Page 29 - [STUDY CASE_GROCERY WARS] Report

PART 3

CONCLUSION

As can be seen from the M&A case of Amazon and Whole Food, Masan
joining the retail game would provide enormous long-term benefits, it
will be a major challenge for the business in the immediate term,
particularly in terms of profit.
Masan's performance has improved since the M&A deals. Masan has

discovered a viable retail model after taking over VinCommerce for a
year. VinCommerce made a profit of 16 billion dong in the first quarter
of 2020, aiming for a positive EBITDA target for the entire year of 2021.

This retail chain will also be renamed WinMart (supermarket) and
WinMart+ at the same time (mini-supermarket).
MasanConsumerHoldings, on the other hand, experienced its first year
of revenue exceeding one billion dollars.

However, to prepared for Amazon and Walmart’s entering Vietnam
market, Masan have to learn from the king of online grocery, which is
Walmart. For Walmart, the success of this traditional business when
moving from offline to online is to focus its resources on the area that

it understands best, which is food, instead of following the competition
with Amazon.
With such a clear line, it's not surprising that Walmart is gradually
gaining success instead of running out of breath and giving up like

many other retailers just because of trying to compete with Amazon.
As a result, Masan should not try to keep up with cutting-edge
technology; instead, they should focus on understanding their
customers and tailoring the business to meet everyone's financial

situation. This is something international retail businesses would
struggle to keep up with if they do not understand the psychology and
wants of their customers in each location. Meanwhile, Masan has a far
better understanding of the Vietnamese market, which allows them to

give their clients more control and improve the shopping experience.

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