Digiworld to strengthen FMCG involvement after year of success

Success in the FMCG sector verified Digiworld's strategy

Digiworld (DGW) has just approved the target of VND4.7 trillion ($207 million) in net revenue this year, an increase of 23 per cent compared to last year. Distribution of laptops, mobile phones, and office devices is expected to make up 96 per cent of this.

However, chairman of Digiworld Doan Hong Viet affirmed that this figure will change drastically in the middle and long term due to the emergency of the FMCG sector.

“Digiworld is the exclusive distributor of the washing liquid, fabric softener, and toothpaste of Japan's Lion Corporation. We only started in the middle of 2017 but the growth is astounding,” Viet said.

This company confirmed that its FMCG business segment will bring VND200 billion ($8.8 million) in revenue, four times higher than last, year due to good market development, including research and development, expansion of distribution channels, marketing campaigns.

Digiworld also broke into the pharmaceutical sector last year, and confirmed the great market potential, because demand for healthcare among Vietnamese consumer is on the increase. The sector is expected to grow by 100 per cent in revenue, hitting VND1 trillion ($44 million) within the next two years.

The chairman of Digiworld identified that pharmaceutical distribution is very different from the firm’s traditional sector, electronic devices. Digiworld will strengthen connectivity with pharmacies to create and expand its distribution system as well as launch new healthcare products.

In order to implement this plan, Digiworld’s management board planned to raise charter capital by issuing six million individual shares.

In the first three months of this year, the company recorded VND1.264 trillion ($55.7 million) in net revenue, increasing 66 per cent compared to the same period last year. Gross profit doubled to nearly VND20 billion ($0.88 million), making up 19 per cent of the annual plan.