Digiworld expands to functional food businessFriday, April 14,2017
Digiworld Corporation will distribute functional food from June beside mobile phones, computers and office equipment, said Doan Hong Viet, CEO and chairman of Digiworld.
If the distribution of this new product succeeds, Digiworld will develop the market and trade in more new items, Viet added.
Digiworld intends to invest about VND40 billion (US$1.76 million) in the distribution expansion using the available management resources, operating software and warehouses of the distribution system of IT products and mobile phones. This healthcare product will also be distributed through pharmacies.
After conducting a market and product research, Digiworld recognizes the increasing demand for healthcare products, Viet said. According to statistics of the World Bank and market research companies Frost & Sullivan in the U.S. and BMI in the UK, the total cost of healthcare in Vietnam is US$13 billion in 2015 and is expected to increase to US$24 billion by 2020, up 13.4% annually.
Digiworld expects the new product will contribute VND80 billion to the company’s total revenue this year, and hopes it can have profit from the new business by 2018.
The corporation also expects its total revenue to reach about VND3,900 billion with key products being mobile phones, computers and digital equipment, up 2% over last year, and earn after-tax profit of about VND75 billion, up 12%.