A Tough Competition: No One Wins in the End
2013 was a challenging year for mobile retailers in Vietnam, marked by an explosive media landscape and aggressive “price-slashing” sales campaigns aimed at attracting consumers.
In March 2023, The Gioi Di Dong, a leading retail company, initiated a price war with its “too cheap” campaign, drastically reducing prices on various mobile models, especially iPhones. As the largest retailer made its move, other players had no choice but to follow suit with even lower prices, claiming to offer better deals than their competitors.
The intense price war in 2023 left many retailers exhausted and struggling.
This prolonged price race throughout 2023 took a toll on many retailers, forcing them to sell at a loss just to stay competitive. According to exclusive sources, some retailers reluctantly admitted to losing millions of dongs on each iPhone sold, yet they couldn’t afford to opt out of the race. Consequently, numerous retailers reported their worst financial performance in years.
In theory, consumers could benefit from retailers’ aggressive price cuts on technology products. However, in a challenging economic climate, they also lacked the financial means to take advantage of these deals. Additionally, the constant price drops created a sense of hesitation and uncertainty among buyers, who wondered if they could get even better deals by waiting longer.
There were also concerns about potential cost-cutting measures that might affect their shopping experience. For instance, buyers worried that retailers might compromise on certain aspects of their services to make up for the losses incurred during the price war.
As 2024 unfolds, retailers unanimously agree, albeit unofficially, that it’s time to put an end to this detrimental price competition.
The price war among retailers seems to have concluded with this year’s “iPhone season.”
However, they now face a new challenge: how to reinvigorate the market and attract consumers during the upcoming “iPhone season”? While price is the easiest lever to stimulate buying behavior, retailers must now explore alternative strategies to stand out.
Retailers’ New Strategies: Focusing on Unique Value Propositions
Although the official pre-order date for the iPhone 16 series is September 20, most retailers have already finalized their order programs for customers to review.
A survey of the market reveals that the most common incentives include gifts for customers, extended warranties, trade-in offers, and exclusive benefits for members. Some retailers also guarantee on-time delivery, offering to refund deposits if they fail to deliver as promised. Other promotions include discounts on accessories, 0% installment plans, and more.
With these attractive incentives, the final purchase price of the new iPhones will be significantly reduced. For instance, ShopDunk, a prominent retailer, is offering multiple promotions, including a payment discount of 1.6 million dongs, a trade-in allowance of up to 2.4 million dongs, and exclusive privileges worth 1.5 million dongs. They also provide installment plans and special offers for accessories.
As a result, the final price of the iPhone 16 Pro Max 256GB will be reduced to 30.99 million dongs, a significant discount from its original price of 34.99 million dongs. Additionally, ShopDunk has introduced a “late delivery refund” policy, committing to compensate customers for each day of delayed delivery, ensuring timely fulfillment of orders.
iPhone 16 series is now available for pre-order, with enticing offers from retailers.
Mr. Doan Viet Dung, CEO of ShopDunk, revealed that these are just the “obvious” incentives. The retailer’s primary strategy focuses on delivering a unique and differentiated experience to its customers through special activities. For instance, they plan to organize exclusive workshops for iPhone 16 series buyers, featuring experts in video and photography, as well as TikTok business strategies.
ShopDunk also intends to introduce loyalty programs for returning customers, optimizing both online and offline shopping experiences to ensure convenience and ease of purchase. Their goal is to build trust and foster long-term relationships with their valued clients.
According to retailers’ predictions, the iPhone 16 series is expected to outperform its predecessor, the iPhone 15, by 15-20% in terms of sales volume in the Vietnamese market. The iPhone 16 Pro Max is anticipated to remain the top-selling model in terms of both units sold and revenue generated. Additionally, the standard iPhone 16 models, with their eye-catching new colors and impressive specifications, are also expected to attract more consumers than the previous generation.
The iPhone 16 series is now open for pre-orders starting at 0:00 on September 20, with the official launch scheduled for September 27.
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