuivui.com. The website will not make profit for the company in the short-term, however, the management board expects that it will contribute 10 per cent to the company’s total revenue by 2020.
In addition, developing the Dien may Xanh mini chain, which has an area of 300-400 square metres per store instead of the 800-1,000 at its general stores, is considered MWG’s latest strategy to extend its market shares in mobile phones and electric houseware trading in the domestic market. The Dien may Xanh mini chain will penetrate suburbs and rural areas.
MWG currently has over 900 outlets across Vietnam, including 800 thegioididong.com stores and over 100 Dien may Xanh shops. In 2015, the company broke into the “Billion Dollar Club” when it attained roughly VND25.3 trillion ($1.15 billion) in revenue and VND1.076 trillion ($49.13 million) in profit. Looking ahead, Dien may Xanh is expecting to celebrate its presence in all 63 cities and provinces of the country, becoming the electronics retailer with the widest network coverage.
The stout growth of Dien may Xanh will assist MWG to stride forward even quicker, in a bid to achieve its goal of $1.5 billion in revenue by the end of 2016.
