BQ kicked off the last week of November with a vital announcement for the company. This Spanish manufacturer, which prides itself on designing and managing its entire operation from within Spain, is introducing significant strategic changes to its business, including a move into Vietnam.
Goodbye Spain, hello Vietnam?
Several media outlets are reporting on this important step today; however, their interpretations differ significantly depending on the source. The folks at EconomÃa Digital suggest this represents a radical shift for the company , which, after facing the arrival of powerful Chinese brands like Xiaomi in Spain, has decided to explore alternative business models, with Vietnam as its chosen location.
The reason for this specific location on the map? The agreement it closed with the Vietnamese company Vingroup , the largest business group in the Asian country, last July, and the great growth prospects there, where the smartphone market grew by 29% in 2017 and is still growing.
BQ phones will be sold in the country under the VSmart brand , and in fact, two licensed models are already ready for sale: one mid-range and one high-end. Even production, which until now has been carried out in collaboration with Chinese brands, is being moved to Vietnam in an attempt to centralize everything there.
It is also noted that operations in our country will be reduced and the brand's phones will disappear from the displays of some distributors - sales efforts will be concentrated on only a few selected ones - maintaining a presence that will end up being practically residual in Spain, according to internal sources at ED related to the company.
This information, it should be noted, has been denied by BQ in El Economista , where a much more positive interpretation is made (of the firm's expansion and reach) and it is assured that "the commercial strategy in Spain will not change."
The truth is that the company has already begun a series of layoffs affecting a significant portion of the brand's sales team, a move that comes on top of the cuts made earlier this year. At that time, we learned about the mass dismissal of repair technicians at its maintenance facility, where the company went from 500 repairers to a mere seven.