WinCommerce accelerates, plans to open more than 100 WinMart+ this April

, WinCommerce accelerates, plans to open more than 100 WinMart+ this April

It is expected that in April 2022, WinCommerce will open more than 100 WinMart+ and 2 WinMart supermarkets. Reaching the goal in 2022, WinMart+ will reach 4,000 stores, WinMart will reach more than 170 supermarkets, continuing to maintain its position as the leading retail chain in terms of national scale.

Economic experts see that, in the long-term, Vietnam is a potential retail market with nearly 100 million people, classified as a group of countries with a strong middle class and rapid urbanization in Southeast Asia (9.2%/year). It is predicted that in the next 5-10 years, Vietnam’s economy in general and the retail industry in particular are very potential with many favorable development conditions.

Domestic enterprises rise to the top of the retail market

In fact, the retail market share in recent years has changed significantly. If in 2016, statistics show that more than 50% of Vietnam’s retail market share has gone to foreign businesses. But after only nearly 5 years, the number of domestic retail enterprises has had a superiority in the number of points of sale as these enterprises continuously expand their coverage and dominate the retail market.

According to retail businesses, in 2022, the trend of modernizing the traditional sales channel and changing the model of quick buy and sell quickly will develop more and more. Another trend is retail strategy that puts individual customers first. Retailers that optimize the experience for customer retention and apply multiple sales process metrics will have a better edge to dominate the market.

The expansion of coverage shows that domestic retail businesses do not give up, still quietly expanding their scale, reversing the situation to master the “home turf” with their own capabilities.

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Domestic retail businesses have shown their cleverness when both consolidating market share in big cities and provinces, and targeting niche markets and rural areas. This is a smart choice to meet consumers’ fast and convenient buying trends.

For example, the WinMart/WinMart+ chain, with a nationwide scale system, has had significant revenue improvements and reduced losses after only 2 years of being restructured by Masan with an integrated retail strategy. potential multi-utility model.

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The changes in business results of WCM are similar to the business situation of WinMart/WinMart+ chains, especially stores with integrated Phuc Long kiosk, operating under the mini-mall model. The mini-mall model, which Masan said is the successful growth formula for WCM, is proven by business metrics.

Masan’s latest report shows that WCM’s EBITDA in 2021 has improved by VND 2,334 billion, reaching a profit of VND 1,100 billion. From a loss of 1,234 billion dong in 2020, WCM has profit after tax in the last 6 months of 2021, marking the first half-year profit.

Replicate the successful formula, quickly gain the advantage

Major foreign retail groups such as Lotte, Central Group, Aeon, Circle K, K Mart… have continuously promoted their strategies to penetrate and expand the retail market in Vietnam. This shows that the potential of Vietnam’s retail market is huge. To gain market share, it is necessary to quickly replicate the successful model.

Right in the third quarter of 2021 – the first quarter of WCM’s profit, Masan Group CEO Danny Le said that the company has made efforts to reopen the chain, with the goal of rapidly increasing its coverage, both in the form of self-ownership and franchising. commercial, bringing WCM to a new page.

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The mini-mall model is a combination of WinMart+, Phuc Long, Techcombank and pharmaceuticals. In addition, Masan has also prepared for WCM’s digitization platform by acquiring Mobicast – the owner of the Reddi mobile network brand. Masan leadership believes that this will change the retail game in the near future by providing fintech solutions.

The report on Southeast Asia’s digital economy by Google, Bain and Temasek shows that the trend of shopping for essential products on e-commerce platforms has grown strongly in recent years. Specifically, the share of this category in the total value of goods purchased online has increased from 4% in 2015 to 11% in 2020. This number is expected to reach 15% by 2025.

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It is expected that in April 2022, WinCommerce will open more than 100 WinMart+ and 2 WinMart supermarkets. Reaching the goal in 2022, WinMart+ will reach 4,000 stores, WinMart will reach more than 170 supermarkets, continuing to maintain its position as the leading retail chain in terms of national scale.

A representative of this chain said that, with Masan’s strength, WinMart/WinMart+ is the end point of the distribution chain from production to retail, always maintaining the proportion of Vietnamese products reaching more than 90%, carrying out many activities to promote products. Prominent domestic production is connecting agricultural product consumption with localities.

@ Vietnamnet

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