In 2023, with an unfavorable macroeconomic context and unpredictable political and economic developments, many countries around the world are facing challenges. In Vietnam, the unfavorable production, export, and employment situation has significantly affected the income, confidence, and consumer trends of the people. The purchasing power has declined in most sectors, especially non-essential items, which is the biggest challenge that MWG has to face and adapt to.
With the characteristic of high-value and durable goods, the business products at Mobile World/Dien May Xanh (MWG) are most affected by weak demand and cost-saving consumer psychology. Therefore, both chains have witnessed a decline in revenue compared to the same period last year.
Mobile World stated that in 2023, most sectors experienced negative growth. Among them, mobile phones, laptops, washing machines, and consumer electronics decreased by 10%-20%. TVs, tablets, and watches decreased by 30%-50% compared to the same period.
However, iPhone sales still recorded positive growth thanks to Apple’s strong efforts to increase market share. MWG’s market share for Apple phones has increased from 25%-30% in the first quarter to about 50% by the end of 2023.
Contrary to the trends, one product that has shown positive growth in both quantity and revenue in the past year for Mobile World is air conditioners. Mobile World stated that careful preparation of product range, along with promotion programs and active resource management in delivery and installation, helped Dien May Xanh take advantage of business opportunities during the peak season.
After restructuring to streamline operations, Mobile World and Dien May Xanh closed nearly 200 underperforming stores in the fourth quarter of 2023. Mobile World stated that despite operating fewer stores, the company still maintained a slight increase in revenue compared to the third quarter of 2023, and the overall efficiency indicators for the entire chain also showed more positive signals.
In 2023, Mobile World achieved consolidated revenue of over 118,000 billion VND, maintaining 89% of the revenue in 2022 and completing 88% of the 2023 plan.
Online revenue amounted to approximately 17,000 billion VND, equivalent to 89% of 2022, accounting for 14% of the company’s total revenue.
The Dien May Xanh and Mobile World chains remain the main drivers of MWG’s revenue structure. In addition, the Bach Hoa Xanh chain achieved a 17% increase in revenue compared to 2022, contributing more to MWG’s total sales.
Source: Mobile World
