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Key growth drivers of WinCommerce

Key growth drivers of WinCommerce

Wednesday, April 24, 2024, 16:35 GMT+7
Key growth drivers of WinCommerce
Chin-Su Sriracha chili sauce has received positive reception from consumers.

Despite challenges posed by the volatile consumer market influenced by both macroeconomic and microeconomic factors, WinCommerce (WCM) perseveres, sustaining its growth trajectory as it advances into 2024 with robust foundations and strategic initiatives in place.          

Retail chain undergoes continuous expansion, renovation

Starting from the onset of 2023, WinCommerce's leadership foresaw the challenges ahead for the modern retail sector in Vietnam, particularly amid a downturn in overall market demand during the initial months of the year. Consequently, WinCommerce strategically pivoted its focus from sheer network expansion to prioritizing store renovations and enhancing operational efficiency.

WCM concluded the year 2023 with the opening of 312 new convenience stores (WinMart+), expanding the total nationwide sales points to 3,633, solidifying its status as Vietnam's largest retail chain.

The company expedited store renovations, upgrading a total of 1,615 stores, which accounted for 46 percent of the convenience store network.

During the latter half of 2023, WCM refurbished 309 WIN stores and 1,100 WinMart+ Rural outlets, surpassing the initial target of 250 WIN stores and 676 WinMart+ Rural locations.

Last year, WCM continued to launch new business models, especially recognizing the success of WinMart Phu My Hung (HCMC) and WinMart Le Van Thiem (Hanoi), two high-end European-style stores with design support from France’s Malherbe Company – the showroom design unit for famous brands such as Dior and Louis Vuitton.

WinMart Phu My Hung is bustling with shoppers.

WinMart Phu My Hung is bustling with shoppers.

Prioritizing the shopping experience for high-income customers, WCM offers spacious supermarket space, smart linked shelves and maximum use of natural light to help goods stand out, combined with elegant colors, so that customers feel relaxed and comfortable throughout the shopping journey.

Thanks to this strategy, WCM's customer file has expanded to all segments, making its mark as a retail brand that is constantly innovating, growing, overcoming economic difficulties, and firmly maintaining its position as the system that owns the largest number of selling points in Vietnam.    

Implementing effective pricing strategy to aid consumers

In addition to renovating and expanding sales points to introduce new experiences, WCM also delves into the genuine needs of users through a range of pricing strategies and products tailored to the challenging market conditions.

In 2023, with activities promoting the ‘Vietnamese people using Vietnamese products’ culture, WCM developed specific labels, creating essential shopping baskets of good quality and at affordable prices for customers.

Along with that, promotions, WIN Membership programs, and periodic incentive programs twice a month are being implemented throughout 2023 and 2024.

WinCommerce's specific label product group is 10-20% cheaper than other products in the same segment on the market, so it is suitable for people's budgets.

This can be considered the leading Vietnamese retail brand's commitment to accompany consumers in a difficult economic context.

The WinEco farm system meets international standards, allowing WinCommerce to proactively source fresh vegetables.

Moreover, WinCommerce has lowered the price of one of its primary on-shelf products, MEATDeli chilled meat, through the WIN membership program, thereby reducing the price disparity with traditional markets and providing consumers with an opportunity to shop more economically.

Private brands such as WinMart Good (dry food), WinMart Cook (processed food), and WinMart Care (personal care) are developed simultaneously, bringing great advantages to the WinMart/WinMart+ chain with a diverse supply and meeting customers' shopping needs.

At WinMart+ locations in rural provinces, the brand implemented islands showcasing 100 products at competitive prices, particularly focusing on food items, household essentials, and indispensable goods such as Ngoc Nuong rice, Chin-Su soy sauce, Kokomi noodles, tissue paper, laundry detergent, and conditioner, among others.

Japanese consumers eagerly embrace the new Chin-Su Sriracha chili sauce product.

Japanese consumers eagerly embrace the new Chin-Su Sriracha chili sauce product.

High-tech logistics platform contributes to sustaining growth momentum

One of the factors that create a boost in distribution speed and support cost reduction for WCM is Supra's internal logistics chain.

Commencing operations in 2022 with 10 cold storage and dry storage clusters across all three regions, Supra has demonstrated its crucial role in WCM's business efficiency. By utilizing the unit's warehouse system, logistics costs for goods have been reduced by up to 13 percent.

Every day, Supra's cold storage transports approximately 275 metric tons, while dry storage handles 454 metric tons, collectively constituting 60 percent of WinCommerce's total goods output.

By employing AI technology in order placement, delivery, warehouse sorting, and product selection, as well as in quality control from origin to destination, Supra not only guarantees the quality of transported goods but also optimizes routes and orders to minimize costs. This approach enables WCM to uphold competitive pricing strategies for customers, enhance distribution speed, and ensure shelf diversity in supermarkets.

In 2024, WCM expects to achieve VND32,500-34,000 billion (US$1.28-1.34 billion) in net revenue, an 8-13-percent rise year on year. The business plans to open 400-700 new stores.

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Yen Viet / Tuoi Tre News


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