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
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
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.
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.
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 Shops’ online 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.
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
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.
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.
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
While competitors are still probing the landscape, FPT Retail has already poured all resources into the pharmaceutical retail market. Despite being such a pioneer, Ms. Nguyen Bach Diep dares not making any guarantee she will win.
The FPT Retail’s leadership admitted that the Company was going through a quite difficult and “dangerous” transitional period.
For instance, due to various objective and subjective reasons in 2018, the turnover from Apple products and the expansion speed of the Long Chau chain were lower than expected.
According to FPT Retail’s forecast, the Long Chau pharmacy store chain will bear a loss of 20bn VND in 2018 and the first amount of profit for FPT Retail from this chain would come no sooner than the year 2021. Therefore, they will continue to open 100 new FPT Shops in 2019 to ensure the growth rate above 20%. Moreover, with the newly arrived trend of omni-channel retailing, this is the last time for FPT Retail to open new FPT Shops.
When the smartphone market steps into saturation, pharmaceuticals retail will be the key growth driver of FPT Retail. These are the reasons FPT Retail proceeds to invest resources into the pharmaceuticals retail market while many domestic competitors are still probing the landscape. Despite all the advantages available at hand, Ms. Nguyen Bach Diep , CEO of the Company selects to play it safe, as many always say “whatever will be, will be.”
You expressed high expectations for Apple products at the 2018 AGM of Shareholders, but 2018 was a rather bleak business year of the brand worldwide compared to previous years. Did this affect FPT Shops’ turnover?
Ms. Nguyen Bach Diep: Of course it did. The reason why we did not open any new F-Studio in 2018 and mention this section in the Report before this year AGM of Shareholders is that our 2018 turnover was not that high as we expected.
I have never seen such a failure of an Apple new product like in this year. In previous years, the period from November to the first quarter of the year after was our glorious days. It is the other way around for this year. The market of iPhone products consists of 40% hand-carried goods and 60% authentic products. This year’s iPhone XS does not sell well globally, so it came flooding into Vietnam by hand-carried way. This created a vast difference between the price of hand-carried products and the price of authentic products, and redivide the market into shares of 60% hand-carried products and 40% authentic products.
We can only increase the number of F-Studios once we receive better support from Apple in the future.
Market researchers assume that saturation will hit the smartphone market in 3 to 4 years. However, the e-commerce retail section will continue to thrive at galloping speed. What do you think about the relation of these two facts?
Ms. Nguyen Bach Diep: E-commerce and Omni-channel are the popular development trends internationally. Therefore FPT Retail cannot stay out of the game. With widespread chains in large cities, we possess quite many advantages when entering the omni-channel section, as customers love visiting the stores to touch, experience and test products before making a buying decision.
Therefore the online IT goods retail section in Vietnam still has abundant development ground compared to the offline trading section. Omni-channel will help FPT Shops maintain the growth rate.
Of course there can’t be a business model which helps the enterprise grow forever. The market can step into saturation after some years should there be no ground-breaking technology invented similar to what iPhone once did years ago by changing from the mechanical button to the touchscreen technology. That means if the smartphone industry fails to bring in unique technologies, customers will no longer have needs to change devices often.
Being a enterprise specializing in retailing, we understand when our market share reaches a certain number, there will be no more ground for us to grow and we must engage into new sections. A retail company will regard processes, retailing experiences and chain management experience as their business “know how” to be applied into new sections.
Omni-channel retail is the inevitable trend in modern retail, in which information infrastructure, apart from the human factor, plays a critical role for success or failure of a enterprise employing this model. With FPT – a giant in Vietnam’s IT industry – being a significant shareholder of FPT Retail, what advantages does FPT Shop have against competitors when entering this game?
Ms. Nguyen Bach Diep: The FPT Group, a significant shareholder of FPT Retail, is a long-standing technology enterprise of Vietnam. Mr. Truong Gia Binh, FPT’s President, usually recommends that “FPT Retail operate as a retailer not a merchant chasing too often after pennies. It is advisable to get rid of the traditional ways and apply information technology into both fields of governance and business operations.”
Therefore, all member companies gets support from the technology board of the group. Of course we have to give “problems” for them to solve, they cannot do everything for us. For instance, the chatbot and customer visit counter technologies being in use at every shop were developed by the Board of Technology of the group.
After trying 3 to 4 different versions, FPT Shop embedded the integrated chatbot technology into their forums and website last year. FPT Shop’s chat bot can now answer 75% of users’ questions. Many users did not know that was the chatbot, because the chatbot generates very fast and accurate answers.
At each store, we also use a customer visit counter to know when is the most or least crowded time of each shop in order to coordinate service staff reasonably, which ensure enough service staff members to serve customers.
The two technologies above helps us vastly optimize our personnel, cut down costs and enhance competiton capabilities against competitors.
With the omni-channel trend, many retailers – even in the smartphone retail section – stopped opening new stores or decrease the number of stores to focus on online trading. Why FPT Shop goes on to open 100 new shops in this year?
Ms. Nguyen Bach Diep: I think the offline stores will still do well after 3 to 5 years to come. Therefore our opening new shops in 2019 brings no problems. From now to the end of this year, however, FPT Retail will not open any more FPT Shop while focusing in the pharmaceutical retail section.
The truth is we have closed or opened dozens of stores every year, what’s important is we close less than we open new ones.
After 2019, FPT Retail will not open new mobile phone shops.
It is said the Long Chau pharmacy store system is about to change its name. Is that correct, Madam?
Ms. Nguyen Bach Diep: Previously in Ho Chi Minh City, Long Chau chain was quite well-known. Therefore we want to keep the brand name.
As for the newly opened stores, after the license for establising FPT Pharma takes effect, i.e. from January till now, there is the name FPT on store signs apart from the name Long Chau. We do not change our name, but we add in the name of a significant shareholder.
Why does FPT Retail choose the pharmaceutical retail section and the Long Chau chain to expand its fields of business? What is the current status of Long Chau chain?
Ms. Nguyen Bach Diep: When we were seeking new sections several years ago to expand our fields of business, we discovered potentials of the pharmaceutical retail section as its market were worth 4.5bn USD – equivalent to the smartphone retail section and there was no market leader to guide the market.
Each Long Chau store brings in about 3bn VND per month, while many stores of other chains reaches only 200 – 600 bn VND.
After that, we chose the Long Chau chain from a list of numerous retail chains because we were very impressed by the turnover of about 3bn VND/month each Long Chau store brought in, while a store of a different chain lies between 200mn and 600mn VND.
I cannot name enough reasons why Long Chau was such a “success”, as that is our business secret, but I can state some obvious details: Each Long Chau store has a humongous amount of medicines and functional food, which helps with catering for any customer’s needs.
After a year since implementation, we can disclose some outlines of FPT Pharma’s current status as follows: Each Long Chau store brings in an average monthly turnover of 1.6bn VND and reaches breakeven or profit after about 6 months. Before that, in every month we had to mobilize hundreds of millions of products with coming expiry dates. With technology in use, for each month we only need to mobilize dozens of millions of products with coming expiry dates.
Long Chau does sell special medicines, sell according to prescriptions and fill the customers’ requirements for minor ailments. However, our biggest turnover comes from the second source together with 4 main types of cardiovascular diseases – dyslipidemia/diabetes – mental illness – arthralgia. Of all the sections, the functional food has the highest profit margin.
I cannot name enough reasons why Long Chau was such a “success”, as that is our business secret
Why FPT Retail opened only nearly 20 Long Chau stores in 2018?
Ms. Nguyen Bach Diep: The first reason was we needed to find a right formula for opening new stores before doing a series of stores.
In 2018 we opened pharmacy stores at various locations to see which locations are most ideal for optimizing turnover and profit. For instance, the location inside FPT Shop with the advantage of no additional location costs or the location near markets, hospitals or crowded residential areas, etc. We have found the right formula for Ho Chi Minh City so we were confident to open a series of new stores.
In the future we will open stores in Bien Hoa of Dong Nai province, My Tho of Tien Giang province and have to keep on experimenting due to differences between provincial and Ho Chi Minh City markets.
Moreover, our team of location hunters underwent chaotic changes in 2018, hence the lower performance compared to the previous period. Things have settled down now so we are confident about opening new Long Chau stores as fast as planned to the number of 70 in 2019 and 700 in 2022.
According to you, the pharmaceuticals retail market has no leader for now. Not only FPT but also other players include Mobile World and Vingroup, etc. realize that. However, FPT, among those players, seems to be keenest on this section. While other competitors still refrain from going in full force, FPT has already opened stores after stores. It seems FPT is a step ahead of other competitors, doesn’t it?
Ms. Nguyen Bach Diep: Being a step ahead has disadvantages, though, the pioneer may win all or lose all. When a pioneer performs well, we are going to have a very big customer data file, which can be used for easy imprinting the brand name into customers and earning their trust. However, a pioneer also faces many risks on an untrod path, including accidents, a wrong turn resulting in a very dear price or even complete failure.
A follower has advantages a pioneer do not, for instance, the case of FPT Shop. Despite having been in the field for only 6 years, we have achieved great results thanks to learning from numerous mistakes made by enterprises in the same industry such as Mobile World, Viettel Shop and Vien Thong A, etc. The follower pays lower costs and goes faster.
Then do you believe Long Chau will win?
Ms. Nguyen Bach Diep: It’s hard to be certain about anything in business, but we believe in our direction after a while of experimenting and vigorously investing into the field.
Where are you at in pharmaceutical knowledge?
Ms. Nguyen Bach Diep: I understand the rules of operation and basic knowledge, but I can’t know all details of each medicine as Long Chau has a tremendous list of 6,000 products.
The important thing is that it takes only management capabilities to run the 2 chains of FPT Shop and Long Chau, despite the differences between the two sections, because of the similarity of 90% of work in running a trading chain model. For me, running Long Chau does not differ much from managing FPT Shop.
According Cafe F và Cafe Biz
FPT Retail and 1001 selling tactics to keep its growth rate at 20%: Boosting selling on credit and sales of accessories and SIM cards, testing 3 new projects concurrently
In order to maintain the 20% growth rate of profit after tax in the context of market saturation for mobile phones and Long Chau pharmacy store chain’s continued loss, FPT Retail employs numerous selling tactics to attract customers.
After 6 years of impressive growth thanks to being a follower, FPT Retail starts to face the other side of the coin. Upon the Company’s completion of its system chains build-up, the market stepped into saturation, which then pushed FPT Retail, a follower with no other choice, into quick hurdles of developing other retail sections in order to maintain the annual 20% growth rate of profit.
Similar to other retail chain businesses, the Company’s situation dictated a priority of market expansion over profit in the beginning. Therefore, the Long Chau pharmacy store chain will bear a 20bn loss in 2019 and only begin to profit from 2021 onwards as stated in the report of FPT Retail’s leadership in the Annual General Meeting of Shareholders held this morning of March 27.
In order to help FPT Retail safely go through the pivotal ahead, the leadership proposed many familiar yet creative selling tactics to help the Company maintain its 2-digit growth rate of both turnover and profit.
FPT Shop and 1001 selling tactics
In 2018, FPT Retail recorded a total turnover at 15,298 bn 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 348bn, up by 20% compared to 2017.
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.
According to the plan, this year will see FPT Retail boosting the implementation of F-Friend and Subsidy programs apart from increasing customer traffic both online on the website and offline at shops. These two sections are expected to bring in 1,875bn compared to 1,575bn in 2018.
In 2018, FPT Retail’s F-Friend program had 1 million blue collar customers from 2,500 factories. This year the Company will focus more on reaching white collars – office staff workers – from commercial and service enterprises. As for the Subsidy program, the Company plans to cooperate with Vinaphone, Mobifone and Vietnam Mobile in 2019 to jointly sell mobile phones accompanied by preferential service plans.
According to Ms. Nguyen Bach Diep, CEO of FPT Retail, there are two sections with abundant development ground for the Company: upgrading products through selling on credit and selling accessories and SIM cards.
The turnover from credit-based selling currently accounts for only 32% in FPT Shops’ total turnover, while the ratio is up to 50% at other enterprises in the same industry. The credit-based trading will contribute 45% in FPT Shops’ total turnover in 2019. In order to control bad debts, FPT Retail will utilize various technologies to evaluate more accurately customers’ financial capabilities and credibility points.
The section of phone accessories and SIM cards at FPT Shops has long been overlooked by FPT Retail, while this section is highly profitable. Therefore, FPT Retail sets the target turnover of 1,000bn VND from selling phone accessories and if things go as planned, the profit will be about 100 bn, up by 67% compared to 2018.
The impressive figures stated above are thanks to FPT Retail’s thorough preparation for “The 1,000bn campaign” after negotiating with overseas suppliers, which lowers the import price by 20% compared to previous prices. On that ground, despite selling at very competitive prices, FPT Retail can still achieve a 10% profit compared to previous prices.
With such 1001 selling tactics being implemented in 2019, it is obvious the Company is striving to satisfy every need of consumers from all social classes. Customers can always find items they need in FPT Shop.
Long Chau is a story of the future
Long Chau pharmacy store chain has 22 stores, 20 of which are located in Ho Chi Minh city and Bien Hoa. However, the turnover of the chain is not accounted in the total turnover in 2018. In 2019, FPT Retail will open 50 new stores in Ho Chi Minh City as well as many other provinces nationwide. The turnover from these will be about 500bn VND, while loss is expected to be about 20 bn VND.
According to Ms. Nguyen Bach Diep, Long Chau is a story of the future. In the plan presented at the General Meeting of Shareholders, the number of stores will rise to 217 in 2020 and 700 in 2022. Accordingly, Long Chau chain will break even in 2020, make a profit of 62 bn VND in 2021 and 193bn VND in 2022.
Being a new player in the pharmacy retail industry, FPT Retail experimented various business models in 2018 with a focus on locations which can attract most customers once the store is opened. They have discovered the right model, hence the bold acceleration of market expansion.
Also according to Ms. Diep, if the development of Long Chau pharmacy store chain gets into orbit in the time to come, FPT might as well embark on pharmacy distribution and manufacturing industries.
3 projects in test
For the time being, FPT Retail’s two main retail sections are electronic devices and pharmaceuticals. However, they do not limit themselves in those sections only. As Ms. Diep has shared, this Company will invest into any retail section with high profit.
FPT Retail is currently cooperating with partners to test 3 projects simultaneously, which will be made public once experimentations prove successful. However, the CEO would not disclose which retail section.
According to Linh Dan, Cafebiz
AGM of Shareholders of FPT Retail: Number of Long Chau pharmacy stores can be small, but they achieve 3bn VND of turnover each month, tenfold that of ordinary stores
After 2018, FPT Retail has figured out a model and formula for opening a new store and planned to open stores in provinces neighboring Ho Chi Minh City. As for competitive capacity of Long Chau pharmacy store chain, Ms. Nguyen Bach Diep said: “The number of Long Chau pharmacy stores can be small but each achieves 3bn VND of monthly turnover on average, while an ordinary store can do only 300-400mn per month”.
In the morning of March 27, FPT Digital Joint Stock Company (FPT Retail, FRT) held its AGM of Shareholders of 2019 in order to announce the planned turnover of 17,700bn VND and profit after tax of 418bn VND with increasing rate of 16% and 20% respectively compared to 2018. From such targets above, the Board of Management set the target dividend in cash at no lower than 10%.
On preliminary business results of the first 3 months of 2019, the Company says the iPhone section results strongly affected bottom lines of the first 2 months of the year. FPT Retail is currently researching to engage in new sections and seeking for more partners.
Back to the meeting this morning, a large part of contents in discussion focused on how to increase profit by 20% in 2019? And the anticipated time when Long Chau pharmacy store chain stops loss?
Long Chau pharmacy chain to expand to 70 stores in 2019
Addressing the shareholders at the AGM, FPT Retail leadership stated that the 2019 plan would expand into retail sections with pharmacy being on top of the list. According to the plan, the Company would expand the Long Chau pharmacy store to 70 stores and increase coverage nationwide.
According to the Company’s representatives, the pharmacy 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. The Company would accordingly focus on building logistics, increasing the number of stores and developing a staff with suitable management and professional capabilities.
In Vietnam, the pharmacy 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. Accordingly, the pharmacy retail section is anticipated to contribute about 40% in FPT Retail’s expected turnover of 10,000bn VND. The potential turnover of FPT Retail is 4.5bn USD without the pharmacy retail section, despite the saturated mobile phone retail section.
As an answer for shareholders’ question “When will Long Chau stop loss?” the leadership informed that the breaking even of a pharmacy store has not yet been recorded accurately so far. Stores in Ho Chi Minh city has quite stable business results without any store breaking even later than 6 months. Since engaging into the new business section in 2018, FPT Retail has tested if this model was effective, which informed the Company on locations with good turnover. Moreover, the Company has dedicated an area inside FPT shops to run Long Chau pharmacy stores. As for the question of loss or profit, FPT Retail’s representatives stated that the time of breakeven depends on the shop type.
After 2018, FPT Retail has figured out a model and formula for opening a new store and planned to open stores in provinces neighboring Ho Chi Minh City. As for competitive capacity of Long Chau pharmacy store chain, Ms. Nguyen Bach Diep said: “The number of Long Chau pharmacy stores can be small but each achieves 3bn VND of monthly turnover on average, while an ordinary store can do only 300-400mn per month.”
Online selling to be boosted
Secondly, as for phone accessories and SIM cards, FPT Retail sets turnover targets for 2019 of accessories at 1,000bn VND, up by 350bn VND, while the collection SIM cards section is expected to increase by 100bn VND. These will be strategic sections contributing into turnover and high profit for FPT Retail in 2019.
The Company will put a special focus on boosting online selling. In the face of the e-commerce boom, FPT Retail will offer numerous promotional and discount programs to best fit 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 and trendy products expected to sell well.
Does FPT Retail cross-sell products as Mobile World?
At the general meeting, FPT Retail stated that each line of business needed research on future potentials, there were a series of projects on trial run by FPT Retail, the investments of which would be announced once highly successful results have been reached.
The Company is in negotiation with partners. FPT Retail aims to limit saturated areas and give room for better new areas. For instance, accessories prices of the Company in the past were higher than those of other sellers. Therefore FPT Retail began turning toward working with importers, which cut down prices by 20%.
Moreover, the Company improves the process effectiveness of F.Friends Project in way of further improving and applying many technologies in the process of approving and managing customer files and risks. Furthermore, FPT Retail will 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.
After re-activating the F-Friends 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.
As for details of the F.Friends program, the Company’s representatives said that the F.Friends program 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. Normal customers buying on credit may get rejected due to ineligibility or there are products not to be paid on credit at the interest rate of 0%. This means more professional buying compared to normal buying on credit.
The general meeting this morning also approved of the dividend payment plan for 2018 at the payout ratio of 25%, of which 10% is in cash and 15% in shares. Dividends are scheduled be paid in the period from the 2nd Quarter to the 3rd Quarter this year. After issuing of shares as dividend payment, the charter capital of FPT Retail will rise to 790bn VND. Moreover, the Company also approved the plan ò issuing 680,000 ESOP shares at 10,000 VND per share. Half of the newly issued shares will be restricted from transfer for one year starting from the completion date of ESOP shares issuance. Members of FPT Retail’s Board of Management and Board of Directors continues to receive no remunerations in 2019.
On the basis of above points, FPT sets the target of a 20% rise in profit in 2019.
At the end of 2018, FPT Retail recorded total turnover at 15,298 bn VND, which is a up by 16% compared to 2017. Turnover from online trading reached 2,432 bn, which recorded a rise by 21%. Profit before tax reached 435 bn and profit after tax reached 348 bn, up by 20% compared to 2017.
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 423 bn in FPT Retail’s total turnover, up by 61% compared to the same period of 2017.
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 2.4 bn/month, with a slight increase compared to 2017.
According to Tri Tuc, CafeF
From being an unpaid intern for a year to holding the position of managing FPT Shop phone chain, then conquering Long Chau drugstore chain,… Mrs. Nguyen Bach Diep has been going through many ups and downs. However, the road ahead is still hard because she herself put pressure and challenges herself as she is still far from her opponent.
Talking with businesswoman Mrs. Nguyen Bach Diep – Chairwoman and CEO of FPT Retail Joint Stock Company (HOSE: FRT) on International Women’s Day, March 8th, about career, human affairs …
In 2018, FPT Retail opened 60 more stores, bringing the total number of stores to 550, the average sales of each store also increased compared to 2017, reaching VND 2.4 billion. Although it was launched behind other retail businesses, which is the secret to the effectiveness of FPT Retail business?
The criterias for FPT Retail to open a store are densely populated areas such as near markets, schools, trade centers, and the density of traffic stream. At the same time, the best place is near the opponent’s store, which is a safe point because I can measure the number of customers and that sales of that store.
If I open the stores near those of the rivals, there is definitely an increase in competition. However, in the general market, customers will normally be loyal to certain brands, but there are also neutral customers. For example, among a few thousand products, FPT Shop is promnent in this product, competitors are known for other products, customers will then choose which product is suitable for them. It’s like the way you drink Coca Cola or Pepsi. By nature, you cannot know which one is better, so there are ones prefer Coca, others go for Pepsi. As a result, they both have shares in the market. The phone market somehow works like that. There are also customers who are loyal to one brand and also have more neutral customers, they can deliberate different brands before buying.For other services and programs, the shops are kinda similar, so it is difficult to tell the differences. However, FPT Shop has a strong position in the high-end segment, thanks to previous history. As FPT stores were still a showroom other companies such as Nokia and Samsung, the investment in those store were considerable. At the same time, FPT Retail was also the first company to bring Apple to Vietnam with brand shop stores such as F.Studio … The brand FPT Shop was created from such cases with high-end product lines for comsumers to choose.
FPT Retail entered the pharmaceutical retail business when the mobile phone market, the main retail segment of the company, is gradually entering a saturation phase. According to you, is this judgment true?
By nature, the phone segment is already saturated, because the growth of the phone market is only a few percent per year, so the drugstore chain will be the future direction to help FPT Retail grow more. In 2019, this drugstore chain has not developed enough to contribute much to revenue of the Company.
However, in the telephone segment, FPT Shop will still try to find new directions, exploit other channels to have a growth rate of 15%, such as installment payment (with 10% remaining), sales channel for business, F.Friends … , which means the company will actively find customers rather than customers themselves go to FPT
In the future, what are the main factor that contributes to to the growth of FPT Retail, FPT Shop, F.Studio or Long Chau pharmacies? FPT Shop is still the main business in 2019, Long Chau and F.Studio do not contribute much. Specifically, according to the 2019 plan, the Company’s revenue is VND 17,700 billion, pre-tax profit is VND 560 billion, rising by 20% compared to 2018. In the revenue structure, the share of Long Chau contributes VND 500 billion. Regarding F.Studio, the original plan is to open 100 stores in 3 years but Apple’s policies were not favorable, plus their products were not good enough in the last import. Hence, the Company will stop investing too much on this at the moment. The future plans will still depend on whether Apple’s policies and products change, then FPT Retail will return to set a target for this chain.
In addition, the company also set a target of accessories revenue this year, which is to reach VND 1,000 billion, increasing about 40% compared to last year. There are many ways to achieve this number, such as changing suppliers, choosing products with more affordable price for the market, or investing in employee training … The company also aims to sell products through online channels this year, growing 25-30% faster, while the offline segment is 15%. The reason is now more and more people do not have time to go to the store, so they have goods deliver to the house. FPT Shop currently has a number of 550 stores through out 63 provinces and cities, mostly in Hanoi and Ho Chi Minh City.
About the business results in 2018, can you tell us how Long Chau drugstore chain has contributed? Does the progress of expanding the drugstore chain go as planned and does the company face any difficulties in the implementation process?
In 2018, FPT Retail opened 20 Long Chau drug stores. The plan is to open 50 more stores in 2019, so there will be about 70 drug stores from the end of the year.
Long Chau is divided into two categories: old stores are operating and new ones have been open. From 2018 up to now, FPT Retail has opened many stores with different criteria for testing such as big, small, in crowded residential areas or paired with FPT Shop’s shops to optimize surface. During the time of testing these model stores, a few things happened that helped me to realize many problems, know what needs to be focused. The first priority is still to open big pharmacies, but depending on the process of evaluating the performance of the store, if the efficiency is not good, the pharmacies need to sell another lines of products to produce revenue.
In addition, in the long future, the company wants to be convenient for customers. For example, if customers want to buy specific items, we also have big stores with all kinds of products. For customers only need to buy simple medicines like ones to cure flu, fever and want to be close to home, we also have to have small stores.
This year, FPT Shop plans to open the next 70-100 shops, in the process of opening, if we have an open space but at a little high price, it would be a waste if only FPT Shop uses it. The company will consider opening 2 stores simultaneously. Some points have tested this model of 2 stores in Ho Chi Minh City such as Le Van Khuong, Nguyen Oanh, Hong Bang … Those also have their own effectiveness and difficulties.
In fact, the drug business takes a bit more time than the phone one. In the old days, people used to buy medicines with prestige, beliefs. For instance, people get used to buying in the store with same pharmacist over the years. When the chain entered the market, it has to take time to persuade consumers to try to come the new pharmacies to experience the difference in prices, goods, service … Therefore, sales of medicines often increase slowly but steadily. In the end, it takes a while to see the store’s effectiveness.
This year, FPT Retail will build the entire system for Long Chau pharmacy chain, from operation to logistics … The opening of Long Chau pharmacy has a big advantage when relying on 70% of FPT Shop’s software system. The construction takes much less time. It only takes a few months, not the whole year as in the old days. However, the operation process also encounters two main difficulties. The first one concerns the recruitment, and personnel training. The second one is a more complicated process to get a license as this is a business relating to human health, so it needs the State’s management. Currently, opening a store takes about 30-45 days to apply for a permit.
According to market research companies, the growth of the pharmaceutical industry is 15-16% per year, but the important issue is that there are 30,000 – 40,000 small stores. It similars to the telephone segment 10 years ago. There were so many small phone stores. After that, the model of store chain was launched to give customers better experience, more prestige, so it attracted customers. Since then, the chain has increased strongly thanks to the market share of the other small stores, not from the normal growth of the market. The current pharmacy segment is also similar, and this is the start.
What impact does the new large shareholder group have on the company’s personnel and business activities?
No action has been seen from this major shareholder. But I think, if the current board of directors still maintains good indicators, it is likely that shareholders will be assured so they won’t bring more people in.
Having been with FPT Retail since the early days, to have the position as today, have you ever faced failure and how did you deal with it? Do you intend to find a new environment to challenge yourself more?
I have encountered lots of difficulties, but over the past 20 years, I have never intended to leave FPT. What makes me stick with FPT is the environment here, which gives me opportunities to develop myself, and then be recognized and rewarded. If you go to a different environment, that belief is almost zero and you have to earn it again. No matter how popular you are, others will only recognize you when you prove you can do something. Another part is that you will not be given full authority to decide on the job despite the qualities you have.
I won’t leave FPT Retail since here, I am also fine. There is no big problem causing frustration to leave. Besides, it doesn’t mean that you have challenges only when you go out. Here, the environment is demanding and challenging already. Not to mention my plan is not only to complete the company’s goals but also to keep up with the rival. It means that I can complete the plan with the Company, but the distance with the opponent is still quite far away, which leads to the fact that I have already put pressure and challenges on myself.
So what is your guideline for success as today?
In my opinion, this is just a matter of awareness. When I came to work at FPT, the first year I did not get paid but I still worked even though I was so misarble at that time. I didn’t even have enough money to have my bike patched. I worked becausse of my passion. Then I set a simple goal that this was a time that I could gain more experience rather then anything else.Indeed, after I had accumulated a lot of experience, I had many opportunities to interact with many different customers as convincing Prudential, 3-digit tobacco to buy products with project worth millions dollar. Since then, I have provided solutions for customers. I have grown up, having more experience to handle problems, which helped me to have more work. Then the Company noticed the capacity and here I am! Now, I see a lot of employees who only care about chainging job and complaining about why they do so much but don not get much. But they don’t think that the experiences they have earned are their valuable assets even when they left. It will help them to be more successful later. But they don’t realize that, which means they do not have good perception. It is also important to have good attitude at work. When assigned something, I have to do the best I can. I don’t want others to look at me with the thought that I cannot do something, so I try very hard. And then the opportunity comes.
As a businesswoman, what do you think are the advantages and difficulties women have?
From my personal point of view, women do not have much courage when it comes to taking risks, but they are more cautious in every job, which may cause them losing opportunities. I also missed the opportunity sometimes but I let it go very quickly to focus on another goal.
The second factor is the sensibility in new technologies. It seems that men understand it faster. Women are better at administration. Hence, they are not as good as men when it comes to techconology.
How do you keep the balance between work and family?
In regard to my family and my children, I still can do it well. There is nothing called trade-off when being in this position. My family still lives normally, especially on Sunday, which I have reserved for my family completely. Every day I go to work, but I still maintain common activities with my family like eating dinner together, or taking the kids to school. There is still interaction among family members. We still care for each other.
According to Minh An, Vietstock
FPT Retail ‘iron woman’ wants to build FPT Retail to become the No. 1 retailer in the digital market
Setting an example to employees and putting sincerity on top of all are the principles of Mrs. Nguyen Bach Diep, Top 50 “Most influential women in Vietnam”, from the time when she was a store leader 6 years ago to now- when she has become the Chairwoman of FPT Retail.
Mrs. Nguyen Bach Diep is now known with many names such as the “iron woman” of FPT, “female general” of FPT Retail, “Top 50 most influential women in Vietnam”, and “Top 20 most powerful women in business ” chosen by Forbes. Under her management, FPT Shop has risen from the modest business when first launched more than 6 years ago to the second-largest phone retailer in Viet Nam, and ranked first in term of sales per sqm.
What is the secret behind the success of the “female general” leading over 5,000 “troops” and developing over 500 stores in 63 provinces and cities? In addition to building an efficient operating system, human resource management is an important key, in which “sincerity” is always the priority of CEO Nguyen Bach Diep.
The determination to take sincerity as human resource strategy
Chairman Nguyen Bach Diep said that in FPT Retail, she is determined to build a transparent and fair working environment. However, the most important thing is to have sincere sharing and great encouragement.
FPT Retail CEO Nguyen Bach Diep
Therefore, according to Mrs. Nguyen, when there is a problem, each person should look back to see if he commits an error first, then consider if it is other people’s mistakes. Gradually, the approach to problems becomes more sympathetic, and solutions are reached easier. She also acknowledged an issue. When the position gets higher, the workload increase, the leaders tend to be far from reality, and become more conservative. When policies cannot be operated, listening to employees can help to solve the problem. The less sharing it is, the more misunderstanding it would be. That can lead to the fact that no one knows what others are doing, and are not able to be sympathetic toward each other.
“The most important key to solve all problems is sincerity. When you are sincere, you are not scared,” she concluded. Since then, the employees themselves must feel responsible, sincere, and want be a kind person to customers. “At that time, companies will grow firmly, and strongly,” said the FPT Retail CEO.
Leaders must work real hard
Sharing about the experience in building human resources, Mrs. Nguyen said, “to be an example” is a very important factor. The leader should be responsible for directing the “army” below. “I am the one who feels most clearly about how FPT Retail’s mission will go, how far it will go, and how many people will go,” she wrote in her letter to employees.
According to Mrs. Nguyen, the leader should be responsible for guiding the entire staff and setting an example.
For setting up the service culture and the three core values of Retailers (Dedicated to customers – Honest and responsible – Solid and supportive), she also committed to be the first person to pioneer, to preserve, and to follow “core values”. “If it is necessary to pressure the employees, then I must also be a role model, so that everyone can see how hard I work,” Mrs. Nguyen shared. The Chairwoman also found her fortunate to have an awesome team.
From the dedicated saleswoman to the store manager
In the last letter to employees in 2018, sharing about the principles of FPT Retail, the CEO emphasized “determination to build a strong Retailer from people to the culture of true service from person to person”. In fact, “being honest with each other” is what the chairwoman has chosen to act as a guideline for more than 6 years.
In the last year of college, she had a conversation with her classmate about the opportunity to intern at FPT. That was the very first chance for her to step into FPT with the position of saleswoman.
In the early days, everything was too new for the young employee. She did not know what to say to a customer when selling a machine. Many things like RAM, CPU, hard drive, keyboard, mouse… were strange to her. At that time her solution was “what you don’t understand, ask!”
She noticed that when she explained earnestly to customers the reason why they should buy this machine, not the others, customers then felt convinced and bought. The success rate at that time was very high: 6-7 out of 10 customers came buying products. It must be the first lesson that helped her to realize the importance of the principle “devotion to customers” and make it a prerequisite which is one of the three core values that Retailers need to comply with.
When Vietnam opened the market, businesses set up more factories in Vietnam and bought hundreds of computers at a time. The store started growing up with a great deal of projects, contracts worth thousands dollar. The leaders acknowledged Mrs. Nguyen’s ability, and she was assigned to be the head manager.
She recalled when she took the responsibility as a head manager, she felt pressured and became very strict. The surrounding air was so increasingly suffocating that she herself did not even recognize. Until one day, when she happened to hear the staff in the shop discussing her reaction, she was surprised and very sad.
Spending a night thinking about the solution to handle it, she chose to support and share to customers, use her experience to consult when employees had issues with customers. Since then, the cooperation became better and people also sensed her sincerity. The boss and the staff conscientiously worked together, the store’s revenue constantly increased.
The female manager drew to a conclusion that when it comes to problem solving, attitudes are that what matters. She felt that passionate devotion would convince people, and chose that way.
Building a system of FPT Retail ‘empire’ to more than 500 stores and more
In 2012, Chairman Truong Gia Binh decided to separate retail from distribution to become an independent company. At the very beginning, she did not know how to start, what process to follow. With the motto from the very first days, “what I don’t know, ask,” she learned from her opponent and gradually developed FPT Shop with 543 stores now.
First, thanks to the help of other company members to build a management software system. However, these companies appeared to lack flexibility in the set-up phase with many changes, trials and fixes, resulting in increasing costs. The CEO offered a solution to set up an in-house team. “They understand that their work plays a vital part, so they work hard regardless time,” she said
Gradually, thanks to the rapid development strategy, the annual turnover of FPT Shop increased considerably. In 2018, FPT Shop system achieved revenue of nearly VND 16,000 billion, profit after tax reached VND 348 billion, rose by 20% compared to the same period. Average sales per store reached VND 2.4 billion / month. In mid-2018 Retail Asia magazine announced the list of top 500 retailers in the Asia-Pacific region, in which FPT Shop “jumped” from position 356 to 305.
In addition, at the beginning of the third quarter of 2018, FPT Retail established a subsidiary in the pharmaceutical segment, namely FPT Pharmacy. Mrs. Nguyen Bach Diep is also the legal representative. By the end of 2018, this drugstore chain has 25 stores and plans to open 50 new stores in 2019, average monthly sales of over VND 2 billion per store.
In 2019, FPT Retail aims to become the No. 1 retail business in the digital market, selling 1 million sim, 1,000 billion accessories. Installments make up 50% of revenue, collecting on behalf increases by 50%, and revenue reach more than 13 million per year. Besides, the Retailer advocates 2019 as “the year of 3 core values”.
According to ICT News
Mrs. Nguyen Bach Diep, FPT Retail CEO and President, has been honored by Forbes Vietnam in its list of 50 most influential women in Vietnam in 2019.
Chairman and CEO of FPT Retail Nguyen Bach Diep (right edge) appears on the Forbes Vietnam cove in March 2019.
Forbes Vietnam has officially published its list of 50 “Most Influential Women in Vietnam”, including those pioneering in different fields from politics, entrepreneurship, business, research, social work, science-education, entertainment, and sports.
In this list, for the first time, FPT Retail “iron woman” was honored as one of the 20 most powerful women in the business sector in 2019.
The achievement of Mrs. Nguyen Bach Diep was to bring FPT Retail from 17 stores to the second largest mobile phone retail chain in Vietnam with more than 500 stores from North to South after 7 years of development. In 2018, FPT Shop earned the revenue of nearly VND 16,000 billion. The net income reached VND 348 billion, which rose by 20% compared to the same period.
“The common characteristics of these most influential women on the list are the passionate commitment, firmness, and tenacity, which help them not only succeed in their fields but also create, and affirm new values of modern women,” said Vo Quoc Khanh from Forbes Vietnam.
According to Forbes Vietnam, while the phone retail segment slowed down since the market was close to be saturated, FPT Retail joined pharmaceutical retail segment after successfully acquiring Long Chau pharmacy chain. By the end of 2018, this pharmacy chain has 25 stores and plans to open 50 new stores in 2019.
Mrs. Nguyen has been with FPT since she graduated from university. Through many positions, from business staff to manager, Mrs. Nguyen had gained great experience in many fields, including Internet and telecommunications before joining FPT Shop. At FPT Retail, she was named “iron woman” due to her determination.
This is the second time that Forbes Vietnam has announced its annual list of 50 “Most Influential Women in Vietnam”, comprising of a list of 20 powerful leading women in business in 2019.
According to Hai Yen