Overcoming the Shock of Distribution Chain Disruption, Masan Launches Ambitious Strategy with 102,000 Grocery Stores Nationwide

In the second quarter, Masan Consumer experienced a 15.1% drop in revenue due to a crisis in the traditional distribution channel. Instead of waiting, they initiated a restructuring of their distribution model, increasing the number of stores from 70,000 to 102,000, expanding from 4 to 17 provinces. 15-20% of large retailers temporarily ceased operations, but Masan maintained a strong market share in key product lines. The restructuring aims to reduce reliance on large retailers from 60% to 30%, allowing Masan to develop a more flexible distribution network. They also invested in technology to enhance sales processes and consumer engagement. The benefits of this strategy aid in accelerating new product launches, improving market insights, and executing effective point-of-sale marketing.