Masan Consumer sets new record, rapidly advances to international market

Masan Consumer made an important contribution to the revenue increase in the third quarter of nearly 7% compared to the same period last year of Masan Group. With sales reaching nearly 8.000 billion VND, Masan Consumer had an increase of more than 10% in the last quarter, with absolute sales ranking second after WinCommerce. Notably, this is also a record revenue of Masan Consumer, calculated by the third quarter of the year.

After 9 months, the consumer goods sector brought Masan nearly 22.000 billion VND in revenue, 11% higher than the same period, also the strongest growth rate among the group's business segments.

Overview of Masan's business results sharing session

Not only progressing in quantity, Masan Consumer also continued to make a breakthrough in quality when the gross profit margin was maintained at nearly 47% over the past year. From the beginning of 2023, the company began to improve its gross profit margin by 5 percentage points, even while consumers were still cautious in spending when the economic situation was not too bright.

The double-digit growth results and the desirable gross profit margin for many businesses did not come from increasing selling prices but thanks to Masan Consumer's strategy of premiumizing the product portfolio, saving costs, and maintaining inventory at optimal levels with the goal of best meeting consumer demand. This achievement is even more prominent in the context of material and packaging costs increasing significantly since the beginning of the year.

Masan Consumer’s specific actions include continuing to promote new premium products in the seasoning and convenience food categories, while maintaining appropriate pricing for key products. The premium segment alone currently accounts for 16% of the company’s fish sauce sales and 52% of convenience food, up 11% and 24% respectively compared to the same period in 2023.

Masan Consumer also reduced unnecessary promotional activities to invest in developing new distribution channels such as e-commerce, hotels and restaurants, and expanding in rural areas to get as close to consumers as possible. Currently, the company has more than 340.000 traditional points of sale such as grocery stores and markets and 6.000 points in modern channels. Inventory at distributors remains stable at 14 days.

Chin-Su products are popular in the Japanese market.

Masan Consumer representative said that it will continue to boost revenue growth in the fourth quarter by continuing to implement the strategy of premiumizing the spice and convenience food industries, applying it to beverages, home and personal care, instant coffee, and streamlining some ineffective products to optimize profits.

According to the research team of SSI Securities Company, Masan Consumer is the enterprise with the fastest innovation speed in the consumer goods sector in Vietnam with an average of more than 30 new products introduced to customers each year in the period 2017-2023.

Masan Consumer takes an average of 4 to 6 months to bring many products from planning to consumers. This cycle is on average 2 years for many multinational corporations. “We use all our enthusiasm and intelligence to introduce the best quality products to the market as quickly as possible,” the company representative shared.

With that innovative DNA, achieving the goal of continuing to diversify its portfolio of premium products to suit changing consumer trends is well within the company's reach.

In addition to maintaining its dominant market share on domestic shelves in important sectors such as spices and convenience foods, SSI's analysis department emphasized that Masan Consumer's internationalization strategy is starting to pay off after a long period of investment.

In the first 9 months of the year, exports brought Masan Consumer VND801 billion, up 19% over the same period. The most prominent in Masan's "Go Global" journey is Chinsu when Chinsu Sriracha chili sauce reached the top position in best-selling products on Amazon, the largest e-commerce platform. world currently, according to SSI. 

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

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