Malaysian home improvement retailer Mr. DIY is looking for further expansion targets and is setting its sights on Vietnam. The country does not border Malaysia, but is next to Cambodia, where the retailer is already present.
Mr. DIY's planned foray into Vietnam comes after the country, along with Laos and Myanmar, had previously been passed over by the Malaysian retailer in favour of markets outside Southeast Asia. After entering Brunei, Indonesia, the Philippines, Thailand, Singapore and Cambodia, the retailer opted to expand outside the region into India. It then ventured into Europe via Turkey and Spain. Plans for Mr. DIY to open in Greece and eastern European countries were even divulged before the Vietnam venture became public knowledge.
Known for its motto of "Always Low Prices", Mr. DIY was established in Malaysia in 2005. As of the end of 2022, it had 2 500 outlets operating in ten countries. The planned entry into Vietnam indicates that the Asian retailer, which has dominated the continent in terms of store count, may be looking at untapped markets in its home region once again.
Analysts earlier noted that Mr. DIY would be better off focusing its efforts on Asia, "where it has a natural feel for customer preferences and product mix". Angus Mackintosh, CrossAsean Research founder and analyst, has said that "it is not always easy" for Asian companies to go global, and that when a funding crunch happens, they usually pull back from overseas markets to "focus on the core".
Vietnam's home improvement industry is estimated by research platform Statista to hit USD 18.29 bn this year, with offline sales making up an overwhelming 92.2 per cent of the total take. Hardware and building materials are the bestsellers, contributing USD 12.84 bn of total sales, Statista figures show. The lawn and gardening segment trails way behind in second with a contribution of USD 1.51 bn. Statista further estimates that the industry will grow by 3.18 per cent between now and 2028.
According to Mordor Intelligence, Vietnam's home improvement market is highly fragmented with no dominant players.
Jennee Grace Rubrico