mobile world.jpg
Mobile World had to restructure to streamline its apparatus to help the company adapt quickly and be more resilient to the volatile market.

The Gioi Di Dong said that by the end of 2023, the comprehensive restructuring process of The Gioi Di Dong will continue to take place in all aspects of the company from stores, purchasing, warehouses to support departments.

This process will certainly cause many changes, but the company is forced to do so in order to escape the unfavorable market situation in 2023, aiming for 2024 with revenue growth, market share and strong profit improvement.

Accordingly, Mobile World focuses on maintaining core activities, chains, stores, and product lines that create value for the company now or in the near future.

In addition to reviewing and eliminating waste, the company will stop unnecessary activities and postpone investment in medium- and long-term R&D projects during this period.

The Gioi Di Dong also reallocates all resources (leadership, stores, employees, finance, etc.) to ensure business focus and efficiency, and resolves resource surplus issues arising from restructuring in a reasonable manner.

In particular, the company is also ready to reinvent and change its business methods to meet the actual needs of customers in the new business context.

The Bach Hoa Xanh, An Khang and AVAKids chains have completed the review of store closures in November. Thus, the number of stores at the end of November of these chains will remain stable from December 2023.

With the The Gioi Di Dong, Dien May Xanh and Topzone chains, the company closed nearly 150 stores in October and November (compared to the end of the third quarter) and will continue to close some stores that are underperforming in terms of revenue and profit in December to stabilize operations, preparing for the peak sales season during the 2024 Lunar New Year.

Regarding the costs related to store closures in Q4, they will be fully reflected in the results of 2023, so these costs will not impact 2024.

Like many companies today, facing declining demand and purchasing power, Mobile World has had to restructure to streamline its organization to help the company adapt quickly and be more resilient to the volatile market.

The November 2023 report recorded Mobile World's total revenue of VND9.9 trillion, equivalent to November 2022. In the 11 months, the Mobile World and Dien May Xanh chains had a total revenue of VND76.7 trillion, down 21% over the same period.

In November alone, total revenue of Mobile World and Dien May Xanh reached more than 6.5 trillion VND, down from October mainly due to the cooling demand for iPhones after the peak of new product launches.

Despite the poor market performance, Mobile World and Dien May Xanh still recorded positive growth in sales and revenue for iPhones in the first 11 months of the year compared to the same period last year thanks to the strong increase in Apple's market share since the beginning of the year.

Regarding the Bach Hoa Xanh chain, cumulative revenue in the first 11 months of the year reached VND28.4 trillion, up 16% over the same period. Bach Hoa Xanh revenue in November alone was more than VND3 trillion, up 35% over the same period. Average store revenue reached VND1.75 billion.