Vietnam's young smartphone marker starts new journey
Vsmart is preparing to enter its second journey with new directions
As of May 2020, the smartphone brand Vsmart has appeared on the market for 17 months. That time with more than 1.2 million products "getting acquainted" with customers and the market has ended phase 1.0 of the youngest brand in Vietnam's hi-tech industry. Now, Vsmart is preparing to enter the 2.0 journey with new directions.
Everyone understands that VinSmart has financial resources and is determined to "do real business" with the group of smartphones, not only in the Vietnamese market but also in many foreign markets such as Myanmar, Russia ...
In order for the above factors to promote strength, it is impossible not to mention the "strategic toughness" of this brand. From December 2018 to December 2016, the leaders of Vingroup have defined it as "the period of understanding the needs as well as measuring the attitudes of customers with the Vsmart brand". Many foreign brands come to Vietnam only to define the time to understand the market as… 3 months, if 12 months later, they lose 50%, they must find a way to withdraw. In three years, from 2016 to 2019, dozens of names left the Vietnamese smartphone market because they could not stand the level of competition and the difficulty of customers. Many experts in the electronics business said that "only VinSmart dare to do so because they have prepared financial resources, business strategy, and spirit".
In this journey, from the very first days of its appearance in the market, VinSmart has chosen a strategy to produce products in the popular segment, under 5 million VND such as Joy1 (2.49 million VND), Joy1 + (3.39 million VND) ... According to GfK Vietnam, in August 2019, Vsmart started to have a "number of cheeks" on the market of 1.5% and by September 2016, the market share increased to 2, 9%. After that, Vsmart's market share "steadily increased". Entering 2020, in January 2020, the market share is 7.7%, in February it is 11.2% ... When Vietnam announced the COVID-19 translation, many names declined in market share, and Vsmart increased its market share. Share: 14.2% in March, 16.7% in April ... With the above market share, Vsmart is one of the three brands with a market share of over 15% in the smartphone market in Vietnam.
In order to have such a high market share rate, Vsmart is still loyal to the strategy of "hitting hard on popular price products": Bee / Bee 3, Star / Star 3 ... By the end of March 2020, Joy version 3 2GB RAM and 32GB ROM brought 13.3% market share for VinSmart. Commenting on this tactic, Mr. Phung Ngoc Tuyen, Director of Electronics - Telecommunication of The Gioi Di Dong, said: “VinSmart's approach is correct. For a young brand, wanting to compete with the big names, the only way is to choose products with popular prices but with stronger configurations at the same prices of other brands. Current customers are very smart, even in remote areas, with the same price but stronger configuration, beautiful design, they will choose to buy that product ”.
Entering a new journey
Journey 1.0 is just the tactical phase of VinSmart for the Vsmart brand. In this journey, even though only producing popular smartphones, VinSmart still invests in a large-scale manufacturing ecosystem like many other brands in the world, such as investing in factories with phase 1 capacity. 26 million products/year, and in the near future it will be 125 million products/year; Mobile Device Research Institute, which focuses on n74 smartphone brands; inspection system with high-end equipment; cooperating with the world's leading names such as Qualcomm, Google ... Recently, on 4-5 days, VinSmart announced a strategic cooperation with the industrial design firm Pininfarina (Italy) in the design of smartphones. Only have a unique language, converging quality - performance of VinSmart with the elegant - delicate beauty of Pininfarina.
Sharing about the "2.0" journey, VinSmart leaders said that after the first journey ends, the Vsmart brand will have new changes. It is to market products in the mid-range and high segments as proof that Vsmart with modern infrastructure is ready to have high-end products to meet the consumer needs of customers, "with the right shoulder. age "with well-established brands in the market.
According to a separate source, in early August 2020, VinSmart will launch high-end Vsmart smartphones integrating new technology such as hidden cameras under the screen, 5G connectivity ... Despite owning new technology, VinSmart commits. New products will have attractive and satisfactory prices for consumers.
“Certainly, VinSmart cannot be profitable because it invests in high-tech values, but its commitment to bringing new values to consumers is remarkable. Many customers expect Vsmart to be a kind Vietnamese brand, understanding the needs of consumers, with a wide product range, including high-end products. As a retailer, we are willing to support and accompany manufacturers who respect customers and the rules of the market, ”said Nguyen Ngoc Dat, owner of Mobile Vietnam retail chain.