The AVAKids chain of Thế giới di động reaches nearly 900 billion VND in revenue in 2023, growing 80% compared to the same period
According to recent figures released by Thế giới di động, in 2023, the AVAKids chain will reach nearly 900 billion VND in revenue, growing by 80% compared to the same period. The online channel contributes 30% of AVAKids’ total revenue.
Despite its significant growth compared to other sectors, AVAKids’ revenue, along with the An Khang drugstore chain, accounts for less than 8.4% of Thế giới di động’s total consolidated revenue.
AVAKids is a chain of stores specializing in mother and baby products launched by MWG with its first location opening in early 2022, along with other AVA chains such as VAFashion – specializing in fashion, AVASports – sports equipment, AVAJi – watches, jewelry, eyewear, and AVACycle – bicycles.
Continuing its tradition of rapid store openings, AVAKids reached the milestone of 50 stores in just over 5 months of operation. At the opening ceremony of the 50th AVAKids store in Ho Chi Minh City on June 1, 2022, the leading retailer in Vietnam aimed to have 200 AvaKids stores by the end of the year and aspires to be the market leader in the mother and baby segment in terms of both revenue and store locations by 2024. During the ceremony, Mr. Doan Van Hieu Em, CEO of Thế giới Di động, shared with the media: “50 new AVAKids stores are just the beginning, it’s just a small matter.”
To realize its ambition, the chain first increased the amount of merchandise in each store to maximize customer needs. About 5,000 products including diapers, clothes, toys, bicycles, mother and baby consumer products, supplements (baby food, vitamins), etc. are displayed and sold in each AVAKids store. With this scale, customers can find almost everything for pregnant mothers and babies from birth to preschool age.
However, unfavorable business conditions since late 2022 have halted all plans for Thế giới di động and AVAKids. The number of mother and baby stores reached its peak with 71 stores by the end of October 2022, and just one month later, it quickly declined to 64 stores. This number remained unchanged from then until the end of 2023.
Although it did not meet its previously set sales targets, in the 2023 business results report, Thế giới di động revealed: “AVAKids is currently the retail chain with the highest average revenue per store in Vietnam’s mother and baby product market, reaching 1.7 billion VND per store.”
Thế giới di động had high expectations for this industry due to the large scale of the mother and baby market with annual revenue reaching 6-7 billion USD. Meanwhile, the modern retail channel is not yet strong, and the market is still fragmented, focusing mainly on traditional channels.
According to market research company FTA, Vietnam is a promising market for mother and baby product businesses, with annual market growth reaching an average of 2.5 billion USD.
Moreover, Vietnam has the highest percentage of households with children in the Southeast Asian region, with 12% of households having children under 1 year old and 20% of households having children between 1-2 years old. In addition, with about 68% of the population aged 15-64, Vietnam is still in the golden population stage, so the number of young families is increasing naturally.
In Vietnam, the leading chain in the mother and baby market is Con Cưng with a system of 699 stores. Another prominent retail chain in the industry is Bibomart, which currently has 125 stores, and Kid Plaza, which has 155 stores.
In general, the number of chains has decreased compared to the peak in 2022. Regarding revenue, according to the CEO of Con Cưng – Mr. Luu Anh Tien’s statement at the beginning of 2022, the company’s revenue reached about 300 million USD in 2021. At that time, they had about 600 stores, equivalent to an average revenue of about 1 billion VND per store per month.