Smartphone distribution depends on traditional retail channels

Vingroup’s VinSmart, one of its subsidiaries, signed a cooperation contract with BQ, the fifth largest phone manufacturer in Spain.

BQ has succeeded with mid-end and near high-end products with more than 20 models available in the market. Under the cooperation contract, VinSmart has acquired intellectual property rights to develop two smartphones under the Vsmart brand for high-end and mass market segments.

VinSmart continues working with world-leading partners, seeking experienced specialists and building production lines to be able to make smartphones, according to VinSmart’s CEO Nguyen Mai Hoa.

To join the automobile industry, Vingroup bought GM Vietnam. However, analysts do not think that VinSmart will buy a domestic smartphone manufacturer to jump into the smartphone industry, despite the rumor of a meeting between BKAV Corporation and Vingroup.

In Vietnam, smartphone distribution depends on traditional retail channels. Joining hands with a brand from Europe, VinGroup can approach new markets, especially in the context of stiff confrontation from Chinese brands. 

VinSmart is not likely to open specific retail shops, because its products are not diverse.

BKAV, established as a cyber security solution provider, is still trying to conquer Vietnamese hearts. Its ad about the high-end BPhone 3 model, which is about to be marketed, appeared during the 2018 World Cup’s football matches, though the ad rate during the ‘golden hours’ was sky high.

Prior to that, BKAV’s products appeared duringfootball matches of the British Premier League.

However, BKAV remains an unknown in the market as it has never made public the sales of BPhone series.

BKAV’s CEO Nguyen Tu Quang once said BKAV would make medium-range smartphones and market the products in the third quarter of 2017. However, no further information about the products has been reported.

Asanzo, which joined the market last September, has been quiet. Asanzo’s chair Pham Van Tam said the company would focus on low-cost products, S2 and S3, priced at VND1.9 million and VND2.5 million, respectively, which cost 50 percent of S5 and Z5 models. 

Tam said 8,000 S5s and Z5s were sold, but the information cannot be verified. 

Mobiistar holds the largest market share among Vietnamese manufacturers. According to IDC China, 3 percent of the phones sold in the market in the first quarter of 2018 were made by Vietnamese manufacturers, 50 percent of which were from Mobiistar.

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Thanh Mai