- Tram Ho
Stores closed, sales fell 70%
The period of May-June every year is considered the low season of the mobile market when new models are limited to launch, sales go down. This year, the low season coincides with the time when many localities across the country implemented distances in the context of the Covid-19 outbreak that made stores really stand still.
During the past one month, most mobile stores have recorded a decrease in sales of about 40-50% compared to weekdays, even up to 70% in some days. If in the early stages of the Covid-19 outbreak, stores still tried to maintain business, only limiting the number of customers, then when Ho Chi Minh City broke out, the level of influence was even greater because the majority Mobile dealers all have a large number of stores located here. Until now, most of these stores are closed, only selling online.
Mobile businesses have had to close or switch to online sales in the past several weeks.
A representative of CellphoneS system said that 32 CellphoneS retail stores and 14 Phone Vui phone repair shops have mostly closed according to directive 10 in Ho Chi Minh City. Stores only accept online delivery.
Previously, The Gioi Di Dong said that the unit had 631 shops affected by Covid while FPT Shop also had 60 stores that switched to selling online. After issuing directive 10 in HCMC, this number is sure to increase.
Stores closed, people restricted travel, and tight spending created great consequences for phone business chains. “On June 20 alone, sales decreased by 70%. Since joining this industry, I have never seen such a terrible drop in sales,” said Mr. Nguyen Lac Huy – representative of CellphoneS.
He said that since the relaxation period, the system has tried to launch measures to stimulate demand such as reducing product prices, promoting online sales. In fact, online sales at stores have increased by 20-30%, but this number cannot offset the decrease due to offline business because offline business has always been the mainstay. This is also the general situation of many stores, mobile business systems these days.
Find ways to optimize costs
In fact, cost optimization activities have been included in stores since more than a year ago, when the pandemic began. However, after the 4th epidemic, when the difficulties surrounded them, they were forced to continue to “optimize in optimization”.
“Parts can be cut, most of us have cut before. Currently we can only optimize operation from labor and rental costs,” said Mr. Lac Huy. “For employees, we still try to rotate shifts to maintain work for everyone, not to mention the reduction of staff. However, new recruitment activities will be temporarily stopped. Meanwhile, We are also persuading partners to lease space, looking forward to receiving support and sharing from partners.”
However, it is a fact that quite a lot of stores have difficulty in this regard when the owners do not reduce, or reduce at a fairly low level of cash. “There are places that sympathize with reducing the rent, but there are also many places that decide not to reduce it, or reduce it very little – the level is about 10%, the high is 30%”, Mr.
According to the sharing from the mobile business, the cost of space usually accounts for 25-35% of the monthly expenses, which is one of the biggest expenses that business systems have to cover. In the past year or so, it’s not uncommon to pay for land in the big street to find small locations, cost less or pay completely, changing jobs in the phone business world.
However, there is still a good news in difficult times that mobile sales in Vietnam in 2020 tend to increase, both in terms of quantity and average value per model. It is expected that this number will continue to increase in 2021 when a recent report by market research firm Canalys shows that global smartphone sales may increase up to 12%. The Vietnamese market is certainly not an exception to this rule because the market potential is still there. Statistics in 2020 show that only about 45% of Vietnamese users own a smartphone.
Therefore, stores can expect that at the end of the third and fourth quarters, when the market explodes with new models, the Covid-19 epidemic subsides, users will “make up” for the down period. current slope.
Source : Genk