•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Digiworld, a technology distributor with brands including Apple, Xiaomi and Huawei, said it will expand its portfolio into automotive lubricants starting in the second quarter (Q2). The company plans to enter the automotive sector from mid-year, with motor oils as its first distributed product.
Doan Hong Viet, Chairman of Digiworld’s board, said Vietnam’s automotive sector is large but fragmented, creating room for growth because no distributor has yet achieved market dominance. He noted that many people associate the automotive industry primarily with vehicle distribution, while Digiworld is approaching the sector through related consumer products.
Mr. Viet said Digiworld already has partnerships with Xiaomi and Huawei, but their vehicle lines are positioned in the premium segment. He added that domestic consumers are not yet ready to pay for Chinese-made electric cars priced above 2 billion VND, and that charging infrastructure remains a key constraint for electric vehicle sales at this stage.
“This is not yet the time to enter the electric vehicle market. Meanwhile, everyday consumer products such as lubricants and tires are more suitable and attractive, so we decided to choose them,” Mr. Viet said.
According to the board chairman, the biggest challenge in entering the lubricant segment is finding qualified personnel. Initial costs are expected to focus mainly on building the marketing and sales team. Digiworld said it does not currently incur significant capital expenditure to stock inventory.
The company also indicated it is not overly concerned about operational risks as it expands into new segments, citing similarities in distribution processes and market development between electronics and lubricants.
Digiworld said expanding product lines is a regular strategy to offset smartphone market saturation. Established in 1997, the company initially distributed technology brands such as Apple, Xiaomi, Dell, Lenovo and Huawei. It later expanded into consumer appliances, consumer goods and healthcare products, and is now moving into lubricants.
Last year, Digiworld first reached the USD 1 billion revenue milestone (over 27,240 billion VND). Management said the USD 1 billion target had been cited in recent years but was delayed by inflation that reduced consumer demand.
For this year, the company expects to maintain its revenue growth trajectory, forecasting an 18% increase to 31,500 billion VND. It also expects after-tax profit to rise 20% year-on-year to 660 billion VND.
In the first quarter, Digiworld reported revenue of 8,500 billion VND and net profit of over 200 billion VND.
Management said laptops and tablets doubled year-on-year, accounting for 33% of revenue. The office equipment and consumer goods segments also rose 92% and 80%, respectively, compared with the first three months of last year.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
