Opening up to new territories, a key strategy: Mobile World
An employee talks to a customer at an AVACycle store, a Mobile World chain of stores. Photo courtesy of Mobile World
Expanding into new areas such as drug, fashion and jewelry retail is risky, but Mobile World’s said it was part of its strategy to learn from experience.
Its chairman, Nguyen Duc Tai, told shareholders at a recent meeting that these risks are manageable. since the core business of selling smartphones and electronics has matured.
It was responding to shareholder concerns that the company was spreading too much by having one finger in many pies, which could impact its earnings.
On January 10, MWG, the country’s largest electronics retailer, launched five new retail chains: AVAFashion, AVAKids (mom and baby), AVAJI Sports, AVAJI (watches and jewelry).
He already owned the An Khang pharmacy chain and the Bach Hoa Xanh grocery chain.
“Mobile World and Dien May Xanh are now mature adults who can go to town on their own to seek growth opportunities, and whatever their parents do at home will have minimal impact,” Tai said, referring to the two. main products of the company. , smartphones and electronics.
Last year, sales rose 9% to almost VND95 trillion ($4.15 billion) despite major disruptions caused by Covid-19.
The company is targeting VND 140 trillion this year.
Some shareholders told the meeting that the more lines of business a company has, the more chaos it faces and could lose market share in existing businesses.
But Tai was carefree: “Money was never an issue.”
Mobile World had assets of nearly VND63 trillion as of last month, up 37% year on year and almost half in cash, bank deposits and short-term bonds, he said.
Trying new ideas is how the business could learn, and it would weed out unprofitable businesses, he added.
