Page 19 - [STUDY CASE_GROCERY WARS] Report

The "handshake" between these two "big guys" is also meant to boost
their competitiveness and take advantage of Vietnam's "booming"

online market. The proportion of revenue from e-commerce is steadily
increasing every year, according to data from the Ministry of Industry

and Trade's Department of E-commerce and Digital Economy. As a
result, if e-commerce revenue as a percentage of total retail sales of

goods nationwide reached 3.6 percent in 2018, it will rise to 4.2 percent
in 2019 and 5.5 percent in 2020.

Despite being heavily impacted by the Covid-19 epidemic in 2020,

Vietnam's e-commerce market grew at an impressive 18 percent, with
market size of 11.8 billion USD.

The deal, according to Ms. Janice Leow, Managing Director of BPEA,
will help The CrownX develop and become Vietnam's largest retail eco-

system.
Mr. Danny Le, General Director of Masan Group, stated, "The strategic

partnership agreement will help us accelerate The CrownX's
transformation into a Point of Life - an 'all-in-one' platform serving the

everyday essentials of consumers across multiple offline and online

shopping channels."
Essential retailers, particularly large-scale retailers, are experiencing a

strong online movement in the Vietnamese market. The percentage of
revenue contribution from online channels is increasing, according to

Mr. Yol Phokasub, Managing Director of Central Retail (CRC).
Masan is taking more drastic action in the strategy of bringing

essential goods online after merging the Vinmart store system of
Vincommerce. In fact, Masan estimates that online retail sales will

account for about 25% of total revenue between 2021 and 2015. Masan
Consumer's net revenue is expected to exceed 22,000 billion dongs by

2020, with online revenue expected to contribute no less than 4,000
billion dongs per year.

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