Page 18 - [STUDY CASE_GROCERY WARS] Report

Masan Group announced on May
19, 2021 that it had transferred 5.5
percent of The CrownX's newly
issued shares (equivalent to USD

400 million) to a group of
investors that included Alibaba
Group and Baring Private Equity
Asia (BPEA).

MASAN'S CASE INTRODUCTION

Masan cooperates with Alibaba to develop a

billion-dollar retail system in Vietnam

The CrownX is valued at USD 6.9 billion Both Masan and Alibaba have put a lot of
(before issuance) in this transaction, thought into this deal, intending to
which equates to USD 93.5 per share capitalize on the "boom" in the e-
(roughly VND 2,150,000/share). Masan commerce market. Masan Consumer's
now owns 80.2 percent of The CrownX booth has also appeared on the Lazada
following the capital injection. platform, but it is still in its early stages of
Masan and Alibaba's handshake is operation and only sells two main
expected to fundamentally alter how products: "Chin-su 7 delicious gift boxes"
Vietnam's retail consumer goods and "24 boxes of Omachi noodles."
market operates. Masan is in the Masan Consumer does not have an official
process of negotiating another store on other e-commerce platforms;
strategic investment transaction worth instead, it sells its products primarily
300-400 million USD in The CrownX, through supermarkets and retailers.
which is expected to be completed in Masan Group will save money on its own
2021. Masan still has a controlling electronic platform thanks to CrownX's
interest in this case. collaboration with Alibaba via Lazada.

Vincommerce (a Masan member) can serve consumers with essential products on an
online platform on a larger scale as a result of this collaboration. The CrownX can use
Lazada's 20 million customer data to expand its customer base and gain a better
understanding of its customers through data analytics.
In Vietnam, e-commerce is a rapidly growing industry. However, high-value and low-
frequency items such as electronics, fashion, and cosmetics are mostly served through
the e-commerce channel.
Necessities (beverages, food), which account for 50% of retail sales and 25% of
consumer spending in Vietnam, are not properly served online. As a result of the
synergy between Vincommerce's existing point of sale (2,500 locations) and Lazada's
online platform, the modernization of Vietnam's retail industry will be accelerated.

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