In June alone, WCM recorded profits across its network, an important milestone that gives leadership confidence in the company’s path to sustainable profitability.
Typically, the second quarter is a slow season for the retail industry following the busy year-end and Lunar New Year shopping periods. However, WinCommerce maintained its momentum, continuing to achieve positive business results.
Specifically, in Q2 2024, WCM’s revenue reached VND 7,844 billion, a 9.2% increase compared to the same period last year. WCM’s EBITDA (Earnings before interest, taxes, depreciation, and amortization) reached VND 172 billion, an 11.1% increase year-on-year. Excluding one-off profits from the pilot distribution of financial products in 2023, EBITDA increased by 33% compared to the previous year. This steady growth is attributed to the company’s profit optimization strategies and customer-centric approach.
THE “POINT OF LIFE” ECOSYSTEM
According to a report by J.P. Morgan, Vietnam is one of the most attractive retail growth stories in Asia. However, the penetration of the grocery retail sector in Vietnam is still low, at only 12% in 2022, much lower than the 20-45% range in other ASEAN countries. Vietnam’s economy is rapidly developing, with an expanding middle class and accelerating urbanization. These factors are driving the growth of modern trade in the coming years.
As Vietnam’s leading retail company with a network of stores across 62 provinces, WinCommerce has been implementing strategies to ride the wave of growth in the modern retail market in the country. A key component of this is the “Point Of Life” (POL) ecosystem.
POL is a tech-driven consumer ecosystem that bridges the offline-to-online gap. It comprises three main elements: products and services provided by Masan (WinCommerce’s parent company); WinCommerce’s commercial infrastructure, which links all partners in the ecosystem; and a technology platform capable of analyzing data through Artificial Intelligence (AI) and Machine Learning. This is combined with the expertise of Masan’s people and organization.
The POL ecosystem will address crucial future challenges and optimize business operations across the entire consumer value chain. Specifically, integrating WinCommerce’s nearly 3,700 stores and supermarkets into the Supra logistics system (a WinCommerce subsidiary) will create a nationwide logistics platform, reducing costs and improving consumer access. As a result, WCM’s supermarket and convenience store network serves as the ideal destination, connecting all “one-stop-shop” needs, from daily essentials to financial products and services for consumers.
NATIONWIDE LOGISTICS SYSTEM EMPLOYING TECHNOLOGY
At the beginning of 2022, Supra was established as a subsidiary of WinCommerce, marking the company’s official entry into the domestic logistics services sector. As part of the POL ecosystem, Supra aims to serve the consumer retail ecosystem of Masan, offering the most cost-effective solutions for consumers and partners.
Currently, Supra owns a distribution center system comprising 10 warehouse clusters (including dry and cold storage) across the three regions of Vietnam. Supra is responsible for delivering 60% of WinCommerce’s total cargo volume.
On average, Supra’s dry warehouses transport approximately 454 tons of goods daily, while the cold storage facilities handle around 275 tons. The company also employs new technologies such as AI in order processing, delivery, cargo sorting at warehouses, centralized quality control, and optimization of transportation costs while ensuring consistent product quality.
According to WinCommerce’s statistics, Supra has helped reduce logistics costs by 11%, directly contributing to lower product prices and benefiting consumers.
THE LARGEST MEMBERSHIP PROGRAM CONNECTING BRANDS AND CONSUMERS
As an essential component of WinCommerce’s strategy to connect consumers and brands, the WIN membership program has undergone positive changes, significantly contributing to WCM’s sustainable profit growth.
In early 2023, WinCommerce introduced the WIN membership program with the initial goal of helping consumers purchase products at discounted prices. The program offers a 20% discount on WinEco and MEATDeli products and hundreds of other items, along with periodic promotions across its supermarket and convenience store network.
For example, in August, in addition to the 20% WIN membership discount, WinMart supermarkets and WinMart+ and WiN stores in the South are stimulating consumption through promotions on over 300 products with ultra-low prices.
To date, the WIN membership program has reached 10 million members and is expected to reach 30 million by 2025. To enhance the program’s benefits, the leadership plans to collaborate with Phuc Long and reputable domestic and foreign partners, integrating their products and services into the platform.
In Q2 2020, to form the “Point Of Life” ecosystem that seamlessly combines online and offline experiences and better serves the diverse needs of consumers, Masan (WinCommerce’s parent company) completed the purchase of an additional 12.6% stake in The CrownX (the consolidated consumer platform of Masan Consumer Holdings and WinCommerce) for a total cash consideration of $862 million.
Following this transaction, Masan held approximately 82.6% of The CrownX’s shares and increased its economic interest in WinCommerce to 69.17%. Four years later, WinCommerce has delivered profitable results for Masan, validating the company’s consistent strategy of focusing on investments in the consumer retail business.
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