Tech retail faces survival challenge

Competition in the technology retail market is increasingly fierce as demand saturates and online sales channels take over.

Announcing the suspension of operations from October 1, HnamMobile, a retail system for genuine technology products and a repair and warranty center in Ho Chi Minh City, said: "This is an extremely difficult decision, but in the context of an unfavorable market, we are forced to end this journey."

Entering a new cycle

Not only HnamMobile is facing difficulties, since the COVID-19 pandemic, purchasing power at most technology sales systems has decreased as consumers tend to save money and use devices longer. The need to replace devices is no longer as great as before, which is the main reason why many retail stores have to shrink or leave the market.

According to the reporter's records, on the streets specializing in phone business in Ho Chi Minh City such as Vo Van Ngan, Quang Trung, Hoang Van Thu, Tran Quang Khai..., the number of stores has decreased significantly. Many stores are still open but due to weak purchasing power, they have to expand to other business lines to maintain revenue.

Mr. Huynh Van Dat used to have a phone retail store in Hiep Binh Ward, Ho Chi Minh City. Recently, he had to stop doing business because the store was too sluggish due to competitive pressure from large chains as well as the boom of online sales channels. "Phones are valuable while just 1-2 months of inventory can lose a few million VND each. If the capital is weak, the longer the store is maintained, the more losses will occur. Now I have switched to repairing equipment and renting out premises to stabilize my income," said Mr. Dat.

Large-scale technology retail chains and enterprises also face challenges when the market is saturated. From January 1, 2023 to June 30, 2024, The Gioi Di Dong's system closed up to 335 inefficient stores to optimize the system, including 144 The Gioi Di Dong stores and 191 Dien May Xanh stores. Meanwhile,FPT Retail had to expand its business to electronics and mobile SIMs to diversify its revenue sources.

Some other dealers choose to change their model, cooperating directly with big brands like Apple and Samsung to operate "mono stores" (specialized stores of a brand) to best serve customers.

At the investor meeting, Mr. Nguyen Duc Tai, Chairman of the Board of Directors of Mobile World Investment Joint Stock Company, said that in the period of 2022-2023, the company has strongly restructured, cutting tens of thousands of employees and the number of stores to focus on quality. After this period, the company aims to enter a new growth cycle based on quality. As of the end of June 2025, Mobile World has 61,779 employees, a decrease of more than 18,450 people compared to the peak in the third quarter of 2022.

These developments show that the technology retail market is no longer a “playground” for all businesses. Small, capital-poor, and inflexible brands will find it very difficult to maintain operations; while large chains must also constantly restructure and innovate to adapt.

HnamMobile, a nearly 20-year-old mobile phone retail chain in Ho Chi Minh City, has just announced its closure from October 1. Photo: LE TINH

Continue to purify

According to Mr. Phuong Quang Tung, sales director of a technology retail chain in Ho Chi Minh City, competitive pressure in the smartphone market has been increasing since Apple expanded its official distribution network and operated an online Apple Store with attractive pricing and installment policies. Large chains such as FPT Shop, CellphoneS, Viettel Store, ShopDunk, The Gioi Di Dong... constantly upgrade after-sales services, implement programs to exchange old devices for new ones... making it difficult for small stores to compete. Meanwhile, the profit margin of iPhone products is not high.

Notably, this year, Vietnam became the market to launch iPhones earlier than the top 1 markets in the world, causing sales to be almost entirely concentrated in large chains. Small stores do not have genuine sources of goods and must import through intermediaries, so prices are higher and harder to sell, while the market for hand-carried goods is also gradually running out of "space to live".

Mr. Huynh Van Dat believes that the image of people lining up to buy iPhones on the opening day only reflects the tip of the iceberg of the market. In fact, sellers are subject to strict control policies from the company, competition from large and small retail chains, and constant changes in sales methods. "HnamMobile is not an authorized dealer of Apple, so it does not have a competitive advantage in terms of goods, prices, and reputation compared to its competitors. Small brands also find it difficult to implement attractive promotions and after-sales programs," Mr. Dat analyzed.

According to Mr. Dat, authorized dealers with a 7-30 day return policy, quick problem handling to ensure customers have a good experience along with strong communication activities... are factors that create a big gap with small stores.

A technology KOL commented that the technology retail market has completely changed in just the past few years. The market no longer has room for small-scale day-to-day business models; businesses that want to survive must have a clear strategy and long-term orientation. "The fact that another technology retail system has left the market is a reminder for other retail chains to seriously develop a business strategy towards improving service quality" - this KOL said.

According to analysts, the market will continue to purify to retain large systems with financial potential and authorized by the company in the context of technology purchasing trends shifting strongly to online channels.

Best selling online channel

According to a report by Metric.vn, in the first 6 months of 2025, the phone and tablet industry led sales on 4 major e-commerce platforms including Shopee, Lazada, Tiki and TikTok Shop. Total sales of 6,537 billion VND affirmed the strong appeal of technology products. Of which, Apple product sales led with 4,003 billion VND, followed by Samsung with 988 billion VND.

Products priced from 5 million VND or more account for 27% of total sales, showing that consumers are willing to spend a lot of money on purchasing technology devices online.

Source: https://nld.com.vn/ban-le-cong-nghe-doi-mat-thach-thuc-sinh-ton-196250930214236091.htm