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21 May

FPT Retail’s pharmacy stores chain sets turnover target at 500bn VND

FPT Retail plans to open 48 new stores of the Long Chau pharmacy store chain in this year. 

At the annual general meeting of shareholders in the morning of March 27, most questions of investors for the leadership of FPT Digital Joint Stock Company revolve around the venture into pharmaceutical retail section. This is the new section deployed by the Company since the end of 2017 after its acquisition of Long Chau pharmacy stores chain.

Ms. Nguyen Bach Diep, the Company’s Chairwoman of Board of Directors and CEO admits it was very daring of her to obtain over 70bn from the Company to personally venture into this section although she had no relevant experience. She decided she had to acquire a pharmacy store chain of small scale to limit risks and evaluate performance.

“When learning of our intention to join the pharmaceutical retail section, many chains offered to sell their stores and brand names to us. However, we chose Long Chau as the chain possessed 4 stores, each of which gained a whopping average turnover of 3bn VND per month. We were intrigued to know how they could attract customers and how their turnover vastly outdo other chains,” said the FPT Retail’s leader.

After 2 years of taking-over, Ms. Diep experimented various models for the pharmacy store chain including putting them in the same location of FPT Shops to cut location cost, utilizing the readily available customer base or opening pharmacy stores adjacent to competitors’ stores in the same area and around hospitals.

By the end of last year, Long Chau pharmacy store chain expanded to 22 stores in Ho Chi Minh City, Dong Nai with new stores to be opened in Tien Giang and An Giang.

A pharmacy store of FPT Retail in Cu Chi District, Ho Chi Minh City. Photo: Long Chau Fanpage.

Pharmaceutical retail brought in over 380bn of turnover in 2018. Medicines and functional foods account for 58% and 30% respectively in the structure of turnover by product. The rest come from medical equipment and cosmeceuticals.

FPT Retail estimates the pharmacy store chain is recording a turnover of 1.6bn per day. This year turnover is expected to be 500bn, while net loss is expected to be about 20bn.

The Company’s leadership thinks bearing the small amount of loss for the first 2 years for chain building is normal. Such bearing is even more satisfactory in comparison with when the Company began developing its mobile phone retail section as vast amounts of resources were poured into building logistics, increasing the number of pharmacy stores and building a staff with suitable management and professional capabilities.

“There are 30,000 pharmacy stores of various sizes nationwide, but there is no truly dominating player. Opportunities are still abundant out there. Our key task is to expand to 70 stores within this year and to 700 by the end of 2022,” said Ms. Diep. She also stated she would evaluate the possibility of distributing or investing into pharmaceutical factories should there be favorable conditions.

In her previous interview with VnExpress Ms. Diep gave the opinion that the pharmaceutical retail section had high profit potentials backed by various indicators. For instance, the market size is about 4.5bn USD (equivalent to the size of mobile phone section and higher than that of household appliances and laptop retail sections) with guaranteed 2-digit annual growth rate thanks to its independence from economic situations and the estimated annual spending of 30 USD on pharmaceuticals of each Vietnamese person, etc.

 

According to Phuong Dong, Vnexpress

13 May

The cooperation between FPT Shop and Nguyen Kim in selling televisions, refrigerators, air conditionings, and washing machines, etc.

With the new business in electronics, FPT Shop and The Gioi Di Dong are quite in common when they both sell mobile phones, electronics and medicines.

FPT Shop hợp tác với Nguyễn Kim, bắt đầu bán tivi, tủ lạnh, máy lạnh, máy giặt...

According to FPT Shop’s information, from 11 April, FPT Shop officially cooperated with Nguyen Kim Shopping Center.

FPT Shop revealed that the customers can look up for the products’ information, selling prices, promotions, installments and even make online orders of all the electronic products that are available at Nguyen Kim through FPT Shop’s electronic website. The price policies of FPT Shop is the same as Nguyen Kim’s.

The cooperation with Nguyen Kim will help FPT Shop to have a wide range of products, higher rate of access, which will increase cross-selling capability. Meanwhile, for Nguyen Kim, the sales through a website which has a high rate of access like FPT Shop will help boost their revenue.

Through observation, the products displayed on FPT Shop’s electronic website include air conditionings, televisions, washing machines, cameras, and household appliances, etc.

With the expansion to electronic industry, FPT Shop and The Gioi Di Dong are quite in common, they both sell mobile phones, electronics and medicines. However, FPT Shop has just cooperated with an electronics retailer, while The Gioi Di Dong has already had their own chain.

In reality, The Gioi Di Dong started to sell electronics since 2010, but it was not until the end of 2016, its business began to massively expand. At the moment, Dien May Xanh is the biggest electronic chain in the market with 766 stores gaining revenue of more than VND47,000 billion in 2018.

 

According to Hà My, Cafebiz

13 May

FPT Shop experimented with electronics business, not for the aim of gaining the market share

With the business expansion to the electronics field to take advantage of the online sales, FPT Shop said that the new business is being experimented, hence, they are not thinking about gaining the market share.

Mr. Ngo Quoc Bao, Director of the FPT Retail Center for E-Commerce and Technical Services, told ICTnews that FPT Shop has just experimented in selling electronic products via online channels, the business has not been officially implemented yet, so we now have not planned on how much we will gain the market share in such new industry.

On 11 April, FPT Shop officially launched electronic products on their website. All the electronic products available on FPT Shop’s website are provided by Nguyen Kim, a long-term electronics retailer in Ho Chi Minh City and many other provinces and cities nationwide.

A corner of Nguyen Kim Electronic Appliance Center – Photo: Hai Dang

FPT Shop is ranked second in the mobile phone retail system in terms of the number of chains. The biggest competitor of FPT Shop is The Gioi Di Dong, which has quickly opened a chain of electronics many years ago and is currently holding the largest market share in this segment. Electronics is the closest industry to mobile phones; however at the moment, FPT Shop is new in this industry, therefore they will surely face more difficulties.The new products of FPT Shop are launched also with the aim to increase revenue, in the context of forecasting the growth of mobile phones in Vietnam in 2019 by only about 1%, according to GfK.

“We have been researching this market many years ago and now is the right time”, Mr. Bao replied to ICTnews.

This cooperation is based on the optimal strengths of the two parties, Mr. Bao said, referring to the advantages of e-commerce segment of FPT Shop and a wide range of products as well as experiences in electronic sales of Nguyen Kim.

“The main aim is to take advantage of the optimal strengths, the variety of products, and to provide more special treatments to bring the customers to the main product of FPT Shop, this is not for the aim of gaining the market share”, Mr. Bao replied concerning the target of market share when expanding new business.

The cooperation to open the electronics business of FPT Shop was quite unexpected when such business was not included in the business plan of 2019 in the Annual General Meeting of FPT Retail this year, said the owner of FPT Shop.

In the first phase, electronics will only be sold online and not displayed at FPT Shop stores. Mr. Bao said: “The sales is initially conducted online because online channel is one of FPT Shop’s strengths that our counterparty in this project wants to take advantage of”. “After the process, the systems as well as the ability of coordination of the two parties have been completed, we will have a comprehensive evaluation for further cooperation”.

Before engaging in expanding business to electronic industry, FPT Shop has joined pharmaceutical retail business a few years ago. FPT Retail acquired Long Chau drugstores and planned to gain 30% of the pharmaceutical market share in 2022.

In 2019, FPT Retail has planned to reach the revenue of VND17,700 billion, profit after tax of VND418 billion, equivalent to the growth of 16% and 20% compared to 2018. FPT Shop revealed that in 2019, they will open 100 additional stores, reaching 633 stores in total. Besides the expansion in large central areas, the new stores will be available in residential areas of unexploited districts and communes.

In 2018, FPT Retail’s total revenue reached VND15,298 billion, up 16% compared to 2017. Online revenue was at VND2.432 billion, with the growth of 21%. Profit before tax reached VND435 billion, profit after tax reached VND348 billion, up 20% compared to 2017.

 

According to Hai Dang, ICTnews

13 May

AGM of Shareholders of FPT Retail: Plan to expand number of pharmacy stores to 70 into provinces neighboring Ho Chi Minh City

FPT Retail stated they are planning to expand in 2019 the number of pharmacy stores into 70 into provinces neighboring Ho Chi Minh City such as Binh Duong, Long An, etc.  Meanwhile in Ho Chi Minh City, there has been no Long Chau store failing to break even later than 6 months.

ĐHCĐ FPT Retail: Dự kiến nâng số lượng cửa hàng thuốc lên 70, hướng đến các tỉnh lân cận TP. HCM

In the morning of March 27 at Continental Saigon Hotel, FPT Digital Joint Stock Company (FPT Retail, HoSE stock code: FRT) held its Annual General Meeting of Shareholders of 2019.

At the AGM, shareholders voted to approve significant contents of the Company including: Approving the 2018 income statement of 2018 and audited financial statements, the 2019 business plan; the profit distribution plan for 2018 and 2019, the plan of issuing ESOP shares for 2018 and ESOP shares issuing policy for 2019; the report on remuneration for the Board of Management and Supervisory Board in 2018 and the remuneration plan for 2019.

In the year 2019, FPT Retail aims to achieve 17,700bn in turnover and 428bn in expected profit after tax, which means a growth rate of 16% and 20% respectively compared to 2018.

FPT Retail stated they are planning to expand in 2019 the number of pharmacy stores to 70 into provinces neighboring Ho Chi Minh City. The pharmacy industry has significant long-term growth potentials. Therefore, FPT Retail set the initiative to develop into this industry with good planning and control as similar to operating the electronic retail system of the Company. The Company will accordingly focus on building logistics, increasing the number of pharmacy stores and developing a staff with suitable management and professional capabilities.

In Vietnam, the pharmacy retail industry is divided practically into 3 channels – hospital channel, clinical channel and pharmacy store channel. FPT Retail expects to gain a market share of 30% of the pharmacy store channel in the coming 3-4 years. Accordingly, the pharmacy retail industry is anticipated to contribute about 40% into FPT Retail’s expected turnover of 10,000bn VND.

At the AGM, FPT Retail leadership shared the plan to open Long Chau pharmacy stores in provinces neighboring Ho Chi Minh City including Binh Duong, Long An, etc. Stores in Ho Chi Minh city has quite stable business performance without any store having breaking-even point later than 6 months. Moreover, the number of Long Chau pharmacy stores can be small but they achieve 3bn VND of turnover each month, while an ordinary store can do only 300-400mn per month.

As for the store network, FPT Retail said apart from urban centers, new FPT Shops would be opened further towards residential areas of presently uncovered districts and communes.

The Company will also keep on improving and applying many technologies in the process of approving and managing customer files and risks. Furthermore, FPT Retail would develop project staff at each region in order to search for and utilize optimally potentials from affiliated businesses as well as to run the project more effectively.

For instance, with the F.Friends program, the Company’s representatives would directly reach enterprises for contract signing, after which employees of such enterprises would be allowed to buy any product on credit at the interest rate of 0%, monthly installments would be deducted directly into their salaries. The FPT Retail leadership sees this as more professional buying compared to normal buying on credit.

As for the share price, the leader of this retail chain said that the FRT share is at a very high price compared to its genuine value. The Company is hiring consultants to find suitable solutions in this matter for shareholders.

 

According to Thanh Long, VietnamFinance

13 May

FPT Retail’s pharmacy stores chain sets turnover target at 500bn VND

FPT Retail plans to open 48 new stores of the Long Chau pharmacy store chain in this year. 

At the annual general meeting of shareholders in the morning of March 27, most questions of investors for the leadership of FPT Digital Joint Stock Company revolve around the venture into pharmaceutical retail section. This is the new section deployed by the Company since the end of 2017 after its acquisition of Long Chau pharmacy stores chain.

Ms. Nguyen Bach Diep, the Company’s Chairwoman of Board of Directors and CEO admits it was very daring of her to obtain over 70bn from the Company to personally venture into this section although she had no relevant experience. She decided she had to acquire a pharmacy store chain of small scale to limit risks and evaluate performance.

“When learning of our intention to join the pharmaceutical retail section, many chains offered to sell their stores and brand names to us. However, we chose Long Chau as the chain possessed 4 stores, each of which gained a whopping average turnover of 3bn VND per month. We were intrigued to know how they could attract customers and how their turnover vastly outdo other chains,” said the FPT Retail’s leader.

After 2 years of taking-over, Ms. Diep experimented various models for the pharmacy store chain including putting them in the same location of FPT Shops to cut location cost, utilizing the readily available customer base or opening pharmacy stores adjacent to competitors’ stores in the same area and around hospitals.

By the end of last year, Long Chau pharmacy store chain expanded to 22 stores in Ho Chi Minh City, Dong Nai with new stores to be opened in Tien Giang and An Giang.

A pharmacy store of FPT Retail in Cu Chi District, Ho Chi Minh City. Photo: Long Chau Fanpage.

FPT Retail estimates the pharmacy store chain is recording a turnover of 1.6bn per day. This year turnover is expected to be 500bn, while net loss is expected to be about 20bn.Pharmaceutical retail brought in over 380bn of turnover in 2018. Medicines and functional foods account for 58% and 30% respectively in the structure of turnover by product. The rest come from medical equipment and cosmeceuticals.

The Company’s leadership thinks bearing the small amount of loss for the first 2 years for chain building is normal. Such bearing is even more satisfactory in comparison with when the Company began developing its mobile phone retail section as vast amounts of resources were poured into building logistics, increasing the number of pharmacy stores and building a staff with suitable management and professional capabilities.

“There are 30,000 pharmacy stores of various sizes nationwide, but there is no truly dominating player. Opportunities are still abundant out there. Our key task is to expand to 70 stores within this year and to 700 by the end of 2022,” said Ms. Diep. She also stated she would evaluate the possibility of distributing or investing into pharmaceutical factories should there be favorable conditions.

In her previous interview with VnExpress Ms. Diep gave the opinion that the pharmaceutical retail section had high profit potentials backed by various indicators. For instance, the market size is about 4.5bn USD (equivalent to the size of mobile phone section and higher than that of household appliances and laptop retail sections) with guaranteed 2-digit annual growth rate thanks to its independence from economic situations and the estimated annual spending

USD on pharmaceuticals of each Vietnamese person, etc.

 

According to Phuong Dong, Vnexpress

 

9 May

Pharmaceuticals drives FPT Retail’s growth

Saturation has hit the mobile phone retail market, which urges FPT Digital Joint Stock Company (FPT Retail, stock code: FRT) to get a firm grasp on the pharmaceutical retail section and venture into trading products it has no experience about.

Acquisition of the Long Chau pharmacy store chain

FPT Retail dedicated the whole year of 2018 in experiments and search of a general formula for expansion of Long Chau pharmacy store chain with the number of stores in 2021 30 times as many as the current number.

Previously in the end of 2017, Ms. Nguyen Bach Diep, Chairwoman of BOD of FPT Retail, the person undertaking to borrow nearly 71bn VND from the Company to “secretly” buy 75% of stocks of 4 stores of Long Chau pharmacy chain. Throughout the experimental period, Ms. Diep informed the press this was her personal project.

At the 2019 Annual General Meeting of Shareholders held recently, Ms. Bach Diep disclosed the experimental period of Long Chau chain model in 2018 when store locations were continuously changed. Store locations moved from streets near crowded residential areas to areas around hospitals and markets, even adjacent to competitors’ stores.

There was an experimental location which made very good turnover and gained profit right in the first month.

At the acquisition, Long Chau chain had 4 stores and suffered a monthly loss of about 100mn VND each month as the medicines were near or past expiry dates. This amount has now lowered to over 10mn VND each month, while the daily turnover of the 22 store chain scores 1.6bn VND.

FPT Retail expects Long Chau chain’s loss in 2019 to be 20bn VND and a turnover of 500bn VND.

“In 2020, this pharmacy store chain will reach the breakeven and bring in 1,910bn VND in turnover. In 2021, Long Chau will make a profit of 62bn VND and the turnover of about 4,370bn VND,” Ms. Diep believed.

At the 2018 AGM, FPT Retail presented the plan to open only about 400 Long Chau pharmacy stores from then to 2022. However, after finding a general business formula, the Company announced a more ambitious plan of making a turnover of 6,500bn VND from 700 Long Chau stores and a profit of 193bn VND in 2022.

Beside medicines, Long Chau stores will also trade in medical equipment, cosmeceuticals and functional food.

Ups and downs with “the bitten apple”

FPT Retail is testing in 3 projects, one of which being the electronic appliances section. Meanwhile, this enterprise with 347bn VND of profit for 2018 is having a hard time with products under the brand name Apple.

“We estimated there was about 40% of the market of Apple products were distributed as hand-carried goods. But the ratio may have risen to above 60%. Trading of newer iPhone versions are getting gloomy and FPT Retail is requiring support from Apple and delaying opening new F.Studios,” Ms. Nguyen Bach Diep shared.

At the 2018 AGM of FRT, the plan of 12 F.Studios featuring Apple products would be expanded to 100 studios in the next 4 years, while there were only 2 new F.Studios last year.

When the time comes, the F.Studios will prove FPT Retail has strengths in high-end products. Moreover, its direct importation of iPhone, Macbook, iPad products from Singapore will cut down intermediary costs.

In compensation for the turnover of F.Studios chain, FPT Retail will concentrate its resources into the important business retail section of accessories in this year with the expectation of 1,000bn VND in turnover and nearly 500bn VND in gross profit.

According to Hong Phuc, Bao Dau Tu

9 May

“Big players” of pharmaceutical retail section expand coverage fast

The pharmaceutical retail market is heating up with the participation of many big playersboth domestic and international with plans to expand modern store chains.

Các chuỗi nhà thuốc hiện đại đang cạnh tranh, thu hút khách hàng bằng vị trí, giá bán và dịch vụ tư vấn...

Attraction from the pharmaceutical retail section

The national western medicine retail market has been growing by 2 digits through many years and is forecast to keep this growth momentum in coming years, which greatly encourages enterprises including FPT Digital Joint Stock Company (FPT Retail), a new player, to keep on pouring massive investments into increasing the number of stores.

FPT Retail has just “embarked on” the pharmaceutical retail section since the end of 2017, but it immediately decided to expand coverage fast to seize market opportunities. In details, the Company will expand the Long Chau Pharmacy Store Chain to 70 stores in 2019 and the number will be 700 in 2022.

The pharmacy store chain model emerged in Vietnam about 10 years ago to really heat up in the last 2 years. Since then the pharmaceutical retail market with the chain model has seen participation of both national and international new players.

For instance, Tien Phong Complete Service and Trading Co., Ltd. is the Vietnam-based representative of Pharos Indonesia Group with a healthcare and beauty salon chain under the brand name Century Healthcare. The Company already has 13 Century Healthcare shops with 11 pharmacy stores in Ho Chi Minh City expects to increase to 200 shops in the next 3 years.

Meanwhile the large chain Pharmacity already reached 100 pharmacy stores in Ho Chi Minh city in 2018 and aims to have 500 pharmacy stores by the end of 2020.

In November 2018 in Ha Noi, Vinfa (a member of Vingroup) inaugurated 11 pharmacy stores built inside Vinmart shops in residential areas, new urban areas and ground floors of high-end condominiums.

Before that in 2017, after engaging in the new area of pharmaceutical retail through the acquisition of Phuc An Khang pharmacy store chain which was later renamed as AN Khang, Mr. Nguyen Duc Tai, President of Mobile World Investment JSC stated his ambition about opening a pharmacy retail store chain through M&A with 500 stores.

The competition to improve quality

The pharmaceutical retail section brought in a turnover of over 380bn VND for FPT Retail in 2018. According to FPT Retail’s calculations, there are many indicators proving pharmaceutical retail is a potential section in Vietnam. One of the indicators is the market size of about 4.5 – 5bn USD (equivalent to the mobile phone retail section); another indicator is a certain annual 2 digit growth rate, etc.

According to  Vietnam Pharmaceutical Companies Association (VNPCA) in a pharmaceutical retail market analysis, the development tendency is that pharmacy store chains of large enterprises with a methodical roadmap will have abundant advantages to increase their market share.

What’s important is the participation of big players including FPT Retail, Vingroup, Mobile World, etc. and expansion in size of enterprises with position on the market are gradually improving quality of the pharmaceutical retail section thanks to competition for locations, selling prices, services and employing highly skilled pharmacy consultants and pharmacists, etc.

However, a big market with 2 digit growth rate of buying force means no guarantee every investment will win. For instance, Mobile World officially engaged in the pharmaceutical retail section in 2017 only to record a loss of 734mn VND by the end of June 2018.

FPT Retail is accelerating its expansion in the section, but still has to compensate for loss. The Company sets the turnover target for this year at 500bn VND, while net loss is expected to be about 20bn VND.

Vietnam’s pharmaceutical retail market size is forecast to reach 7,7bn USD in 2021

According to IBM Market Research, the market size for pharmaceutical retail of Vietnam in 2018 reached nearly 5.3bn USD, expected to be 7.7bn USD in 2021 and 16.1bn USD in 2026.

Also according to IBM, spending per capita on medicines in Vietnam in 2017 was about 56 USD, which is forecast to rise to 85 USD in 2020 and 163 USD in 2025.

 

According The Hai, Bao Dau Tu

8 May

Surprising cooperation between PFT Shop and Nguyen Kim in selling electronics

On FPT Shop’s website, this retailer has started its sales business of electronic products to compete with its rival, The Gioi Di Dong.

FPT Shop has launched a page of electronics on their website selling products such as refrigerators, televisions, washing machines and cameras, etc.

According to FPT Shop’s website, this chain has cooperated with the retailer Nguyen Kim in selling these new items. Therefore, besides the main product of mobile phones, this retailer of FPT Corporation has decided to start its business in household electronic products.

FPT Shop cooperated with Nguyen Kim in selling electronics online – Photo: Hai Dang

The representative of FPT Shop revealed that the cooperation is still in progress and has not yet been made public. The sales of electronics is being conducted online only.On the website of the mobile retail chain with the second largest market share in Vietnam, there are a wide variety of products such as air conditionings, air purifiers, speakers, cameras, household appliances, office equipment, etc. which are products provided by Nguyen Kim, a long-term technology retailer in Ho Chi Minh City.

Before FPT Shop, The Gioi Di Dong has opened Dien May Xanh which specializes in selling electronics, and at the moment, this chain has the biggest market share in such industry.

 

According Hai Dang, ICTnews

8 May

FPT Retail sets 2019 turnover target at 17,700bn VND

In the year 2019, FPT Retail aims to achieve 17,700bn VND in turnover and 428bn VND in expected profit after tax, which means a growth rate of 16% and 20% respectively compared to 2018.

Đại hội đồng cổ đông thường niên năm 2019 của FPT Retail

In the morning of March 27 at Continental Saigon Hotel (132 – 134 Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh City), FPT Digital Joint Stock Company (FRT) held its 2019 Annual General Meeting of Shareholders.

The 2018 income statement and 2019 business plan were reported at the AGM. At the AGM, shareholders voted to approve significant contents of the Company including: Approving the 2018 income statement and audited financial statements, the 2019 business plan; the profit distribution plan for 2018 and 2019, the plan of issuing ESOP shares for 2018 and ESOP shares issuing policy for 2019; the report on remuneration for the Board of Management and Supervisory Board in 2018 and the remuneration plan for 2019.

Turnover in 2018 reached 15,298 bn VND

In 2018, FPT Retail recorded a total turnover at 15,298bn VND, up by 16% compared to 2017. Turnover from online trading reached 2,432bn, which recorded a rise by 21%. Profit before tax reached 435bn and profit after tax reached 348 bn, up by 20% compared to 2017. In order to achieve such business results, the Board of Management and Board of Directors implemented effective solutions for the 2018 business plans and continuously generate new business plans.

By the end of December 2018, the total number of FPT Shops is 533 with an increase of 60 shops compared to the end of December 2017. Average sales of each shop scored 2.4bn/month, with a slight increase compared to 2017.

Moreover, the number of F-Studio by FPT shops (including APR and AAR side-by-side shops) reached 14 in 2018. Sales of this shop chain contributed 423bn in FPT Retail’s total turnover, up by 61% compared to the same period of 2017.

After re-activating the F-Friends selling on credit program and the Subsidy selling price support program in the end of August 2018, sales from the two programs contributed 5.3% and 5% respectively in FPT Retails’ total turnover in 2018.

 Bà Nguyễn Bạch Điệp, Chủ tịch HĐQT kiêm Tổng giám đốc cho biết kế hoạch năm 2019 với mục tiêu doanh thu thuần 17.770 tỷ đồng, lợi nhuận sau thuế 418 tỷ đồng, tăng trưởng lần lượt 16% và 20%

Ms. Nguyen Bach Diep – Chairwoman of Board of Directors and CEO of FPT Retail shares that the Company sets its 2019 net turnover target at 17,770bn VND, profit after tax at 418bn VND, increasing by 16% and 20% respectively.

In 2018, FPT Shopsonline trading section continued to grow. Accordingly, the website FPTShop.com.vn had 360,325,253 visits with a 41.6% increase compared to 2017, 1,780,887 visits of which were directly interactive with customers. This aids in a soar in online trading sales of the Company in 2018, up by 21% compared to 2017.

2019 – Year of investing in expansion of the Long Chau pharmacy store chain

In the year 2019, FPT Retail aims to achieve 17,700 bn in turnover and 428 bn in expected profit after tax, which means a growth rate of 16% and 20% respectively compared to 2018.

In order to realize the plan step by step, FPT Retail will implement concurrently its key business retail sections.

As a part of the whole 2019 plan, the Company will expand into other retail sections with pharmaceuticals being at the top of the list as FPT Retail plans to expand the number of Long Chau pharmacy store to 70 and increase coverage nationwide.

According to the Company’s leadership, the pharmaceutical section has significant long-term growth potentials. Therefore, FPT Retail set the initiative to develop into this section with good planning and control as similar to operating the electronic retail system of the Company. The Company will accordingly focus on building logistics, increasing the number of pharmacy stores and developing a staff with suitable management and professional capabilities.

Để đạt mục tiêu doanh thu đề ra, một trong những trụ cột kinh doanh được FPT Retail đầu tư mạnh là bán lẻ dược phẩm, nâng số lượng cửa hàng thuốc Long Châu lên con số 70.

In order to achieve the turnover target of 17,700bn VND, one of the key business sections gets heavily invested is pharmaceutical retail section with the expansion of the Long Chau pharmacy store chain to 70 stores.

In Vietnam, the pharmaceutical retail section is divided practically into 3 channels – hospital channel, clinical channel and pharmacy store channel. FPT Retail expects to gain a market share of 30% of the pharmacy store channel in the coming 3-4 years and the section will contribute about 40% into FPT Retail’s expected total turnover of 10,000bn VND.

Moreover, the Company will also strongly develop the section of accessories and SIM cards. With its many years of experience in the technical goods retail industry, FPT Retail realized the section of phone accessories and SIM cards is one of the highly profitable sections.

Therefore, FPT Retail boldly sets turnover targets for 2019 of accessories at 1,000bn VND, up by 350 bn VND, while collection SIM card is expected to increase by 100bn VND. These will be strategic sections contributing into turnover and high profit for FPT Retail in 2019.

In the face of the e-commerce boom, FPT Retail will offer numerous promotional and discount programs to fit best the online selling method. To be specific, products of equivalent quality and guarantee policy when being sold on the website will have lower prices compared to when being sold at shops. Moreover, new products will be constantly updated by the manufacturers with priority for eye-catching, trendy products expected to sell well.

 

According The Hai, Bao Dau Tu

8 May

FPT Retail to give electric appliances a try after pharmaceuticals

While its core retail section of mobile phones is getting saturated this year, the FPT Digital Joint Stock Company (FPT Retail,  stock code: FRT) seeks to boost growth through the new section of electric appliances and plans to rapidly expand size of the pharmacy store chain.

“Electric appliances is one of the sections we are negotiating and about to test,” Ms. Nguyen Bach Diep, Chairwoman of BOD and CEO of FPT Retail informed Forbes Vietnam beside the 2019 AGM held in the morning of March 27. The Company plans to test selling electric appliances inside FPT Shops, said Ms. Diep.

There are 3 projects being in test. Informing shareholders on the new direction of FPT Retail, Ms. Diep said the Company would evaluate and cut sale area of product groups in saturation phase while increasing space for the new section, the investment plan of which would be made public when highly successful test results are reached.

With the mobile phone market heading into gradual saturation, seeking new markets is what large retail chains like Mobile World and FPT Retail are doing. Mobile World has expanded into the food section with its Green Stores and the recently announced wristwatch retail section. Meanwhile FPT Retail expanded its pharmaceutical retail section.

According to the market research agent GfK Vietnam, the mobile phone market grows only by 1% in 2018 compared to 9% in 2017. The electric appliances section, however, has a higher growth rate, specifically 23.5% in electronics, 12.5% in electronic refrigeration and 3.7% in household electronics.

Sau dược phẩm, FPT Retail muốn thử nghiệm bán lẻ hàng điện máy - ảnh 1

FPT Long Chau expects loss of 20bn VND in 2019 and gains profit from 2021 onwards. Source: FPT Retail (unit: bn VND)

In 2019, FPT Retail will boost development of the pharmaceutical retail chain under brandname FPT Long Chau after acquiring the Long Chau pharmacy store chain well-known in Ho Chi Minh City 2 years ago. From a modest start of 4 stores, now the chain has 22 stores located mainly in Ho Chi Minh City. The chain scored a turnover of 384bn VND in 2018, up by 91% compared to 2017.

According to Ms. Nguyen Bach Diep, for the period from 2019 to 2022, pharmaceutical retail is the key and potential section driving FPT Retail’s growth. The Company will increase the number of stores to 70 with the target turnover of 500 bn, while expecting a loss of 20bn for this section.

“If results are successful, we will continue to open 100-200 new stores each year,” said Ms. Diep. “Our first goal is increasing coverage nationwide while controlling logistics and investing into the staff.”

Ms. Diep emphasized the currently gigantic potentials of the pharmaceutical retail section with a spending size of about 4.5bn USD, equivalent to that of the mobile phone market. FPT Retail expects to gain a market share of 30% of the pharmaceutical retail section in the coming 3-4 years and the section will contribute about 40% into FPT Retail’s expected total turnover of 10,000bn VND.

The leader of FPT Retail shared that western medicines contributed 58% in turnover for the year 2018. However, functional food is the section with the best profit margin contributing 49% in FRT’s profit, followed by medicines and medical equipment.

According to the plan for developing the pharmacy store chain, FPT Retail aims to stop planned loss in 2020 and begin to profit from 2021 onwards. However, Ms. Diep has not been able to pinpoint the breakeven as this depends on each store model being tested by the Company.

The Company divides the pharmacy store chain into 3 types A, B and C corresponding to different turnover and investment sizes. Ms. Diep said a type A store gained at least 1.2bn in monthly turnover, type B store and type C store 1.2bn and under 1.2bn respectively. For the first phase, the Company focuses on developing type A stores.

Sau dược phẩm, FPT Retail muốn thử nghiệm bán lẻ hàng điện máy - ảnh 2

Despite contributing only 30% in turnover, the functional food section adds half of FPT Long Chau’s gross profit. Source: FPT Retail

The store with highest turnover currently gained 9bn/month, said Ms. Diep to Forbes Vietnam. Most of the new stores will be opened this year with the lowest turnover of about 700mn/month. According to Ms. Diep, one of the reasons why FPT Long Chau stores attract customers well and fill numerous medicinal prescriptions is the availability of more than 6,000 various products.

At the end of 2018, FPT Retail gained a total turnover of 15,298bn, up by 17% and profit after tax of 348bn, up by 20% compared to 2017. Despite the saturation of the mobile phone market, the turnover of this section alone increased by 24% thanks largely to new shops continuously being opened. FPT Retail still has to seek new paths for growth, as according to plans, the mobile phone retail chain with current 533 shops will stop expanding after 2019.

The retailer is also turning to other sections like F.Friends – a selling program which helps FPT Retail reach employees of factories and enterprises. In 2018, this program had more than a million members, most of whom are workers from 2,500 factories in cooperation with FPT Retail. The Company plans to turn the focus to office staff workers in enterprises.

Moreover, FPT Retail wants to develop the phone accessories retail section this year, which is expected to bring in 1,000bn in turnover and almost 500bn in gross profit.

 

According Truong Bui – Pham Nhi, Forbes Viet Nam