Will Apple's Online Store in Vietnam Change the Game of the Retail Market?

Photo: Apple

The official announcement about the opening of an online store in Vietnam has been posted by Apple on their homepage. Accordingly, from May 18, users accessing the website apple.com/vn will be able to directly purchase Apple products on an interface completely in Vietnamese.

Apple promises that the online store in Vietnam will provide the same personalized service and support to customers as Apple Stores around the world . Behind that online website will be a team of user support experts, using Vietnamese.

“We are honored to expand in Vietnam and excited to bring the same outstanding Apple care and support to our customers with the launch of the Apple Store online,” said Deirdre O’Brien, Apple’s senior vice president of Retail. “With the online store, customers in Vietnam can now explore our great range of products and services, connect with our knowledgeable experts, and experience the essence of Apple like never before.”

Earlier, in the financial report meeting for the first three months of 2023, Apple CEO Tim Cook shared that emerging markets were the main factor helping Apple achieve record iPhone sales in the last quarter. The Apple CEO said: "We are working hard in some of these markets and we see that low market share and dynamic customer base has created a great opportunity for us."

According to experts, Apple's opening of an online store is a clear sign of Apple's presence in Vietnam. This is also a major turning point that allows domestic users to solve many previous problems.

It is known that in Vietnam, Apple almost only works with retail partners and distributors. When users want to buy products, the company's website only returns results about nearby authorized stores, instead of providing online payment tools.

In addition, the selling price of Apple products in Vietnam often fluctuates according to market conditions and supply, there is no fixed listed price like other brands. Therefore, Apple's official online store will be the place where users can refer to the standard price before deciding to buy.

This is also a sign of an upgrade in Apple's market assessment. Specifically in Southeast Asia, Singapore and Thailand are the two countries in the top group, having Apple Stores and selling iPhones right from the global launch day. Meanwhile, Malaysia is in the next group, opening sales 7 to 15 days later and having an online store.

Inside an Apple Store in the United States.

Apple’s opening of an online store in the Vietnamese market is a first step in upgrading its service. When the iPhone 15 goes on sale soon, Vietnamese users will be able to access genuine products sooner instead of having to pay huge prices to own these flagship models early like before. There will also be no more scenes of Vietnamese merchants or hired people lining up in front of Apple Stores in Singapore or Thailand to buy the latest iPhone models.

Not only that, genuine products provided by Apple will also be covered by genuine warranty with genuine components, online warranty, and troubleshooting. Users will not have to worry about choosing a place to warranty, repair, or refurbish their devices.

In terms of products, the Apple Store will offer a full range of devices and accessories from Apple and its partners. This will be a good solution for users to buy products that are not popular and have many special options. For example, MacBooks with high RAM and storage options are often not available at domestic dealers.

Although there is no mention of a physical store in Vietnam, many experts and technology followers believe that this is a stepping stone to opening a traditional business location in a market of more than 100 million people. "Before opening a physical store in any market, Apple always opens an online store first to approach users step by step," said an expert.

During Apple's financial results announcement meeting held at the end of July 2022, CEO Tim Cook announced that Vietnam is one of the company's best growth markets globally.

"In the second quarter of 2022, we recorded significant revenue growth in emerging markets such as Brazil, Indonesia, Vietnam and India," Mr. Tim Cook shared in the meeting.

Previously, the iPhone market in Vietnam was always rated lower than other markets for various reasons. Some experts believe that the main reason came from the habit of using cheap hand-carried goods of some users in Vietnam at that time.

However, in recent years, Apple has taken various measures to “clean up” this market. In addition, this American technology company is also increasingly increasing its presence in the Vietnamese market.

However, the issue that many Apple fans are currently concerned about is how competitive Apple's online store will be with authorized dealers (AARs) and retailers in addition to taking care of Vietnamese customers according to Apple standards?

Compete directly with agents in Vietnam?

According to experts, the online Apple Store in Vietnam will provide a standard price range from the company, which can be used as a reference, especially in the context of Apple product prices constantly fluctuating. However, this will not greatly affect the business operations of the dealers.

"This move by Apple will certainly reshape a price ceiling in the future with newly launched products. At the present time, when dealers have offered many great incentive programs, the impact from the online Apple Store will not be significant," said a manager of an authorized dealer in Vietnam.

A representative of another retail chain commented that Apple cannot lower the price of their products because this will directly affect the revenue of authorized dealers (AAR). Currently, the price of Apple products in the Vietnamese market is considered too cheap compared to many other regions. For example, the iPhone 14 Pro Max model sold in Vietnam is 2-3 million VND cheaper than Apple Stores in neighboring countries.

In fact, this is not the first time smartphone manufacturers have opened their own online stores to sell in Vietnam. Samsung has been doing this for many years, however, this has not had much impact on the sales of dealers.

Retailers and experts also believe that with a nationwide network of stores and presence in most provinces and cities, Vietnamese businesses will not be threatened in terms of competitive advantage. This is because technology products like Apple's require real-life experiences, something that the online Apple Store cannot provide to users.

Therefore, retailers all agree that Apple's opening of an online store in Vietnam will not directly affect product prices at the present time. Instead, this move demonstrates the importance of the Vietnamese market to the American giant.

Source viettimes

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