The 2023 business performance report of MWG indicates that the annual revenue of The Gioi Di Dong (TGDĐ, TopZone) reached over 28,000 billion VND, while Dien May Xanh achieved 55,000 billion VND. Specifically, the online revenue reached nearly 16,000 billion VND, representing an 11% decrease compared to 2022.
According to this retail giant, most sectors experienced negative growth, except for the air conditioning sector. Mobile phones, laptops, refrigerators, washing machines, and appliances all saw a 10-20% decline compared to the same period. Only iPhone devices saw an increase in market share.
“Due to their high value and long-lasting nature, the products sold at The Gioi Di Dong and Dien May Xanh were most affected by weak demand and consumers’ desire for cost-saving,” MWG stated in its report.
However, the opposite trend was observed on e-commerce platforms.
According to Metric’s report in 2022 and 2023, while the total revenue on e-commerce platforms increased from 135,000 billion VND to 233,200 billion VND, the Mobile Phones & Tablets sector also increased from less than 10,000 billion VND to nearly 14,000 billion VND. This achievement was only around 2,000 billion VND lower than the online revenue of The Gioi Di Dong.
Metric also revealed that the Mobile Phones & Tablets sector is experiencing a significant shift toward online retail platforms. Major brands are getting closer to consumers, investing in Mall pages with attractive incentives for buyers, and achieving significant success as their revenue and sales volume grow rapidly in 2023.
This can be clearly seen through the growth of Apple and Samsung in 2022 and 2023. Although they did not top the sales volume, Apple consistently maintained its top position in terms of revenue on e-commerce platforms, followed closely by Samsung.
(Source: Metric)
Specifically, Apple’s total revenue across all stores in 2022 reached approximately 2,974 billion VND, while Samsung achieved 2,255 billion VND. In 2023, these figures increased to 3,358 billion VND for Apple (a 12.9% increase compared to the same period) and 3,078 billion VND for Samsung (a 36.5% increase compared to the same period). The total market share of Apple and Samsung’s revenue was nearly half of the total revenue of the top 10 highest-earning brands on e-commerce platforms. Besides Apple and Samsung, Xiaomi also ranked fourth in the Top 10 brands with the highest revenue in 2023, achieving 1,818 billion VND (a 23.2% increase compared to 1,475 billion VND in 2022).
Additionally, according to data from YouNet ECI, in the first 11 months of 2023, the total Gross Merchandise Value (GMV) of smartphones on the three e-commerce platforms Shopee, Tiki, and Lazada reached 8,504.4 billion VND. The GMV revenue from smartphones alone (excluding other technology and home appliance products) on these platforms equaled half of the online revenue from The Gioi Di Dong & Dien May Xanh and accounted for over 11% of both chains’ total revenue. Meanwhile, FPT Shop recorded a cumulative revenue of 12,222 billion VND in the first 9 months of 2023, while the revenue from smartphones on e-commerce platforms during this period reached 5,876 billion VND.
Apple Flagship Store is the highest-earning store on Shopee
Therefore, despite the general challenges of the economy, while the mobile phone and computer sector at The Gioi Di Dong experienced negative growth, the sector on e-commerce platforms saw double-digit growth. Furthermore, the Direct-to-Consumer model of e-commerce platforms helped brands significantly reduce costs. Metric’s analysis showed that if the Business-to-Business-to-Customer model were applied, they would have to spend 35% – 40% of the product’s price on agents. However, when selling directly on e-commerce platforms, they would only incur much lower fees (less than 10%).
In their business strategy for 2024, MWG also focused on an Omni-channel approach. The retailer expects to continue increasing online sales and estimates that the contribution of online channels to the revenue of each sector will range from 5% to 30%, depending on the characteristics of each sector. However, in a context where e-commerce platforms continue to grow strongly, The Gioi Di Dong and FPT Shop not only have to directly compete with traditional competitors but also find ways to compete with the booming online sellers on e-commerce platforms.
