Thu. Dec 8th, 2022

VietNamNet Bridge – The competition in the smart phone market has become so
stiff that even big guys also have to struggle hard to push up sales.

Vietnam, smart phone, service provider, telcois, policy

A market report showed that Vietnam consumed 1.4 million smart phones a month in
2012. Of these, 92 percent were the products of big manufacturers like Samsung,
HTC, LG, Sony, Nokia, Apple, BlackBerry, Alcatel, Philips, while the other 8
percent were the products bearing Vietnamese brands.

No more room for domestic brands

It is estimated that some 30 Vietnamese brands joined the market in the golden
age, about five years ago. However, only a few of them have been existing,
namely Mobiistar, Q-Mobile, FPT, Viettel. About 20 domestic product items have
been available on the market, priced at between VND1.3-4.5 million.

Domestic brands do not intend to directly confront big international brands.
They have been striving to make products at the lowest possible prices to sell
in remote markets, where big brands still have not reached to.

Nguyen Quang Minh, Director of Q-Mobile, said though smart phones just account
for 20 percent of the total products, they can bring 60 percent of the company’s
revenue. Like other domestic brands, Q-Mobile targets low income earners and the
consumer in rural markets.

According to Ngo Nguyen Kha, Director of Mobiistar, about 80,000 Mobiistar
phones are sold on the market, including 45,000 smart phones which bring 80
percent of the total turnover.

While targeting low income customers, Kha affirmed that the biggest problems now
for Mobiistar don’t lie in the capital and technology, but in the increase of
the group of products in the market.

“Domestic brands, in order to prove their capability to “join the games,” would
have to import products in big quantities, which would lead to high
inventories,” he said.

Meanwhile, also according to Kha, the high inventories have pushed a lot of
enterprises against the wall. “We accept low profits, but not high inventories,”
Kha said. “Meanwhile, manufacturers need to set up their information channels to
exchange information with consumers”.

More and more new products marketed

A report of GfK showed that Samsung is the biggest manufacturer in Vietnam which
holds 32 percent of the market share, leaving Nokia far behind.

Nguyen Van Dao, Deputy General Director of Samsung Vietnam, said since 2012, the
factory in Bac Ninh province has been focusing on making smart phones.

HTC has launched a series of new products targeting different groups of
customers. As for young clients, HTC has HTC One 8X. Meanwhile, Butterfly series
target high income earners who like high technologies.

In late February 2013, Sony marketed a series of products considered the
highest-class products of the brand – Sony Xperia Z.

Nokia, which seemingly realized that it was a bit later than the rivals, in late
2012, also launched high end products of Lumia series, including Lumia 920/820.
However, the products still have not helped it regain the Number 1 position in
the smart phone market. LG in 2012 caught the public’s attention with Optimus
series.

Nguyen Hong Chau, Chief Representative of HTC in Vietnam, has noted that the
competition in the market has become cutthroat, when customers have become
choosier. “Customers not only want new products, but also want the products that
can satisfy their needs and fit their pockets,” he said.

Nguyen Quoc Bao, Director of Thanh Cong Mobile, the distributor of Alcatel and
Philips, has also said that it’s now even difficult for well known brands to
squeeze into the market.

SGTT

By vivian