VIỆT THƯƠNG MUSIC REPORT AND STRATEGIES

VIỆT THƯƠNG MUSIC REPORT AND STRATEGIES Overview Agenda - Vietnam Music Instrument (MI) Market - About Việt Thương Music - Development Strategy Strategies - Product Strategy - Marketing - Education - Financing Overview Let’s start briefly with information about VN MI Market Overview About Vietnam I OVERVIEW ▪ ▪ ▪ ▪ Vietnam is one of the most beautiful countries located in the South East Asia Total Area: 331.212 square kilometers Population: 92 million people Politics of VN is defined by single-party socialist framework III GEOGRAPHY (Biggest Cities) ▪ ▪ ▪ Ho Chi Minh: economic central and biggest city in Vietnam Hanoi: Vietnam Capital, nd largest city in economy (after HCMC) Danang: biggest city in middle of Vietnam Overview About Vietnam III GDP ▪ ▪ GDP 2016 is about 241.2 billion USD, per capita income is about US$ 2525 GDP Growth is 7.1% (compare to 2017) IV ECONOMIC ▪ ▪ Agriculture: play a key role But its contribution has decreased by years Industry – Manufacturing: becoming a new manufacturing hub in Asia For example, Samsung Manufacturing ▪ Services and tourism: fastest growth V DRAWBACKS High inflation Unemployment Majority of population is low income level Vietnam musical instruments history is flexible due to the war, politic and economy Overview 1954-1975: Vietnam MI ▪ The North of Viet Nam was controlled by the communists The state companies imported musical instruments from the socialist countries for the government music (Musical Instrument) Market schools only The MI market was the local family factories producing the traditional instrument, acoustic guitar ▪ The South of Viet Nam was not controlled by the communists But because the war situation, the business was not developed There are some pop & jazz bands and a few of nightclubs, bars… The MI were imported by some small family companies only MI business was very small 1954-1975 1975-1990 After 1990 Vietnam musical instruments history is flexible due to the war, politic and economy Overview 1975-1990: controlled by the communists Vietnam closed the door The government controlled all of the market Similar to 1954 – 1975, MI market in Viet Nam was very small Vietnam MI Market 1954-1975 1975-1990 After 1990 Vietnam musical instruments history is flexible due to the war, politic and economy Overview After 1990: new period called “renovation” The government opened the door to make the relationship with all countries and permit to establish the private companies Yamaha Vietnam MI Market Company is the first MI brand was introduced in to this market The portable electronic keyboards of Yamaha were quickly familiar with this market The nightclubs, bars… appeared in important cities, specially Ho Chi Minh city & Hanoi The demand of playing music was also bigger The private companies started to import the well-known brands of musical instrument to sell in Viet Nam Until now, major of music instrument market that there are many players are keyboardist and pianist 1954-1975 1975-1990 After 1990 Keyboard & Piano Still the most popular instrument in Vietnam market Overview Let’s start with briefly information about us 10 Viet Thuong’s Business Sales Channels Overview There are four main business sales channels: • Retail: This is the company’s retail stores (or showrooms) Currently Viet Thuong has 26 Business Sales retail stores Channels • Wholesale: As of 2018, Viet Thuong has about 200 dealers, 76 of them are authorized dealers They are wholesalers for the company • Project: Project sales channel is to serve business clients such as schools or organizations that have the need to equip musical instruments or pro audio and studio • Music Schools Viet Thuong also offers music classes at their retail stores Currently there are 26 music schools at their 26 stores 15 Organizational Structure Overview Mr Nguyễn Thái President & CEO About Viet Thuong Music Financial Dept Mr Phan Hùng Mr Phạm Kim Deputy CEO Education General Manager Product Dept Marketing Dept Sale Dept Supply Principal Cirriculum Managers Chain Dept 16 Market Share Overview Yamaha VN 2nd & Other PA About Viet Thuong Music Others Nhac Viet Ltd 5% Viet Thuong Music 28% 35% 10% 22% 17 DevelopmentStrate gy How we lookforward to the future 18 Overview Vision & Mission VISION MISSION CORE VALUES Becoming a leader in musical ▪ Bringing up to date, • • • instrument in Vietnam in next interesting and helpful 10 years music program and Listening and Serving Prestige and Quality Simple and Efficiency instruments ▪ Nourishing and developing music culture to the youth 19 Market Share Goal 2016 2021 2026 100% 100% 100% 0.22 0.78 0.22 20 Overview 100 RETAIL STORES Years Strategy 30 DEALERS EVERY YEARS BECOME THE LEADER IN VIETNAM 21 Years Strategy Future development for children is also important 22 “ We believe that everyone can play musical instrument So, we always create opportunities for them to easily approach the instruments We want to share our passion with them, and to help them to exploit the advantages of music to apply in life 23 20 Years Development Overview 1996: Established Suoi Nhac Music School, then their branches 2000 - Now: Co-operating with Government Education Sector in all cities to train music teacher how to use Development instrument in music lessons Strategy 2003: Introducing digital recording technology in Viet Nam Music Education 2012: Restructuring Viet Thuong Music Education System to improve learning with slogan: INTERNATIONAL 2013: the quality of teaching & STANDARD – VIETNAMESE SOUL Started up Viet Thuong Music School Representative of London College of Music – University of West London 2014: Representative of Kawai Music School, then Music for Little 2017: Start up project of 100 MUSIC SCHOOL - STORES Mozarts (Alfred) 24 Organization Overview Development Strategy Music Education 25 Overview VIETNAMESE TEXT BOOKS English to Vietnamese edition, for convenience in teaching & learning Development Strategy Music Education ELECTRONIC SCHOOL OF MUSIC In construction, for Music School in Primary & Secondary School Project 100 MUSIC SCHOOL IN STORES For Mid – High Income Level (2017-2022) 26 Overview Development Strategy Music Education Importance Of Music Education System � To bring more benefits to the To build our Brand To expand the market share customers 27 Overview Co-operation With Roland Of Music Education To expand Roland business, We should have a co-operation in: Development Strategy Music Education Equipped Instruments In Viet Thuong Roland Lessons Music Schools Roland instruments should be equipped in In Viet Thuong Education System project of 100 music school – stores 28 Thank you very much for your time NOW THIS TIME FOR DISCUSSION 29 ... in Vietnam in next interesting and helpful 10 years music program and Listening and Serving Prestige and Quality Simple and Efficiency instruments ▪ Nourishing and developing music culture to... bring more benefits to the To build our Brand To expand the market share customers 27 Overview Co-operation With Roland Of Music Education To expand Roland business, We should have a co-operation... Tín” 1997: Renamed: Việt Thương , types of business: - Product supply musical instrument (B2B) About - Service: music education Viet Thuong Music 2007: Reconstruction: Việt Thương Group B2B: Viet