Specifically, in the second quarter of 2024, WCM's revenue reached VND 7,844 billion, up 9.2% year-on-year. WinCommerce's earnings before interest, tax, depreciation and amortization (EBITDA) reached VND 172 billion, up 11.1% year-on-year. Excluding one-time profits from the pilot distribution of financial products in 2023, EBITDA increased 33% year-on-year.

The sustainable growth of this business is thanks to profit-optimizing strategies that put customers at the center.

“Point Of Life” Ecosystem

According to a report by JP Morgan, Vietnam is one of the top retail growth stories in Asia. However, Vietnam’s grocery retail penetration remains low, at just 12% by 2022, much lower than the 20-45% of ASEAN countries. Vietnam’s economy is growing rapidly, with an expanding middle class and increasing urbanization. These are key factors driving the growth of modern trade in the coming years.

As the leading retail enterprise in Vietnam, owning a system of points of sale spanning 62 provinces and cities, WinCommerce is implementing strategies to “ride” the growth wave of the retail market. Among them, it is impossible not to mention the “Point Of Life” (POL) ecosystem.

Accordingly, POL is a technology consumer ecosystem, an offline-to-online digital ecosystem consisting of three main elements: products and services provided by Masan (the parent company of WinCommerce); a commercial infrastructure (WinCommerce) connecting all partners in the ecosystem; and thirdly, a technology platform, capable of analyzing data through artificial intelligence (AI) and machine learning (Machine Learning) as well as a combination of people and Masan organization.

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WinMart staff assist customers with shopping

The POL ecosystem will solve many important problems in the future, optimizing business operations across the entire consumer value chain. Specifically, integrating nearly 3,700 stores and supermarkets in the WinCommerce chain into the Supra logistics system (a subsidiary of WinCommerce) will create a nationwide logistics platform, helping to reduce costs and increase access to consumers. Accordingly, WinCommerce's supermarket and convenience store network is an ideal destination, connecting all "all-in-one" needs from daily necessities to consumer products and financial services.

National logistics system applies technology

In early 2022, Supra - a company currently under WinCommerce was established. This move marks an important step for WinCommerce when it officially enters the domestic logistics service. As part of the POL ecosystem, Supra was established with the goal of serving Masan's retail consumer ecosystem, helping to save costs for consumers and partners to the maximum.

Currently, Supra owns a distribution center system consisting of 10 warehouse clusters (including dry warehouses and cold warehouses) in all three regions. Supra is responsible for delivering 60% of WinCommerce's total output. On average, Supra's dry warehouses transport about 454 tons of goods per day and cold warehouses transport about 275 tons. This unit also applies new technologies such as AI in the stages of ordering, delivery, sorting and selecting goods at the warehouse, centrally controlling product quality at the warehouse and ensuring the quality of goods transported to the system is consistent and cost-optimized.

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Customers shop at WinCommerce supermarket chain

According to WinCommerce statistics, Supra has helped reduce 11% of logistics costs for goods, directly contributing to reducing the cost of each product, bringing benefits to customers.

The largest membership program connecting brands and consumers

As an important "piece" of WinCommerce in connecting consumers and brands, the WIN membership program has been undergoing positive changes, contributing significantly to WinCommerce's sustainable profit growth.

In early 2023, WinCommerce introduced the WIN Membership program to the market with the initial goal of helping consumers shop for products at even more discounted prices. This program helps consumers save 20% on WinEco and MEATDeli products along with a catalog of hundreds of products and periodic promotions at supermarkets and stores. For example, this August, in addition to applying the 20% discount WIN membership program, WinMart supermarket system, WinMart+ store, WiN focused on stimulating shopping through promotional programs with more than 300 products at super cheap prices for consumers in the South.

To date, the WIN membership program has reached 10 million members and is expected to reach 30 million by 2025. To increase the benefits of the program, WinCommerce's leadership plans to cooperate with Phuc Long and reputable domestic and foreign partners, integrating the products and services of these units into the platform.

In the second quarter of 2020, to form a "Point Of Life" ecosystem that combines online and offline, better serving the diverse needs of consumers, Masan completed the purchase of an additional 12.6% of shares of The CrownX (Consumer Unification Platform - Masan Consumer Holdings and Retail - WinCommerce) with a total cash value of 862 million USD.

After this transaction, Masan holds approximately 82.6% of shares in The CrownX and increases its economic interest in WinCommerce to 69.17%. Four years later, WinCommerce has brought “sweet fruit” to Masan. The increase in ownership in WinCommerce demonstrates Masan’s consistency in its strategy of focusing on investing in the consumer retail business.

Vinh Phu