This strategy has evolved into a Direct Coverage model, which not only serves as a new growth driver for the company but also represents an adaptive step amid fundamental structural and operational shifts in the distribution landscape. By September 2025, MCH had completed the nationwide rollout of the new Direct Coverage model.
Traditional Retail - The “Backbone” of Vietnam’s FMCG Market Undergoing Restructuring
Vietnam’s consumer goods market is experiencing a structural shift in its traditional distribution system (General Trade - GT), which still contributes more than half of total industry revenue. Since the introduction of new tax regulations for household businesses in 2025, many retailers - from large distributors to small grocery stores - have adjusted their procurement and inventory policies to align with changing costs and consumer demand.
Reducing inventory levels has helped them better manage financial risks but has also slowed product circulation, especially for essential goods.
Under the new regulations, effective June 1, 2025, household businesses with annual revenue exceeding VND 1 billion, or those using point-of-sale systems or tax declaration, must issue electronic invoices with real-time data transmission. Subsequently, starting January 1, 2026, the “lump-sum tax” regime will be fully replaced by a declaration-based system, where household businesses will be classified into three revenue tiers for appropriate tax assessment.
This reform aims to standardize tax administration and enhance transparency across business models. However, during the transition, many small retailers are still adjusting, leading to temporary slowdowns in product supply in certain areas.
Masan Consumer’s Answer: The Direct Coverage Model
In this context, Masan Consumer has implemented the Direct Coverage model - a solution that allows the company to directly reach retail outlets, reduce intermediary layers, and improve inventory control and market responsiveness.
This model is designed to support retailers and consumers during the transition period while helping MCH establish a flexible, data-driven, and sustainable distribution platform ready for the next growth phase of the FMCG market.
The model operates based on three core pillars: restructuring the salesforce, applying technology, and optimizing service costs. The company has shifted from a fixed-route model to flexible geographic coverage, enabling direct access to new outlets.
At the same time, Masan Consumer has enhanced sales management productivity through a digital platform that connects market data and distribution activities in real time. After the pilot phase, outlet coverage increased by 62%, and average productivity per salesperson rose by 48%, demonstrating the initial effectiveness of this new approach.
This market coverage strategy is powered by artificial intelligence (AI) and real-time data, allowing the company to expand scale while maintaining operational control. The AI system supports sales teams in identifying priority outlets, recommending product assortments and promotional programs tailored to each region, while each outlet is assigned a unique QR code to update sales, inventory, and customer feedback.
The integration of technology and data enables Masan Consumer to manage product flow more flexibly, reduce excess inventory, and maintain supply chain stability amid fast-changing market conditions. According to the company, the reorganized direct salesforce can now cover 1.5 times more outlets compared to the previous model.
Technology also empowers each sales representative to plan visits, receive notifications, and manage outlet lists directly on a mobile platform - optimizing travel routes and working time. As a result, products reach consumers faster, product penetration deepens, and responsiveness to market demand improves significantly.
After more than a year of implementation, the new market coverage strategy has delivered positive initial results, enabling Masan Consumer to maintain stable growth and strengthen its presence in key areas. However, the company continues to refine the model, especially in integrating data and standardizing system-wide processes.
The transition from a traditional to a direct distribution model requires ongoing investment in technology, workforce training, and cross-functional coordination between production, sales, and data management units. These efforts take time to achieve full operational stability and ensure the model is adaptable to the characteristics of each local market.
Mr. Huynh Viet Thang, Chief Financial Officer of Masan Consumer, shared: “Direct Coverage is one of the strategic projects Masan Consumer has developed and implemented over the past year, with the goal of enhancing technological capability and optimizing distribution efficiency. Once the system achieves full stability, we expect this model to strengthen our operational foundation, improve cost control, and enhance the company’s long-term competitiveness.”
Entering the second half of 2025 and beyond, Masan Consumer will focus on expanding the model nationwide and deepening its integration with WinCommerce’s retail network, aiming to build a seamless, efficient, and sustainable supply chain.
This new market coverage strategy thus serves as a long-term platform, enabling Masan Consumer to reinforce its distribution capabilities and prepare for the next stage of growth as the market returns to equilibrium.