Recently, Mr. Nguyen Tu Quang’s BHS Electronics Company – nicknamed “Explosive” Quang – was featured in the newspaper. This time, it was not to promote some “unbelievable” smartphone, but in the newspaper with the announcement that Quang did not want. His company had reduced its capital from VND10 billion to VND1 billion, and was in a scandal of debt to its employees’ salaries.
This is considered an obvious failure, a failure that was foretold right from the time he launched the first smartphone.
When Iphone was born, the giant firm in the phone industry at that time, Nokia, had to collapse. That shows how powerful Apple is.
When Nguyen Tu Quang launched his first Bphone, he positioned the Bphone segment as high-end, on par with Apple’s iPhone and SamSung’s Galaxy, with a price of about $1,000 each. This is a high-end market share in the smartphone world, most other smartphone companies in the world avoid this market share and choose the lower segment to survive. Meanwhile, Quang chose to head into the high segment. Although only limited to the Vietnamese market, it is certain that Bphone cannot survive.
In the following generations, Quang’s Bphone was determined to be in the lower segment than Iphone and Galaxy, but could not survive. In the lower segment, there are also many technology giants dominating, so lowering the product segment will not bring success. Quang. From Bphone’s branding, it shows that Quang is not a good strategic planner.
When customers remember Bphone, they remember Nguyen Tu Quang, however, the way they remember him is not positive at all. People often call Quang “Quang bang” with a mocking attitude. And in truth, what Quang said about Bphone was just “exploded” but not true.
Nguyen Tu Quang sold Bphone based on “patriotism” and now, he has failed. In business, quality reputation and honesty create a brand, not “pop” like “popcorn” but can build a brand. Lying is a “toxin” that destroys the brand. I wonder if Quang knew about this when building the brand for Bphone?
Quang’s BHS Electronics Company is said to be in trouble since 2022. At that time, Quang went on Facebook to call on Bfans to participate in the preferential capital supplement program in 2022. This program, Quang called for Call fans to invest a minimum of VND100 million per interest, with an interest rate of 10%/year, and after 3 years, the investor will receive both principal and interest.
To raise capital, Quang can usually go to the bank or the stock market. However, Quang called on fans to contribute directly. This shows that he cannot mobilize capital from banks and is not capable of issuing bonds or shares on the stock market. This is a sign that Bphone does not have financial health.
The impending collapse of BHS Electronics Company is an obvious result of a lack of methodical business practices, especially a lack of honesty in branding, and hiding behind “patriotism” to do business.
Currently in Vietnam, a famous electric car company is also hiding behind “patriotism” to sell cars, instead of building a brand with prestige, quality and honesty.
All the big brands in the world, no one relies on patriotism. Koreans like Hyundai cars and Samsung phones because of their quality, not because they use them because of patriotism. When people, out of patriotism, spend money to buy a product that is not commensurate with the amount of money they spent, no one will buy that product a second time. No one wants to help someone who takes advantage of others. Once you are taken advantage of, you will become wiser. No one will be foolish enough to be pickpocketed forever because of so-called “patriotism.”
Bphone has suffered but when will be VinFast? Let’s see!
