Nguyen Kim Trading Joint Stock Co. has unveiled its business strategy to operate more than 50 electronics outlets across Vietnam in 2019 after the local company agreed to sell a 49% stake to Power Buy under Thailand’s Central Group.
Currently, 21 Nguyen Kim electronics stores in the country mainly sell home appliances. The company targets to obtain 30-40% local appliances market share this year and will diversify products at its stores.
Nguyen Kim and Central Group last night informed suppliers, partners and shareholders of Nguyen Kim of their strategic cooperation deal with effect from January including the stake acquisition.
The two sides aim for a leading position in the home appliances and electronics retail market not only in Vietnam but also in Southeast Asia.
Philippe Broianigo, new chief executive officer of Nguyen Kim, said in a statement that cooperation between the local enterprise and the Thai company would bring success to both sides and enable Nguyen Kim to better compete with foreign counterparts in the context of Vietnam’s further integration into the regional and global economies.
Nguyen Kim posted sales of more than VND8.4 trillion and profit of VND352 billion in its fiscal year 2014. The company targets an increase of 50% in online sales and improvements in customer and after-sale services in its new business strategy.
Nguyen Van Kim still serves as chairman of Nguyen Kim Trading Joint Stock Co. since a source from Central Group told the Daily last month that a representative of the Thai group would hold the post of CEO at Nguyen Kim while the local company will retain the post of chairman after the acquisition.
With its investment in Nguyen Kim, Central Group is expanding its operations to more sectors in Vietnam after years of investing in commercial centers. The group now operates a Robins department store in Hanoi and another in HCMC.
SuperSports, Crocs and New Balance stores have been operational in Vietnam via Central Group’s subsidiaries and franchised partners. The Thai retailer has also brought Britain’s fashion brand Marks & Spencer to a store at a shopping mall on Dong Khoi Street in HCMC’s District 1, and plans to open 20 M&S shops nationwide.