03:29 (GMT +7) - Thursday 24/10/2019

BUSINESS SPOTLIGHT

MWG successfully moves into fashionable watches

Released at: 14:54, 01/10/2019 BUSINESS SPOTLIGHT

MWG successfully moves into fashionable watches

Photo from The Leader

Leading mobile phone retailer swiftly expanding its watch sales since entering the market last March.

by Thanh Thanh

Mobile World (MWG) started to experiment with the “shop-in-shop” model in March by selling watches and has since acquired a significant market share of 15 per cent. The total number of watches sold in September was 50,000, which surpassed the expectations of both MWG and local distributors.

Local suppliers actually ran out of stock, which made the retailer begin buying products at source to ease its dependence on go-betweens.

Vietnam’s retail watch market is estimated to be worth more than VND18 trillion ($777.48 million) but the market is quite fragmented, as there are no store chains with a market share of more than 20 per cent.

Market researcher Euromonitor International forecasts Vietnam’s jewelry and watch retail market will grow by a compound annual growth rate (CAGR) of 7 per cent between 2017 and 2021 and reach VND43 trillion ($1.86 billion) by 2021. Market growth is being driven by rising disposable incomes, an optimistic Consumer Confidence Index, and 30 million Millennials (aged 18-34) who increasingly seek products that express their status. 

Plans to scale

Since first jumping into the market, Mobile World planned to give it a professional manner. The retailer offers consumers affordable prices, thanks to its swift strategy of buying at source. Prices are affordable and policies for warranty and after-sales services for consumers are strictly applied.

The company is set to open 100 stores by September 30 with sales reaching 50,000 watches this month. The chain will have 200 outlets by year-end and sell 100,000 watches by December, bringing the total number sold in stores this year to 300,000. It also targets opening 500 watch shops by the end of next June, with a target of selling 2.5 million watches next year as a whole.

“We still have much room to grow in this segment, so are open to any watch manufacturers who can build a long-term trusted partnership,” MWG’s CEO Doan Van Hieu Em said.

Known as Vietnam’s leading retailer, MWG was the only Vietnamese representative among the top 100 Asia-Pacific Retailers, as voted by Retail Asia magazine and Euromonitor and among the top 50 best listed companies by Forbes Asia (Asia’s Fab 50) for two consecutive years. The company is also a multi-award winner recognized by local organizations.

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