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Mobile World Group :red_flag: (Success formula (HR :red_flag: (Attractive…
Mobile World Group :red_flag:
Success formula
Category Department
Strong commitment on ethical
NO under table
NO red tape
Integrity
Pioneer to cooperate with Chinese brands
30-40% Margin
Oppo, Xiaomi, Gionee, Huawei
On time payment :red_flag:
Support vendors check real time sell through and inventory
Express expansion :red_flag:
DMX 300-500m2
Capacity 100 BHX Stores/Month
Bach Hoa Xanh 150-200m2
Very strong authorization to Facilities team-> able to open 1,000 stores per annual
Coordinate Senior/RSM/ASM from TGDD-> DMX and BHX-> Quickly apply process and customer service
HR :red_flag:
Feel the energy
No afraid of request& follow up :red_flag:
5 Core value ( Public annoucement) :red_flag:
Promotion from staff :red_flag:
Attractive Bonus
Staff grade A- 9 months income bonus
Others 2-3 months
Directors ( ex. year end bonus could be 1%-3% of 15 million USD even the market salary is 2,500-4,000 USD/month)
Management by love
100% labor force after COVID 19
Trust & authorization
High levels-> Strong authorization
Example. For locations, competitors decided by VP-> Open 50 stores/year, MWG authorise-> Open 1,000 stores/year
Staff-> instruction
Spread the Love and kindness
Promotion base on customer service not sales performance
Unique Customer Experience :red_flag:
Logical Display
Security smile, welcome and serve ( very difficult in Vietnam)
Free technical support
Warning Best seller
Real enthusiasm to help customer
Customer feel totally satisfied even when they leave and buy nothing ( difficult in Vietnam)
Strict monitoring and scoring on customer service-> most important criteria to promotion :red_flag:
Leaders
Chairman
Delivering Kindness
Very high standard of honesty and virtue
Put customer centric in all actions and thinkings
Sharing profit
Bonus policy- "Moving forward to the Ocean"
Famous Quotes
Paying to staffs and customers are not wasted
Management: High levels-> Strong authorization, Operation staffs-> Clear instruction
Take the group as a sailing boat, sharing profit between investors and the crew( MWG staff)
MWG trust in peoples' kindness
Exceptional authorization
Installment Loan for Consumer Electronics :red_flag:
Installment sales/Total sales by Region
South 40-50%
North 30%
Finance partners
Home Credit
FE Credit
AEON Credit Services
HD Saison
Interest
0%
40-55%/ annual
Advertisement :red_flag:
Top Viral DMX
Accessories category
~ 60% Gross Margin
Convenient for Promotion& Customer service
Top of mind for accessories
10% of Handsets
Risk
Competitive from Shopee and Tiki on Consumer Electronics
Customer database leak
COVID 19 :red_flag:
Commitment from BOD: market drops 10-15%, MGW drops 5%, market increase 10%, MGW increase 20%
Filter stable and not not stable enterprises-> MWG will gain more share
Negative
April close 600 stores temprorarily
Positive
Fridge, Home appliances increase sharply, laptops increase 200%
Bills of BHX increase 40% from 12 million to 17 million in March
Installment sales increase
Investment in An Khang pharmacy
Decrease of TGDD 5-10% per annual
Highlights :red_flag:
Mobile World
Strong focus Watches
200 shops-> Target 500 Shop by 30/06/2020 :red_flag:
150,000 pcs/3 months-> 130,000 pcs/month
+10% revenue
40% Gross margin
800 B Mar-Dec, 430,000 pcs
4,000 SKUs from 40 brands
Short firm- Most famous comedian
Revenue 750 Billion~ 2019
400,000 pcs for 6 months
Launch "Timely Agent TVC Series" in cooperation with Vietnam most famous comedian Tran Thanh on Youtube :red_flag:
Glasses
40%-45% Gross margin
Requirement for replacement still exist during COVID 19
Only fashion requirement decrease
Negotiate location expense
Bach Hoa Xanh :red_flag:
Double Shops ( Add Home Appliances category)
+20% Revenue
Purchasing
Import
Price lower 20%-30% than competitors
International quality at local price
Scouting local suppliers
MBW& DMX category dept. only work at HCMC
Shorten delivery time 2 days
Fresh products 48 hours from Port to Shops
Expand +1,000 or more
700 South
300 South Central Coast+ Central
Opening DC centers in Central
1,000 Stores operate Full year
1,500 stores for Ho Chi Minh City in the future
Efficiency & Growth :red_flag:
Low investment
Traditional CE 500m2~ 2.5 Million USD
DMX 800m2 ~300-500k USD
TGDD 150k USD
BHX 50k USD
Higher Gross margin 22-24%
TGDD 15%
DMX 17%
BHX 20-22%-> 25%
Bigger size faster growth rate, more room to grow market share 3~ 3 billion vs 100 billion by 2025
Growth 25% sales, 30-35% Net profit :red_flag:
Location
HCMC 31%
Province 69%
Target
Gross margin 22-24%
1,000 Shops operate full year-> Increase Sales& Gross profit
2019 10,770 Billion, +2.5 vs. 2018 :red_flag:
21 Cities& Provinces
2022 BHX= Mobile World+ DMX
2021 BHX= DMX
2,000 Shops, 20-30% 300m2, 100 Store 500m2
2020 BHX= Mobile World
Average Sales 2 Billion/month
Lower Average sales/shop than expected at 1.2 billion
Transfer MBW-> DMX :red_flag:
+50% Revenue
Continue in 2020 and 2021
DMX
+30% Revenue
TV display 2 rows-> 3 rows
Washing machine
Display 1 rows-> 2 rows
Open 120-150m2 DMX supermini at Tien Giang 1 billion/month-> Need to observe performance
Private label for Home appliances( speed up after COVID 19), Home Appliances/ Total sales of DMX ~25%, Private label/ Category 15%, Category Gross margin increase 30%->45-50%--> Total margin increase ~0.55%
Laptop center Market Share 20%-50%
28 Centers
Target 250,000 pcs but achieve 40% by 03/2020
Super cheap phones
17 Store
15-20m2
No Air condition
250-300 million/month
Not efficient-> Close
Investment
Mekong Capital 57 times
Opportunities
10,000 Bach Hoa Xanh
Total revenue 10 Billion USD
Financial services ( next steps, banks and financing companies are approaching)
Credit Card
Charge Card
HCMC 1,500 now 440 shops
Change in customer behavior-> More Online
Scouting for good logistics company-> purchase 20-30% share
Online Bach Hoa Xanh becomes Top of mind
E- commerce
E-commerce
Suppliers
Mobile World Group
Multiple suppliers, quality problems with small suppliers
Customer experience
After Sales service
Mobile World 2,000 stores
MKP
Long time dealing
Installation Consumer Electronics
MWG Staff
Market place
Force customer to buy accessories (frequent)
3rd party delivers
Customer satisfaction
MWG
Scoring on Customer satisfaction
Delivering customer satisfaction and kindness
Market place
Nice to have
Contents
Mobile World
Unique, friendly& exclusive contents
Market plae
Copy& paste
Customer feedback
Mobile World
Quickly, friendly& responsive
Marketplace
Various across suppliers
Delivery
Mobile World
~40 mins
2,000 stores across nationwide
Bring more colors for choosing
Bring more models for choosing
Marketplace
1-3 days
Pricing& promotion :red_flag:
Mobile World
Official brand price
Leading Preorder Flagship phones ( Samsung Note, Samsung S, Samsung Galaxy A series official iPhone etc.) :red_flag:
Exclusive models ( Samsung, SONY, LG etc.)
Marketplace ( Shopee, Tiki, Lazada)
Significant subsidy for CE products
Critical Campaign- based promotion :red_flag: