After 2 year taking over Long Chau drugstore chain, FPT Retail officially has established FPT Long Chau.
On 13 September, the board of directors of FPT Retail has announced the resolution about establishing the subsidiary company- FPT Long Chau pharmaceutical joint stock company (FPT Pharma).
FPT Long Chau has charter capital of VND 100 billion, the head office is in District 3 Ho Chi Minh city with the main business in retailing of medicines, medical instruments, cosmetics and toiletries in specialized stores.
FPT Retail will hold 75% of FPT Long Chau, equivalent to VND 75 billion. The legal representative of FPT Long Chau is Mrs. Nguyen Bach Diep, Chairman of FPT Retail.
In fact, FPT Retail took over Long Chau drugstore chain from January 2017. Meanwhile, the rival of FPT Retail is Thegioididong which entered the pharmaceutical market on August 2017 with Phuc An Khang pharmacy chain.
According to Viet Dragon stock company, Long Chau drugstore chains are taking promising steps. However, in order to truly become the growth motivation of FPT Retail, Long Chau needs to succeed on a large scale, not only in HCM City.
It’s not easy since hospitals get 70% market share, remaining 30% turnover belong to pharmaceutical retail, equivalent USD 1.6 billion which shared by about 57,000 drugstores across the country.
According to VDSC, the plan to open 400 pharmacies in 2021 by FPT Retail is ambitious, as the successful drug chains in the world have taken a long time to reach this milestone. Finding the suitable location to replicate the success of the first stores is not easy.
FFPT Retail expects Long Chau can account for 30% of the market share, which is VND 10,000 billion and contributes 40% of FRT’s turnover. It requires Long Chau have to succeed in expanding into many areas. However, most people are unfamiliar with the chain model that making it suitable only in big cities such as Ho Chi Minh city and some neighbor areas, while it is difficult to succeed in villages or small provinces. It still takes a long time for the chain of pharmacies to become a mainstream channel.
Hà My – Cafebiz