“In July, WinCommerce achieved a 4% LFL revenue growth for its minimart stores compared to June, marking the second consecutive month of net profits. This indicates significant opportunities for improved profit margins in Q3 and a positive contribution to the overall profits of the Masan Group. We anticipate delivering strong profit figures during the festive year-end shopping season and into the next year as personal consumption continues to grow,” shared Ms. Nguyen Thi Phuong, CEO of WinCommerce.
The year-end is a season of grand festivities, company parties, and family and friend gatherings, making it the peak of consumer shopping demand. According to the General Statistics Office of Vietnam, the total retail sales of goods and services consumption nationwide in July 2024 is estimated at VND 528.3 trillion, a 9.4% increase compared to the same period last year, and this trend is expected to continue until the end of the year.
Economic experts suggest that most retail businesses view the year-end as an excellent opportunity to stimulate consumer demand, as this period can contribute up to 30-40% of annual sales.
Even in the current Q3, WinCommerce has been implementing effective pricing strategies to boost consumption. Specifically, in July, to provide affordable quality shopping experiences to consumers nationwide, WinCommerce launched a promotional campaign: “Deal to Cool Down the Heat – Dramatic Price Reductions,” offering attractive discounts on various product categories across its entire system. During this year’s National Day holiday on September 2nd, the WinMart supermarket chain and WinMart+/WiN stores will introduce a series of promotional programs with “SUPER LOW PRICES” to meet consumer shopping needs.
Additionally, WinCommerce has proactively collaborated with domestic and foreign brands to deliver quality products at competitive prices and enhanced benefits for consumers. In 2023 and 2024, WCM joined forces with well-known brands such as Ariel, Lifebuoy, Vinamilk, and Neptune to organize Brand Weeks. These collaborative programs between the retail chain and brands aim to introduce quality products with promotional offers.
WCM actively partners with domestic and international brands to offer quality products at competitive prices and enhance consumer benefits. For instance, in the first week of August, WinCommerce collaborated with Masan Consumer to organize the “Chin-Su Chili Sauce Brand Week” across 3,673 supermarkets and stores in its system.
As an essential component of WinCommerce’s strategy to connect consumers and brands, the WiN membership program has been undergoing positive changes, significantly contributing to WCM’s sustainable profit growth.
During the year-end shopping season, consumers will benefit even more by combining the periodic promotions with WinCommerce’s WiN membership program. This loyalty program offers a 20% discount on WinEco and MEATDeli products.
Currently, the WiN membership program has reached 10 million members and is projected to attain 30 million by 2025. To enhance the program’s benefits, WCM plans to collaborate with Phuc Long and other reputable domestic and international partners, integrating their products and services into the platform.
According to Masan’s report, WCM’s strategic focus for the second half of 2024 remains on optimizing profits by accelerating LFL growth to 8-9% year-over-year. WCM will continue to strengthen its position in rural areas with the WinMart+ Rural model. The WiN membership program will be optimized to benefit the Masan ecosystem and partner brands.
In Q2/2020, to form the “Point of Life” ecosystem that seamlessly integrates online and offline services and better serves consumers’ diverse needs, Masan (WinCommerce’s parent company) completed the purchase of an additional 12.6% stake in The CrownX (the consolidated consumer platform – Masan Consumer Holdings and retail – WinCommerce) for a total cash value of $862 million.
Following this transaction, Masan holds approximately 82.6% of The CrownX’s shares and increases its economic interest in WinCommerce to 69.17%. Four years later, WinCommerce has delivered profitable results for Masan, demonstrating the company’s consistency in its strategy to focus investments on the consumer retail business.
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