1. The Competition on Vietnamese Mobile Devices
Market, Reached VND 22 Trillion Worth.
Samsung accepts shaking hands with PSD, a power distributors to quickly overtaken from the
hands of a Nokia with two clear objectives: Putting on a limit factor for Nokia and seizing
entirely PSD‘s distribution channel distributors...;
- PSD own up to 1700 agents and 11 branches and FPT Distribution Company has 1,000
agents in nationwide.
- Samsung has a direct distribution system to major supermarkets in the city and
provincial distributors in the region. Meanwhile, Nokia will only corporate with the big
distributors.
- After the break with PSD, Nokia will work with FPT and Lucky.
- Large waves from the change in the relationship of Nokia - PSD - Samsung will entail
small waves merging from the likes of HTC, Sony, thegioididong, FPT, Vien Thong A …
- Brightstar and BrightPoint jump into battle of distribution, that makes distribution of the
mobile market in Vietnam has many major changes.
- The rumor that FPT Telecom will have a plan to acquire VienThong A to confront with
thegioididong.
The competitive pressures in the mobile market (VND 22 trillion) forced both distributors and
manufacturers are always looking for the key to breaking this dependency. Thus, whether the
linkage is tight, it can also be easily broken.
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2. Samsung - Nokia in comparison
According to IDC, from quarter I/2012, Samsung has achieved significant progress on the world
market as shipped 93.8 million of mobile phones, overtaking Nokia to become the leading
handset manufacturers the global market. However, in Vietnam, despite the advantages of
factory, Samsung is always considered behind Nokia.
Nokia ended the first quarter 2012 (quarter I/2012) as a leading provider of cell phone providers,
representing more than half of mobile phones in Vietnam.
Mr. Nguyen Van Dao, deputy general manager of Samsung Vina.
Although, Samsung is the leading firms in the smartphone market in Vietnam, due to good
business results of low price smartphones including Galaxy Y and Galaxy Mini, but the total
amount of mobile phone distribution, including popular device and smartphone, still keeping
their distance compared to Nokia’ s success.
Mr. Nguyen Van Dao, deputy general manager of Samsung Vina said: There will be some major
changes.
Samsung start back to cooperating with previous distributors is not a return to the old way, which
is expanding their new distribution channels. Because distributors are now also has taken steps to
a new development and stronger than ever.
After partnered with PSD, the Samsung's distribution system will change greatly in near future.
Under the agreement, PSD as a strategic partner of Samsung will be distributed mobile phone in
nationwide, the Samsung just keep the direct sales in supermarkets only.
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3. Therefore, in the coming time, Samsung will be reorganized so that their sale agent on areas will
work smoothly with the new working frame.
In general trend, comparison of the correlation of forces, Samsung clearly has advantages in
terms of technology, design and price, and the leading position of mobile device distributor in
the Vietnam market is not out of reach.
"However, Vietnam is a special market, user experience brand through the effect of emotional,
psychological and the pioneering brand is welcome and acceptable by very large Vietnamese
consumers of. When the Vietnamese people have demand of motorbike, they think Honda first
and of mobile phone, they will find and buy the Nokia brand. So while there are many
disadvantages, Nokia remains the brand value influence in Vietnam, " Mai Trieu Nguyen,
Director Nguyen Mai Co., Ltd., said.
Because of these, Nokia cannot succeed in other markets but still welcome in Vietnam.
According to Nguyen, the most specific evidence that even unsuccessful Symbian operating
system for smartphones, but the quick transition to the low end, dual sim, Nokia has been beat
the Chinese phones and Vietnamese brand phone, outsourcing in China has the advantage of
cheap price, last two years.
PSD: The right to determine the destiny of 1,700 agents
The handshake between Samsung and PSD shocking the mobile phone distributing market.
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4. Although, there is almost full participation of the well-known brand phone manufacturing in the
market in Vietnam, from the story of two big competition of Nokia and Samsung, could easily
see underground power behind; The impact of the distributor. It is also the cause of the triangle
relationship between Nokia, PSD and Samsung.
Different from other consumer products, mobile phones, this sector has annual sales of more than
VND 22 trillion and is likely a fast consuming item due to the enthusiastic participation of the
professional distribution companies such as PSD, FPT Lucky in domestic and foreign companies
such as Brightstar Vietnam.
Meanwhile, the PSD is a prominent and owning up to 1700 agents and 11 branches in
nationwide. This is strongest distributor, who possesses a firm financial resources and good
warehouse system.The follower, could be the FPT Distribution Company with nearly 1,000
agents nationwide.
Keeping the PSD’s revenue reached 5353 billion during the first 6 months of 2012, besides wide
distribution system must also have economic strength for the financial services, creating the best
conditions for small businesses customers can get the goods. Because of this support that thrive
sale volume of the PSD distribution in the provincial market. Mr. Huynh Van Thi, PSD’s
Chairman said.
Differently from the way Nokia working with traditional distributors such as PSD, FPT, Lucky ...
Samsung has reformed the delivery system for about 2 years ago. Rather than using through
distributors, Samsung directly distribute mobile phone from Bac Ninh plant poured into large
supermarkets such as Nguyen Kim, TheGioiDiDong, Vien Thong A, Mai Nguyen ... to reach the
end- customers.
The Samsung factory in Bac Ninh provice.
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5. With the provincial market, Samsung works with regional distributors, from this point to put
products with small sales shop in the province. With a direct way, this fast, plus improvements in
production technology ... 14% market share in 2011, Samsung has been developed very fast
speed, up to No. 2 in the market. However, all is not enough to pass through the way of the
distribution companies doing.
According to Mr. Cho Seok Hee, CEO of Samsung Vina Electronics Co.,mobile phone industry
recently has too many changes, and Samsung wants to achieve its leading position in the
Vietnam market and strengthen its position in international markets and the first change in
Vietnam is hands with power distributors such as PSD.
In 2011, PSD distributed more than 5.9 million Nokia phones, sales of 5200 billion and 134
billion of profit, up nearly 50% of total sales of PET. Nokia said after stopping cooperation with
the PSD will expand market share for the FPT and Lucky, in which FPT took the Northward and
Lucky took the Southward.”The agreed goal of the PSD distribution model with the Samsung is
putting products to the best market, limiting the middle and directly reaching end-customers
rather than through agents," Mr.Thi disclosed.
Mobile phone distribution market becoming increasingly competitive, demanding more
professionalism of both distributors and manufacturers in an effort to find out how is
counterweight to reach the independence. The manufacturer will gradually take the initiative,
expanding network of partners covering the market and avoid the pressure of distributors. The
direct selling company under the agreement depending on the strength of each partner rather than
just associated with major distributors.
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6. The distributing channel, a big problem for manufacturer. (Exhibition)
Partner with the PSD, the empowerment of "Big" distributors on the national market, Samsung
has also set specific targets for this distributor. "With its network, we are confident will help
Samsung achieved the No. 1 position in the Vietnam market, as was done previously with
Nokia," Mr. Thi confirmed.
However, the way of the PSD is not necessarily all roses. The fact that, on market, the regional
distributor of Samsung is currently unable to hold a larges amount of phone into their
storehouses than ever before.
Samsung must to find the distributors with stronge financial resources such as PSD. PSD is also
difficult to have any safe option than Samsung while Nokia is going down.
How many unknowns are there?
Big waves from the change in the connection of Nokia - PSD - Samsung will entail small
waves coming from as HTC, Sony, Mobile World, FPT, Vienthong A...
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7. Redrawing the map
The map of mobile phone distributor in Vietnam not only the major brands. Entangled in
commitments not distributed with the same products with Nokia, starting from 2011, PSD had
established a distribution company as Smartcom to delivering goods to end-consumer.
With systems over 120 nationwide agents, including name of very best sellers well as
Thegioididong, Vien Thong A, Nguyen Kim, Pico, Smartcom enough to satisfy brands like LG,
Sony, Huawei ... Not only that, the phone distribution market even more robust as two major
international distributors is Brightstar and BrightPoint, this appearance lead to major changes.
The first sign is the last week of 6/2012, XPERIA - Sony Smartphone officially joined Vietnam
Sony Electronics. In principle, the distribution of the Sony phone remains with the Smartcom,
nothing changes.
According to General Director of Sony Electronics Vietnam, Mr. Yuzo Otsuki, this event marks
a consolidation of Sony Vietnam in the market. Since then, the warranty and after sales service
network, customer care for Sony Smartphone products will be expanded.
.
However, according to the the experts, the current distribution network of 160 partner, Sony
showrooms across the country, including partners of Smartcom, the Sony is restructuring
distribution systems , Smartcom will losing market share also takes place soon.
In the trend of restructuring the distribution system in the near future, HTC is also planning a
new path for themselves. Mr. Nguyen Hong Chau, chief of HTC representative in Vietnam, said:
"We will continue to work with FPT and other partners in creating more effective distribution
strategies."
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8. Although not revealing new partners, BrightPoint are successful in the world market, the HTC
and BrightPoint expand cooperation within Vietnam market is understandable.
Mr. Nguyen Hong Chau - HTC Representative in Vietnam
Small cake, big mouth
In another aspect, "unknown" named Brightstar can also cause changes in Vietnam market.
Recently, the distributor has the right to distribute the iPhone, opening the way for the Apple
phone into Vietnam, not through Telco distribution network.
Initially, Brightstar is only right to distribute the iPhone 3G but the iPhone's attraction for
enough promising to Brightstar shining in the future.
Explaining the cause of restructuring the distribution for new map maker, Mr. Mai Trieu Nguyen
said, the decline of the economy and the number of users has created pressure for the all to find a
strategy to keep his new in a changeable market.
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9. Mai Trieu Nguyen, Director of Mai Nguyen Mobile Technology Co., Ltd.
In the same view, Nguyen Van Dao, General Deputy of Samsung Vina, said: "During the current
changes constantly, distribution policy to develop need a continuous improvement, if not they
will lost his position" .
According to the Mobile Phone Tracker quarterly report of IDC Asia / Pacific, the shipped
number of mobile phone consumption in Vietnam recently has fallen about 15%.
Mr.Vo Thanh Le Tam, the expert of end-user devices market analysis in IDC research group in
Vietnam, said: "Some local and China firms have withdrawn from the market, and will leave
their presence from the market in 2012 because they must try to recovering investment in current
conditions ".
There are many involved vendors in the market, the pieces of phone distribution market getting
to smaller and the competition is increasingly fierce. Is the reset distribution maps could hard
assist to manufacturers finding the pedal to burst out and conquer new position or not, the final
answer will be given in the near future.
The FPT’s acquisition
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10. If the struggle for a final right to distributing product heated, the battle of the retail market is no
less fierce at all. The information of FPT acquisition of local distributor that is tingles for all
week. Although, there are no official figures, but according to a confident source, that the
number of shares the local distributor sold to FPT up to 50%. Under the agreement, more than 30%
of VienthongA was sold to DT Mobile in early 2012, the number of shares owned by Vienthong
A is very little.
Founded in 1997, so far Vienthong A has developed a distribution network of more than 70 point
of sale on supermarkets and Service Centers around the country. In the announced partner event
of DT Mobile, Ms. Hoang Ngoc Vy, General Director for VienThong A confirmed that with the
inherent potential coupled with support from DT Mobile, and a group from Japan, Locals will
development and reached the number of more than 100 of retail outlets in 2012.
Late moving in the retail industry for 10 years, was founded from August 2007, after more than
four years of operation, the FPT retail shop system now up to 24. However, with financial
advantages, FPT also strongly encourages the goal is to figure out between now and 2014, FPT
will co100 and retail shop is at that time to press forward faster FPT to this goal. Specifically, in
July, FPT System Shop will open three big stores around the country.
Thus, the combination of two major distribution systems will support FPT Shop and VienThong
A will assist FPT Shop, owning a large distribution system of more than scheduled 100 head
stores in 2014. According to industrial insiders, FPT is focusing on development of becoming a
counterweight to the Thegioididong, that the brand, FPT has spend a huge effort to buy back
during the time but no any agreement is reached out. To date, Thegioididong has become a
largest retail chain of mobile phone with over 220 stores, appearing in all provinces throughout
the country.
Brian-HN (Source: Discussion in 'CNTT' started by khanhproa2, Thursday, 2012 at 5:27 AM)
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