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Online Channels Driving Strong Growth in Electronics Sales, Surpassing Retail Revenues for The Gioi Di Dong

The telephone and tablet market recorded nearly VND 14 trillion in online revenue on e-commerce platforms. This figure is only about VND 2 trillion less than The Gioi Di Dong's online revenue.

According to Metric's 2022 and 2023 reports, while the total revenue on e-commerce platforms increased from VND 135 trillion to VND 233.2 trillion, the telephone and tablet market also increased from less than VND 10 trillion to nearly VND 14 trillion. This achievement is only about VND 2 trillion less than The Gioi Di Dong's online revenue. According to Metric, the telephone and tablet market is strongly shifting to e-commerce retail platforms. Major brands get closer to consumers, invest in mall pages with many attractive purchase policies and policies achieve some success when revenue and sales increase rapidly in 2023. 

Specifically, Apple's total revenue across all stores in 2022 was approximately VND 2,974 billion, Samsung achieved VND 2,255 billion. In 2023, these figures were VND 3,358 billion (up 12.9% year-on-year) and VND 3,078 billion (up 36.5% year-on-year), respectively. The total market share of Apple and Samsung's revenue also accounted for nearly half of the total of the Top 10 brands with the highest online revenue. In addition to Apple and Samsung, Xiaomi also ranked 4th in the Top 10 brands with the highest revenue in 2023, reaching VND 1,818 billion (up 23.2% from VND 1,475 billion in 2022).

According to data from YouNet ECI, the cumulative smartphone revenue on Shopee, Tiki and Lazada e-commerce platforms in the first 11 months of 2023 reached VND 8,504.4 billion. Just the GMV revenue of smartphone items (excluding other technology and electrical appliances) on e-commerce platforms alone accounted for half of The Gioi Di Dong & Dien May Xanh's online revenue channels and more than 11% of their total revenue. While the FPT Shop chain reported accumulated revenue of VND 12,222 billion in the first 9 months of 2023, smartphone revenue in this period on e-commerce channels also reached VND 5,876 billion.

Despite the general challenges of the economy, while the telephone and computer market at The Gioi Di Dong reported negative growth, online platforms showed an opposite trend with double-digit positive growth. According to the analysis, if applying the B2B2C (Business-to-Business-to-Customer) model, they would have to spend 35-40% of the product cost on agents. In the case of direct sale on e-commerce platforms, they will only incur a commission fee of less than 10%. In its 2024 business orientation, MWG also focuses on an Omni-channel business strategy. The retailer is optimistic about continuing to grow online revenue and estimates the contribution of the online channel to revenue of product categories from 5% to 30% depending on the characteristics of each category. However, with the strong growth of e-commerce, The Gioi Di Dong or FPT Shop will have to compete directly not only with traditional competitors but also find ways to compete with online retailers booming on e-commerce platforms.

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