The cooperation is expected to change the face of the mobile phone retail market.

Redmi 12 is selling exclusively at two retail chains – The Gioi Di Dong and Dien May Xanh in Vietnam. This is the main part of the cooperation agreement signed between Xiaomi and The Gioi Di Dong at the Redmi 12 launching ceremony held on June 15 in HCM City.

Speaking at the ceremony, Patrick Chou, CEO of Xiaomi Vietnam, said that this was a marriage of the two parties. He praised The Gioi Di Dong when he was in China. However, when Xiaomi entered Vietnam, Xiaomi still had no chance to cooperate with The Gioi Di Dong. But the opportunity now has come.

Doan Van Hieu Em, CEO of The Gioi Di Dong, also praised Xiaomi, the brand among the top 3 market share holders in Vietnam. The retailer not only wants exclusive sale rights of Redmi 12, but other products, including Redmi 13 or 14, in the future.

Asked why The Gioi Di Dong decided to sign the agreement, Phung Ngoc Tuyen from the retail chain said the two parties thought they could satisfy each other’s requirements.

According to Tuyen, no official commitment about sales has been made, but Xiaomi hopes about 300,000 Redmi 12 would be sold via the chain, or 60,000 products a month. However, he believes the figure could be higher, about 400,000.

At present, The Gioi Di Dong still has not run a media campaign to popularize the product, but The Gioi Di Dong and Dien May Xanh can sell up to 2,500 products a day.

Analysts said that the handshake between the manufacturer and retailer would change the outlook of the retail market.

The Gioi Di Dong not only signed an agreement on exclusive distribution with Xiaomi, but with nearly all other manufacturers that will introduce new products in 2023. Most recently, it signed an agreement on exclusive sale of Realme C53 when it hits the market. A similar agreement has been signed for the sale of Vivo’s Y36 product. Tuyen revealed that it would obtain the right for exclusive sale of Oppo’s new products which will be marketed later this month.

At this moment, in the context of economic difficulties and retailers all complaining about the slow sales, the possession of 3,380 retail stores (for both The Gioi Di Dong and Dien May Xanh networks) proves to be a great advantage for The Gioi Di Dong. Therefore, manufacturers choose to ignore smaller retailers and focus on the big chain – The Gioi Di Dong.

Tuyen affirmed that the products distributed through The Gioi Di Dong under the exclusive sale agreements have met expectations.

Le My