WinCommerce, the retail arm of Masan Group, currently operates a retail consumption model with a unique advantage in the market: an integrated platform for production, distribution, and logistics. The company is expected to continue generating positive profits in Q4 of 2024.

A unique retail model with market advantages

According to Euromonitor data, the penetration of modern trade (MT) retail in Vietnam remains relatively low and is still in the early stages of development, with a modest share of around 12 per cent of the retail market. In comparison to Indonesia, known as the "Land of a Thousand Islands," Vietnam is at the same stage Indonesia was in 2010, when its MT penetration stood at approximately 12 per cent. However, thanks to major retail players like Indomaret and Alfamart expanding their stores, Indonesia’s MT market has grown by 18 per cent annually over the past five years.

In Vietnam, while MT and e-commerce are seeing strong growth, daily consumer shopping is still expected to primarily take place through traditional retail channels (General Trade or GT), which will account for about 75 to 80 per cent of the retail market over the next five years. According to Monitor's report, if Vietnam’s MT market develops similarly to Indonesia's, its market size could more than triple over the next decade, reaching around $20 billion.

Thus, companies with the financial capability, retail platform, and operational strength to modernize retail in Vietnam will be well-positioned to serve the 100 million Vietnamese consumers, just as Reliance Retail has in India and Indomaret and Alfamart have done in Indonesia.

Among the leading retail consumer businesses in Vietnam, Masan Group stands out, with its WinCommerce minimart and supermarket chains, which are well-positioned to create an optimal model for modernizing the Vietnamese retail market.

The largest retail network in Vietnam: WinCommerce operates over 3,700 stores and supermarkets nationwide, making it the largest retail chain in the country.

Production capacity and strong branding: Masan’s retail ecosystem includes leading FMCG brands like Chin-Su, Nam Ngu, Omachi, Kokomi, WakeUp 247, MEATDeli, Ponnie, Heo Cao Boi, and WinCommerce's private labels, providing a seamless integration from production and brand-building to sales, ensuring high-quality products developed by the group’s ecosystem.

Nationwide logistics system with technology: In early 2022, Masan launched Supra, a logistics company under WinCommerce, marking an important step into domestic logistics services. Supra was established to serve the group’s ecosystem and minimize costs for consumers and partners. The distribution centers (DCs) are equipped with AI technologies to automate and improve supply planning accuracy.

WIN membership program: In early 2023, WinCommerce launched the WIN Membership program to help consumers shop with more discounts. The program offers a 20 per cent discount on WinEco and MEATDeli products, along with hundreds of other products and regular promotions at supermarkets and stores. The WIN membership program has reached 10 million members and is projected to grow to 30 million by 2025.

Consistent profit growth

Expanding business scale is a key goal for any enterprise. When a business is strong enough, expanding its scale will help increase revenue, profit, brand reputation, and other factors. WinCommerce has successfully executed this strategy and is already reaping the benefits in 2024.

In Q3/2024, WinCommerce reported net revenue of VND8,603 billion ($344.12 million), a 9.1 per cent increase compared to the same period last year. The retail chain achieved a net profit after tax of VND20 billion ($800,000) across its entire system, largely driven by new store models such as WIN (urban areas) and WinMart+ Rural (rural areas). These new store formats were launched to maximize customer reach.

WinCommerce has demonstrated that it can expand its retail chain while still ensuring profitability. By the end of Q3/2024, WinCommerce had 3,733 active stores in 62 provinces, with 60 new stores added since Q2/2024. Its stores account for 50 per cent of the total modern retail supermarkets in Vietnam, making it the largest grocery retail chain in the country by number of locations.

WinCommerce is a solid pillar in Masan Group’s mission to serve Vietnamese consumers. Its network of supermarkets and convenience stores offers a comprehensive "all-in-one" solution, providing daily essentials as well as financial products and services. With positive results from early in the year and the strong retail trends towards the end of the year, WinCommerce is expected to report a positive after-tax profit in Q4/2024, continuing to "bring money back to the mother" Masan.