Significant potential from the consumer market in Vietnam

May 23, 2022 14:30 GMT+7

Modern consumer trends are growing

With the development of society, people’s living standards are constantly improved and enhanced. The ongoing Covid-19 pandemic has pushed the Vietnamese retail market to transition to a faster modernization trend. Mr. Hoang Thanh Thuc (living in Binh Thanh District) shared: “Instead of going to the market as often as before the epidemic, my wife and I choose to order more online. If I shop directly at the supermarket, I also prefer to pay via card or transfer instead of paying in cash. Therefore, modern shopping channels such as supermarkets and mini-marts are my family’s choices.” According to statistics of NielsenIQ Vietnam, up to 64% of Vietnamese consumers said that they would continue to shop online even after Covid-19 was gone.

WinMart+ Store.

A recently formed consumer behavior is the trend of personalization: consumers need to be served experiences tailored to their personal preferences. This requires businesses to integrate the latest technologies, including AI and Machine Learning, to increase consumer understanding.

Redi telecommunications service is integrated at the WinMart+ store of Masan.

With 26 years of operation in the Vietnamese market, Masan Group is constantly expanding its consumer ecosystem by owning the largest consumer and retail companies in the country such as The CrownX – Masan Consumer Consolidation. Holdings (MCH) and WinCommerce (WCM), Masan MEATLife (MML)… Besides, Masan also expands into other fields such as F&B chain, telecommunications, cooperation with banking and technology partners to optimize and serve the needs of the modern consumer. The content and entertainment fields are also in the “target” of this group, thereby expanding the ability to meet Vietnamese consumer spending to 80%.

New step, improve customer experience

In 2022, Masan has many new steps in its journey of serving consumers, with outstanding events such as buying 31% more shares and becoming a controlling stakeholder of Phuc Long; Cooperation with fintech partners – Trusting Social; The most recent is the opening of the first Joins Pro store in Ho Chi Minh City to popularize the habit of using laundry services, increasing convenience for consumers.

Masan plans to accelerate the opening of Phuc Long kiosks in tier-2 cities.

Cooperation with Trusting Social is expected to contribute to accelerating Masan’s transformation into a consumer ecosystem – integrated technology from offline to online. Through this cooperation, Masan will integrate AI and fintech application solutions in retail and consumption, promote the development of the consumer market, increase convenience, and approach customers more effectively in order to bring customers the best services. outstanding experience. Before that, Masan also laid the foundation for digitization when buying the reddi mobile network, officially expanding into the telecommunications sector.

Entering the technology field, Masan marks a new step in 2022 with many prospects, offering effective cooperation methods and strategies to help consumers easily access forms of payment. Modern, convenient, and in line with the general trend.

Also in the last General Meeting of Shareholders, Masan has revealed an overall picture of the Point of Life Technology – Consumption (POL) ecosystem, including: Reshaping the consumption trend of Vietnamese people (B2C) in the period 2021 – 2022 and move to change the way domestic businesses operate (B2B) in the period of 2023 – 2024, thereby creating a B2B2C ecosystem in 2024 onwards.

Besides, with good signals from the consumer market in Vietnam, along with Masan’s methodical strategy and leading position in the consumer-retail sector, HSBC Global Research’s report recommends investing in Vietnam. shares of Masan (code MSN) with a target price of VND161,000. Securities companies such as HSC, Ban Viet… are forecasting MSN’s short-term target price at 158,000 – 165,400 VND/share.

Pham Trang