According to Grand View Research, Vietnam’s mother and the baby market is a potential market with the highest percentage of households with children in Southeast Asia. In which, 12% of households have children under 1-year-old and 20% of households have children aged 1-2 years.
Existing famous retail chains of mother and baby products are Con Cung, Bibomart, Kids Plaza, Children’s Shop, Tuti Care… with essential products for women and children such as clothes and toys, utensils, food, milk, diapers…
Tapping into a very large market but no retail chain has “bossed”, an enterprise named Dairy World Investment JSC has built a dairy retail chain named Dairy World and is emerging at a fast pace. very impressive growth. Born later, the sales of this milk chain in 2020 surpassed even Bibo Mart, Kids Plaza.
The dairy world “takes over” the suburbs
Established in 2015, Dairy World has been present in 28 provinces and cities with more than 650 stores covered from North to South with 11 associated logistics systems.
Looking at the location map of this chain, it can be seen that Dairy World chooses the main market as the suburbs, where there is little competition from modern retail chains, supermarkets, or even their milk selling points. Large businesses. For example, in Hanoi, this chain appeared a lot in Chuong My, Hoai Duc, Gia Lam, My Duc, Thanh Oai… In Ho Chi Minh City, Dairy World opened many stores in Binh Chanh, Binh Tan, Cu Chi, Go Vap, Hoc Mon…
According to the chain’s slogan: “Any milk is available”, Dairy World offers a wide range of dairy products from brands such as Fasska, Ordesa, Rontis, Abbott, Nestle, Mead Johnson, Vinamilk, Nutifood, etc. covering the segments from pregnant milk, milk for the elderly, infant formula, fresh milk, liquid milk, condensed milk, soy milk, nutritional food…
In addition, this chain also sells auxiliary products such as diapers, milk bottles, and accessories,…
Sales surpass Bibo Mart, Kids Plaza but profit is very low
In 2020, the net revenue of Dairy World reached VND 2,560 billion, an increase of 20% compared to 2019. Only established in August 2015, the revenue of Dairy World has grown rapidly, surpassing Bibo Mart, Kids Plaza is second only to Con Cung in 2020.
Specifically, in 2016, the revenue of Dairy World was VND 114 billion, in 2017 it increased to VND 551 billion (up 383 percent), in 2018, the revenue exceeded 1,000 billion VND to reach VND 1,284 billion (up 133 percent). and in 2019, revenue continued to exceed VND 2,000 billion, reaching VND 2,139 billion (up 67%). With revenue of VND 2,560 billion in 2020, after 4 years from 2016 – 2020, Dairy World’s revenue increased more than 21 times.
Along with the constantly increasing revenue, the gross profit of Dairy World annually also increases from 8 billion VND in 2016 to 302 billion VND in 2020, an increase of 38 times after 4 years. In 2020, the gross profit margin of the dairy world reached 11.8%, down 0.4% compared to 2019.
Although the number of stores and revenue is still increasing, the profit after tax of Dairy World has been decreasing sharply since 2019. After a loss of 2.7 billion VND in 2017, in 2018, Dairy World reached a record of profit with 7.6 billion dong profit. However, profit after tax in 2019 was only 1.84 billion VND, down 76%. In 2020, the profit after tax of Dairy World will continue to decrease to VND 370 million.
The ratio of profit after tax to net sales of Dairy World is very low, only 0.014% in 2020, compared to some other retail chains of mother and baby products in the same year, much lower such as Con Cung is 1 0.81%, Kids Plaza 1.21%, Bibomart 0.39%.
Source: CafeF
Source: Vietnam Insider