GfK reported that the mobile market, including feature and smart phones, saw a 10 percent decline in the first nine months of the year compared with the same period last year. 15 million products were sold during that time, a decrease of 1.3 million products.

The number of products sold in the months of Q3 dropped sharply with 2 million, 1.54 million and 1.48 million products sold in July, August and September, respectively. As such, the number of products sold in September was 0.5 million lower than July.

As the number of phones sold decreased, the revenue also fell, from VND58 trillion in the first nine months of 2018 to VND53 trillion in the first nine months of 2019.

GfK reported that the mobile market, including feature and smart phones, saw a 10 percent decline in the first nine months of the year compared with the same period last year. 15 million products were sold during that time, a decrease of 1.3 million products.

Only the online sales saw a slight increase in Q3 in comparison with Q2. However, the sales still were on the decrease compared to the three months of Q3.

In July 2019, 290,000 products were sold, and the figure dropped to 214,000 products in September. The total number of products sold in the first three quarters of 2019 also decreased by 100,000 compared with the same period last year, from 2.49 million to 2.37 million.

Doan Van Hieu Em, CEO of The Gioi Di Dong, the largest mobile phone retail chain, said the mobile phone market was getting saturated with a very low growth rate.

The finance report of the chain showed that with 1,918 shops nationwide, the company had modest 4 percent growth in revenue. However, Em hopes that the revenue would increase when the markets enters the year-end sale season.

In fact, the saturation of the mobile phone market was anticipated and mobile phone distribution chains have been preparing for new business strategies for several years.

The Gioi Di Dong is selling drugs through An Khang drug store chain. Most recently, the chain has begun distributing watches and glasses. In September 2019, The Gioi Di Dong opened 26 laptop centers,.

FPT Shop, for example, has bought Long Chau drug store chain. It has joined forces with Nguyen Kim, a home appliance retail chain, to sell home appliances at its retail network. However, FPT Shop recently announced the suspension of the cooperation. Analysts say that the move showed that the home appliance market is not a lucrative land for retailers.

Smaller retail chains such as Mai Nguyen Luxury have also found their own ways to increase sales. The chain sells audio/video devices and luxury fashion accessories. 

Chi Mai

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