Vietnam Business Channel

Mobile World closes 17 stores in Ho Chi Minh City

 

The Mobile World Group (MWG) has decided to close all of its 17 phone stores in HCM City a year after launching them. The store’s market focus was on selling low-cost mobile phones for less than $340 USD and targeted people living near the stores.

MWG quietly closed all of its stores at the end of June, and also closed it’s website, dienthoaisieure.com.

Mobile phones sold at the MWG stores were not guaranteed, or applicable for exchange, and customers who had problems with their phones were forced to take them to repair centers themselves.

Nguyen Duc Tai, MWG’s chairman said the chain’s closure was part of the MWG’s plans to change to a new business model.

MWG is one of the biggest mobile phone and accessory retailers in Vietnam. The company had said earlier in the year that its sales and consolidated revenue increase 11% this year, compared to same period last year.

Company insiders have said that sales increases were not contributing to additional profit. The Covid-19 pandemic and lock-down saw declines in revenue and the company decided that it was the perfect time to close its physical stores.

 

 

 

Read 80