In a crisis, try to be the last to stand. Who stays last in the game is successful.
Mr. Nguyen Duc Tai, Chairman of Mobile World Investment Joint Stock Company, said: “The last man standing” is the last person in the game, especially in the crisis, who is successful.
Mr. Nguyen Duc Tai shared how The Gioi Di Dong has managed in the first quarter and second quarter. The first is to properly assess the situation, otherwise there will be false actions. The second is to provide solutions to reduce the impact of the pandemic.
In which, counter-argument belongs to 3 groups. The first is fire fighting; The second is to offer sales policies of the medium term, short term 1-2 years; Finally, the counterparts of the 2-3 year system.
However, the decline in income is not short-term, it will simmer. According to the Chairman of Mobile World Investment Joint Stock Company, in the crisis, Vietnam feels the crisis coming more slowly than other countries. That is the “delay” effect. In that context, those businesses in 2020 that can keep 80% of profits are good, keep excellent 90% and keep 100% as last year must say is admired.
Obviously, consumers are “tightening their belts” to cut spending. Therefore, the industries of business labor, telephones, and electronics will be affected upstream, the industry temporarily benefiting is the retail food. Mr. Nguyen Duc Tai affirmed: “In the past, people bought a package of noodles with 10,000, they will find ways to buy 8,000 remaining”. These are the correct assessments of the situation.
Therefore, Mobile World’s first strategy is to protect the cash flow. If you had money in the past, you had to use the money to invest and do something for it all, but now keeping money in your pocket is inefficient but it is the right thing to do.
The second is to not stimulate demand because many people think that in difficulty, they must make efforts to sell more, but The Gioi Di Dong dare to go against it. It is a strategy throughout. As a result, Mobile World sales have not increased this year, but profits have increased.
In terms of personnel, Mr. Tai said that not cutting staff but looking to share difficulties with each other to get through this stage together and maintain business is the best policy. During an epidemic, it is important to have a flexible direction to maintain business in the best way.
Accordingly, if the revenue is not commensurate with the rental rate of Mobile World, it will be cut off. Because, the Company has policies to mobilize employees. According to Mr. Tai, people are important. Therefore, the mobilization, although reducing employee’s income, will help the company and employees to overcome difficulties in the long term.
Mr. Tai also shared about the direction of Mobile World next year which is growth and efficiency. These two things must go hand in hand. In the normal period, the focus on growth is very much, while in this period trying to increase efficiency, what is not effective will not do.
In short, what do Mobile Worlds do in difficult situations? That is the ability to customize. Manipulation, agility in current actions and willingness to change are all things that can help minimize external impacts on the business.
Mr. Nguyen Duc Tai affirmed: “This is simply a very quick adaptation to changes. Because flexibility is imperative in the retail industry, which has helped Mobile World manage quite quickly during the COVID-19 crisis”.
Translated by Hoai Thi
Source from: Brands Vietnam