Direct distribution model: Masan Consumer's launch pad in the digital consumption era

(Dan Tri) - From the foundation of a traditional distribution system after nearly 30 years, Masan Consumer (MCH) is creating a turning point with Direct Coverage - a direct distribution model that helps expand comprehensive connections and capture growth opportunities in the Vietnamese FMCG market.

Vietnam’s fast-moving consumer goods (FMCG) market is booming with huge room for growth. Experts forecast that the industry could achieve a 9% year-on-year growth rate in 2026 (according to VPS) and a 12% compound annual growth rate in the period 2024-2029 (according to TPS Research).

The strong growth of the middle class and diverse, modern consumer needs are creating breakthrough premises for FMCG businesses that can take the initiative from production to distribution, based on a deep understanding of their typical customer base.

As a giant in the FMCG industry in Vietnam, Masan Consumer (code: MCH) - a member of Masan Group (code: MSN) - is catching up with the market adjustment as it has entered an important transition phase of the Direct Coverage strategy. MCH is ahead of the trend, proactively building direct connections to points of sale thanks to nearly 30 years of experience developing traditional sales channels (GT).

According to Masan Consumer data, the GT system in Vietnam is still the main consumer product distribution channel in a market of 100 million people with nearly 1 million traditional retail points nationwide, from small grocery stores in remote areas to bustling urban markets.

For MCH, GT is also the main distribution channel, accounting for nearly 85% of total revenue. From grocery stores, large and small points of sale in the GT channel, millions of MCH products reach consumers and help bring about sustainable growth.

However, this system has limitations when new products are more difficult to reach consumers than familiar brands, and each point of sale has a different policy to promote sales, especially products with lower consumption rates. Meanwhile, Masan Consumer is aiming to be a manufacturer of new, innovative products, meeting the increasingly diverse and constantly innovative needs of customers.

Therefore, changing the distribution strategy through GT channel is a necessary and important step for Masan Consumer, regardless of the short-term impact this activity has on revenue and profit when the market needs to adapt to the new way of operating. By October this year, MCH had completed the nationwide implementation of this project, after a long period of testing and perfecting the process.

Mr. Huynh Viet Thang, Chief Financial Officer of Masan Consumer (MCH), the main representative in charge of the Direct Coverage project, shared: “Direct Coverage is one of the strategic projects that Masan Consumer has nurtured and implemented for over a year, with the goal of improving technological capacity and optimizing the efficiency of the distribution system. Through proactive application of digital solutions, the business aims to control costs more effectively, while strengthening a solid operating foundation for the GT distribution channel.

Once the system is operational, we expect Direct Coverage to play an important role in increasing competitiveness, helping Masan Consumer continue to maintain its position in the Vietnamese fast-moving consumer goods market. On that foundation, the company will continue to pursue the goal of sustainable revenue and profit growth, bringing long-term value to shareholders."

Owning products in 7 product lines (seasonings, convenience foods, beverages and personal and family care) and a distribution network to more than 313,000 points of sale in the GT channel gives Masan the confidence to implement a direct distribution strategy, quickly transforming its role from "manufacturer" to "manufacturer and connector".

Masan deploys a digital system, with wide coverage directly to retail outlets, reducing intermediary costs and increasing inventory control, easily listening to the breath of the market and consumer needs. This solution helps the company to switch from linear distribution to a flexible network, connecting offline to online through digital platforms.

This not only strengthens its position but also paves the way for the digital transformation journey of the GT industry, where Masan Consumer can play the role of a market leader for sustainable growth.

Vietnam's FMCG market is witnessing a recovery after a long period of stagnation. Insight Asia's Vietnam Supermarket and Hypermarket Industry report released in September 2025 shows that the total retail scale in 2025 will reach 309.7 billion USD, of which modern retail channels account for 27% of total revenue, a sharp increase compared to 15% in 2005.

However, Vietnam’s per capita spending is only $120 – a level well below the $200 in Thailand and China, or only 60-65% of that of neighboring countries, according to BCG data. This difference reflects a young economy that is transitioning from quantity-based growth to quality, especially as Vietnam’s per capita income is about to reach $5,000 – similar to the stage China and Thailand were at 7-10 years ago.

At that time, consumer demand exploded not only in quantity but also in depth: from popular to high-end products, from convenience to personalized experiences. Vietnam currently has only 15% of FMCG products in the premium segment, compared to 20% in China, opening up huge room for premiumization - a trend of upgrading consumption.

Kantar Worldpanel reports predict that the middle class in Vietnam will double to 50 million people by 2030, leading to demand for organic food, nutritional drinks and health care products - areas that Masan is famous for with popular brands such as CHIN-SU, Omachi, Wake-Up 247.

The consumption potential in rural areas has not been fully exploited. With 60% of the population living here but contributing only 40% of total FMCG consumption, Masan Consumer is in a position to benefit from the nationwide WinCommerce and GT network. WinCommerce, with more than 3,500 WinMart+ stores, is not only a modern retail channel but also a "bridge" to push Masan products deep into remote areas, where logistics remains a big challenge.

Research from the World Bank highlights that when rural incomes increase by 20-30% annually, consumers will prioritize familiar and high-quality brands. This coincides with the strength of Masan Consumer, with nearly 70% market share in fish sauce and chili sauce and nearly 30% market share in instant noodles.

Direct Coverage was announced by Masan Consumer as a key strategic model, marking the shift from indirect distribution to direct access to points of sale. With the vision of "connecting brands, retailers and consumers, whether online or offline, MCH aims to fully serve the needs of more than 100 million Vietnamese people".

This model promises to be a growth driver for the next 10 years, contributing to helping Masan Consumer become one of the leading FMCG companies in Southeast Asia, with the goal of outstanding revenue and profit growth.

Built on three key pillars, each element is tested through testing phases to increase the success rate and limit the risk of implementing new initiatives.

First, restructure the sales team: from a rigid fixed route to a flexible territory model, each salesperson becomes a sales representative, deeply penetrating local sales areas, serving every point of sale within the limits. After the pilot phase, MCH's internal report shows that in the third quarter of 2025, point of sale coverage increased by 62%, along with sales team productivity improving to 102 points of sale/sales representative, corresponding to an increase of 50% over the same period.

Second, the application of technology is the "heart" of Direct Coverage, with the digitization of the entire sales management process through the AI ​​platform. Through the digital platform, points of sale connect directly to the central management system to order directly from the company through a sales support team close to actual needs, with optimal prices without intermediaries and many suitable promotions.

Through this direct connection, Masan Consumer can update real-time data on sales trends and specific consumer needs by region. Thereby, the company can adjust products and trade policies in a timely manner to promote product consumption. This two-way cooperation model contributes to increasing transparency, efficiency and sustainability in the entire sales distribution system.

As a result, sales efficiency improved with the average number of products per order reaching 3.4 products, up 50% year-on-year, reflecting better sales quality and product mix. The average sales value per point of sale in the early stages increased month-on-month, demonstrating increasingly efficient sales productivity.

Regarding new products, MCH's CFO said internal data showed that strong brands that converted to new distribution systems reached customers better and recorded positive business results in the past quarter.

Finally, optimizing service costs ensures long-term sustainability. The new distribution system helps optimize a part of sales costs, allowing Masan to reinvest in the sales representative team to expand distribution coverage. Inventory levels at distributors have also improved, to 15 days as of Q3/2025, down 8 days compared to the same period last year, showing that distribution channel inventory management has been optimized.

Although the distribution model has been completed, Masan Consumer is still in the process of completing the project. The transition from traditional methods to the new model requires heavy investment in technology, training of sales force and building a close coordination mechanism between production - distribution - data management. This is a process that takes time for the system to reach a stable state, operate smoothly and be suitable for the characteristics of each local market.

From the fourth quarter of 2025, Masan Consumer will prioritize consolidating its operating platform, improving the efficiency of cooperation with retailers, as well as applying real-time data in inventory management and purchasing power forecasting. Overall, this market coverage strategy is a long-term adaptive step, helping Masan Consumer build a more sustainable distribution platform and prepare for the next phase of explosive growth of the business./.

Content: Tien Thinh

Design: Huy Pham

November 20, 2025 - 09:00

Source: https://dantri.com.vn/kinh-doanh/mo-hinh-phan-phoi-truc-tiep-be-phong-cua-masan-consumer-trong-ky-nguyen-tieu-dung-so-20251119192348710.htm