Speaking at the “Winning with Al, Data Science and Machine Learning” meeting on Monday in HCM City, Danny Le, CEO of Masan Group, said: "Through our ongoing commitment to innovation, Masan strives to establish itself as a leading consumer technology ecosystem, shaping the retail industry’s future in Việt Nam."

Speakers at the “Winning with Al, Data Science and Machine Learning” meeting in HCM City on Monday. — Photo courtesy of Masan Group.

According to the Ministry of Industry and Trade, Việt Nam’s retail industry is worth US$142 billion and expected to rise to $350 billion by 2025, contributing 59 per cent to GDP.

With nearly 100 million people and a young population with a willingness to spend and adapt, the retail market is very promising.

However, there is still a lack of connectivity between the various parties in the supply chain, particularly in the case of essential food items, leading to market fluctuations due to the impact of consumer psychology.

The pandemic and economic downturn have also influenced consumer habits and shopping methods, and retail enterprises need to adapt to the new trends. 

According to a Q2/2023 report released by Kantar Smart Shopper, without signs of economic recovery in the country, people are shifting towards at-home consumption and tightening spending, prioritising value for money.

To adapt to market trends and tap the $350 billion market, retail consumer enterprises need to undergo digital transformation and apply AI and ML technologies. 

Masan, as a large modern consumer retail enterprise, has been aggressively pursuing digital transformation to become a consumer technology group, and has made significant progress since 2022.

According to a recent report by J.P. Morgan, Việt Nam is one of the most attractive growth stories in terms of retail consumption in the Asia-Pacific region. However, the penetration of Việt Nam’s retail merchandise sector is still shallow, accounting for only 12% in 2022, much lower than the 20-45% range among ASEAN countries and higher only than India’s 8%.

Masan’s 27-odd years of experience in the consumer sector enables it to understand the market’s challenges. It has addressed the difficulties throughout the consumer value chain, including in branding, products, services, and inventory management for retailers and the overall consumer experience.

One challenge that Masan is working on is a lack of data to serve the purposes of innovation and product development. 

Customers shop at a WinMart store belonging to Masan Group. — Photo courtesy of Masan Group.

For example, in changing product packaging, the company needs data on consumers’ preferred colours, packaging materials and patterns among others in order to come up with an optimal plan.

Masan is also addressing high procurement costs and the risk of lost sales due to a shortage of goods at points of sale and improper inventory management at retail points. 

Retailers also face challenges due to improper inventory management and monitoring the flow of goods and inventory across different retail channels.

To address these challenges, Danny Le highlighted a strategy to build Masan’s Point of Life network, an offline-to-online ecosystem leveraging technology for data analysis, which will address these challenges and improve business operations through the entire consumer value chain.

Masan also plans to enhance consumer experiences by providing personalised offers based on individual purchasing history. 

“The company’s outlook for 2023 and beyond is to continue experiencing growth by expanding its investment in technology, particularly in AI and ML technology,” Danny Le noted. — VNS