| Seagate Claims 50 Percent Market Share in Vietnam
June 1, 1998 (HO CHI MINH CITY, Vietnam) -- Seagate Technology
Inc. of the United States said it has a 50 percent share of
Vietnam's market for hard-disk drives for personal computers.
|This announcement was made at a press conference held in Ho Chi
Minh City on the occasion of Seagate's introduction of the newest
addition to its Medalist line of 3.5-in. hard drives for desktop
Teh Ban Seng, sales and marketing director of Seagate in
Southeast Asia and the Pacific, told BizTech that the new
products will be on sale in Vietnam in three weeks via two
distributors, Unicorp and private trading company Song Long.
He said Unicorp has the most local expertise in consulting, while
Songlong is more familiar with the local market's features.
To date, Seagate has been known in Vietnam via these agents.
However, it must try to compete with other competitors in the
limited Vietnam market with its brand. There are 17 outlets are
authorized to sell Seagate hard disk drives, Seng said. "In
general, Seagate hard disk drives are now more popular in Vietnam
through this outlet network," Seng said.
The market situation became difficult after the regional currency
crisis hit last July. "But the number of personal computers in
Vietnam will continue to increase, because local users are on the
rise," Seng said.
"They are forced to buy PCs or change to new models of PCs or
enhanced PCs. Hard-disk drives of higher quality always are in
demand," Seng said.
Seng Seagate said his company might survey possibilities of
production in the country if conditions for foreign investment
The warranty period for the Seagate products in Vietnam is three
years. "It is a longest warranty among the markets in the Asia
Pacific," Seng said.
Seng explained that Vietnamese people prefer longer warranty
Although Seng claimed his company will reach a 50 percent market
share this year. However, a recent survey by HCA and PC World
Vietnam said Seagate accounts for only 31.11 percent of Vietnam's
hard-disk drive market. Le thi Ngoc Quy, managing director of
Song Long Co., said her company has five resellers nationwide.
"In 1997 we sold 50,000 hard-disk drives for Seagate," Quy said.
"We anticipate that will reach 60,000 units this year."
She also said that among Seagate products sold in Vietnam, local
users most favor the Medalist Pro New Generation priced at US$420
and the Cheetah priced at US$960 for an 8-bit disk drive and
US$1,000 for a 16-bit one.
Seagate has fared well in Vietnam because of these two reasonably
priced products. Its two strong competitors in Vietnam are
Quantum Corp. and Western Digital Corp. (Table 1)
Table 1 Hard-Disk Drive Market Share in Vietnam
Source: PC World Vietnam
Seagate Technology Inc.
Western Digital Corp.
Seagate Technology Inc. started business in Vietnam in 1995.
Linh Dan, an official with Tan Thien Ha Co., a Seagate service
agent in Vietnam, said Seagate has not yet opened a branch in
"Our office is considered Seagate's public relations department
in the country," Dan said.
(David Tran, Asia BizTech Correspondent)