Accelerating digital transformation, Masan aims for $4.33b revenues
Masan Group Corporation is focusing on adopting technology and artificial intelligence across its daily operations and consumer experience to truly become a consumer-tech ecosystem, according to Danny Le, its CEO.
Masan Group and two of its key publicly listed subsidiaries, Masan Consumer and Masan MEATLIFE, jointly held their 2022 annual general meeting in HCM City with a shared theme, ‘Consumer of Things’ on Thursday.
Le said Masan’s mission has been to uplift the material and spiritual lives of Vietnamese consumers through innovation and transformation.
For Masan, that means serving big unmet consumer needs in the most cost-productive and scalable way possible.
Through Masan Consumer, Masan Meatlife, and Wincommerce, Masan has transformed the way Vietnamese consume and shop for food.
This year Masan provided more details on its ‘Point-of-life consumer-tech’ (POL) offline-to-online digital ecosystem as it begins transforming the way Vietnamese live (B2C), and seeks to gradually expand into how Vietnamese conduct business (B2B) to form a coherent B2B2C ecosystem in 2024 and beyond.
POL comprises of three layers.
The first has products and services that Masan offers to its consumers and merchant partners.
The second layer forms the underlying commerce infrastructure connecting ecosystem participants comprising of a loyalty programme, a 4 PL end-to-end logistics network and payment solutions.
The third is a technology platform with artificial intelligence and machine learning analytics capabilities that enable Masan to scale its ecosystem and apply data analytics to improve its core businesses and provide more personalised, convenient and accessible offerings to consumers and merchants.
The POL consumer-tech ecosystem answers two core questions that Masan has pursued throughout its history - how to uplift productivity in the consumer value chain and how to address Vietnamese consumer unmet needs - Le said.
Vietnamese consumers are getting younger, diversifying their consumption, living a more digital lifestyle, and demanding more personalised attention, convenience and accessibility.
To meet these unmet needs, Masan is expanding its products and services and applying technology to meet the changing expectations of consumers.
Artificial intelligence and machine learning technology will allow Masan to understand its consumers and smarten its loyalty programme to better engage with them, Le said.
He also spoke about the ‘Mini Mall,’ a community hub concept that pairs basic needs with financial and lifestyle needs in a single convenient Winmart+ location.
This is a point where Masan digitises its consumers by onboarding them onto a loyalty program when they shop within Masan’s ecosystem
Trường Công Thắng, CEO of Crownx, says: “Mini Mall integrates basic, financial and lifestyle needs inside a single smallscale retail location: grocery shopping at Winmart+, financial services at Techcombank, F&B at Phúc Long, telecom and digital services at Reddi, and health and well-being at a to-be-announced pharmacy.
This concept is suitable for 100 million Vietnamese consumers and can be expanded in both urban and rural areas due to its winning economic model.
In 2021 Wincommerce delivered positive EBITDA and Mini Mall aims to be EBIT and NPAT positive by 2022 and 2023, respectively.
Masan aims to grow its offline footprint to 10,000 owned stores and 20,000 franchised ones to serve 30-50 million consumers by 2025.
Its 2022 financial performance proposed to shareholders includes consolidated net revenues of VNĐ90-100 trillion (US$3.91-$4.33 billion), representing growth of 22-36 per cent.
It targets net profit after tax and pre-minority interest (NPAT pre-mi) of VNĐ6.9-8.5 trillion, 82 per cent to 124 per cent compared
to VNĐ3.8 trillion last year (which excludes one-time gains/losses and the feed segment contribution).
At the AGM, Masan Consumer proposed a cash dividend of 10 per cent (VNĐ1,000 per share), its third straight year of paying a cash dividend.