WinMart+ Goes Franchising: A Win-Win Collaboration for Retail and Household
HCM CITY, VIETNAM, January 24 – WinCommerce General Commercial Services Joint Stock Company, a subsidiary of Masan Group, has opened its first two WinMart+ franchise stores in Hà Nội and Bắc Giang.
The opening marks the start of Masan Group’s plans to have 20,000 franchise stores and 10,000 of its own outlets to serve 30-50 million consumers by 2025.
After starting operations in 2014 and being acquired by Masan in 2019, WinCommerce (WCM) is currently the largest modern retailer in Việt Nam with nearly 3,000 supermarkets and WinMart/WinMart+ stores in 60 of the country’s 65 provinces and cities. .
Under Masan’s leadership, the chain made drastic changes to everything from store layouts, product portfolio with an increased focus on fresh produce, negotiating best deals with suppliers and rebranding.
In the two years since acquiring WinMart+, Masan has integrated new utilities and experimented tirelessly to find the best model.
STOCK IT: Customers shop at the first WinMart+ franchise store in Hà Nội. Photo courtesy of Masan
The mini-mall is a modern retail model that has proven successful at Masan.
In the first nine months of 2021, WCM began testing retail stores with an integrated mini-mall concept.
In these stores, customers can purchase groceries (food and beverages) from WinMart+, tea and coffee from Phúc Long Kiosk and medicines from Phano Mart, conduct financial transactions such as cash withdrawals and deposits. cash, money transfers and bill payments at Techcombank, and access digital services on the Reddi mobile network.
It is the only consumer ecosystem that covers grocery, financial and digital services, which together account for around 80% of a Vietnamese consumer’s regular spending.
Consumers can access multiple products and services in small kiosks under one roof, increasing chain revenue/square meter through cross-selling and up-selling through convenience and an integrated loyalty platform .
Business households, Masan in a win-win partnership
Dr. Võ Trí Thành, former vice president of the Central Institute of Economic Management, said, “WinMart+ already has a certain brand and reputation. Creating a wider network will help this retailer grow stronger and stronger. Franchise partners can rely on giants, feel safe doing business with professional operating processes, reputable brands and a large number of familiar customers.”
Running a small grocery store for 20 years, Nguyễn Thị Thảo (Lê Phụng Hiểu, Hà Nội) changed his strategy to cooperate with WinMart+. Her shop now also sells fresh produce and Phúc Long tea and coffee to take away instead of the few dry goods she used to use in the past.
Thảo said, “I am very happy as my store now has more than 3,000 products from well-known and popular brands to sell to customers. Customers who come to my store all say that WinMart+ is very prestigious.
Dr Thành also talked about Masan’s achievements in digital transformation and its successful integrated mini-mall model, and said it has an extensive sourcing and sales network.
In addition to the 3,000 WinMart/WinMart+ outlets owned by the consumer goods giant, it also maintains close relationships with 300,000 traditional outlets.
“These are advantages for Masan to launch the franchise model,” said Dr Thành. VNS