According to the number from VinSmart, the latest smartphone from this company, Joy 3, has had a great start: in less than a day, there were 12,000 Joy 3 devices to consumers. On average, there are 900 people buying new Vsmart every minute, so hot that the largest retail chain in the country, The Gioi Di Dong, is also selling out.
It is not difficult to realize why Vsmart Joy 3 is so popular. At the list price of nearly 2.7 million, Joy 3 uses Qualcomm’s mid-range chip Snapdragon 632. Even the Chinese “dumping king” Xiaomi Redmi and Realme only bring low-end chips to the products. products with the same price bracket (Redmi 8A uses Snapdragon 439, Realme C2 uses Helio P22). Representatives from Vietnam also excel in the number of cameras or battery capacity compared to rivals in the same price range.
There is no reason to buy a Chinese smartphone when Vietnamese smartphones “dump” like this.
Joy 3 is not the first Vsmart model to sell out. Since last year, this title has been occupied by Live, after Vsmart suddenly halved the price of this smartphone. The first craze for Vietnamese smartphones has happened, and the reason is still very familiar: VinSmart has dumped the configuration with the 4GB Live version from only 3.5 million and the 6GB RAM version from only 3.8 million. Similar to the later Vsmart Joy 3, Vsmart Live uses the same chip as the mid-range smartphone from China.
It can be said that after many months of not achieving great success with the old products, Live is the bell that helps VinSmart awaken. Since the success of this phone series, the next Vsmart models are aimed at the entry-level price bracket, which is the market’s lowest price bracket. The Active 3 has a high configuration and the camera “stick out” also does not exceed 200 USD for 6GB model; Other products have started at less than 3 million.
Not to mention, the aforementioned price is the listed price. When it comes to retailers, Vsmart will definitely be reduced by several hundred thousand dong.
Joy 3 can help Vsmart capture up to 10% of the domestic market share last month
When the Vietnamese smartphone portfolio has reached the super low price as at present, Vietnamese consumers will reduce a lot of reasons to look to Chinese smartphones. So far, mentioning Chinese brands has always been about super cheap pricing, trading price (and sometimes quality) in exchange for market share. Until today, Vsmart has replaced the role of Xiaomi, Realme or Honor, even dumping configuration for Chinese smartphones themselves. If Joy 3 only had the same configuration as Redmi or Realme at the same level, Vietnamese people would not have flocked to buy.
Most importantly, when looking to the future, everyone can see that VinSmart is very ready for a long war. Financial statements of 2019 show that non-industrial segments (VinFast and VinSmart) have a gross profit of about 39.9 trillion VND while the gross profit of both VinGroup is 37.7 trillion VND. Thus, it can be seen that even in a year of strong investment to build the industrial segment, the new VinGroup is sacrificing about 6% of gross profit. VinSmart probably only accounts for a small portion of this, and after the plant’s capacity of 125 million units was completed earlier this year, operating costs of this phone brand will continue to decline.
In other words, Vsmart still has the full potential to race against Chinese smartphones for a long time. Recently, a relatively close partner of Vsmart, Viettel has announced that it will “cooperate with Vietnamese suppliers to distribute a series of 4G smartphones priced under VND 1.5 million per device” in order to promote growth in telecommunications segment in 2020.
No other “Vietnamese supplier” sells smartphones close to VND 1.5 million other than VinSmart – will Vsmart and Viettel together push Chinese smartphones out of Vietnam together? Let’s wait for the upcoming good drama.