Long Chau’s turnover in the first quarter increased by 2.5 times compared to the same period in 2019, FRT plans to open 40 new stores in the second quarter
(VNF) – FPT Digital Retail Joint Stock Company (FPT Retail, HoSE: FRT) has announced the production and business results of the first quarter of 2020.
Long Chau’s revenue in the first quarter increased by 2.5 times compared to the same period in 2019, FRT plans to open 40 new stores in the second quarter. (Photo)
Accordingly, in the period, the Company brought in VND 4,093 billion of turnover, which is decreased by 3% compared to the fourth quarter of 2019. The profit before tax of the Company during the period reached VND 47 billion.
In FPT Retail’s system, Long Chau chain has gained VND 239 billion of turnover, up 20% compared to the fourth quarter in 2014, 2.5 times as much as that in the same period of 2019.
During the period, the Company has been focusing on promoting online sales, especially during Covid-19 epidemic period. Accordingly, the online turnover in the first quarter of 2020 reached VND 1,107 billion, up 20% compared to the fourth quarter of 2019, accounting for 27% of FRT’s total turnover.
Regarding the store network, at the end of the first quarter of 2020, FRT had 603 FPT-shop stores in total. At the same time, there were 83 Long Chau stores spreading across 19 provinces and cities, which is 13 new stores compared to the end of 2019.
Currently, Long Chau has decided on 40 locations to open new stores in the second quarter of 2020.
Besides, FPT Retail has decided on the date of organizing the annual General Meeting of Shareholders in 2020, which is 28 May 2020, under offline and online meeting.
Before that, the Company planned to hold the General Meeting of Shareholders on 20 March 2020; however, the meeting was postponed due to the complicated situation of Covid-19 epidemic.
According to Ha Thu, Vietnam Finance
Published May 6, 2020
Up to now, Vietnam is easing social distancing campaign gradually, FRT – the owner of Long Chau chain – accordingly will launch many practical incentives for the customers.
As one of the units that have been affected heavily by Covid-19 epidemic when the factories in China were locked down from operation, FPT Retail (FPT) has witnessed an increase in profits to VND 35,6 billion in the first quarter.
Promotions will be increased to bolster up the consumers’ demand after social distancing
Sharing with us, the Company’s representative said that the Covid-19 epidemic had a quite serious and multi-dimensional impact on all economic and social fields of our country. Especially for retail companies such as FRT, the difficulties brought by the epidemic are even more pronounced. The previous period of social distancing has somehow affected the business results of our Company. Accordingly, the turnover of March 2020 was decreased by 20% compared to February 2020.
“However, there are even opportunities in challenges, in the epidemic, the trend has been shifted to online shopping, the demand for personal devices to work from home has escalated, FRT has taken advantage of that to sell products, which has improved the risk management. This is also a big hit for FRT to be more creative in order to overcome the difficulties and discover new values”, FRT’s side said.
According to the statistics, FPT Shop’s laptops’ turnover in January 2020 was up by 79% compared to that of January and its turnover in March was up by 172% compared to January, “FRT will continue investing in this segment in the long term”.
At the moment, Vietnam is easing social distancing step by step, FRT accordingly will launch many practical incentives for the customers. To be specific, in this May, FPT Shop will offer big discounts for mobile phones, laptops and the customers can buy pay for many products in instalments with 0% interest and with a prepayment of from only VND 399,000. Concurrently, FPT Shop will also offer free anti-bacteria hand sanitizers and offer home delivery within 60 minutes.
The retail industry is expected to reach USD 180 billion in 2020: FRT will maintain the ICT in order to have new business expansion strategies
According the report of Vietnam Report, in the past few years, the retail industry in Vietnam has experienced rapid growth. The compound annual growth rate (CAGR) in the period 2013 – 2018 was 10,97%. The total retail revenue is expected to reach USD 180 billion in 2020, equivalent to an increase of 26,6% from 2018. However, the dramatic rise of digital and e-commercial retail channels is also worth high attention in the near future.
According to the forecast of World Bank, household expenditure will increase by 10,5% per year on average with the strong growth of middle class. Currently, about 70% of the Vietnam’s populations is financially secured, of which 13% is the middle class according to the world’s standard. Income of those people in this class are rapidly growing, which is very likely to reach 26% in 2016. From 2014, approximately 1,5 million of Vietnamese have joined the middle class per year on average, which indicates that households are reaching higher steps in the economic ladder after escaping the poverty. Economy growth, living-standard improvement and the increase of middle class are solid foundations to bolster up the extension of retail industry in the coming time.
Accordingly, in 2020, FPT Retail will continue to maintain the ICT chain so as to keep the growth rate the same as that in 2019. This is also a fulcrum for FRT to invest and extend new business paths. FRT plans to increase the revenue of the store chain by starting to sell sun glasses and watches in the form of shop-in-shop.
In 2020, there will be 200 new Long Chau pharmacies
In the pharmaceutical industry, there are 83 Long Chau pharmacies spreading across 19 provinces and cities, up 13 stores compared to the end of 2019. Up to now, Long Chau has decided on 40 locations to open new stores in the second quarter of 2020. It is foreseen that Long Chau may reach 200 stores at the end of 2020.
“FPT Retail’s current strategy is to expand the coverage nationwide, accounting for 30% of the pharmaceutical retail marker share through pharmacies in 2 to 3 years”, said the chain’s representative.
In the annual report of 2019, FRT assessed that the pharmaceutical industry in Vietnam is considered attractive for investors. According to BMI, the revenue in this segment will increase from USD 7.7 billion in 2021 to USD 16.1 billion in 2026. The compound annual growth rate will reach 11% in Vietnam Dong.
On the other hand, the pharmaceutical retail industry in our country is very fragmented. Because the average income and health awareness is becoming higher, people tend to choose modern, branding and GPP-standard pharmacies (with good pharmacy practices) instead of small and unqualified pharmacies. This shift is being accelerated party thanks to the Government’s policies that control the pharmaceutical retail industry via pharmacies (Circular 02/2018/TT-BYT regulating on good pharmacy practices)
For FRT, after discovering the secret to success for Long Chau chain, in 2020, FRT plans to expand the chain to 220 stores and increase the coverage nationwide. In the long-term plan, FRT sets goals to develop the pharmaceutical segment in a methodically planned and controlled manner the same as the operation of digital retail segment.
According to Tri Tuc, CafeF
Published May 7, 2020
On 06 March, the Board of Management of FPT Digital Retail Joint Stock Company (FPT Retail) has approved the resolution to appoint Mr Hoang Trung Kien, the member of the Board of Management, as the General Director of FPT Retail since 07 March 2020. Ms Nguyen Bach Diep will continue to be the Chairman of the Board of Management.
Mr. Hoang Trung Kien
In 3 years, FPT Retail aims to improve the operational efficiency of all the business fields and become the leading multi-industry retail company in Vietnam.
In particular, FPT Shop – the digital-product retailing system will optimize profits by focusing on developing a number of product lines with high profit margins, optimizing the business locations, cross-selling the products such as watches, sun glasses, etc; investing in equipment and improving the personnel quality.
Pharmaceutical segment is the growing motivation of FPT Retail in the future. After figuring out the secret to success, the pharmaceutical chain is expected to increase the number of stores by threefold compared to 2019, from 70 to 220 stores right in this year, the revenue will also be increased by 3 times from VND 500 billion in 2019 to VND 1,500 billion in 2020. FPT Retail will particularly focus on investing in technology, which is to build a standard retail platform to pave the way for accelerating new business paths as well as to create momentum for the future growth.
In the immediate future, in 2020, FPT Retail continues to set target of increasing the revenue, maintaining the retail market share of mobile phones, laptops, expanding the coverage of Long Chau system to 220 stores nationwide and developing new business segments.
The new General Director – Mr Hoang Trung Kien was born in 2017, he graduated Master of Business Administration and Information Systems (MBIS) from Université of Libre de Bruxelles (Kingdom of Belgium). Joining FPT in 2000, he has strengths in building, managing the system and developing business with 7 years of experiences in building important information systems for the Government, authorities, and large enterprises in Vietnam; 12 years of experiences in expanding the coverage of telecommunications, which is an intensely competitive field.
With more than 19 years of working for FPT, he has been in many important positions such as Deputy General Director of FPT Telecom (July 2020 – March 2020) where he was in charge of business development of many regions across the country; Deputy Director of FPT Data Center of FPT Telecom (2007), where he managed the service consultancy and deployed the information system; Sales Manager of FPT Software Solutions Company Limited (2004 – 2006).
With high experience in opening and developing new retail chains, Ms Nguyen Bach Diep, Chairman of the Board of Management, will focus on running Long Chau pharmacies and promoting new business segments of FPT Retail. Ms Nguyen Bach Diep was born in 1972, she is the person who has made great contribution in bringing FPT Retail to become the second largest digital retail company in Vietnam. In March 2019, Ms Diep was honored to be in the list of 50 most influential women in Vietnam (According to Forbes Vietnam).
FPT Retail is operating the retail chains, including: FPT Shop, F. Studio by FPT, Long Chau pharmacies together with a number of new lines that are in the testing process. At the present, Long Chau pharmacies have nearly 80 stores nationwide, serving approximately 25,000 consumers a day, the turnover of each pharmacy is 3 times higher than that of other chains. There are 590 stores of FPT Shop, 15 stores of F. Studio by FPT across the country, which help millions of people more convenient in buying technology products.
According to Cafebiz
Published March 7, 2020.
A screenshot of FPT Shop’s website. FPT Retail teams up with Fado to sell international products – PHOTO: CHI THINH
HCMC – FPT Digital Retail JSC, or FPT Retail, has cooperated with cross-border ecommerce platform Fado to sell international products made in the United States, Japan and Germany, a representative of FPT Retail announced.
Customers can now purchase these products on the website https://hangmy.fptshop.com.vn/.
The representative said that the international products available on the website have clear origins, and that under the agreement, Fado will bear legal liability in terms of commodities, while FPT Shop will act as an intermediary with domestic customers.
The international products on the website are diverse, including electronics, cosmetics and clothes.
After selecting products on the website, shoppers can make online payments or place deposits at FPT stores.
Customers will receive an alert when their selected products are delivered to the stores of their choosing.
U.S., Japanese and German products are purchased from well-known ecommerce platforms in those countries of origin, according to the representative.
According to Chi Thinh, The Saigon Times
The significant decrease in the stock price caused the market price of each FPT Shop fall down to VND5,5 billion, which is unreasonable according to Ms. Nguyen Bach Diep.
From the beginning of 2019 until now, the stock price of FPT Digital Retail Joint Stock Company (FRT code) plummeted. At the end of 2018, FPT Retail’s stock price was at VND71.900 per share. At 28 March, the stock price of FPT is at VND48.000 per share, down more than 33%.
Ms. Nguyen Bach Diep (holding the microphone), is giving speech at the FPT Retail’s Annual General Meeting of Shareholders 2019 – Photo: Hai Dang
“However, according to our evaluation, we consider that such price is far lower than the real value of FPT Retail”, a contributor of FPT Shop said.At the FPT Retail’s Annual General Meeting of Shareholders held on 27 March, after being questioned on such issue, Ms. Nguyen Bach Diep – the Chairman of FRT cum General Director of the Company – admitted that FPT Retail’s shares have just been listed for less than 1 year, the Board of Management is not experienced in the stock exchange, and they have no idea about why the stock price falls dramatically.
With the current stock price, Ms. Diep is calculating the market price of FRT of VND3,200 billion. If such price is divided to 570 stores of Long Chau and FPT Shop, the average value of each store is at VND5,5 billion.
Ms. Diep stated that such revaluation is unreasonable, because the cost of construction, inventory, brand costs, operating personnel, website with a high rate of access, switchboards, etc., in total, will exceed the amount of VND5,5 billion.
“If compared to other retail chains, even listed and unlisted chains, the value of each of their store is from VND20 to VND50 billion, therefore, it is not reasonable that the value of FPT Shop is VND5,5 billion.”
A store of FPT Shop is about to open – Photo: Hai Dang
“The large scale and high profit of pharmaceutical industry are a direction for potential development of the Company,” added by Ms. Diep to prove that the market value of FRT is being evaluated incorrectly.With the acquisition of Long Chau drugstores since 2017 for business expansion, Ms. Diep said that there is high potential in the pharmaceutical retail industry. The scale of such industry is estimated to be at VND4,5 billion – the same as mobile industry – as a result, if FRT holds about 30% of the market share without the presence of any big retailers, FRT’s revenue can increase greatly from this new industry.
Although Ms. Diep does not know the reason for the dramatic decrease in the stock price, she thinks perhaps it is due to late payment, little transactions, which make the stock price go down.
“In general, we have recognized these issues and are having some solutions such as purchases of consulting service and we will have ways to improve the payment issue”, said the CEO of FPT Shop.
In 2019, FPT Retail has planned to reach the revenue of VND17,700 billion, profit after tax of VND418 billion, equivalent to the growth of 16% and 20%, respectively, compared to 2018. Ms. Diep revealed that in 2019, they will open 100 additional stores, reaching 633 stores in total. Besides the expansion in large central areas, the new stores will be available in residential areas of unexploited districts and communes.
In 2018, FPT Retail’s total revenue reached VND15,298 billion, up 16% compared to 2017. Online revenue was at VND2.432 billion, with the growth of 21%. Profit before tax reached VND435 billion, profit after tax reached VND348 billion, up 20% compared to 2017.
According to Hai Dang, ICTNews
The cooperation between FPT Shop and Nguyen Kim in selling televisions, refrigerators, air conditionings, and washing machines, etc.
With the new business in electronics, FPT Shop and The Gioi Di Dong are quite in common when they both sell mobile phones, electronics and medicines.
According to FPT Shop’s information, from 11 April, FPT Shop officially cooperated with Nguyen Kim Shopping Center.
FPT Shop revealed that the customers can look up for the products’ information, selling prices, promotions, installments and even make online orders of all the electronic products that are available at Nguyen Kim through FPT Shop’s electronic website. The price policies of FPT Shop is the same as Nguyen Kim’s.
The cooperation with Nguyen Kim will help FPT Shop to have a wide range of products, higher rate of access, which will increase cross-selling capability. Meanwhile, for Nguyen Kim, the sales through a website which has a high rate of access like FPT Shop will help boost their revenue.
Through observation, the products displayed on FPT Shop’s electronic website include air conditionings, televisions, washing machines, cameras, and household appliances, etc.
With the expansion to electronic industry, FPT Shop and The Gioi Di Dong are quite in common, they both sell mobile phones, electronics and medicines. However, FPT Shop has just cooperated with an electronics retailer, while The Gioi Di Dong has already had their own chain.
In reality, The Gioi Di Dong started to sell electronics since 2010, but it was not until the end of 2016, its business began to massively expand. At the moment, Dien May Xanh is the biggest electronic chain in the market with 766 stores gaining revenue of more than VND47,000 billion in 2018.
According to Hà My, Cafebiz
With the business expansion to the electronics field to take advantage of the online sales, FPT Shop said that the new business is being experimented, hence, they are not thinking about gaining the market share.
Mr. Ngo Quoc Bao, Director of the FPT Retail Center for E-Commerce and Technical Services, told ICTnews that FPT Shop has just experimented in selling electronic products via online channels, the business has not been officially implemented yet, so we now have not planned on how much we will gain the market share in such new industry.
On 11 April, FPT Shop officially launched electronic products on their website. All the electronic products available on FPT Shop’s website are provided by Nguyen Kim, a long-term electronics retailer in Ho Chi Minh City and many other provinces and cities nationwide.
A corner of Nguyen Kim Electronic Appliance Center – Photo: Hai Dang
FPT Shop is ranked second in the mobile phone retail system in terms of the number of chains. The biggest competitor of FPT Shop is The Gioi Di Dong, which has quickly opened a chain of electronics many years ago and is currently holding the largest market share in this segment. Electronics is the closest industry to mobile phones; however at the moment, FPT Shop is new in this industry, therefore they will surely face more difficulties.The new products of FPT Shop are launched also with the aim to increase revenue, in the context of forecasting the growth of mobile phones in Vietnam in 2019 by only about 1%, according to GfK.
“We have been researching this market many years ago and now is the right time”, Mr. Bao replied to ICTnews.
This cooperation is based on the optimal strengths of the two parties, Mr. Bao said, referring to the advantages of e-commerce segment of FPT Shop and a wide range of products as well as experiences in electronic sales of Nguyen Kim.
“The main aim is to take advantage of the optimal strengths, the variety of products, and to provide more special treatments to bring the customers to the main product of FPT Shop, this is not for the aim of gaining the market share”, Mr. Bao replied concerning the target of market share when expanding new business.
The cooperation to open the electronics business of FPT Shop was quite unexpected when such business was not included in the business plan of 2019 in the Annual General Meeting of FPT Retail this year, said the owner of FPT Shop.
In the first phase, electronics will only be sold online and not displayed at FPT Shop stores. Mr. Bao said: “The sales is initially conducted online because online channel is one of FPT Shop’s strengths that our counterparty in this project wants to take advantage of”. “After the process, the systems as well as the ability of coordination of the two parties have been completed, we will have a comprehensive evaluation for further cooperation”.
Before engaging in expanding business to electronic industry, FPT Shop has joined pharmaceutical retail business a few years ago. FPT Retail acquired Long Chau drugstores and planned to gain 30% of the pharmaceutical market share in 2022.
In 2019, FPT Retail has planned to reach the revenue of VND17,700 billion, profit after tax of VND418 billion, equivalent to the growth of 16% and 20% compared to 2018. FPT Shop revealed that in 2019, they will open 100 additional stores, reaching 633 stores in total. Besides the expansion in large central areas, the new stores will be available in residential areas of unexploited districts and communes.
In 2018, FPT Retail’s total revenue reached VND15,298 billion, up 16% compared to 2017. Online revenue was at VND2.432 billion, with the growth of 21%. Profit before tax reached VND435 billion, profit after tax reached VND348 billion, up 20% compared to 2017.
According to Hai Dang, ICTnews
“Powerful woman of FPT Retail: Only believe in myself, in the effectiveness of my work rather than what others think of me.
For the first time, Mrs. Nguyen Bach Diep, the “iron woman” of FPT Retail, was honored as one of the 20 most powerful women in business in 2019 on the list of 50 “Most Influential Women in Vietnam in 2019” chosen by Forbes Vietnam.
“Iron woman” Nguyen Bach Diep and her partners have brought FPT Retail from 17 stores, after 7 years of development, to become the second largest mobile phone retail chain in Vietnam with more than 500 stores from North to South.
On March 8, International Women’s Day, Mrs. Nguyen Bach Diep shared her entrepreneurial story as well as the business situation of FPT Retail.
– What is the number of F-Studio stores by FPT Retail, and the sales of each store? What is the current situation of Long Chau Pharmacy?
By the end of December 2018, the total number of F.Studio stores by FPT stores was around 14. Regarding Long Chau Pharmacy, the number of drugstores is 26 up to now. In the near future, FPT Retail will speed up the opening of new pharmacies with an average of 70 pharmacies / year and aim to have 400 Long Chau pharmacies nationwide by 2022.
The company also expects FPT Pharma to account for 30% of the market share which is equivalent to VND 10,000 billion of pharmaceutical revenue; and within the next 3-4 years, the pharmacies segment will contribute 40% to the revenue of FPT Retail.
– What is business plan of FPT Retail in 2019? What are the long-term objectives and business strategy of the company in the next 5-10 years?
In 2019, FPT Retail’s expected revenue is 17,700 billion dong, pre-tax profit is expected to be 522 billion dong. In the near future, we will increase the investment in Long Chau pharmacy chain, which is a new direction and is forecasted to contribute to the future growth of FPT Retail.
In addition, we still focus on FPT Shop chain to maintain the growth and increase revenue. The investment is concretized by activities such as actively seeking customers and accessing multi-channel customers, promoting the deferred payment program for officials and employees at enterprises called F.Friends.
Besides, we continue to promote installment sale; invest heavily in phone accessory industry because this is one of the segments with great profits. Along with producing revenue, FPT Shop will improve the quality of service, which is also one of the core values that the company is holding onto: “Serving customers with care”.
– As known as the “iron woman”, what do you think about this?
I’m not sure when and how I got being called that way. I’m a bit hot-tempered, determined at work, and hard to accept something half-hearted, so I have argument with my boss often. I also do not accept an unclear explanation from employees. Anything must have a satisfactory explanation.
Moreover, I only believe in myself, believe in the effectiveness of my work rather than what others think of me.
– Many people are tired and exhausted because of the work overload, what is the way that helps you to maintain your spirit, motivate yourself to do everything as planned?
For me, work is not a burden but actually a hobby. I don’t like the idea of quitting. When I do any job, I have to finish it. I do not accept being said that I could not complete my job. That is the driving force that makes me try constantly to achieve my goal.
I like to work, to maintain discipline. I’m a perfectionist and but also a hot-tempered woman. For me, once the promise has been made, it must be kept. There is one thing that I always keep in mind. When I choose to occupy a position, I have to do my best in that position. Instead of complaining, I should concentrate on doing my job well.
– What is the percentage of women in FPT Retail? How to win over your people so that your company can operate effectively?
In FPT Retail, the number of female employees accounts for more than 36% of total employees. For employees, we need to have a clear punishment and reward regime to in order to encourage but also help them to develop themselves.
In the view of my administration, those who work with me, and follow me, I must ensure the rights for them. In return, they also know that working with me can be stressful, pressured. They have to satisfy many demands as well. But through that process, they would grow up. The most important thing is the sincerity. When we reward or punish them, it must be clear. Why are they given reward? Why are they punished?
From the beginning, I have been determined to build a transparent, and fair working environment with a clear punishment and reward regime. But most importantly, there are always sincere sharing and encouragement from the boss to the staff.
– Can you share your story from being a salesperson to becoming a powerful woman at FPT Retail?
In the 90s, I was a student whose major was Business Administration. I applied for an internship as a seller at a FPT store. There, I had the opportunity to practice listening skills and setting goals for each specific milestone. I forced myself in a month to know how to advise customers to accept purchases, how to gradually increase the success rate. Then gradually increased my goals such as how to get into the list of best sellers in the store, then company.
During nearly a year of working, although I did not receive any reward salary, the culture of respecting differences and appreciating the talents helped me to stick with FPT. As a result, I was appointed to the position of store manager.
Due to the young age and the lack of management experience, in the beginning, I had a lot of “objections” from the staff. Some even intended to “overthrow” me. At that time, I was angry at them but also at myself. I could not avoid being shocked for a while. After calming down, I found ways to communicate and help “disgruntled” employees achieve their work goals.
From the position of store management, I later had the opportunity to work at many different companies in FPT Corporation such as FPT Information System (FPT IS), FPT Mobile Technology Company Limited, FPT Telecom Joint Stock Company (FPT Telecom) and FPT Trading Company Limited (FPT Trading) …,
In 2010, FPT set up a joint venture project with Indonesia’s leading supermarket chain. I was trusted to be Alpha Mart Project’s Director. However, after one year of learning and getting to know the process, the system has just negotiated, FPT suddenly withdrew to focus resources on buying EVN Telecom, I returned to FPT Trading.
At that time, FPT Trading was mainly a distributor but also carried out the retail segment, which led to the rejection from other partners. Therefore, FPT Retail was not taken good care of. Its profits was “just enough to support itself”.
In the first phase in 2012, FPT had 5 – 7 retail stores but mainly made “showrooms” for other firms. With the background knowledge learned from my Indonesian counterpart, I drew up a proposal of establishing an independent retail company and protected it before the FPT’s leaders. On February 1, 2012, FPT Retail was officially launched to implement the Group’s retail chain project.
– What is your concept of a successful person? In the family, does the success of one partner cause pressure on the other?
I don’t think there is any pressure because in order for one partner to succeed, the other need to understand, sympathize, and support sympathy. For me, my husband always understands, shares family work and supports so that I can freely develop my career.
According to Minh Anh, Ha Mi
At FPT Retail, Mrs. Nguyen Bach Diep is known as the “iron woman” due to her determination at work. To achieve success, according to her, is to work hard as there is no easy roads to success.
Bà Nguyễn Bạch Điệp.
The “Trump card” of FPT Retail
Chairwoman and CEO of FPT Retail Nguyen Bach Diep appeared on the cover of Forbes Vietnam in March 2019 along with four inspiring female leaders, including Mrs. Mai Kieu Lien, CEO of Vinamilk; Mrs. Nguyen Thi Phuong Thao, CEO Vietjet Air; Mrs. Truong Thi Le Khanh, Chairwoman of Vinh Hoan and Mrs. Nguyen Thi Mai Thanh, Chairwoman and CEO of REE. Mrs. Nguyen is the youngest of all.
“I am truly honored to be chosen as one of 50 most influential women in Vietnam in 2019 by Forbes Vietnam, and to have a chance to stand next to the “older sisters” who are pioneers in various fields, from politics, business, management, research, social work … ”, Mrs. Diep proudly said.
Needless to say, in this list, for the first time, the “iron woman” of FPT Retail was honored as one of 20 most powerful women in the business sector in 2019.
Nguyen Bach Diep is a not-so-strange name in digital retail market. Over the past 7 years, with her colleagues, she has developed FPT Retail from 17 stores to the second largest phone retailer with more than 500 stores from North to South.
Despite its rapid expansion, FPT Retail still ensured the growth in depth, which was shown in business results in 2018 with the revenue of nearly VND 16,000 billion, profit after tax of VND 348 billion, rising by 20% compared to same period in 2017.
Witnessing a slowdown in the retail segment as the market was close to saturate, Mrs. Nguyen continued to hit the mark when FPT Retail participated in the 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.
Having been with FPT since graduating from university (1994), she had held many positions, from business staff to manager, and gained great experience in many areas such as Internet, telecommunications before participating in developing FPT Shop. There is no easy way to achieve success for business women like Mrs. Nguyen. Along with the increase in the number of selling points established and the growth in revenue, and profitability are the concerns and difficulties in finding places to open retail stores, predicting how the market will be, and keeping balance between work and private life to fulfill the role of a wife and a mother.
In 2012, FPT Digital Retail Joint Stock Company whose trade name is FPT Shop, officially operated. Since then, Mrs. Nguyen has occupied many important positions in FPT Retail. She is even considered to be the “trump card” of the company.
Recalling her working journey, she said to the reporter from Investment Magazine: “I have been with FPT Retail since the first days. In the beginning in 2012, FPT had only 5-7 retail stores, mainly were showrooms for firms. With the fundamental knowledge I learned from my Indonesian partner when I was in charged of the Alpha Mart Project as a Director, I worked out a plan which is a proposal to establish an independent retail company. I then defended it against FPT leaders. On February 1, 2012, FPT Retail was officially launched to implement the Corporation’s retail chain project”.
It was not as simple as it was said. The pressure that was on Mrs. Nguyen when establishing the company was unrelenting.
The most important thing when it comes to retail is to have a nice space, especially when the products were first launched. In the first 2 years, in addition to pressure to find places, the pressure of training employees in each region to meet the qualities to open the chain soon was also hard to deal with. There were many unsolved problems such as how to build the optimal process concerning goods returning to selling, the process of importing goods, goods delivery between chains, software systems for managing goods, money, website development …
Then FPT Retail made a remarkable progress when becoming an authorized Apple reseller in Vietnam with F.Studio by FPT system. Mrs. Nguyen shared: “There is no denying that Apple products appeal enormously to millions of people who are eager for new products when first launched. Additionally, Apple products are consumed all over the world, including Vietnam. However, if you buy Apple products through an unauthorized business, customers may buy fake products. If you buy iPhone locked (lock) from the US, Japan, the buyer must buy the code to unlock network or use a transparent SIM, which is relatively complicated. In the long run, the products become unstable and may be locked by Apple.
The establishment of F.Studio by FPT solved the problem of purchasing genuine equipment at an authorized business, helping users to avoid the limitations and shortcomings of products.
“I’m lucky to have my family understand.”
After the success and rapid growth of FPT Retail, Mrs. Nguyen admitted: “During the past time, due to the pressure from being a leader, especially during the time when FPT Shop was new to market, I once put my work before my family. In other words, I do not fulfill the position of a woman in a family. ”
Although there are many “imperfect” times, Mrs. Nguyen Bach Diep is a lucky woman because not only her family, but also a lot of her associates altogether help, and wholeheartedly support her.
“You know, if behind a successful man is a woman who silently sacrifices, then behind a successful woman is a group of people who silently sacrifice for her,” Mrs. Diep appreciated.
I am very fortunate to have my family sympathize and support me a lot. In return, I try to make use of any free time of the day for my family.
Mrs. Nguyen talked what brought her joy every morning with a voice filled with love and excitement: “Every morning, I wake up to prepare breakfast for the whole family. When I go to work, I take advantage of the time in the car to talk to my children. I work until 7 pm, then go home, have dinner, check my children’s homework. Sometimes after the kids go to bed, I check my email, then I actually take a rest.”
As a senior at the company, is it hard to be a wife or a mother when she’s at home? She said: “I am not a boss at home, which helps to show my respect the role of the man in the family. Besides, I also try to take up the same hobbies as my children so that whenever I have free time, the whole family can share something in common. Thanks to that, my children and I can get closer and closer.
Chat with businesswoman- Mrs. Nguyen Bach Diep
To be honored as one of 50 most influential women in Vietnam? How do you feel?
This is absolutely my honor, and also an unexpected great gift for me in the first days of the New Year. I would like to express my gratitude to Forbes for giving me this honor and to my family, my colleagues at FPT Retail who are always by my side through ups and downs. This is also a great encouragement for me to strive more in the future.
Business has never been easy, in which, digital retail is a specific field. What is your secret about bringing FPT Retail from 17 stores to Vietnam’s second largest retail phone chain with more than 500 stores from North to South after 7 years of development?
I don’t think it’s a “secret”. I’d like to call it as my personal experience.
Firstly, the important factor to develop a retail system is the location. It is necessary to select a good place.
Secondly, this is the fair profit. The organization must have an objective and honest evaluation system which is based on transparency and publicity.
Thirdly, never stop learning. Today must be better than yesterday and never be afraid to learn from the leaders.
You have been with FPT Retail since graduation, so what is the “attraction” that keep you stay at the company for that long?
There are 2 main things that help me stay with FPT Retail that long. Firstly, FPT in general and FPT Retail in particular have brought me great environment to develop, to demonstrate my abilities, to be recognized and to be trusted. Secondly, I have always fallen in love with my current job. Though the current environment is dynamic, it is also demanding so that I can conquer new challenges.
As the position you are in now, there are surely a great deal of tempting invitations with better income, so was there a time that you felt tired of the work at FPT Retail that you considered to change your workplace?
On the last journey, although there were difficult times, I had never thought of that.
What is your way of relaxing when having days off? How do you “recharge” yourself?
My way of “charging” is simple. That is spending all my time with my family.
According to Hai Yen, Bao Dau Tu
In the Top 50 most influential women in Vietnam recently honored by Forbes Vietnam is Mrs. Nguyen Bach Diep, CEO of FPT Retail, the “iron woman” of the second largest digital retailer in Vietnam.
Mrs. Nguyen Bach Diep
This year, there are many new faces in the business sector such as Mrs. Tran Thi Dao (General Director of Imexpharm); Mrs. Tran Thi Lam (President of Hoa Lam); Mrs. Tran Kim Lien (Chairman of Vinaseed); Mrs. Le Hong Thuy Tien (General Director of IPP) and Mrs. Nguyen Anh Tuyen (General Director of Sanofi Vietnam).
Notably, among the business women who were honored was the name of Mrs. Nguyen Bach Diep, General Director of FPT Retail.
According to Vietnam Forbes, Mrs. Nguyen Bach Diep has occupied a crucial role in building and developing FPT to be successful as it is today.
The “iron woman” experienced many senior positions in many companies such as FPT Information System (FIS), The Corporation for Financing and Promoting Technology FPT (FMB), FPT Telecom (Ftelecom). She also attended the retail joint venture project with Alpha Mart- the second largest retailer in Indonesia in 2010.
Mrs. Nguyen Bach Diep is known as a calm and energetic person, the “iron woman” who made substantial contribution to the development of FPT Retail since 2011. From 17 stores to a system of over 500 retail stores, FPT Retail has become second largest retailer in Vietnam after The Gioi Di Dong.
Under the leadership of Ms. Nguyen Bach Diep, this business reached the revenue of VND 15,298 billion at the end of 2018, rising by 16% compared to 2017.
In which, online revenue made up 2,432 billion, up 21%; profit after tax in 2018 was VND 348 billion, rising by 20% compared to 2017.
In 2018, the total number of FPT Retail stores was 533. In comparison with the end of 2017, it had more 60 selling points. Moreover, the average sales per store reached VND 2.4 billion / month, which increased slightly compared to 2017.
Besides digital retail segment, FPT Retail also broke into pharmaceutical retail market after successfully acquiring Long Chau pharmacy chain.
In 2018, this enterprise officially announced the establishment of FPT Pharma, entering the pharmaceutical market with chartered capital of VND 100 billion, of which FPT Retail contributed VND 75 billion.
Mrs. Nguyen Bach Diep, Chairwoman of FPT Retail Board, represents all of FPT Retail’s contributed capital at FPT Pharma, and is the legal representative of the company as well.
By the end of 2018, this pharmacy chain has 25 stores and is expected to open another 50 points in 2019.
According to Nguyen Duc, ICT News