After more than four years under Masan’s ownership, WinCommerce has enhanced its synergy with other components of Masan’s consumer-retail ecosystem, aiming for a path of sustainable, profitable growth.

WinCommerce is profitable, leveraging synergy from consumer-retail platforms

Recently, Masan announced that WinCommerce, which operates the WinMart/WinMart+/WiN retail chains, achieved over VND7.84 trillion (US$314.32 million) in revenue for Q2 2024 and has been profitable since June. 

The 9.7-percent growth in June was driven by increased store traffic and effective cost control.

As of June, WinCommerce operated nearly 3,700 points of sale, having opened a net network of 40 new stores since December 2023. 

Its diverse retail models include WinMart supermarkets and WinMart+/WiN stores, catering to all consumer segments from urban to rural areas. 

In Vietnam, WinCommerce stands out as the only modern retailer with a leading advantage in point-of-sale scale, supported by the strength in consumer goods production of Masan Consumer – Masan’s subsidiary – and its internal logistics company, Supra.

This positions WinCommerce favorably to dominate the retail market share in Vietnam.

Starting as a consumer goods manufacturer, Masan has leveraged its strengths in product research and development, brand building, and consumer insights. 

By the end of 2023, Masan Consumer owned five brands with revenues exceeding VND2 trillion ($80.18 million), including CHIN-SU, Omachi, Kokomi, Nam Ngu, and Wakeup 247. 

To build ‘love brands,’ or brands that resonate deeply with consumers, Masan prioritizes a thorough understanding of market needs.

In June 2023, Masan inaugurated its Consumer Innovation Center (CIC), with plans to establish five CICs across Vietnam. 

These centers simulate real household environments, allowing consumers to experience and provide feedback on products. 

This real-life experience serves as the foundation and large database for consumer understanding research activities at the center, helping to achieve four key criteria: accuracy, speed, security, and cost optimization.

This approach enhances the success rate of new brands before they are launched to the market.

Masan’s strong brands, such as WinEco vegetables and MEATDeli chilled meat, attract customers to the WinCommerce retail system. 

The WiN Membership program offers loyal WinMart/WinMart+/WiN customers a 20-percent discount on these products. 

Leveraging Masan’s R&D and brand-building expertise, WinCommerce has also developed private labels priced 10-20 percent lower than competing products. 

These include Ngoc Nuong Rice, O’lala eggs, WinMart Good dried food, and WinMart Home personal care and household products.

Supra’s efficiency helps WinCommerce save 11 percent on costs

With a network of nearly 3,700 supermarkets and stores serving 32 million shoppers each month, and the need to transport thousands of items promptly to 62 out of 63 provinces and cities across Vietnam, logistics is a crucial component for WinCommerce.

In early 2022, Masan established Supra, marking its entry into domestic logistics services with the goal of supporting the group’s ecosystem and helping consumers and partners reduce costs.

The Supra Distribution Center (DC) system comprises 10 warehouse clusters, including six dry storage and four cold storage facilities. 

Goods delivered through the Supra DC system account for about 60 percent of WinCommerce’s total output.

To effectively manage its substantial volume of goods, Supra employs advanced technology in both warehouse and transportation operations, including a comprehensive suite of online and offline warehouse management systems that oversee tracking, inventory control, and logistics across the entire supply chain.

Technology is used to optimize transportation management, including record-keeping, fleet management, route planning, and order tracking.

According to Masan’s management estimates, Supra has helped WinCommerce reduce costs by 11 percent. 

At the 2024 annual general meeting of shareholders, Nguyen Thi Phuong, CEO of WinCommerce, announced that the retail chain has finalized its optimal retail models and will now focus on profitable growth, aiming to open an average of one new point of sale per day and reach 4,000 points of sale by year-end.

WiN Membership: 10 million members

One year after its launch, WinCommerce’s WiN Membership program has grown to 10 million members. 

The program boasts zero customer acquisition costs, with member cart values twice as high as those of non-members. 

On average, members shop four times per month, highlighting the program’s success in driving customer engagement and loyalty.

With these factors in place, WinCommerce is well-positioned to succeed in the Vietnamese market.