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Shoppers at a WinCommerce supermarket chain |
Typically, the second quarter of the year is the low season for the retail industry after the bustling Tet shopping season. However, WinCommerce maintained its momentum, continuing to achieve positive business results. Specifically, in Q2 2024, WinCommerce’s revenue reached VND 7,844 billion, up 9.2% compared to the same period last year. The company’s EBITDA (Earnings before interest, taxes, depreciation, and amortization) reached VND 172 billion, an increase of 11.1% year-on-year. Excluding one-off financial product distribution profits in 2023, EBITDA grew by 33% compared to the previous year. This steady growth is attributed to WinCommerce’s profit-optimizing strategies and customer-centric approach.
The “Point Of Life” Ecosystem
According to 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 remains low, accounting for only 12% in 2022, much lower than the 20-45% range in other ASEAN countries. Vietnam’s rapidly developing economy, expanding middle class, and accelerating urbanization are key drivers for the growth of modern trade in the coming years.
As Vietnam’s leading retail company with a presence in 62 provinces, WinCommerce has been implementing strategies to ride the wave of modern retail growth in the country. A key component of this strategy is the “Point Of Life” (POL) ecosystem.
The POL ecosystem is a technology-driven, offline-to-online consumer ecosystem consisting of 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.
The POL ecosystem aims to address critical future challenges and optimize business operations across the entire consumer value chain. Specifically, integrating WinCommerce’s nearly 3,700 stores and supermarkets into Supra’s logistics system (a WinCommerce subsidiary) will create a nationwide logistics platform, reducing costs and improving consumer access. As a result, WinCommerce’s network of supermarkets and convenience stores serves as a one-stop destination, connecting all consumer needs, from daily essentials to financial products and services.
Nationwide Technology-Driven Logistics System
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 ten warehouse clusters (including dry and cold storage) across the country. Supra handles 60% of WinCommerce’s total cargo volume, with dry warehouses transporting approximately 454 tons of goods daily and cold storage transporting about 275 tons. The company also employs AI technologies in various processes, including order fulfillment, delivery, cargo sorting, centralized quality control, and cost optimization.
According to WinCommerce, 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
WinCommerce’s membership program, WIN, plays a crucial role in connecting consumers and brands, positively impacting the company’s sustainable profit growth. Launched in early 2023, the WIN membership program initially aimed to help consumers purchase products at discounted prices. The program offers a 20% discount on WinEco and MEATDeli products, along with hundreds of other items and periodic promotions across WinCommerce’s supermarket and convenience store network. For example, during August, in addition to the 20% WIN membership discount, WinMart and WinMart+ stores in the South are offering promotions on over 300 products with super-low prices for consumers.
To date, the WIN membership program has reached 10 million members and is expected to grow to 30 million by 2025. To enhance the program’s benefits, WinCommerce plans to collaborate with Phuc Long and other reputable domestic and international partners, integrating their products and services into the platform.
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In Q2 2020, to form the “Point Of Life” ecosystem, seamlessly combining online and offline services and better serving the diverse needs of consumers, Masan completed the purchase of an additional 12.6% stake in The CrownX (the consolidated consumer – Masan Consumer Holdings and retail – WinCommerce platform) for a total cash consideration of $862 million. Following this transaction, Masan held approximately 82.6% of The CrownX and increased its economic interest in WinCommerce to 69.17%. Four years later, WinCommerce has repaid Masan’s investment, demonstrating the success of their strategy to focus on the consumer retail business. |
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