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Vsmart is a Smartphone brand of Vingroup, it can be said that it is a very young brand in the phone market, in terms of R&D team, or in terms of product quality.
However, after only a few years of operation, they have reached the top 3 best selling phones in Vietnam. So what is the secret here? And what are the associated opportunities for Vsmart? Let me find out more carefully in this article!
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#first. Vsmart and Vietnamese market
Starting to enter the smartphone market at the end of 2018, Vsmart's growth is really respectable.
According to the original idea, they would attack every price segment with their own machines. However, with the opening with four devices aimed at the low and mid-range segment, and until now, all their products are only in these two segments.
They made a market surge first with the Vsmart Active 1, then the Vsmart Live and the nearest Vsmart Joy 3, the mid-range devices.
Vsmart products are of very good quality compared to the price, the long-term warranty, and especially, those machines are manufactured in Vietnam, for Vietnamese users.
Not long ago, Vsmart was ranked in the top 6 in terms of smartphone market share in Vietnam (with 5% market share), but since February 2020, Vsmart's market share has reached the top 3, at the peak they reached 14% market share. share, almost 2 times the market share of Apple, Xiaomi or ViVo.
Naturally, the top two OEM smartphones are still Samsung and OPPO, with market share lagging the rest. So what is Vsmart's secret? How do they dominate the market in such a short time?
#2. The secret to reaching the Top 3 market share of Smartphones in Vietnam?
First, look at the segment they are targeting: It's the low-end and mid-range phone segment!
The price of Vsmart devices they offer is from less than 1 million to about 7 million, a price that previously only Chinese OEMs occupied and made.
ASUS, Vivo, Xiaomi, OPPO, or even Huawei before, always fought fiercely in this segment. Therefore, this is a very difficult price segment to compete with. But Vsmart still choose. So what is the main reason?
Yes ! Vsmart uses the guise of Chinese OEMs, and makes it even stronger. The level of devaluation of Vsmart Joy 3, Vsmart Live or Vsmart Active 3 can make any OEM looking at it feel scared.
And with the Vietnamese machine label for Vietnamese people, along with a long-term after-sales policy, they will not be seen with the eyes of “cheap as yours” as previous cheap Chinese machines => Easy to understand when their market share increased so fast!
Next is the selective production: Vsmart targets low-cost and mid-range phones, a segment where buyers do not care much about the brand, maybe the strategy here is to earn market share before making trademark.
They focus on production first, and for R&D later: Vsmart hires ODM to minimize equipment costs.
// ODM (Original Design Manufacturing) is a concept that refers to companies or workshops that undertake the design and construction of custom products. This is also the reason that Vsmart was suspected of being like a Chinese phone.
All of the above shows that Vsmart is attacking the smartphone market in a very methodical and clear direction. Take market share first, then use gray matter to gain brand, attack from low to high. What they have achieved so far is totally worth it.
# 3. Opportunity for Vsmart
Vsmart has been on a strong development already, so future opportunities for Vsmart will be:
Moving to a higher segment: As Vsmart said, they are currently gaining market share by investing in manufacturing, ODM and not focusing on R&D development.
In the future, when the market share is good, they can invest back into R&D to create Vietnamese products such as BPhone, and gradually move to high-end, high-end or even super premium.
Developing internationally: Vsmart's main market at the present time is Vietnam, and up to now, this is the only market they are focusing strongly on.
If they can conquer the domestic market soon, they can expand to neighboring markets or international markets. This is really a very good stepping stone for Vsmart!
# 4. Conclude
Vingroup is not a technology corporation, but what they have been doing with the Vsmart brand is really respectable.
Do you think Vsmart will one day have a foothold in the international smartphone market? Comment on your view below the article!
CTV: Nam Hoang – Blogchiasekienthuc.com
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