In Vietnam’s domestic fashion watch market, which remains fragmented and topsy-turvy, newcomer Mobile World aims to establish a new market order.
Even though it has just entered the US$750 million market since March this year, the Ho Chi Minh City-based investment corporation, better known in Vietnam as The Gioi Di Dong, says it has a rearrangement plan for the market.
The company sells watches through a like-no-other ‘shop-in-shop’ model, offering watches in its mobile phone and consumer electronics shops.
Watches are displayed like normal retail products so that shoppers can select them as freely as they wish.
With a focus on selling watches that fetch VND3-5 million ($130-215) each from such brands as Michael Kors, Fossil and Casio, it is touching the largest market segment.
Data of testing sales in the last six months may be proof that Mobile World has been going the right way.
Following its market entry in March, the company now accounts for 15 percent of the domestic fashion watch market, marking a record high watch retail sales in Vietnam.
Up to 50,000 pieces were sold in September across its 100 piloting shops.
Sales of $150-400 smart watches and $120-250 fashion watches reached 500-700 units per shop per month, equivalent to average monthly revenues of $30,000-45,000 per store, beating expectations of the company and domestic distributors.
The company plans to be responsible for 50 percent of the market in 2020, with its number of watch stores scheduled to increase to 500 by next June to possibly handle three-million unit sales for the entire year.
Mobile World believes it can develop a watch retail chain very quickly based on an existing network of over 2,000 stores.
Technology-applied management, devoted serving culture and authentic after-sale services are its advantages, besides an abundant customers database.
“We highly appreciate the retail capacity of Mobile World in general and their ability to sell watches in particular,” says an anonymous representative of Japanese watchmaker Citizen, who has managed to meet Mobile World officials in person.
The source said both Mobile Word and Citizen are “taking steps towards strategic cooperation in the future.”
Mobile Word, the No.1 retailer in Vietnam that owns Thegioididong.com and Dienmayxanh.com, is confident that a take-up in the fashion watch market can be similar to the success it achieves in other businesses.
Specifically, Thegioididong.com represents more than half of Vietnam’s domestic mobile phone market and Dienmayxanh.com accounts for roughly 45 percent of the Vietnamese consumer electronics area.