Decoding the 3 growth engines of Masan's technology consumer platform

Speakers discuss the topic of AI, ML and data science applications in consumer and retail

The event gathered many of the world's leading technology investment funds. Masan Group's vision is to build an integrated platform from offline to online to serve the basic daily needs and financial products and services for 100 million Vietnamese consumers, thereby helping consumers use services and products at lower costs.

Masan’s strategic growth engine is based on three main pillars: network growth, membership growth and spend share growth. These three pillars are reinforced by nationwide logistics services: delivering to consumers anytime, anywhere in a timely and cost-effective manner. Artificial intelligence and technology are the foundations that help operate a smarter and more automated retail network at an increasingly large scale.

The workshop attracted a large number of attendees.

Membership growth

In January 2023, Masan launched the WIN Membership program, officially deployed at more than 3,600 supermarkets and WinMart/WinMart+ stores nationwide. After 10 months of launch, the WIN Membership program reached 7.2 million, playing a very important role in Masan's digitalization strategy. Masan's Board of Directors aims to increase the WIN membership scale from both offline and online channels to 30-50 million by 2025.

The WIN membership program allows Masan to establish direct connections with its members whether they are in the store or not. In addition, customer acquisition costs are much lower than other platforms in the market. This is the essence of Masan's online to offline model - digitizing to serve consumers at offline locations. The WIN membership program is positioned as a "win-win" initiative, where consumers receive more value and businesses also receive valuable input to build and optimize products and services.

Fresh seafood counter with open preparation space, displaying a variety of premium quality products from WinCommerce

In addition, Masan Group also developed the WIN AI application through the "Smart POS" system at the store. This system helps cashiers become "Customer Service", providing appropriate and individual advice to each customer to enhance their shopping experience.

Growth in spending share

For Masan, this business has been expanding 80% of consumer spending market share with a strategy of serving needs from basic daily needs to financial products and services.

WinCommerce promotes the distribution of diverse goods at affordable prices

For daily needs (accounting for 25% of spending) such as eating and shopping, Masan serves consumers with leading brands in the market such as Chin-su, Omachi, MEATdeli. This enterprise continuously improves its products to enhance user experience. Recently, Masan has "launched" Omachi self-boiling beef and crab hotpot and joined hands with Pho Thin Bo Ho - a traditional pho restaurant with nearly 70 years of history, to develop a new instant product line called Pho Story. Both products have been positively received by consumers.

In addition, lifestyle needs (accounting for 30% of spending) such as experiencing tea and coffee, or simply owning a high-speed phone SIM card are no exception, within Masan's consumer ecosystem. Phuc Long Heritage and Wintel are strategic cards for this business to gain a piece of the spending market share of young people. Specifically, thanks to the high-speed "Unlimited Data" package and digital consumer utilities, Wintel is achieving a rapid growth rate of new subscribers of up to 136% per month in the second and third quarters, showing positive reception from young people.

Accounting for the remaining 25% of the total 80% of the market share that Masan is planning to expand is the demand for financial products and services . Masan owns two member companies that help realize this goal: Trusting Social and Techcombank. In early 2022, Masan announced the completion of the acquisition of 25% of Trusting Social, a fintech, artificial intelligence company with the ability to issue similar credit cards to banks. This deal is a great support for Masan to provide financial solutions to consumers without bank accounts through integration into the WIN membership program.

Network growth

Masan's network extends from offline to online with 3,600 points of sale nationwide belonging to the WinCommerce chain or all websites belonging to the ecosystem such as winmart.vn, wintel.vn, techcombank.com.vn... This means that customers of this business can buy and experience products and services anywhere in Vietnam. Masan also plans to cooperate with many famous partners at home and abroad. For example, cooperation with Lazada is expected to be implemented by Masan in the near future.

WinCommerce always provides fresh and premium products to consumers.

All three growth engines will be supported by the operational capabilities of Masan’s internal logistics division - The Supra and AI and ML technology. The application of AI and ML helps Masan optimize costs and improve the operational efficiency of its consumer business segments.

In the first 9 months of 2023, Masan's business results remained positive, reaching VND 57,470 billion, up 3.5% compared to the first 9 months of 2022. These positive results are clear evidence of Masan's growth engine applying technology - consumer platform.

Source link: https://thanhnien.vn/giai-ma-3-dong-co-tang-truong-ung-dung-nen-tang-tieu-dung-cong-nghe-cua-masan-185231128115841456.htm