BigPhone.com store slated for opening in first quarter.
Mobile World Group (MWG) is set to open its first store in Cambodia, called BigPhone.com, General Director Tran Kinh Doanh confirmed with VET.
The store is under construction and is anticipated to open in the first quarter. Its size is similar to those in Vietnam, at about 150-200 sq m, and most staff are local people.
“Cambodia was chosen to be the first country for the Group to approach in Indochina,” Mr. Doanh said, adding that it aims to increase the number of stores to between 10 and 15 in Cambodia during the first half of this year.
The name “BigPhone.com” is set to make it easier for local people to access. “However, the identity of the brand, with the characteristic yellow and black tones, remain, making it easy for people to realize it is a MWG member store,” Mr. Doanh said.
MWG team in Phnom Penh, Cambodia. Source: MWG
Only 100 MWG stores will be opened this year, according to Mr. Doanh, to enhance the customer experience rather than just focus on expansion, as in previous years.
In addition to occupying foreign markets, this year MWG also plans to boost the Dien May Xanh chain to equal thegioididong.com in terms of business efficiency, and will move to the second phase of its Bach Hoa Xanh chains and officially launch the e-commerce website Vuivui.com, which the Group aims to turn into a Vietnamese version of Amazon and compete with Tiki, Lazada, Sendo, and others.
According to its 2016 financial report, MWG recorded revenue of VND44.6 trillion ($2 billion) and after-tax profit of VND1.6 trillion ($69.5 million), increases of 77 and 47 per cent, respectively, compared to 2015. Its revenue also surpassed the initial annual target by 14 per cent. Over the last five years, MWG’s revenue and after-tax profit have increased by 43.87 and 65.7 per cent each year on average.
Consumer electronics distribution is the key contributor to MWG’s success. The Gioi Di Dong stores account for approximately 70 per cent of MWG’s sales and 38 per cent of its market share.
With positive business results, MWG’s stock price doubled in 2016, putting it among the largest caps, with over $1 billion. The company’s price per earnings (P/E) ratio is over 15, which is equivalent to the market P/E but still highly regarded compared with many other companies in Vietnam’s retail industry.
MWG targets VND63.3 trillion ($2.83 billion) in revenue and VND2.2 trillion ($97 million) in profit for 2017, which is equivalent to increases of 38.7 and 39.5 per cent, respectively, compared to 2016.
Dragon Capital recently became a major shareholder of MWG. The foreign ownership limit, the maximum percentage foreign investors are allowed to own, was increased to 49 per cent. MWG has no intention of raising the cap further due to the differing treatment it would be subject to if its foreign ownership level was to increase.