The impact of the global economic recession and weak purchasing power has caused many difficulties for the retail market in the post-Covid-19 period (2021-2023), including electronics and electrical appliances. Entering 2024, the electronics and electrical appliances market has shown signs of positive recovery. At many specialized supermarkets and electronics and electrical appliance stores, sales revenue in the first 9 months of 2024 has reached and exceeded the annual plan target.
Prices drop sharply, purchasing power increases
According to retailers, the business of electronics and electrical appliances has encountered difficulties since the last months of 2021 and will last until the end of 2023. The reason is that during this period, many major economies in the world entered a recession, the employment situation of workers was unstable, inflation increased, causing people's essential expenses to increase. From there, consumers tend to tighten spending to cut unnecessary expenses. This has hindered the growth of many items, especially non-essential consumer goods, such as: mobile phones, televisions, air conditioners, tablets, etc.
To stimulate consumption, a series of "big guys" in the electronics and home appliance retail industry, such as: Dien May Xanh, FPT Shop, The Gioi Di Dong... have "activated" promotional programs, deep discounts, creating a "race" on prices for a series of technology and home appliance products with discounts of up to 50%. Thereby, helping retailers gain more market share, however, their profits have decreased significantly. For example, Dien May Xanh supermarket (Le Hoan street, Phu Ly city), facing the situation of sluggish goods, from 2022 to now, the supermarket has continuously applied attractive promotional, discount and after-sales programs with names such as "Too cheap"; "Price guarantee, refund the difference if anywhere is cheaper"; "Extended warranty and 1-for-1 warranty"; "Leading home appliances sales"; “Buy anything and get a gift”… In addition, Dien May Xanh customers can also participate in the loyalty points program through the "VIP Gifts" application. The points accumulated after each purchase transaction will be converted into discounts for future purchases. Mr. Luu Van Cuong, manager of Dien May Xanh supermarket, said: With many efforts and solutions to become one of the leading units in the "price war" in the electronics and electrical appliances market, Dien May Xanh has maintained cash flow in difficult times, especially in 2022 and has had a significant recovery in purchasing power since the end of 2023. In the first 9 months of 2024, Dien May Xanh's sales revenue increased sharply, by 150% compared to the same period in 2023 and increased many times compared to 2021 and 2022. Sales revenue in 2024 is estimated to reach a level equivalent to the "golden" period of Dien May Xanh in 2019. At this time, Dien May Xanh has exceeded the revenue target set for 2024.
The recovery in purchasing power for electronics and electrical appliances is not only happening in large supermarkets but also in most small-scale retail stores. Mr. Lai Van Truong, owner of Truong Mobile mobile phone store on Ly Thai To Street, Phu Ly City, said: Due to its location near Chau Son Industrial Park (Phu Ly City), Truong Mobile's customers are mostly workers. During the period of 2021-2023, the store was almost "frozen" because many businesses in the industrial park faced difficulties in the consumer market, so they cut labor, reduced operating capacity and working days. Without a stable income, workers do not have the conditions to buy new or upgrade their phones. However, in recent months, the number of customers coming to buy high-end phones, especially Samsung and Apple brands, has increased significantly. I am expecting the electronics and technology market to fully recover and develop vigorously in 2025.
Boost sales on online platforms
In the midst of difficulties, the retail market for electronics and electrical appliances has seen a bright spot, which is that sales from online platforms have increased significantly in recent years. To increase competitiveness, in addition to traditional sales channels, supermarkets and stores are promoting sales on websites, Facebook, TikTok and major e-commerce platforms such as Shopee, Tiki... According to economic experts, while the "price war" is still fierce, the opening of an online sales "front" continues to ignite a new, more fierce "war".
To gain online market share, most retailers apply preferential sales programs exclusively for customers who order through online platforms and offer free shipping to customers. In addition, "big guys" in the electronics and electrical appliances sector, such as: Mobile World, Dien May Xanh, FPT Shop, Viettel Store also "run" "shocking" discount programs for online customers during "golden hours", especially on weekends. Mr. Lai Van Chau, manager of FPT Shop, Bien Hoa Street, Phu Ly City, said: Since the Covid-19 pandemic, the number of customers buying computers, mobile phones and some household electrical appliances has increased. The growth rate of revenue from online channels has continued to be stable over the years. To stimulate consumption through this shopping channel, FPT Shop has run many deep discount programs exclusively for online customers with gifts and free shipping. The increase in purchasing power through online channels is clearly reflected in the high-end phone segment. If in 2021-2023, customers asked to buy high-end phones very little, in recent days, the number of customers "hunting" for iPhone 16 phones and placing orders has increased dramatically. The number of customers wishing to place orders has not shown any signs of stopping. Not only with the high-end phone segment, FPT Shop also has a "golden season" of technology sales at the end of the year. We expect that purchasing power will increase further in the coming time. In the 4.0 industrial revolution, selling on online platforms is an inevitable direction that we will increase investment in. It is expected that the revenue growth rate of the online channel alone will increase by 30%/year in the coming years.
It can be seen that the Covid-19 pandemic has promoted the strong development of online retail, in which the electronics and electrical appliances sector is no exception. However, the online market share of retailers is being challenged by e-commerce platforms. Accordingly, in addition to selling through websites and social networking sites, retailers also need to pay more attention to promoting sales through e-commerce platforms. Because, compared to the leading e-commerce platforms in Vietnam, such as Shopee, Tiki, Lazada ..., the financial potential of electronics and technology retailers is much lower to build scale advantages, optimize costs and increase revenue. In addition, electronics and electrical appliance retail chains also need to pay more attention to improving the quality of after-sales service, extending the warranty period, and free maintenance to build trust for customers.
Nguyen Oanh
Source: https://baohanam.com.vn/kinh-te/thuong-mai-dich-vu/thi-truong-ban-le-dien-tu-dien-may-tren-da-phuc-hoi-139501.html
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