Perhaps, nowadays, there is hardly anybody in Viet Nam who has not heard of The Gioi Di Dong Joint Stock Company (English name: Mobile World JSC). Earning its first amount of profit after only seven months of operation, The Gioi Di Dong has build a high-tech retail empire in this "S-shape" country.
In part 1, we have discussed how MWG survived in the tough market in Viet Nam, now, let's find out how it applies technology and its achievements.
How MWG applies technology in business
Answering reporters, Mr. Nguyen Duc Tai – co-founder and CEO of MWG, said in the event “Vietnam Business 4.0 Roadshow” (launched by AnhGroup, CSMO and BizLIVE): “In order to change, we have to use the software system, its core is ERP, linked with websites, Apps, CRM, call centres, billing & delivery management system, e-learning, Financial reports, bonus calculations, customer management, etc."
With these systems, the updated information about price and promotion can be sent to every MWG’s store in Vietnam and to all submitted e-mail addresses and phone numbers, or simply shown on the bulletin boards. In the purchasing process, no more waiting in lines, the orders will be automatically and immediately handled. The sales system has mechanisms to declare accounts or to transfer money automatically while warehouse staff can check if there are new orders to deliver.
Recently, MWG has been transitioning to omnichannel, a new marketing solution, to create a complete real-time retailing process. This solution integrated functions on multiple devices and multiple channels synchronously. To the customers, they can have a better shopping experience, anywhere, anytime using a variety of devices. To MWG, omnichannel provides the ability to understand the customers' behaviour by reporting the conversion rate when users access to the web (check-in, check-out), calculating the order quantities and balancing inventory, keeping track of payables and receivables. Moreover, by analysing the stored data through omnichannel, MWG can improve its services, such as free-delivery policies, after-sales services.
MWG’s remarkable achievements
In late March 2016, with 30% of the mobile device market share, MWG left its primary competitor (FPT - only 10%) far behind. Last February 2017, it gained 10% more to make the total percentage of 40%, not to mention 16% share of the electronics market.
By 2015, MWG's revenue is 25,253 billion VND ($1,110 million) and the after-tax profit is 1,076 billion VND ($47,29 million) – a significant 60% increase compared to 2014. Merely into Quarter 4 of 2017, the after-tax profit of the whole organisation almost reached 572 billion VND (more than $25 million).
Economists described MWG as “Zappos of Vietnam” (Zappos is the world's largest footwear retail organisation). From 633 stores in 2015, the number of stores of MWG, including the two most well-known chains: Thegioididong and Dienmayxanh, doubled to 1,207. In 2017, on average, every two days, three new stores were opened with around 26,200 employees.
In the list of “50 Most Valuable Brands in Vietnam” announced by Brand Finance of UK in 2015, thegioididong.com of MWG was named alongside with some other big brands such as Vinamilk, Viettel Telecom, Vietcombank, etc.
According to calculations by Brand Finance (based on criteria such as the ability to increase the value of a brand, the impact on the purchase decision of the customer, the cost of building a successful brand, the value of the stock market, the profitability of the brand), the brand name thegioididong.com is valued at around 30% of the whole MWG’s value, while most other brands only equivalent to 25% of their businesses’ value.
Obviously, there is no coincidence that MWG is one of the most efficient e-commerce organisations in Vietnam. Always putting customers first, applying new technology in operation and getting creative have gradually led MWG to the top position. Although the future might be full of surprises and changes, economists still believe that MWG can maintain its steady growth and have the financial strength to deal with risks.