Mobile giant sells washing machines and refrigerators in Vietnam

In the past 3 years, Xiaomi has been the fastest growing mobile company in Vietnam. Starting from a lower base than Vivo and Realme, the company has now stabilized in the top 3, at times just behind Samsung. The brand has sought to upgrade users with higher-priced Xiaomi T-series variants or flagship Ultra. However, the Redmi series remains the main growth driver.

While there is still work to be done in the mobile space, Xiaomi is looking to convert its existing customer base by expanding its ecosystem. It launched the Mijia brand in late September, which specializes in large-sized appliances. At the same time, the company opened an independent distribution chain to sell directly.

Before Xiaomi, many manufacturers "dreamed" of selling their own products, but the results were not as expected.

Xiaomi air conditioner and washing machine

According to Tri Thuc - Znews , Xiaomi has registered the Mijia brand in Vietnam. At the same time, the company is working with e-commerce platforms to remove products bearing this brand, mainly hand-carried goods. This is a preparation step for bringing home appliances for distribution.

At the end of September, the company officially launched 3 large-sized home appliances including washing machines, refrigerators and air conditioners. Thus, they officially joined the battle with new competitors such as LG, Toshiba, Haier, Casper. Before that, they sold small-sized products such as air fryers, air purifiers, robot vacuum cleaners, shavers, water flossers, etc.

Xiaomi Mijia brand washing machine and dryer, price 12.5 million VND.

In Vietnam, only Samsung has a product portfolio as diverse as Xiaomi currently. The Korean company has been present in the country for decades, building a distribution chain based on many product lines. Meanwhile, Xiaomi has only appeared in Vietnam for 10 years, spreading widely thanks to phones.

Although it is a new player, the company is not lacking in experience. Domestically, long-standing home appliance giants such as Midea, TCL, Haier, and Gree also have to "have a headache" with this competitor. With the Mijia software (the international version is Xiaomi Home), CEO Lei Jun's company continuously breaks sales records, taking market share in narrow playing fields such as air conditioners in China.

The advantage of the new brand's products lies in their ability to connect to the Xiaomi Home ecosystem, which is gradually becoming popular in Vietnam. At the same time, they all possess trendy functions, keeping up with the trend. These include air conditioners with a gentle wind function similar to Samsung WindFree, large-capacity refrigerators with soft freezer compartments, and washing machines with direct drive motors.

However, in the home appliance industry, which requires an offline support network and direct sales, Xiaomi Mijia is still at a disadvantage compared to the long-time players. At first, the number of models they provide is still limited, with few choices. The company said the catalog will be supplemented next year.

Open a shop and sell products yourself

In addition to selling Mijia products, Xiaomi has also opened specialized Mi Stores to sell its products. The first location is at Crescent Mall, Tan My Ward, Ho Chi Minh City. The company said it operates itself and will open more locations in the near future.

In Vietnam, the brand-operated store model is not new. Brands used to have many points of sale but could not maintain them for long. Samsung combined with Hnam Mobile and Mai Nguyen to open Experience Stores in shopping malls. However, this model no longer exists. After that, they combined with many other retailers such as Minh Tuan Mobile and Hesman to create a mono-store chain, selling only the brand's phones. But this model gradually showed many shortcomings.

Similarly, Oppo in 2021 opened many experience and sales points in Ho Chi Minh City and Hanoi . After a short time, these shops were transferred to the Inno retail chain, distributing additional home appliances, cameras, and iPhones.

Samsung's exclusive retail store that once existed in Vietnam. Photo: Samsung.

Currently, in addition to mono stores specializing in Apple products such as TopZone (The Gioi Di Dong) or F.Studio (FPT Shop), Sony is also a company that operates its own stores. The Japanese company is also a brand with many product lines, which can optimize revenue better than just phones.

According to Mr. DH, a senior manager of a large mobile chain in Ho Chi Minh City, high operating costs while selling only one phone brand quickly make such establishments lose money and find it difficult to survive. Meanwhile, Vietnamese customers still tend to buy at multi-brand supermarkets such as The Gioi Di Dong and FPT Shop instead of exclusive stores.

In the case of Xiaomi, the company has more reasons than Samsung and Oppo to open independent stores. They have just opened a new segment in Vietnam, and the distribution network needs time to expand. Therefore, these stores have the responsibility of displaying and providing experiences for customers in need.

Xiaomi's official store in Ho Chi Minh City.

The manufacturer has an advantage in the product category. A small, self-operated store from this company sells hundreds of models. In addition to phones, tablets, and accessories, the company also provides air conditioners, refrigerators, washing machines, TVs, and small household appliances such as fryers, toothbrushes, dryers, etc. This helps the point of sale have a good revenue, ensuring sustained profits.

In China, such offline outlets have helped Xiaomi increase its market share, rising in the race with Huawei and Vivo domestically. This is an important pillar in the company's ambition to expand beyond mobile with Home (smart home) and Car (electric car).

Source: https://znews.vn/ong-lon-di-dong-ban-may-giat-tu-lanh-o-viet-nam-post1590472.html