The Competition on Vietnamese Mobile Devices Market, Reached VND 22 Trillion Worth.

Samsung accepts shaking hands with PSD, a power distributors to quickly overtaken from the hands of a Nokia with two clear objectives: Putting on a limit factor for Nokia and seizing entirely PSD‘s distribution channel distributors...;

- PSD own up to 1700 agents and 11 branches and FPT Distribution Company has 1,000 agents in nationwide.- Samsung has a direct distribution system to major supermarkets in the city and provincial distributors in the region. Meanwhile, Nokia will only corporate with the big distributors.- After the break with PSD, Nokia will work with FPT and Lucky.- Large waves from the change in the relationship of Nokia - PSD - Samsung will entail small waves merging from the likes of HTC, Sony, thegioididong, FPT, Vien Thong A …- Brightstar and BrightPoint jump into battle of distribution, that makes distribution of the mobile market in Vietnam has many major changes.- The rumor that FPT Telecom will have a plan to acquire VienThong A to confront with thegioididong.

The competitive pressures in the mobile market (VND 22 trillion) forced both distributors and manufacturers are always looking for the key to breaking this dependency. Thus, whether the linkage is tight, it can also be easily broken.

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Samsung - Nokia in comparison

According to IDC, from quarter I/2012, Samsung has achieved significant progress on the world market as shipped 93.8 million of mobile phones, overtaking Nokia to become the leading handset manufacturers the global market. However, in Vietnam, despite the advantages of factory, Samsung is always considered behind Nokia.

Nokia ended the first quarter 2012 (quarter I/2012) as a leading provider of cell phone providers, representing more than half of mobile phones in Vietnam.

Mr. Nguyen Van Dao, deputy general manager of Samsung Vina.

Although, Samsung is the leading firms in the smartphone market in Vietnam, due to good business results of low price smartphones including Galaxy Y and Galaxy Mini, but the total amount of mobile phone distribution, including popular device and smartphone, still keeping their distance compared to Nokia’ s success.

Mr. Nguyen Van Dao, deputy general manager of Samsung Vina said: There will be some major changes.Samsung start back to cooperating with previous distributors is not a return to the old way, which is expanding their new distribution channels. Because distributors are now also has taken steps to a new development and stronger than ever.

After partnered with PSD, the Samsung's distribution system will change greatly in near future. Under the agreement, PSD as a strategic partner of Samsung will be distributed mobile phone in nationwide, the Samsung just keep the direct sales in supermarkets only.

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Therefore, in the coming time, Samsung will be reorganized so that their sale agent on areas will work smoothly with the new working frame.

In general trend, comparison of the correlation of forces, Samsung clearly has advantages in terms of technology, design and price, and the leading position of mobile device distributor in the Vietnam market is not out of reach.

"However, Vietnam is a special market, user experience brand through the effect of emotional, psychological and the pioneering brand is welcome and acceptable by very large Vietnamese consumers of. When the Vietnamese people have demand of motorbike, they think Honda first and of mobile phone, they will find and buy the Nokia brand. So while there are many disadvantages, Nokia remains the brand value influence in Vietnam, " Mai Trieu Nguyen, Director Nguyen Mai Co., Ltd., said.

Because of these, Nokia cannot succeed in other markets but still welcome in Vietnam. According to Nguyen, the most specific evidence that even unsuccessful Symbian operating system for smartphones, but the quick transition to the low end, dual sim, Nokia has been beat the Chinese phones and Vietnamese brand phone, outsourcing in China has the advantage of cheap price, last two years.

PSD: The right to determine the destiny of 1,700 agents

The handshake between Samsung and PSD shocking the mobile phone distributing market.

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Although, there is almost full participation of the well-known brand phone manufacturing in the market in Vietnam, from the story of two big competition of Nokia and Samsung, could easily see underground power behind; The impact of the distributor. It is also the cause of the triangle relationship between Nokia, PSD and Samsung.

Different from other consumer products, mobile phones, this sector has annual sales of more than VND 22 trillion and is likely a fast consuming item due to the enthusiastic participation of the professional distribution companies such as PSD, FPT Lucky in domestic and foreign companies such as Brightstar Vietnam.

Meanwhile, the PSD is a prominent and owning up to 1700 agents and 11 branches in nationwide. This is strongest distributor, who possesses a firm financial resources and good warehouse system.The follower, could be the FPT Distribution Company with nearly 1,000 agents nationwide.

Keeping the PSD’s revenue reached 5353 billion during the first 6 months of 2012, besides wide distribution system must also have economic strength for the financial services, creating the best conditions for small businesses customers can get the goods. Because of this support that thrive sale volume of the PSD distribution in the provincial market. Mr. Huynh Van Thi, PSD’s Chairman said.

Differently from the way Nokia working with traditional distributors such as PSD, FPT, Lucky ... Samsung has reformed the delivery system for about 2 years ago. Rather than using through distributors, Samsung directly distribute mobile phone from Bac Ninh plant poured into large supermarkets such as Nguyen Kim, TheGioiDiDong, Vien Thong A, Mai Nguyen ... to reach the end- customers.

The Samsung factory in Bac Ninh provice.

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With the provincial market, Samsung works with regional distributors, from this point to put products with small sales shop in the province. With a direct way, this fast, plus improvements in production technology ... 14% market share in 2011, Samsung has been developed very fast speed, up to No. 2 in the market. However, all is not enough to pass through the way of the distribution companies doing.

According to Mr. Cho Seok Hee, CEO of Samsung Vina Electronics Co.,mobile phone industry recently has too many changes, and Samsung wants to achieve its leading position in the Vietnam market and strengthen its position in international markets and the first change in Vietnam is hands with power distributors such as PSD.In 2011, PSD distributed more than 5.9 million Nokia phones, sales of 5200 billion and 134 billion of profit, up nearly 50% of total sales of PET. Nokia said after stopping cooperation with the PSD will expand market share for the FPT and Lucky, in which FPT took the Northward and Lucky took the Southward.”The agreed goal of the PSD distribution model with the Samsung is putting products to the best market, limiting the middle and directly reaching end-customers rather than through agents," Mr.Thi disclosed.

Mobile phone distribution market becoming increasingly competitive, demanding more professionalism of both distributors and manufacturers in an effort to find out how is counterweight to reach the independence. The manufacturer will gradually take the initiative, expanding network of partners covering the market and avoid the pressure of distributors. The direct selling company under the agreement depending on the strength of each partner rather than just associated with major distributors.

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The distributing channel, a big problem for manufacturer. (Exhibition)

Partner with the PSD, the empowerment of "Big" distributors on the national market, Samsung has also set specific targets for this distributor. "With its network, we are confident will help Samsung achieved the No. 1 position in the Vietnam market, as was done previously with Nokia," Mr. Thi confirmed.

However, the way of the PSD is not necessarily all roses. The fact that, on market, the regional distributor of Samsung is currently unable to hold a larges amount of phone into their storehouses than ever before.

Samsung must to find the distributors with stronge financial resources such as PSD. PSD is also difficult to have any safe option than Samsung while Nokia is going down.

How many unknowns are there?

Big waves from the change in the connection of Nokia - PSD - Samsung will entail small waves coming from as HTC, Sony, Mobile World, FPT, Vienthong A...

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Redrawing the map

The map of mobile phone distributor in Vietnam not only the major brands. Entangled in commitments not distributed with the same products with Nokia, starting from 2011, PSD had established a distribution company as Smartcom to delivering goods to end-consumer.

With systems over 120 nationwide agents, including name of very best sellers well as Thegioididong, Vien Thong A, Nguyen Kim, Pico, Smartcom enough to satisfy brands like LG, Sony, Huawei ... Not only that, the phone distribution market even more robust as two major international distributors is Brightstar and BrightPoint, this appearance lead to major changes.

The first sign is the last week of 6/2012, XPERIA - Sony Smartphone officially joined Vietnam Sony Electronics. In principle, the distribution of the Sony phone remains with the Smartcom, nothing changes.

According to General Director of Sony Electronics Vietnam, Mr. Yuzo Otsuki, this event marks a consolidation of Sony Vietnam in the market. Since then, the warranty and after sales service network, customer care for Sony Smartphone products will be expanded..However, according to the the experts, the current distribution network of 160 partner, Sony showrooms across the country, including partners of Smartcom, the Sony is restructuring distribution systems , Smartcom will losing market share also takes place soon.

In the trend of restructuring the distribution system in the near future, HTC is also planning a new path for themselves. Mr. Nguyen Hong Chau, chief of HTC representative in Vietnam, said: "We will continue to work with FPT and other partners in creating more effective distribution strategies."

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Although not revealing new partners, BrightPoint are successful in the world market, the HTC and BrightPoint expand cooperation within Vietnam market is understandable.

Mr. Nguyen Hong Chau - HTC Representative in Vietnam

Small cake, big mouth

In another aspect, "unknown" named Brightstar can also cause changes in Vietnam market. Recently, the distributor has the right to distribute the iPhone, opening the way for the Apple phone into Vietnam, not through Telco distribution network.

Initially, Brightstar is only right to distribute the iPhone 3G but the iPhone's attraction for enough promising to Brightstar shining in the future.

Explaining the cause of restructuring the distribution for new map maker, Mr. Mai Trieu Nguyen said, the decline of the economy and the number of users has created pressure for the all to find a strategy to keep his new in a changeable market.

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Mai Trieu Nguyen, Director of Mai Nguyen Mobile Technology Co., Ltd.

In the same view, Nguyen Van Dao, General Deputy of Samsung Vina, said: "During the current changes constantly, distribution policy to develop need a continuous improvement, if not they will lost his position" .

According to the Mobile Phone Tracker quarterly report of IDC Asia / Pacific, the shipped number of mobile phone consumption in Vietnam recently has fallen about 15%.

Mr.Vo Thanh Le Tam, the expert of end-user devices market analysis in IDC research group in Vietnam, said: "Some local and China firms have withdrawn from the market, and will leave their presence from the market in 2012 because they must try to recovering investment in current conditions ".

There are many involved vendors in the market, the pieces of phone distribution market getting to smaller and the competition is increasingly fierce. Is the reset distribution maps could hard assist to manufacturers finding the pedal to burst out and conquer new position or not, the final answer will be given in the near future.

The FPT’s acquisition

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If the struggle for a final right to distributing product heated, the battle of the retail market is no less fierce at all. The information of FPT acquisition of local distributor that is tingles for all week. Although, there are no official figures, but according to a confident source, that the number of shares the local distributor sold to FPT up to 50%. Under the agreement, more than 30% of VienthongA was sold to DT Mobile in early 2012, the number of shares owned by Vienthong A is very little.

Founded in 1997, so far Vienthong A has developed a distribution network of more than 70 point of sale on supermarkets and Service Centers around the country. In the announced partner event of DT Mobile, Ms. Hoang Ngoc Vy, General Director for VienThong A confirmed that with the inherent potential coupled with support from DT Mobile, and a group from Japan, Locals will development and reached the number of more than 100 of retail outlets in 2012.

Late moving in the retail industry for 10 years, was founded from August 2007, after more than four years of operation, the FPT retail shop system now up to 24. However, with financial advantages, FPT also strongly encourages the goal is to figure out between now and 2014, FPT will co100 and retail shop is at that time to press forward faster FPT to this goal. Specifically, in July, FPT System Shop will open three big stores around the country.

Thus, the combination of two major distribution systems will support FPT Shop and VienThong A will assist FPT Shop, owning a large distribution system of more than scheduled 100 head stores in 2014. According to industrial insiders, FPT is focusing on development of becoming a counterweight to the Thegioididong, that the brand, FPT has spend a huge effort to buy back during the time but no any agreement is reached out. To date, Thegioididong has become a largest retail chain of mobile phone with over 220 stores, appearing in all provinces throughout the country.

Brian-HN (Source: Discussion in 'CNTT' started by khanhproa2, Thursday, 2012 at 5:27 AM)

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