A super cheap phone store in HCM City. — Photo tinnhanhchungkhoan.vn
The Mobile World Group (MWG) has decided to close all of its 17 super cheap phone stores in HCM City a year after launching them.
The store chain which sold mobile phones for less than VND8 million (US$344) each closed at the end of last month. The website dienthoaisieure.com of the chain also shut down.
Launched in August 2019, the chain followed a low-cost strategy and mostly targeted people living near the stores.
Nguyen Duc Tai, MWG’s chairman said the chain aimed to compete with small mobile phone shops.
In comparison with The Gioi Di Dong system which is also managed by the group, the mobile phone prices are 10 per cent cheaper. Each super cheap phone store had only two sellers. Mobile phones sold at the stores were not guaranted or applicable for exchange. Customers had to bring them to guarantee centres of mobile phone brands themselves.
A representative from MWG told Viet Nam News on Monday that the closure was part of preparations for a change to a new model.
MWG is one of the biggest mobile phone and accessory retailers in Viet Nam. In the first five months of the year, it posted consolidated revenue of VND47.5 trillion, up 11 per cent from the same period last year. It reported a four per cent year-on-year decrease in after-tax profit to more than VND1.7 trillion in the period. — VNS