Assigment on DIEN-MAY-XANHx

DIEN MAY XANH
Launched in 2010 with the original name 'Dienmay.com' and then renamed Dien May Xanh
in 2015, Dienmayxanh.com has become Vietnam's biggest business electronics retail chain
with more than 1,000 stores nationally by market share (mwg.vn, n.d.). Each supermarket has
an area of 500 - 1000 square metres, selling mainly in electrical products and digital
equipment. In July 2016, Dien May Xanh became the first and only electronics retailer to
cover all 63 cities and provinces nationwide (mwg.vn, 2019).
1. Product categories:
Dien May Xanh offers products on the field of:
Household electronics: television, refrigerators, washing machines, air conditioners,
microwave ovens ...
Digital electronics: smartphones, smartwatches, tablets, laptops, digital cameras,
digital electronics accessories ...
Home appliances: kitchen tools (pots, electric cookers, bowls, cups, pans, dishes ...),
water purifier, air purifier ...
Beside electronics and home appliances, Dien May Xanh also deals in collecting
electricity, water, wifi ... bills, selling network services, sims, and fashionable, luxury
watches.
("Siêu thị Điện máy XANH - Mua bán điện tử, điện lạnh, gia dụng", 2020)
2. Opportunities of electronics retail industry:
According to Kantar WorldPanel’s Vietnam’s FMCG Insight Handbook 2020, Vietnamese
population is about 95 million people and approximately 26 million households (in 2019)
with major population age falls into the 25 - 39 years old, and there is a tendency to increase
consumption every year, which showing that there are a large amount of demands as well as
purchasing ability in electronics market in Vietnam.
In addition, in 2025, Vietnam is predicted to have a young population with Millennials
dominant (43%) and future consumers - Gen Z (7%) (Nielsen, 2019). These populations are
usually known as opening to new things, seeking for greater convenience and super
connected with technology. Hence, Dien May Xanh will have sustainable demands not only
now but also in the future.

Furthermore, smartphone users have increased 95% and 69% in urban 4 cities (including Ho
Chi Minh, Ha Noi, Da Nang and Can Tho) and rural areas, respectively (Kantar WorldPanel,
2020). This data shows that Vietnam has been developing toward modernization, a
technological country. Therefore, Dien May Xanh is a good strategy of MWG when ahead of
the trend of the fourth industrial revolution.
Moreover, average income per capita is forecasted to increase 90.7% up to 8.2 million dong
in urban 4 cities and 95.5% up to 4.3 million dong in rural areas in 2025 (Kantar WorldPanel,
2020). With that outstanding growth income, the Vietnam market in general and electronics
market in particular are believed to be more vigorous than ever. Thanks to increased income,
Vietnamese households have higher standards of living with more advanced appliances
(Kantar WorldPanel, 2020). However, in 2019, there were below 50% of households owned
microwave ovens, water filtering devices, vacuum cleaners... in both urban and rural areas
(Kantar WorldPanel, 2020). Thus, there will be a large market left for Dien May Xanh to
grow.
3. Competitors:
Cho Lon Electronic - Furniture Supermarket:
This is a pioneer supermarket in the field of home electronics retail in Vietnam, specializing
in electronics, refrigeration, mobile, computers, home appliances, telecommunications,
furniture with service style. professional and modern ("Siêu thị Điện máy Chợ Lớn - điện tử,
máy lạnh, gia dụng, di động", 2020).
Not mentioned much like The gioi Di dong or FPT Store, but Cho Lon has excellent business
results: sales increased by 54% in 2016 from VND 8.100 billion dong to VND 12.500 billion
dong and increased by 26% to VND 15.800 billion in 2017 – more than the revenue of FPT
Shop. Double growth after 2 years, Cho Lon is the electronics chain that can chase the Dien
May Xanh ferociously. By focusing solely on the South, Cho Lon is clearly one of the most
desirable competitors of the Dien may Xanh in this region ("Nguyen Kim, MediaMart, HC
are simultaneously short of breath - Virac", 2018).
E-commerce:
Some e-commerce exchanges in Vietnam: Shopee, Tiki, Sendo, Lazada.
In less than three years, e-commerce has developed to become a reality of consumer goods
products. The number of internet users are continuing to rise steadily in Vietnam. And the

next generation of customers who will soon reach the age of consumerism will fully disrupt
the way of shopping, voicing new desires, demanding versatility, autonomy and convenience
for manufacturers and retailers to give them. As customers are constantly linked, they can
demand even more from the digital world than the current shoppers. They would need more
convenient shopping experience (now 69 per cent of households are working with
housewives) to save more time for their personal lives (intensifying traffic on the streets of
Vietnam will make shopping trips less quick and easy) (Carrasco, 2016).
Therefore, it may soon be an acceleration of the involvement of online retail giants, such as
Alibaba and Amazon, who decide to take their first major move in driving this channel in
Vietnam (Carrasco, 2016).
4. Achievements:
Business scale: 1,224 stores nationwide (mwg.vn, n.d.).
Revenues:
oIn 2019, the revenue of the Dien May Xanh was 58,239.18 (mwg.vn, 2019).
oIn 2014, the revenue of the Dien May Xanh had just reached 2300 billion but
in 2017 it was nearly VND 30,300 billion ("Nguyen Kim, MediaMart, HC are
simultaneously short of breath - Virac", 2018).
oIn the first 7 months of 2017, revenue of this chain continued to increase 84%
to nearly VND 29,000 billion ("Nguyen Kim, MediaMart, HC are
simultaneously short of breath - Virac", 2018).
Profits: In 2019, the profit after tax of the Dien May Xanh was 2,186.52 (mwg.vn,
2019).
CHALLENGES:
1/ COVID-19: Decrease in sales and revenues
The company's business results have begun to be significantly affected by the Covid-19
pandemic since April 2020.
1.1. Internal and external reasons:
Temporarily close more than 600 stores from April 1 to April 15 and still maintain the
closure of more than 300 stores from April 16 to April 25 to coordinate against
epidemics at the request of State agencies (Nguyễn, 2020).