WinCommerce has a retail model that has an advantage in the market

According to Eurominitor, the penetration of modern retail in Vietnam is still relatively low and is currently in the early stages of development with a modest proportion of about 12% of the retail market share. Compared to Indonesia, Vietnam is currently at the stage of 2010 when the penetration of modern retail was about 12%. However, thanks to the "giants" of Indonesian retail, Indomaret and Alfamart, accelerating the expansion of their chain stores, helping to accelerate the modernization of retail in Indonesia's modern retail market. Accordingly, the modern retail market in Indonesia has achieved a growth rate of 18% per year within 5 years.

In Vietnam, although modern retail and E-commerce have achieved strong growth, daily consumer shopping transactions are expected to still largely take place in traditional retail channels with a proportion of 75 to 80% of the retail market share in the next 5 years. Monitor's report indicates that if Vietnam's modern retail market develops like Indonesia, the market size is forecast to increase more than three times in the next decade, reaching a market size of about 20 billion USD.

So which businesses have the financial capacity, retail platform and operational capacity to build “New Commerce” in Vietnam will hold the opportunity to serve 100 million Vietnamese consumers like Reliance Retail did in India and Indomaret, Alfamart modernized Indonesian retail.

WinCommerce modernizes Vietnamese retail

Present in 62 provinces and cities across the country, WinCommerce (WCM, the company operating the WinMart/WinMart+/WiN chain) owns a network of nearly 3,700 points of sale. This is the largest modern retailer in Vietnam with more than 50% of the modern retail market share. Each month, the WinMart/WinMart+/WiN chain serves more than 30 million shoppers.

Modern WIN store with a variety of products displayed based on a large database. Photo: WinCommerce

In 2023, WinCommerce completed its restructuring and returned to its retail chain expansion strategy; focusing on separate models for each region and customer segment. By the end of 2024, WinCommerce's expansion plan is expected to reach a total of about 4,000 stores nationwide; meaning that a new point of sale will appear every day. This is also how Indomaret and Alfamart "modernized" Indonesian retail and have been successful.

However, the expansion is only a part of WinCommerce's "New Commerce" picture, because this enterprise also combines core competencies from the retail consumer ecosystem of Masan Group (WinCommerce's parent company). WinCommerce combines the production capacity and strong brand building ability of Masan Consumer (the unit owning brands with billion-dollar revenue such as CHIN-SU, Omachi).

Furthermore, Masan Consumer operates one of the largest food and beverage distribution networks in Vietnam. This provides a significant competitive advantage, such as the ability to efficiently deliver goods to consumers while reducing transportation costs. This is important because nearly 70% of Vietnam’s population currently lives in rural areas and the retail industry still relies heavily on traditional sales channels.

WinCommerce warehouse staff check the automated goods sorting system. Photo: WinCommerce

The above combination is further completed by WinCommerce's internal logistics department, Supra. Established in 2022, Supra currently owns a distribution center system consisting of 10 warehouse clusters (including dry and cold storage) in all three regions of the country. Supra is responsible for delivering 60% of WinCommerce's total goods output. According to WinCommerce's statistics, Supra has supported a reduction of 11% in logistics costs for goods, contributing directly to reducing the cost of each product, bringing benefits to customers.

The above means that WinCommerce's "New Commerce" model is a complete retail consumer value chain from production, distribution and logistics, contributing to "modernizing" the Vietnamese retail market.

Optimize, expand and profit

Business expansion is a goal that businesses always aim for. When the business potential is strong enough, expansion will help businesses increase revenue, profit, brand reputation and many other factors. The solution to the problem of profitable expansion has been implemented by WinCommerce and has "harvested sweet fruit" in 2024.

WinMart brings consumers a rich and quality source of food products. Photo: WinCommerce

According to a recent report, in the second quarter of 2024, WCM recorded revenue of VND 7,844 billion, up 9.2% over the same period last year. This is the result of upgrading and improving WiN stores (targeting urban consumers) and WinMart+ Rural (serving rural consumers). These two store models have achieved outstanding efficiency compared to the traditional model with LFL growth of 6.3% and 10.7% respectively in the second quarter of 2024 compared to the same period. Notably, WCM achieved positive profit after tax (NPAT) in June, marking a significant step forward since being acquired by Masan. WCM is expected to accelerate the pace of store openings in the second half of 2024.

Customers shop busily at WinMart supermarket on the weekend. Photo: WinCommerce

WinCommerce is a solid foundation in Masan Group's journey to serve consumers. WCM's network of supermarkets and convenience stores is an ideal destination, connecting all "all-in-one" needs from daily necessities to financial products and services of consumers. In the future, along with the development of the modern retail market, WinCommerce will accelerate profitability, thereby helping to increase the intrinsic value of the enterprise.

Source: https://laodong.vn/kinh-doanh/wincommerce-so-huu-mo-hinh-ban-le-co-loi-the-tren-thi-truong-1382624.ldo