Big retailers jump into watch distribution market
Watches are now available at The Gioi Di Dong shops
Previously, the market had other big names – Phu Nhuan Jewelry (PNJ) and Doji, which are well-known jewelry brands.
Watch models were added to the list of product items available at The Gioi Di Dong retail chain.
On its official website are watch models of well-known brands such as Casio, Sheen, Baby-G and Fossil, priced at less than VND10 million.
The demand is high, but not all buyers want luxury genuine products. High income earners can buy luxury watches from different distribution channels rather than from official resellers.
The mobile phone distribution giant has also jumped into the drug retail sector. In December 2017, it opened its first drugstore called An Khang, officially setting foot in the $5 billion market, and stated that it will open 50-100 drug stores in 2018..
Meanwhile, PNJ and Doji began eyeing the market a long time ago. The former began selling watches through its distribution network in 2012. Since the beginning of the year it has established tens of PNJ Watch shops, mostly located in the south and Hanoi.
There is a wide range of watch products available at PNJ network, from low-cost to high-end, including brands Daniel Wellington, Citizen, Seiko, CK, Guess, Michael Kors, Skagen, Tissot and Longines.
As for Doji, the goldsmith company joined the market in late 2018. It now distributes 61 models from three brands with the prices ranging from VND2 million to VND32 million.
Both PNJ and Doji focus on products with value of less than VND10 million.
Analysts noted that retailers now tend to eye the watch retail market, because the market remains fledgling with no big investor. The reports of market analysis firms all showed that there is no distributor holding market share large enough to dominate the market.
Rong Viet Securities estimates that the Vietnamese watch market has value of VND17 trillion.
However, only a few retail shops and maintenance center sell genuine products and provide services under the authorization of the manufacturers.
With high demand and limited supply of genuine products, counterfeit products can sell well.
Cao Thi Ngoc Dung, chair of PNJ, said at the shareholders’ meeting in 2018 that the Vietnam watch market is ‘chaotic’, but PNJ can reassure that it sells genuine products.
Rong Viet Securities believes that demand is high, but not all buyers want luxury genuine products. High income earners can buy luxury watches from different distribution channels rather than from official resellers.