The strategy of “selling unprecedented products” such as watches, fruits imported online … is bringing unexpected revenue to Mobile World.
The strategy to increase revenue through “selling never-before-sold products” at the phone and electronics chain stores of Mobile World Investment Joint Stock Company (stock code: MWG) initially recorded positive signals. pole. On average, 18 stores sell 500 watches a month, earning from 600 million to 1 billion dong a store.
Newly tested in shop-in-shop model since March with 2 stores in Ho Chi Minh City and currently 18 stores, but the clock brought positive revenue for Mobile World. In the first phase, the company sold over 50 smart watches and 1,000 fashion watches, focusing on serving ordinary and intermediate customers with the price of VND 1-6 million each.
With positive results after 2 months of testing, Mobile World leaders said it would expand the number of stores selling this item in the near future.
Mobile World reported that net revenue and profit after tax were VND 42,800 billion and VND 1,790 billion respectively in the first 5 months. Refrigeration is still the main contributor to revenue with more than VND 2,300 billion, equivalent to 40% of additional revenue in the first 5 months compared to the same period of 2018. Online sales accounted for 16% of total revenue. .
The profit margin has increased significantly in recent months thanks to the sharp increase in electronics products including air conditioners and coolers during the hot months.
Also in May, Mobile World opened 47 new stores in all three phone chains, electronics and department stores, bringing the total number of operating and managing to 2,371 stores.
With Bach Hoa Xanh, on average, each store earns over 1.4 billion dong a month, up 75 percent from 800 million in the same period last year. This chain aims to continue expanding the network, increasing sales on each store; improve gross profit and reach break-even point at stores and distribution centers by December.
Department stores are also starting to sell test fruits imported online. Contribution of fresh, cool and frozen goods in the first 5 months increased by 50%, up 10% compared to the same period last year. In May, the Green Department system sold nearly 8,000 tons of fresh goods, an increase of 60% compared to the beginning of the year.
At the end of May, Green Department started to introduce kitchen utensils and some essential household products into the Double shop model, the first test shop located in Tay Ninh.
In 2019, Mobile World sets a target of over VND 108,000 billion and consolidated net profit of VND 3,571 billion. Retailing of mobile phones and electronics is still a source of revenue and profit. In particular, the electronics industry plays a key role in the growth, aiming to account for about 40% of the market share.
Although the revenue contribution is not large, the food and consumer goods industry is expected by Mobile World to achieve the highest growth rate. By the end of the year, the goal is to reach the end of the year, when the Department Stores are directly profitable, which fully offset operating costs at stores and distribution centers, but do not include public-level costs. ty.
* Source: VnExpress