Digital shift: A security guard uses his smartphone in Hanoi. Retailers are investing in eCommerce and new tech to stay ahead in an increasingly competitive market. — AFP
HANOI: As profit shrinks in traditional smartphone and laptop sales, technology (tech) retailers were compelled to expand their offerings, according to tech retail insiders.
The tech retail market was shaken by an intense price war, which saw prices drop to unprecedented lows in 2023.
Leading chains like FPT Shop, Di Dong Viet and The Gioi Di Dong engaged in aggressive competition, launching deep discounts and 0% instalment plans to attract customers.
However, instead of driving growth, this relentless battle only squeezed profit margins, forcing many smaller retailers to shut down.
As tech retailers acknowledged that no one truly benefitted from the price war, the entire sector had to rethink its strategy and the solution became diversification.
According to Statista, the country’s smart home market is expected to reach over US$506mil by 2028, growing at an annual rate of 11.41%.
This shift is fuelled by changing consumer behaviour, as people no longer simply want a smartphone – they want a fully connected technology ecosystem.
Instead of just buying a phone, consumers are looking for products that integrate seamlessly, from smartwatches and laptops to air purifiers, induction cooktops, robotic vacuum cleaners and refrigerators, all controlled via mobile apps.
This transformation has driven major retailers to diversify their business models.
FPT Shop, which had previously focused only on smartphones and laptops, officially entered the home electronics market in August 2024, opening dozens of stores nationwide.
Meanwhile, Di Dong Viet adopted a more flexible approach by expanding its product range to include not only smartphones and laptops but also tech accessories, home appliances and smart home devices such as water purifiers and air fryers.
Furthermore, a representative from Di Dong Viet explained that customers today are looking for more than just a phone – they want products that enhance their quality of life.
Expanding the product range, the representative added, not only optimises revenue but also reduces the risks of depending too heavily on a single category.
Beyond diversification, retailers are also investing in eCommerce and new technologies to stay ahead in an increasingly competitive market.
Livestream selling has become a powerful tool to engage customers in real time, while artificial intelligence-powered customer support is enhancing the shopping experience with more personalised interactions.
Virtual reality tech is also gaining traction, allowing customers to explore products remotely.
At the same time, advancements in 5G and Internet of Things are accelerating demand for smart-connected devices, creating new revenue streams for businesses willing to innovate.
In a market where relying solely on smartphone sales is no longer sustainable, the future of Vietnam’s tech retail industry depends on continuous evolution, said industry experts.
The companies that will thrive are those that successfully expand into smart and home appliances, strengthen their eCommerce platforms and offer high-quality after-sales services. — Viet Nam News/ANN
