- Tram Ho
FPT Shop has officially opened and sold more watches in its 5 stores in Ho Chi Minh City. HCM.
According to the report “Vietnam watch retail market” of Analysis Division Rong Viet Securities Corporation (VDSC), the watch retail market is highly fragmented and still very unclear about the origin of porcelain. Products.
According to data of Phu Nhuan Jewelry Joint Stock Company, shared at the 2018 shareholder meeting, Vietnam’s watch market is worth about $ 748 million. Also according to this business, while the gross profit margin of gold bar trading is 0.1 – 0.5%, in jewelry gold is 30%, in the accessories and watches business up to. 60 – 70%.
Although the market is attractive, but due to many different reasons, after 7 years of testing, it was not until early 2019 that PNJ promoted the watch segment in its business strategy.
On pnjwatch.com.vn, PNJ shows that 24 of their stores currently sell watches, spread all over the country. PNJ products range from price from 1 million to 50 million and hit the 5 million to 20 million segment.
According to PNJ’s financial report, in the first 9 months of 2019, the company’s net revenue is about VND 11,700 billion, the maximum estimate of the watch segment is about VND 59 billion of revenue after 9 months. PNJ expects that the retail sales of watches will surge in 2021 with about VND 200-300 billion.
Meanwhile, Doji also entered this relatively fertile market in 2018. Up to this point, we can see on the website of this business that sells 138 models from 4 brands. Versace, Emporio Armani, Michael Kors and Mathay Tissot.
Doji watches are priced from 5 million to 50 million, they focus on the high-end segment cost about 5 million to 20 million. Doji’s target customers are quite similar to PNJ, just the brand and model as well as the number of Doji products is not as rich as competitors in the industry.
The Gioi Di Dong intentionally targets the segment of 2 to 5 million VND.
From the first two test stores in Ho Chi Minh City in March, the current number of Mobile World watch stores has increased to 242 stores. It is expected that the watch industry will contribute VND 500 to 600 billion in revenue for the company right in 2019. They also aim to develop 500 shop-in-shop stores by June 2020, with sales of 3 million watches, accounting for 50% of the watch retail market nationwide.
Unlike the two specialized jewelry businesses, PNJ and Doji, Mobile World has decided to hit the affordable segment, with fashion watches priced from 2 to 5 million, so it is not surprising to see Their price ranges from a large margin of several hundred thousand to several tens of millions, even selling watches for children. On the company’s website, they can see they have about 4,000 models for men, women, children and watches.
With Mobile World , they view watches like all items in their store, so they are ready for customers to pay by installments, if the watch product costs over 1.4 million VND. Or sell in a ‘peanuts with beer’ style, discount deep watches when customers buy into combos with other products such as laptops, smartphones.
Just like every time, seeing that Mobile World does something successful, FPT Retail immediately ‘learns’, we can see before that that sunglasses and watches are now watches.
After the preparation time, today, January 3, 2020, FPT Retail officially held the opening ceremony to open and sell more watches in 5 stores in the city. HCM. As revealed by FPT Retail, they actually brought the watch products to market in FPT stores from December 31, but until today they officially launched.
Similar to Mobile World, the segment that FPT Retail is targeting is the affordable segment, so their products also have quite diverse prices, from several hundred thousand to several million, with brands. from Hong Kong, Europe and Japan such as Candino, Freelook, Orient, Festina, Daniel Klein, Casio, Lacoste …
Despite seeing the success of Mobile World, FPT Retail – as usual style, is still very cautious, when only testing at 5 stores instead of massively deploying it in the whole system of several hundred stores. their. According to Ms. Nguyen Bach Diep – CEO of FPT Retail, the watch segment is more potential than the sunglasses segment and many colleagues are succeeding with this new category, so there is no reason why FPT Shop stands out.
In all, Dang Quang is the earliest company to enter the watch market, currently they have about 100 watch shops, eyewear and watch accessories all over Vietnam. However, this is a fairly tight-lipped business. In terms of customer segment, products of this unit cost from about 2 million to 50 million, quite similar to PNJ and Doji.
Accordingly, with strong financial potential and huge number of stores (over 2,000 stores if including Bach Hoa Xanh, Dien May Xanh and over 1,000 stores if only ICT products are included); Mobile World is showing its superior strength in this race.
Source : Genk