Page 22 - [STUDY CASE_GROCERY WARS] Report

MASAN’S INFORMATION SYSTEM

TECHNOLOGY

Masan's strategy to expedite The CrownX's offline-to-online (O2O) transformation can be
considered to include the above relationships.
Masan has stated that starting in 2020, it will take advantage of offline channels and
encroach into the web segment. Masan has a significant edge in offline distribution because
of its tight association with Masan Consumer, which owns more than 2,500 modern retail
outlets VinMart and VinMart+ across the country, as well as more than 300,000 traditional
selling locations.
Masan's products will reach 20,000 Lazada customers as a result of their partnership.
Necessities, on the other hand, will be the item that draws customers to Lazada. Masan sets a
goal that in the near future, the total value of goods sold through The CrownX's online
channel will account for at least 5% of the company's total sales. This "all-in-one" platform is
dubbed Point of Life by Masan. Essential products and services account for 50% of the
Vietnamese retail market and 25% of consumer spending. These products and services,
however, are not yet well serviced, and there is plenty of space for expansion.
The majority of products offered on e-commerce sites are non-essential, high-value, and low-
frequency items such as technology, fashion, and cosmetics. Food and beverages are
necessities that customers purchase frequently, have a low value, and are used on a daily
basis.
Food and beverages are necessities for which consumers have frequent purchasing needs, a
high frequency of usage every day, and a low order value, but their accessibility through
online channels is limited.
Masan's well-organized approach also includes super apps. Masan integrates selling on super
applications and e-commerce platforms when there is a robust supply chain of offline items.
For firms who understand the value of data analytics, data sources from offline and online
client files are also a valuable "gold mine."
The leader of the Masan Group stated: "Masan presently processes over 1 million transactions
each day, and by 2025, that number will have grown by 5-10 times. This large volume of
transactions will give us with a significant source of data that will help us better understand
customers and serve them ".

19