The parent company, Mobile World (MWG), has also recently updated its business situation until July 2022. Specifically, the company’s revenue reached 11 trillion dong, up 16% over the same period. In which, the main contribution was the phone and electronics segment with VND 8,400 billion, up 63% over the same period.
Mobile World’s Supermini Green Power System (MWG) has just announced that it has officially reached 1,000 stores nationwide. “With that amount, the estimated revenue for the whole year of this model is about 12,500 billion VND” – shared Mr. Doan Van Hieu Em, CEO of Mobile World.
It is known that Dien May Xanh Supermini model is one of MWG’s growth promotion strategies on the existing platform. That is, “access to customers who have not yet reached” according to the head share.
Dien May Xanh Supermini launched its first stores in rural, remote and remote areas of Tien Giang province, 2 years ago right after the first lockdown was eased. After 2 months of running the “demo”, the model recorded revenue ranging from 1-1.2 billion VND/store/month. Accordingly, MWG’s management decided to accelerate the model and open 300 stores in 6 months.
In terms of size of goods, area, number of employees…, the supermini model ranks third among the retail models of Dien May Xanh, with a smaller and more streamlined design. The large retail model of Dien May Xanh has an area of 800-1,000m2, followed by the mini model with an area ranging from 250 – 350m2, while the supermini model only has an area of 80 – 120m2 with the number of employees. pack 3-4 people.
Talking about the supermini model, Mr. Hieu Em further explained: “In order to bring goods closer to consumers, we chose to go further, opening in communes, hamlets, hamlets that do not have a specialized retail system yet. Goods are selected for sale to suit the needs of people in rural areas while still meeting the same standards for goods and product warranties as other models of Dien May Xanh.
Currently, when the two large and mini Dien May Xanh models have had stable sales , almost covering all the locations where it needs to be present, the increase in the retail market share of the electronics industry in the Vietnamese market has increased. Nam is the responsibility of this young supermini model” .
Although the area of a supermini store is only ½ of the area of Dien May Xanh mini store, the rent is only ¼ and it is easier to find premises in remote villages. Construction costs are also low because there is no need to do a systematic design like other retail models of Dien May Xanh. In addition, sales staff are standardized according to the “all-in-one” model: increasing productivity, one employee can take care of all stages, using quick operations via smartphone, one manager can handle all the steps. In particular, the supermini model is also “inherited” the management system, warehouse, etc., available from Dien May Xanh and thegioididong systems. .com was available nationwide.
This utilization helps to keep investment costs low, while selected goods sold at Dien May Xanh supermini chain are more affordable. Professional sales and after-sales services, which were limited in rural areas, are now being applied by retail chains to satisfy rural customers. The flexible strategy of this model is effective when it not only helps the company increase its market share, but also makes the brand value of Dien May Xanh more popular.
Despite the impact of the Covid 19 epidemic, the chain continuously grew and expanded to reach 1,000 stores and, according to Mr. Hieu Em, became the trump card to help MWG maintain its growth in the past 2 years. It is expected that by the end of this year, Dien May Xanh supermini will reach the finish line with more than 1,000 stores, earning 12,500 billion in revenue and is expected to bring in 20 trillion in revenue next year, making a great contribution to the revenue and profit structure. of MWG Group.
MWG achieved 81,700 billion in revenue after 7 months, closed 400 Bach Hoa stores
The parent company, MWG, has recently updated its business situation until July 2022. Specifically, the company’s revenue in July reached 11,000 billion dong, up 16% over the same period. In which, the main contribution was the phone and electronics segment with VND 8,400 billion, up 63% over the same period.
In the first 7 months of the year, MWG recorded revenue of VND 81,700 billion – up 14% with 65,300 billion contributions from Mobile World/Dien May Xanh chain and VND 15,200 billion from Bach Hoa Xanh chain.
For Bach Hoa Xanh alone, 7-month revenue decreased 14% compared to the same period last year. This is also the chain that is receiving a lot of attention from the market: After the crisis in the middle of the epidemic and then the plan to sell capital of MWG.
Note, from the beginning of the year until now, Bach Hoa Xanh has closed a total of about 400 stores and completed the change of new layout for almost all existing stores. At the end of July, the company had 1,735 Bach Hoa Xanh stores, the average revenue was about 1.3 billion VND/store.
According to the strategy set out at the beginning of the year, Bach Hoa Xanh chain will and has completely stopped expanding its network to focus on changing the new layout, arrangement, review and handling of stores that are not operating. effective and omitted 7 groups of products with poor business performance.
MWG Chairman Nguyen Duc Tai said that with the above restructuring, the efficiency of the department store chain is increasing, demonstrating an increase in store revenue and is expected to officially become profitable from the end of 2022.
In particular, in the past, Bach Hoa Xanh aimed to build a retail chain with “better customer experience than the market”. That is, instead of choosing competitors that are retail chains of food and other essential consumer goods, MWG strongly poured money to have the green logo hung on the premises next to the traditional market.
But now, according to Mr. Tai, the chain has changed its positioning from a “modern market” model to a “mini supermarket”, aiming for customers to have the same shopping experience as at big supermarkets. Because, Bach Hoa Xanh’s fresh products industry is also having problems from objective factors such as weather, so the Company will focus on controlling input quality to limit the fluctuation of goods quality.
“This is a very important step for MWG. In 2023, the story of supporting and sharing profits from the Dien May Xanh chain for Bach Hoa Xanh will end. Bach Hoa Xanh will really bring money to contribute to the community. the overall development of MWG”, Mr. Tai said.