{"id":11812,"date":"2021-12-01T09:58:00","date_gmt":"2021-12-01T02:58:00","guid":{"rendered":"https:\/\/b-company.jp\/?p=11812"},"modified":"2024-08-22T13:45:56","modified_gmt":"2024-08-22T06:45:56","slug":"covid-19-pandemic-creates-a-boost-for-electronics-retail-business","status":"publish","type":"post","link":"https:\/\/b-company.jp\/ja\/covid-19-pandemic-creates-a-boost-for-electronics-retail-business\/","title":{"rendered":"COVID-19\u30d1\u30f3\u30c7\u30df\u30c3\u30af\u304c\u5bb6\u96fb\u5c0f\u58f2\u696d\u306b\u8ffd\u3044\u98a8"},"content":{"rendered":"\r\n

Overview of Vietnam Electronics Retail Market<\/strong><\/p>\r\n\r\n\r\n\r\n

Vietnamese consumer electronics market has been underpinned by the country\u2019s healthy economic growth and its tech-savvy young population. The market\u2019s main products include audio & video electronics, household appliances, mobile phones, digital cameras & other gadgets[1]<\/a>.<\/p>\r\n\r\n\r\n\r\n

During 2014-2018, retail sales of consumer electronics was at 13.8% CAGR, with forecasted sales of VND169.8 trillion (~USD7.5 billion) in 2020[2]<\/a>. Amid the pandemic period (2019-2020), the CAGR dropped significantly to -0.98%. Nevertheless, this sector still managed to have a slight revenue growth of 0.2% in 2020[3]<\/a>.<\/p>\r\n\r\n\r\n\r\n

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Consumer Purchasing Behaviour<\/strong><\/p>\r\n\r\n\r\n\r\n

According to Deloitte\u2019s Vietnam Consumer Survey (2019), the monthly household expenditure for consumer electronics accounts for 10% of total monthly household expenditure. In fact, 33% of Vietnamese respondents indicated that they would want to spend more on mid-tier mobile phones, digital cameras and other gadgets[4]<\/a>. The spending trend is expected to continue growing strongly in 2021 as social distancing measures create an increasing demand for electronics devices to serve communication and working purposes.<\/p>\r\n\r\n\r\n\r\n

Rising Demand of Electronics Devices During Pandemic Creates Growth Opportunity<\/strong><\/p>\r\n\r\n\r\n\r\n

Electronics retail sector has profited from the pandemic thanks to rising demand. This phenomenon is also evident in the mushrooming of electronics retailers and e-commerce activities.<\/p>\r\n\r\n\r\n\r\n

Net Revenue of Key Electronics Retail Shop in Vietnam (Mobile phone, Laptop, Tablet)<\/strong><\/p>\r\n\r\n\r\n\r\n

(2020)<\/strong><\/p>\r\n\r\n\r\n\r\n

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Source: Companies\u2019 financial reports 2020<\/p>\r\n\r\n\r\n\r\n

Vietnam\u2019s largest electronics retailer, TGDD (Mobile World\u2019s subsidiary), reported the sales of over VND15.6 trillion in the first half of 2021, a year-on-year increase of 7%. Meanwhile, FPT Retail (Electronics retail shop of Synnex FPT) earned total revenues of over VND9 trillion in the same period, a 13% YOY growth[5]<\/a>.<\/p>\r\n\r\n\r\n\r\n

Noticeably, in the smartphone sector, FPT witnessed a record high in iPhone sales with 5000 iPhone 13 sold on the first day of official launching. To aggressively increase its market share in Vietnam, Apple has made a strategic move to establish its authorised retailers (07\/2020), minimizing the price gap and launching time between Vietnam and other countries[6]<\/a>. Meanwhile, Samsung has announced its plan to expand production in Vietnam to meet the increase demand for smartphones[7]<\/a> (09\/2021) .<\/p>\r\n\r\n\r\n\r\n

As a part of the strategy to quickly expand its operations and increase market share, leading retailer Mobile World has recently launched a collaboration program with small retailers, offering a commission of 5-20% for each product sold. This model brings a number of benefits to small retailers such as: no investment needed, no store inventory, diversify product portfolio, etc. As for customers, they can buy the product at a standardised price listed on Mobile World’s website, enjoy its after-sales and warranty policies[8]<\/a>. Mobile World\u2019s priority is to expand to remote areas where they have not had any retail outlet and only small electronics retailers are available[9]<\/a>. The business collaboration model is expected to affirm the pioneering position of Mobile World.<\/p>\r\n\r\n\r\n\r\n

With the long pandemic going so far, the \u201cnew normal\u201d may not be temporary but transform into a new lifestyle of the post-pandemic era. This consequently would continue boosting the demand for electronics products as people have adapted to the new habits and realised they can do many things remotely and virtually.<\/p>\r\n\r\n\r\n

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[1]<\/a> https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/sg\/Documents\/consumer-business\/sea-cb-vietnam-consumer-survey-2020.pdf<\/a><\/p>\r\n\r\n\r\n\r\n

[2]<\/a> https:\/\/hkmb.hktdc.com\/en\/1X0AJMJN\/hktdc-research\/Vietnam%E2%80%99s-Consumer-Electronics-Market-Online-and-Offline-Sales-Channels<\/a><\/p>\r\n\r\n\r\n\r\n

[3]<\/a> https:\/\/www.statista.com\/forecasts\/1246666\/vietnam-consumer-electronics-market-revenue-growth<\/a><\/p>\r\n\r\n\r\n\r\n

[4]<\/a> https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/sg\/Documents\/consumer-business\/sea-cb-vietnam-consumer-survey-2020.pdf<\/a><\/p>\r\n\r\n\r\n\r\n

[5]<\/a> https:\/\/e.vnexpress.net\/news\/business\/companies\/h1-surge-in-phone-laptop-sales-4338575.html<\/a><\/p>\r\n\r\n\r\n\r\n

[6]<\/a> https:\/\/cafef.vn\/fpt-shop-doanh-so-iphone-13-pha-ky-luc-voi-5000-may-thu-ve-200-ty-dong-tu-apple-fan-chi-trong-1-ngay-20211023171817889.chn<\/a><\/p>\r\n\r\n\r\n\r\n

[7]<\/a> https:\/\/vnexpress.net\/samsung-du-dinh-mo-rong-nha-may-tai-viet-nam-4350996.html<\/a><\/p>\r\n\r\n\r\n\r\n

[8]<\/a> https:\/\/thanhnien.vn\/mo-hinh-moi-cua-the-gioi-di-dong-tieu-thuong-vung-sau-khong-nen-bo-qua-post1069548.html<\/a><\/p>\r\n\r\n\r\n\r\n

[9]<\/a> https:\/\/e.vnexpress.net\/news\/business\/companies\/mobile-world-works-with-small-electronics-retailers-to-expand-reach-4278164.html<\/a><\/p>\r\n

\u00a0<\/strong><\/p>\r\n\r\n\r\n\r\n
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B&Company, Inc.<\/strong><\/p>\r\n

The first Japanese company specializing in market research in Vietnam since 2008. We provide a wide range of services including industry reports, industry interviews, consumer surveys, business matching. Additionally, we have recently developed a database of over 900,000 companies in Vietnam, which can be used to search for partners and analyze the market.<\/p>\r\n

Please do not hesitate to contact us if you have any queries.<\/p>\r\n

info@b-company.jp<\/em><\/a>\u00a0+ (84) 28 3910 3913<\/strong><\/em><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

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