Masan Consumer sets new records, rapidly expanding into international markets.

As Masan Group's oldest business segment, Masan Consumer has consistently achieved strong double-digit growth, maintaining its role as one of the group's two most important pillars.

Masan Consumer sets new records, rapidly expanding into international markets.

As Masan Group's oldest business segment, Masan Consumer has consistently achieved strong double-digit growth, maintaining its role as one of the group's two most important pillars.

Masan Consumer made a significant contribution to Masan Group's nearly 7% year-on-year increase in third-quarter revenue. With sales reaching nearly VND 8 trillion, Masan Consumer achieved a growth rate of over 10% in the past quarter, ranking second only to WinCommerce in absolute sales. Notably, this also represents a record revenue level for Masan Consumer in the third quarter of each year.

After nine months, the consumer goods sector brought Masan nearly VND 22 trillion in revenue, 11% higher than the same period last year, and also the strongest growth rate among the group's business segments.

Overview of Masan's business results presentation.

Masan Consumer not only made progress in quantity but also continued to excel in quality, maintaining a gross profit margin of nearly 47% over the past year. Since the beginning of 2023, the company has improved its gross profit margin by an additional 5 percentage points, even as consumers remain cautious about spending due to the still-unrecovering economic situation.

Masan Consumer's double-digit growth and enviable gross profit margin, which many businesses would envy, did not stem from price increases but rather from a strategy of premiumizing its product portfolio, saving costs, and maintaining optimal inventory levels to best meet consumer demand. This achievement is even more remarkable given the significant increase in material and packaging costs since the beginning of the year.

Masan Consumer's specific actions include continuing to promote new premium products in the spice and convenience food sectors, while maintaining prices appropriate for key products. The premium segment currently accounts for 16% of the company's fish sauce sales and 52% of its convenience food sales, representing increases of 11% and 24% respectively compared to the same period in 2023.

Masan Consumer has also reduced non-essential promotional activities to invest in developing new distribution channels such as e-commerce, restaurants and hotels, and expanding into rural areas to reach consumers as closely as possible. Currently, the company has over 340,000 traditional sales points such as grocery stores and markets, and 6,000 points in the modern channel. Inventory at distributors remains stable at 14 days.

Chin-Su products are popular in the Japanese market.

A representative from Masan Consumer stated that they will continue to accelerate revenue growth in the fourth quarter by continuing to implement the strategy of premiumizing spice and convenience food categories, applying it to beverages, household and personal care products, and instant coffee, while streamlining some underperforming product lines to optimize profitability.

According to research by SSI Securities Company, Masan Consumer is one of the fastest-innovating companies in the consumer goods sector in Vietnam, with an average of more than 30 new products introduced to customers each year during the 2017-2023 period.

Masan Consumer takes an average of 4 to 6 months to bring many products from the planning stage to consumers. This cycle averages 2 years for many multinational corporations. "We put all our passion and intelligence into introducing the best quality products to the market as quickly as possible," a company representative shared.

With that innovative DNA, achieving the goal of continuously diversifying its portfolio of premium products to align with ever-changing consumer trends is entirely within the company's reach.

In addition to maintaining its dominant market share on domestic shelves in key sectors such as spices and convenience foods, SSI's analysis department emphasizes that Masan Consumer's internationalization strategy is beginning to yield positive results after a long period of investment.

In the first nine months of the year, exports brought Masan Consumer 801 billion VND, a 19% increase compared to the same period last year. The most notable achievement in Masan's "Go Global" journey is Chinsu, whose Chinsu Sriracha chili sauce has reached the top of the best-selling products on Amazon, the world's largest e-commerce platform, according to SSI.

As part of its "Go Global" strategy, Masan Group has signed a memorandum of cooperation with the Export Development Agency of Canada (EDC), the export credit agency of this G7 developed country. Key areas of cooperation include branded fast-moving consumer goods, branded fresh produce and meat, retail, F&B, financial services, and mineral exploration and processing.

EDC opened its first representative office in Vietnam earlier this year as part of Canada's strategy to penetrate the Indo-Pacific market. Masan is one of the pioneering Vietnamese businesses directly collaborating with this agency.

Source: https://baodautu.vn/masan-consumer-tao-them-ky-luc-moi-tien-nhanh-ra-thi-truong-quoc-te-d229483.html