logo
This is Photoshop's version of Lorem Ipsn gravida nibh vel velit auctor aliquet.Aenean sollicitudin, lorem quis bibendum auci elit consequat ipsutis.
Be Awesome Today!
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Working Hours
Monday - Friday 09:00AM - 17:00PM
Saturday - Sunday CLOSED
Top
Công ty CP Bán Lẻ Kỹ Thuật Số FPT / Company infomation  / While Mobile World “gave up” on Phuc An Khang chain, FPT Retail is still betting on Long Chau, expecting the field of pharmacy will contribute 40% in the revenue in the next 4 years
FPT Retail đặt cược lớn vào Long Châu, kì vọng mảng dược sẽ đóng góp 40% doanh thu vào 4 năm tới
2 Sep

While Mobile World “gave up” on Phuc An Khang chain, FPT Retail is still betting on Long Chau, expecting the field of pharmacy will contribute 40% in the revenue in the next 4 years

Mrs. Nguyen Bach Diep, the CEO of FPT Retail said, in this year, the company is opening about 20 Long Chau drugstores in Ho Chi Minh City. In the next 4 years, Long Chau drugstores may reach 400 stores and the revenue is predicted to take up 30-40% in the total revenue of FPT Retail.

 

Trong khi TGDĐ "buông cờ" đối với chuỗi Phúc An Khang, FPT Retail lại đặt cược lớn vào Long Châu, kì vọng mảng dược sẽ đóng góp 40% doanh thu vào 4 năm tới

 

Today, at the annual General Meeting of FPT Retail, the General Director Nguyen Bach Diep has revealed the company’s determination in the investment in Long Chau drugstore chain.

 “The field of pharmacy will take up 30-40% in the total revenue of FPT Retail in 4 years”

Sharing at the event, Mrs. Diep said at the time of acquiring Long Chau last year, Long Chau had only 5 stores. After FPT’s acquisition, until the end of 2017, the number increased to 10 stores.  This year, the company is planning to open 20 additional drugstores in Ho Chi Minh City.

Within 4 years from now, FPT Retail is planning to open 400 Long Chau drugstores.

Concerning the pharmacy market, Mrs. Diep said the scale of this industry is about 5 billion USD/year, which is nearly equal to the mobile phone industry and higher than the electrical industry. Meanwhile, the cost for pharmacy industry in Vietnam is still quite low compared to many other countries. In Vietnam, an average person only spends 30USD/year for pharmacy, compared to 46USD/year in Thailand, 142USD/year in Singapore. Especially, the field of pharmacy is up 13% per day and does not depend on the economic growth.

Mr.s Diep said, the revenue of Long Chau is higher than other chains according to the statistics that she has.

In the pharmacy market, there are not only drugstores?

“The pharmacy market is about 5 billion USD/year but the revenue from drugstores takes up only one third (about 1,3 billion USD/year) due to other distribution channels. And such figure, compared to that of mobile phones, is much lower. What are you hoping for the pharmacy market?”, an opinion raised in the event.

Mrs. Diep said large pharmacy market was about 5 billion USD and it came from 3 places. One third came from the hospital, one third came from the clinics and one third came from the drugstores. FPT Retail had been planning to approach the other two channels.

Concerning the drugstore channels, FPT Retail was hoping to take up 30% of the market share, which will not be lower than that of mobile phones. In 4 years, the field of pharmacy will contribute about 30-40% of the total revenue of the company.

The strategy of the field of pharmacy of FPT Retail is stronger than that of its rival – Mobile World. Accordingly, at the General Meeting of Shareholders of Mobile World which took place recently, the Chairman Nguyen Duc Tai affirmed that Mobile World only held less than 49% of the shares of An Khang drugstores and they were not “the leader” any more, but just the one to support as a large shareholder.

“Previously, we were planning to acquire 51% of the shares of An Khang drugstores to take the dominant shares and make it our subsidiary. After that, we assessed the risks and determined that that was not the appropriate time. Then we decided to negotiate to have 49% of the shares. Now we are not leading, but in case they need help, we will support them in case of strategies, marketing, etc. We just contribute as a role of a large shareholder”, Mr. Nguyen Duc Tai affirmed.

Many Vietnamese people often buy medicines at nearby drugstores, why do they have to visit a large chain?

“The current situation in fact that the drugstores are scattered everywhere, many people can go to a nearby stores to buy medicine. Then what advantages does Long Chau have to make the ambition of taking up 30% of the market share in the field of pharmacy come true?”, another question raised for the leader of FPT Retail.

Mrs. Diep explained: “The number of medicines in Long Chau is plentiful and variety. The quantity can be nearly 6 times larger than a normal drugstore. Therefore, the consumers will tend to bring the prescription to a store that has many kinds of medicines”.

Mrs. Diep also revealed that, only 60% of Long Chau’s revenue came from pharmacy, the remaining was from the functional foods, cosmetics and medical equipment, etc. These fields had a higher rate of revenue than the medicines.

At the end of 2017, FPT Shop reached the avenue of 13,147 billion VND, up 21.1% compared to 2016. The net profit reached 289,8 billion VND, up 39.7% compared to 2016 and took up 15.47% of the total revenue of the company.

In 2018, FPT Retail is planning to raise the revenue to 16,020 billion VND, up 22% compared to the same period and the net profit is expected to reach 377 billion VND, up 30% compared to the previous year.

The Tran

According to Cafe Biz