Masan: WinCommerce launches the first WinMart + franchised outlets

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December 31, 2021

WinCommerce launches the first WinMart + franchised outlets

WinCommerce General Commercial Services JSC, member of Masan Group, opened the first two WinMart + franchise stores in Hanoi and Bac Giang. The opening marks an important step in the Masan Group’s goal of developing 20,000 franchise stores and 10,000 of its own outlets to serve 30 to 50 million consumers by 2025.

WinMart + is franchised as a mini multi-utility mall equipped with automatic ordering and inventory control system and professional training for its staff. WinCommerce will also adapt its product portfolio to meet local demand, making it easy for franchisees to take advantage of higher returns.

WinCommerce targets both individuals and businesses who are interested in modern retail and can meet franchise requirements in terms of premises and capital. Specifically, they must have townhouses or stores and must be prepared to invest VND 1-2 billion ($ 43,197- $ 87,834) for the store. The room must be more than 100 square meters with a front facade at least 6 meters wide. Preferred locations would be main streets and residential buildings.

WinCommerce is Vietnam’s largest modern retailer with 3,000 WinMart / WinMart + supermarkets and mini-markets in 60 locations. The retailer keeps more than 90 percent of Vietnamese products in its system. The retail chain records 32 million customer visits each month.

The traditional retail channel accounts for over 70 percent of Vietnam’s retail market. Meanwhile, modern retail only accounts for 20 percent of the market share, which is expected to grow rapidly in the future. At present, the traditional retail business is still fragmented on a small scale while its standard services are limited. This means that consumers pay more for their daily essentials.

The Masan group’s vision is to develop a point-of-life platform that can meet all of the essential customer demands. The group aims to serve 30 to 50 million customers by 2025 by operating 10,000 of its own stores and 20,000 franchised outlets. With this model, consumers will save 5-10% on their essential demand while manufacturers and farmers will increase their income by 5-10%. Franchise partners will also increase their profits by 5-10%.

“Our advantage is that thousands of Masan sellers already have good relationships with over 300,000 physical stores. With a commodity strategy and a large scale, Masan is able to negotiate to buy commodities from suppliers at a better price. The company also offers self-made products and has a streamlined retail model. The WinMart + franchise is a “win-win” model where retailers can sell better and buyers have a better experience.“said Nguyen Thi Phuong, deputy general manager of WinCommerce.

The first WinMart + franchised stores are opened with Phuc Long Kiosk and the Reddi mobile network. WinCommerce will continue to expand the WinMart + franchise store model with multi-utilities in the coming times.

Source: Vietnam Investment Review

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