Masan poised to lead Vietnam's evolving consumer market

According to J.P. Morgan, the penetration rate of Vietnam’s modern retail stands at 12 per cent, much lower than the 20-45 per cent of the ASEAN countries. This is a relatively modest figure – indicating ample untapped potential in a market where consumers prioritising convenience and a modern experience.

Many investors compare Vietnam to Indonesia 10 years ago, where local companies like Indomaret and Alfamart successfully leveraged modern consumer trends to become industry leaders. This means there could be similar tremendous opportunities for Vietnamese companies with the ability to control the value chain and directly reach the end consumer.

In Indonesia, Indomaret and Alfamart have become retail giants with annual revenue of billions of dollars thanks to the comprehensive development of their supply chain from private brands to logistics, distribution, and consumer data. CPALL, which operates more than 15,000 7-Eleven outlets in Thailand, serves as a testament to a smart consumer ecosystem with sustainable profits and market control.

All these retail giants have one thing in common; they operate a closed-loop consumer value chain to optimise the distribution efficiency, control costs, integrate user data, and increase profitability. This is an important factor that helps them not just survive, but dominate their markets.

Masan Group is among the very few businesses in Vietnam with an integrated consumer ecosystem, including Masan Consumer (fast-moving consumer goods), WinCommerce (retail), Masan MEATLife (animal protein), and Techcombank (finance), each one an integral part of everyday Vietnamese consumer habits.

From fish sauce bottles to instant noodle packages in the kitchen to WinMart/WiN/WinMart+ stores and supermarkets in residential areas, Masan has a distinct advantage in reaching end consumers directly. Moreover, Masan also gradually improves its logistics, technology, and data capabilities for better cost control, distribution efficiency, and consumer experience.

Masan is well-positioned to achieve billion-dollar revenue growth through rapid network expansion, consumer-focused product innovation, and data-driven operations. These were the keys to success for CPALL or Indomaret in their local markets.

In the first quarter of this year, WinCommerce, the retail chain of Masan, continued to solidify its leading role in Masan’s ecosystem with a revenue of VND8.8 trillion ($338.2 million), up 10.4 per cent on-year. This marked the third consecutive profitable quarter. The achievement has been attributed to significant improvements in the operational efficiency by optimising WinCommerce's product portfolio, expanding, and managing costs closely.

WinCommerce is increasingly reaching more modern consumers, with over 4,000 stores nationwide, of which WinMart+ has a strong presence in residential areas. WinCommerce opened 56 new stores in May, raising the total number of new outlets to 279 since the beginning of the year and completing nearly 40 per cent of the year's plan.

The close link between the three segments – manufacturing, food, and retail – has created a unique closed-loop ecosystem. This helps Masan to control the supply chain, optimise costs, and improve operational efficiency. Masan's closed-loop value chain spans from planning, production (Masan Consumer, Masan MEATLife), to logistics (SUPRA), retail operations (WinMart/WinMart+) and to the final touchpoints with consumers.

Each WinCommerce outlet is not only a point of sale but also a life service centre where people can access fresh meat from Masan MEATLife, essential consumer goods from Masan Consumer, and convenient services such as bill payment and consumer finance. From a simple store, the WiN/WinMart/WinMart+ system is transforming into a 'Point of Life' – a touchpoint of multi-utilities serving all daily needs of consumers.

Masan’s closed-loop value chain model is a unique selling point in the Vietnamese market. Each link in the chain is seamlessly integrated to optimise production and distribution costs while increasing added value. It is estimated that the model helps Masan create an additional 45 per cent value in brand awareness and 25 per cent in retail. At the same time, with this model, Masan is likely to reach approximately 30-50 million consumers in the WiN Membership network in the future.

Thanks to a closed-loop value chain and the ability to seamlessly integrate data, services, and products, Masan is not only building a consumer – retail ecosystem, but also gradually shaping a modern consumer platform where all the daily essential needs of Vietnamese people are fully met.

Masan Consumer and Vietjet cooperate to bring CHIN-SU Pho Story to the world Masan Consumer and Vietjet signed a deal on December 4 to bring CHIN-SU Pho Story on board during Vietjet’s domestic and international flights.

Masan Consumer Holdings honoured with consecutive "Great Place To Work" certifications Masan Consumer Holdings received the prestigious "Great Place to Work" certification from Great Place to Work for the second year in a row in November.

Masan posts nearly $15 million Q1 post-tax profit Masan Group recorded net profit after tax post-minority interest (NPAT Post - MI) of VND394 billion ($15 million) in the first quarter, marking a 278.8 per cent on-year increase.