Focusing on pharmaceutical industry, FPT Retail has had a strong capital contribution in establishing FPT Pharma
With the ambition of leading the pharmaceutical market in the coming time, FPT Retail – FPT Retail (Stock code: FRT) has announced the information on contributing capital in a subsidiary named FPT Long Chau Pharmaceutical JSC.
Accordingly, FPT Long Chau Pharmaceutical JSC (referred to as FPT Pharma) has the charter capital of VND100 billion, of which FPT Retail contributed VND75 billion, equivalent to 75% of the stake.
The head quarter of FPT Pharma is located at 379-381 Hai Ba Trung Street, Ward 8, District 3, Ho Chi Minh City, specializing in retailing drugs, medical instruments, cosmetics and toiletries in specialized stores.
FPT Retail also approved the appointment of Ms. Nguyen Bach Diep – Chairman of the Board of Directors, as the representative of all FPT Retail’s shares in FPT Pharma. At the same time, Mrs. Nguyen Bach Diep will be the legal representative of FPT Long Chau Pharmaceutical JSC.
Previously, as the mobile phone market was going to level off, FPT Retail decided to launch a new business strategy to ensure the company’s double growth rate by repurchasing Long Chau pharmaceutical chain at the end of 2017.
At that time, Long Chau had only 5 stores. However, only after nearly a year of developing the pharmacy chain management software, the software to take over the suppliers, etc., until now, FRT has expanded the chain of Long Chau pharmaceutical stores up to 16 stores
According to the plan, FRT is going to expand the pharmaceutical chain to 400 stores by 2022 and contribute 30-40% of the total revenue of the Company.
In addition, Long Chau pharmaceutical chain is expected to control 30% of the market share of pharmacy market of Vietnam in 2022.
The strategy of competitive price is mainly focused by FPT Retail. Specifically, the average price of the items in Long Chau chain is currently about 10-20% lower than those of hospital channels and the profit/total orders, compared to other stores such as Phano, An Khang, etc., is 50% higher.
Besides that, the difference between Long Chau pharmacies and others comes from prescriptions. It means that the amount of Long Chau’s drugs and medicine is 6-7 times higher than those of normal pharmacies and the price is about 20% cheaper (concerning the prescriptions of 500.000 – 1 million VND). In addition, 60% of Long Chau’s products come from western medicine, 40% from drugs and cosmetics, medical equipment and functional foods, which brings more profits than drugs. However, medicine is in constant need of growth, so it is possible to take advantage of the customers who buy medicine to sell medical equipment and functional foods.
According to Anh Phuong – VN Finance