Currently, MWG is testing to sell bicycles in two stores in Ho Chi Minh City, with average sales of 15-16 units / day at each store.
Besides, there is also the property and property rights of Big Gain Investment Co., Ltd. at Phu Thuan Ward High-rise Residential Project, District 7, Ho Chi Minh City (trade name Is The EverRich 2) deployed with the current investor of the project.
When asked about the growth promotion strategy for the group of former TGDD and DMX stores, Mr. Hieu Em said that the company is now targeting more than 3,000 electronics stores. The new point of sale will have an impact on old stores, but the company will do its best to make the impact as low as possible.
At the same time, MWG aims for old shops to rearrange the layout and shelves so that they can sell more products. In the past, MWG has opened to sell more items such as watches, laptops, and genuine accessories right in the old store area.
“If one or two years ago, TGDD’s aisle was wide and wide, then we are packed like warehouses”, Mr. Doan Van Hieu Em described the current situation inside the current stores of TGDD and DMX.
In addition, to increase profitability in TGDD and DMX chains, MWG also focuses on the segment of franchises, targeting about 30% of total existing products. That means that consumers can only buy that product at TGDD and DMX, not at outside stores.
Take advantage of the yard area to sell more bicycles
The CEO of TGDD and DMX revealed another way to promote growth for this group of stores is to restructure the household goods industry.
“For example, with the mini Dien May Xanh model with an area of only 300 m2, how to increase sales of that store without having to expand further. We have to calculate in the product group. In business, which product brings less efficiency, it will be reduced or crushed “, said Mr. Hieu Em.
In particular, not only optimizing the area inside the store, recently the company also takes advantage of its yard area to launch new products.
“Trying to stay within the correct curb distance, with the rest we try to arrange more sales. We recently brought our bikes into the trial business and initially produced quite interesting results”, Mr. Hieu Em said.
According to the leadership of MWG, every year the Vietnamese market consumes about 2.5 million bicycles, with an average unit price of 2 – 2.5 million / unit. Market revenue of 5,000-6,000 billion VND, large enough for MWG to start experimenting.
“Bicycles put into business are also in the goal of finding opportunities to help CEO and DMX continue to increase sales”, said Mr. Hieu Em. This model takes advantage of the excess area in the yard to set up theaters to sell products.
The company opened its first two stores in Ho Chi Minh City, one on Le Van Duyet street and the other on Nguyen Duy Trinh street. As a result, in 6 sales days, on average, each store sold 15-16 cars per day. In the coming time, MWG will continue to increase the number of test stores to 10-20 points.
When asked if the test is successful, whether MWG plans to move into selling cars, motorcycles, and electric cars, the company’s leaders have left this possibility open.
Mr. Hieu Em said: “We cannot say anything. We are always looking for opportunities to increase sales for the corporation. What is the group of products that are similar to the model of TGDD, DMX and regulation. The market is big enough, we are ready to test our sleeves. The results are positive, we will speed up, otherwise stop. That is the old MWG culture. ”
Trial two-price sales mechanism
To promote online business, MWG has experimented with two-price sales mechanism exclusively for online and offline. However, MWG leaders said that they are considering focusing on such online customers, somewhat “conflict” with the current group of offline customers.
Therefore, the company is implementing a low-cost mechanism for online shopping but with certain conditions, aimed at customers who really care about prices without other services.
For example, when buying online, customers will receive goods after 2-7 working days, and warranty at the company, not applicable MWG’s return policy. The company recently launched a test of this policy in January, in a narrow product group.
“Sales are not really large in the test period, so the impact of this policy has not been evaluated,” said Mr. Hieu Em.
This year, MWG sets a target of 15,000 billion VND from online business, nearly 50% more than 9,000 billion VND achieved in 2020. “In the coming time, there will be adjustments to achieve this sales milestone”, shared company leaders.
Source: vietnambiz.vn – Translated by fintel.vn