New card for Masan’s 100,000 billion revenue plan

This year, Masan sets a target of net revenue of 90,000-100,000 billion, a slight increase compared to the previous year but profit after tax is expected to decrease sharply to 6,900-8,500 billion. In this plan, WinCommerce, which manages the WinMart supermarket chain and WinMart+ stores, is expected to contribute VND38,000-40,000 billion in revenue. The level of revenue is quite similar to Masan Consumer, a company that manufactures consumer goods. As for Masan MEATLife, a pork and chicken trading company, revenue is expected to be 5,000-6,000 billion VND.

According to the management of this business, the key to achieving the goal of 100,000 billion this year is the “Point of Life” strategy – serving essential products and services on one platform from offline to online. The business plan of each member unit also takes this strategy as a growth target and driving force. The difference compared to previous years is that Masan has defined a “mini mall” model to realize this strategy, i.e. a store that integrates many services such as groceries (WinMar), financial services (Techcombank). ), tea and coffee (Phuc Long), health care (Phano).

According to Masan Chairman Nguyen Dang Quang, the retail model of pure necessities does not bring economic benefits if deployed in rural areas – where the majority of consumers are located. Therefore, the company experimented and found the winning formula by “mini mall”. The revenue to break even at the “mini mall” decreased from 20 million VND to 14 million VND per day.

Masan wants to replicate the “mini mall” model to 30,000 stores by 2025 and add two missing pieces: content and entertainment. The company also plans to build a digital kiosk model that integrates many utilities such as cashless payment, withdrawal and top-up, distribution of phone sims, and introduction of promotions.

“Mini mall is the key to unifying the entire spending needs of consumers and expanding the scale of the platform from online to offline”, said Mr. Quang, at the same time affirming that this is the solution to the problem of how to serve customers. serve 100 million consumers without “burning money” like e-commerce platforms.

According to analysis by Viet Capital Securities Company (VCSC), mini-mall will be the main distribution channel for potential financial products of Masan in the future. After completing the ecosystem, the mini mall model is predicted by Masan to increase its ability to meet consumer spending needs from 25% to 60-80%.

He also said that Masan this year will bet on artificial intelligence and machine learning to complete the retail ecosystem.

According to the head of Masan, these two technologies are applied to help Masan analyze and select the product portfolio in each store according to consumer tastes. As a result, the company reduced sales loss, shortened inventory days, reduced orders, but increased the level of consumer satisfaction.

Using cameras and artificial intelligence, Mr. Quang affirmed, is simplifying the sales process, freeing employees from time-consuming tasks. This retail chain also builds a user identifier tool to understand shopping habits and behaviors in order to shorten the product innovation cycle and personalize the way to communicate and interact with consumers.

Last year, Masan had revenue of approximately VND 88,630 billion. WinCommerce contributed VND 30,900 billion, followed by Masan Consumer brought in VND 28,760 billion and maintained a profit margin of over 41%. The rest of the revenue comes from meat brand Masan MEATLife and mining company Masan High-Tech Materials.

Orient – Siddhartha