FPT Digital Retail Joint Stock Company (FRT) announced that Long Chau pharmacy chain has officially reached 100 stores across 30 provinces and cities nationwide in this May.
“The 100th pharmacy has been put in operation, which marks an important milestone in the development of Long Chau system,” emphasized by FRT in the latest press release.
The pace of opening new stores in the past month is quite rapid compared to the number of 83 stores in 19 provinces and cities by the end of the first quarter of 2020. Besides offline sales, Long Chau system also promotes online sales with home delivery service within 60 minutes.
When the first quarter of 2020 ends, Long Chau is considered a bright spot in the business picture of FPT Retail with the turnover reaching VND 239 billion, 2.5 times higher than that compared the same period in 2019. After two years being taken over by FRT, the revenue of this chain has accounted for nearly 6% of the total revenue, doubling the contribution at 3% of FRT’s total revenue in 2019.
The representative of FRT also said that currently Long Chau has decided on 40 locations to open new store in the second quarter of 2020. Long Chau has set the target of reaching 200 stores by the end of this year.
According to FRT’s estimation, there are more than 30,000 pharmacies operating in the country with a total market size of about USD 2 billion (equivalent to 25% of the pharmaceutical retail scale including pharmacy and hospital channel). However, this market is quite fragmented when there is really no dominant brand. The pharmaceutical retail chain with the largest number of stores today is Pharmacity, which was established in 2011, with 328 stores as of April 2020.
In the circumstance where the ICT industry is entering the saturation phase, FRT is stepping up to find growth momentum from new businesses in which Long Chau pharmacy chain is highly promising.
In the annual report of FRT in 2019, the pharmaceutical market in Vietnam is assessed to be quite attractive to investors. According to BMI, this market sales will increase from USD 7.7 billion in 2021 to USD 16.1 billion in 2026. The compound growth rate will reach 11% in VND.
The IMS Health also forecasts that the average spending on pharmaceuticals per capita in Vietnam will increase to USD 50/person/year in 2020 compared to over USD 20/person in the period of 2015-2017. According to the calculations, 25% of pharmaceutical revenue in Vietnam, equivalent to nearly USD 2 billion (in 2021) to about USD 4 billion (in 2026), will come from the pharmaceutical retail market through pharmacy channel.
In addition to pharmaceuticals, FRT is testing a number of new industries such as electronics, e-commerce and latest, cosmetics, however they are still in the testing phase and have not been officially announced.
According to Ky Ngoc, Forbes Vietnam
Published May 18, 2020