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Công ty CP Bán Lẻ Kỹ Thuật Số FPT / Posts tagged "Long Châu"
29 May

Pharmaceuticals retail to become FPT Retail’s key section in future

FPT Retail aims to gain a 30% share for the pharmacy store market while hiding nothing about its intention to engage into pharmaceutical manufacturing and importing industries.

Pharmaceuticals retail will be the key and potential business section of the Company in coming years, informed Ms. Nguyen Bach Diep, CEO of FPT Digital Joint Stock Company (FPT Retail). At FPT Retail’s 2019 AGM of Shareholders, Ms. Diep reported that the Company’s pharmaceuticals retail chain would expectedly score a turnover of 6,500bn VND and gain a share of about 30% of the pharmaceutical retail market via pharmacy stores.

Ms. Nguyen Bach Diep (holding the microphone) reporting at the FPT Retail’s 2019 AGM of Shareholders – Photo: Hai Dang

FPT Retail’s Long Chau pharmacy store chain currently has 20 stores, with 50 more to be opened this year, i.e. 70 stores in total in 2019 gaining an expected turnover of 500bn VND. The expansion speed will be faster, which will expectedly result in 700 stores in 2022.FPT Retail’s current largest turnover source comes from the FPT Shop technology retail chain. According to the forecast by GfK, the mobile phone retail section grows by only 1% in this year and steps into saturation. In order to maintain the growth of turnover, technology retail chains start seeking expansion into new retail sections. Mobile World, the competitor of FPT Shop, selects to build up a convenience store chain to be their key section in the years to come. Meanwhile, FPT Retail opts to develop in the pharmaceuticals retail section as Ms. Diep has stated.

“The present size of the pharmaceuticals retail market is about 4.5bn USD, equivalent to that of the mobile phone retail section. Therefore this new section has vast potentials and will become the key section of FPT Retail in the coming years,” reported Ms. Diep.

According to her, the whole nation has about 30 thousand small pharmacy stores, 3 times as many as the number of mobile phone shops in the past. However, there has been no chain big enough to become the dominator. Moreover, living standards of Vietnamese people have been going up. Therefore, the needs for functional food also increase as a consequence. If profound research into pharmaceuticals can be made, FPT Retail can engage in manufacturing and importing medicines in the future apart from the pharmaceutical retail chain business.

The Long Chau store chain currently bears a loss of 20bn VND and will expectedly break even in 2020. The expected turnover of 6,500bn VND in 2020 has not covered the plans for manufacturing, importing or distributing medicines if such engagement is implemented, explained Ms. Diep.

FPT Retail is experimenting on opening new Long Chau stores or utilizing the location and customer base of some FPT shops for such new stores. Apart from the market of Ho Chi Minh City, Long Chau stores will also be opened in provinces including Binh Duong and Long An, etc.

Long Chau pharmacy store located beside a FPT Shop – Photo: Long Chau

Beside the pharmacy store chain, the 2019 business plan of FPT Retail will also focus on core business sections of the Company, while sections including SIM cards, online trading, selling on credit to enterprises and opening new stores will be boosted.

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.

FPT Retail sets the 2019 turnover target for accessories at 1,000bn VND, up by 350bn VND, while turnover from collection SIM card is targeted to increase by 100bn VND. These will be strategic sections contributing into turnover and high profit for FPT Retail in 2019.

Ms. Diep informed that in this year the Company will import accessories directly from production locations to get lower prices. Therefore accessories prices in 2019 will be lower, but the profit can be 10% higher compared to the previous period.

As for the online trading section, the Company will cooperate more closely with partners specializing in online trading to get reasonable prices. Products of equivalent quality and guarantee policy when being sold on the website will have lower prices compared to when being sold at shops.

Ms. Diep said the Company would open 100 more stores in 2019, increasing the total number of stores to 633. Beside expansion into urban centers, new stores will reach further towards residential areas of presently uncovered districts and communes.

Income statement for 2018

In 2018, FPT Retail recorded total turnover at 15,298bn VND, which is a 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.

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 in 2017.

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. This aids in a soar in online trading sales of the Company in 2018, up by 21% compared to 2017.

 

According to Hai Dang, ICTNews

 

21 May

FPT Retail’s pharmacy stores chain sets turnover target at 500bn VND

FPT Retail plans to open 48 new stores of the Long Chau pharmacy store chain in this year. 

At the annual general meeting of shareholders in the morning of March 27, most questions of investors for the leadership of FPT Digital Joint Stock Company revolve around the venture into pharmaceutical retail section. This is the new section deployed by the Company since the end of 2017 after its acquisition of Long Chau pharmacy stores chain.

Ms. Nguyen Bach Diep, the Company’s Chairwoman of Board of Directors and CEO admits it was very daring of her to obtain over 70bn from the Company to personally venture into this section although she had no relevant experience. She decided she had to acquire a pharmacy store chain of small scale to limit risks and evaluate performance.

“When learning of our intention to join the pharmaceutical retail section, many chains offered to sell their stores and brand names to us. However, we chose Long Chau as the chain possessed 4 stores, each of which gained a whopping average turnover of 3bn VND per month. We were intrigued to know how they could attract customers and how their turnover vastly outdo other chains,” said the FPT Retail’s leader.

After 2 years of taking-over, Ms. Diep experimented various models for the pharmacy store chain including putting them in the same location of FPT Shops to cut location cost, utilizing the readily available customer base or opening pharmacy stores adjacent to competitors’ stores in the same area and around hospitals.

By the end of last year, Long Chau pharmacy store chain expanded to 22 stores in Ho Chi Minh City, Dong Nai with new stores to be opened in Tien Giang and An Giang.

A pharmacy store of FPT Retail in Cu Chi District, Ho Chi Minh City. Photo: Long Chau Fanpage.

Pharmaceutical retail brought in over 380bn of turnover in 2018. Medicines and functional foods account for 58% and 30% respectively in the structure of turnover by product. The rest come from medical equipment and cosmeceuticals.

FPT Retail estimates the pharmacy store chain is recording a turnover of 1.6bn per day. This year turnover is expected to be 500bn, while net loss is expected to be about 20bn.

The Company’s leadership thinks bearing the small amount of loss for the first 2 years for chain building is normal. Such bearing is even more satisfactory in comparison with when the Company began developing its mobile phone retail section as vast amounts of resources were poured into building logistics, increasing the number of pharmacy stores and building a staff with suitable management and professional capabilities.

“There are 30,000 pharmacy stores of various sizes nationwide, but there is no truly dominating player. Opportunities are still abundant out there. Our key task is to expand to 70 stores within this year and to 700 by the end of 2022,” said Ms. Diep. She also stated she would evaluate the possibility of distributing or investing into pharmaceutical factories should there be favorable conditions.

In her previous interview with VnExpress Ms. Diep gave the opinion that the pharmaceutical retail section had high profit potentials backed by various indicators. For instance, the market size is about 4.5bn USD (equivalent to the size of mobile phone section and higher than that of household appliances and laptop retail sections) with guaranteed 2-digit annual growth rate thanks to its independence from economic situations and the estimated annual spending of 30 USD on pharmaceuticals of each Vietnamese person, etc.

 

According to Phuong Dong, Vnexpress

13 May

AGM of Shareholders of FPT Retail: Plan to expand number of pharmacy stores to 70 into provinces neighboring Ho Chi Minh City

FPT Retail stated they are planning to expand in 2019 the number of pharmacy stores into 70 into provinces neighboring Ho Chi Minh City such as Binh Duong, Long An, etc.  Meanwhile in Ho Chi Minh City, there has been no Long Chau store failing to break even later than 6 months.

ĐHCĐ FPT Retail: Dự kiến nâng số lượng cửa hàng thuốc lên 70, hướng đến các tỉnh lân cận TP. HCM

In the morning of March 27 at Continental Saigon Hotel, FPT Digital Joint Stock Company (FPT Retail, HoSE stock code: FRT) held its Annual General Meeting of Shareholders of 2019.

At the AGM, shareholders voted to approve significant contents of the Company including: Approving the 2018 income statement of 2018 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.

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.

FPT Retail stated they are planning to expand in 2019 the number of pharmacy stores to 70 into provinces neighboring Ho Chi Minh City. The pharmacy industry has significant long-term growth potentials. Therefore, FPT Retail set the initiative to develop into this industry 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 Vietnam, the pharmacy retail industry 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 industry is anticipated to contribute about 40% into FPT Retail’s expected turnover of 10,000bn VND.

At the AGM, FPT Retail leadership shared the plan to open Long Chau pharmacy stores in provinces neighboring Ho Chi Minh City including Binh Duong, Long An, etc. Stores in Ho Chi Minh city has quite stable business performance without any store having breaking-even point later than 6 months. Moreover, the number of Long Chau pharmacy stores can be small but they achieve 3bn VND of turnover each month, while an ordinary store can do only 300-400mn per month.

As for the store network, FPT Retail said apart from urban centers, new FPT Shops would be opened further towards residential areas of presently uncovered districts and communes.

The Company will also keep on improving and applying many technologies in the process of approving and managing customer files and risks. Furthermore, FPT Retail would 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.

For instance, with the F.Friends program, the Company’s representatives 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. The FPT Retail leadership sees this as more professional buying compared to normal buying on credit.

As for the share price, the leader of this retail chain said that the FRT share is at a very high price compared to its genuine value. The Company is hiring consultants to find suitable solutions in this matter for shareholders.

 

According to Thanh Long, VietnamFinance

9 May

Pharmaceuticals drives FPT Retail’s growth

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

9 May

“Big players” of pharmaceutical retail section expand coverage fast

The pharmaceutical retail market is heating up with the participation of many big playersboth domestic and international with plans to expand modern store chains.

Các chuỗi nhà thuốc hiện đại đang cạnh tranh, thu hút khách hàng bằng vị trí, giá bán và dịch vụ tư vấn...

Attraction from the pharmaceutical retail section

The national western medicine retail market has been growing by 2 digits through many years and is forecast to keep this growth momentum in coming years, which greatly encourages enterprises including FPT Digital Joint Stock Company (FPT Retail), a new player, to keep on pouring massive investments into increasing the number of stores.

FPT Retail has just “embarked on” the pharmaceutical retail section since the end of 2017, but it immediately decided to expand coverage fast to seize market opportunities. In details, the Company will expand the Long Chau Pharmacy Store Chain to 70 stores in 2019 and the number will be 700 in 2022.

The pharmacy store chain model emerged in Vietnam about 10 years ago to really heat up in the last 2 years. Since then the pharmaceutical retail market with the chain model has seen participation of both national and international new players.

For instance, Tien Phong Complete Service and Trading Co., Ltd. is the Vietnam-based representative of Pharos Indonesia Group with a healthcare and beauty salon chain under the brand name Century Healthcare. The Company already has 13 Century Healthcare shops with 11 pharmacy stores in Ho Chi Minh City expects to increase to 200 shops in the next 3 years.

Meanwhile the large chain Pharmacity already reached 100 pharmacy stores in Ho Chi Minh city in 2018 and aims to have 500 pharmacy stores by the end of 2020.

In November 2018 in Ha Noi, Vinfa (a member of Vingroup) inaugurated 11 pharmacy stores built inside Vinmart shops in residential areas, new urban areas and ground floors of high-end condominiums.

Before that in 2017, after engaging in the new area of pharmaceutical retail through the acquisition of Phuc An Khang pharmacy store chain which was later renamed as AN Khang, Mr. Nguyen Duc Tai, President of Mobile World Investment JSC stated his ambition about opening a pharmacy retail store chain through M&A with 500 stores.

The competition to improve quality

The pharmaceutical retail section brought in a turnover of over 380bn VND for FPT Retail in 2018. According to FPT Retail’s calculations, there are many indicators proving pharmaceutical retail is a potential section in Vietnam. One of the indicators is the market size of about 4.5 – 5bn USD (equivalent to the mobile phone retail section); another indicator is a certain annual 2 digit growth rate, etc.

According to  Vietnam Pharmaceutical Companies Association (VNPCA) in a pharmaceutical retail market analysis, the development tendency is that pharmacy store chains of large enterprises with a methodical roadmap will have abundant advantages to increase their market share.

What’s important is the participation of big players including FPT Retail, Vingroup, Mobile World, etc. and expansion in size of enterprises with position on the market are gradually improving quality of the pharmaceutical retail section thanks to competition for locations, selling prices, services and employing highly skilled pharmacy consultants and pharmacists, etc.

However, a big market with 2 digit growth rate of buying force means no guarantee every investment will win. For instance, Mobile World officially engaged in the pharmaceutical retail section in 2017 only to record a loss of 734mn VND by the end of June 2018.

FPT Retail is accelerating its expansion in the section, but still has to compensate for loss. The Company sets the turnover target for this year at 500bn VND, while net loss is expected to be about 20bn VND.

Vietnam’s pharmaceutical retail market size is forecast to reach 7,7bn USD in 2021

According to IBM Market Research, the market size for pharmaceutical retail of Vietnam in 2018 reached nearly 5.3bn USD, expected to be 7.7bn USD in 2021 and 16.1bn USD in 2026.

Also according to IBM, spending per capita on medicines in Vietnam in 2017 was about 56 USD, which is forecast to rise to 85 USD in 2020 and 163 USD in 2025.

 

According The Hai, Bao Dau Tu

8 May

Ms. Nguyen Bach Diep and her bet on Long Chau chain: A pioneer either wins all or loses all

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 Shopsturnover?

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.

Nữ tướng Nguyễn Bạch Điệp và canh bạc Long Châu: Là người tiên phong, thắng làm vua thua thì làm giặc - Ảnh 1.

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.

Nữ tướng Nguyễn Bạch Điệp và canh bạc Long Châu: Là người tiên phong, thắng làm vua thua thì làm giặc - Ảnh 2.

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.

Nữ tướng Nguyễn Bạch Điệp và canh bạc Long Châu: Là người tiên phong, thắng làm vua thua thì làm giặc - Ảnh 4.

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.

Nữ tướng Nguyễn Bạch Điệp và canh bạc Long Châu: Là người tiên phong, thắng làm vua thua thì làm giặc - Ảnh 5.

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.

Thank you!

 

According Cafe F và Cafe Biz

2 May

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.

ĐHĐCĐ FPT Retail: Số lượng nhà thuốc Long Châu nhỏ nhưng doanh thu đạt 3 tỷ đồng/tháng, gấp 10 lần cửa hàng thông thường - Ảnh 2.

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

ĐHĐCĐ FPT Retail: Tham vọng lớn với mảng dược, mục tiêu 2018 tăng gấp đôi số cửa hàng Long Châu và dự kiến tăng 10 lần năm kế tiếp
2 Sep

FPT Retail’s General Meeting of Shareholders: The ambition with the field of pharmacy, the target is to increase the number of Long Chau stores double in 2018 and in the next year, increase in 10 times.

After joining 1 year, until the beginning of 2018, the number of Long Chau stores was 10 units, this year, they expect to increase this number to 30, soon towards the target of 400 stores.

 

ĐHĐCĐ FPT Retail: Tham vọng lớn với mảng dược, mục tiêu 2018 tăng gấp đôi số cửa hàng Long Châu và dự kiến tăng 10 lần năm kế tiếp

 

In 3 years time, the field of pharmacy will contribute 30-40% in the revenue

In 2017, many giant retailers such as Mobile World (MWG), Digiworld (DGW) và FPT Retail started to “engage” in the field of pharmacy with fast growth. However until now, when MWG said they do not hurry to deploy but they are only concentrating on Green Grocery, or DGW still have not had any rapid moves, FPT Retail has been revealing its big ambition in this field.

At the General Meeting of Shareholder at March 28, 2018, Mrs. Nguyen Bach Diep, the General Director at FPT Retail said that after 1 year joining, Long Chau chain’s drugstores have been doubled. Specifically, at the time when the Company started its investment in Long Chau, the chain of drugstores had only 5 stores, and after 1 year learning and developing the software system as well as taking over the supplies, FPT Retail had opened 5 more drugstores. Therefore, until the beginning of this year, Long Chau has reached 10 drugstores. It did not stop there, in 2018, the Company is planning to open 20 additional drugstores in HCMC area, and the number in the coming time is 100 stores/year.

Mrs. Diep also shared that the reason for them to select Long Chau chain when engaging in the field of pharmacy was that according to her observation, FPT Retail recognized that the number of its stores were more than others. Not to mention, the number of drugs in Long Chau was 6-7 times higher than that in others with the affordable price, therefore, there will be very few people take the Long Chau’s prescription to buy drugs in any other nearby drugstores. That led to the high revenue of Long Chau, and with 40% of the revenue from cosmetics, functional foods and medical equipment, it had helped the profitability of this chain outstanding compared to the general situation.

According to the plan, the revenue of the field of pharmacy will be calculated in the total revenue of FPT Retail since 2019, specifically, in 3 years, this field will contribute 30-40% in the Company’s total revenue.

FPT expects to make FPT Retail listed in HoSE before April 30, 2018

At the General Meeting, FPT Retail also submitted the business plan in 2018 with 16,200 billion VND in revenue – up 22% and 377 billion VND in net profit – up 30% compared to the result in 2017. With the above target, FPT Retail expects to divide in cash dividends of 20% and divide the bonus share with the ratio of 70%. With the current charter capital of 400 billion VND, it is predicted that after dividing the shares, the charter capital of the Company will increase to 680 billion VND.

According to the statistics, the business result of the first quarter of FPT Retail is still growing compared to the same period last year, to be specific: The revenue has increased 19% and the profit has increase 32%.

Answering this, Mrs. Diep share: “The profit margin is improved due to the Company’s cost optimization, specifically: to modify the working shifts of the employees during daytime, increase the shifts in rush hours and decrease when the customers are not crowded. Together with that, marketing costs are also being well managed by the Company”.

Additionally, Mrs. Diep said that her shares concerning the above situation were not inclusive of the revenue from the sales of the projects. If in total, the revenue in the first quarter of 2018 of the Company increased, the profit has been up 32% compared to the same period.

It is known that 2017 was the year that had many tremendous changes of FPT Retail concerning the ownership structures as well as the business results. The revenue of 2017 reached 13,147 billion VND, up 21% compared to 2016, the net revenue was up 40% to 290 billion VND. Besides that, in 2017, FPT Retail was massively deployed with the fact that FPT Retail reduced the ownership rate from 85% to 47%, bringing FPT Retail from its subsidiary to FPT’s associate company. The top two investment funds in Vietnam are Dragon Capital and VinaCapital which owns 20% and 15% respectively of FPT’s stocks.

Other noticeable news is that, FPT expects to make FPT Retail listed on HoSE before April 30, 2018 and the listing procedures have been submitted to HoSE. Regarding questions of the listing price of the shareholders, Mrs. Diep said that they could not public the listing price until that moment without the approval from HoSE.

FPT Retail also pushes the Apple Store when the retail market is saturated

Agreeing with the information that the mobile phone retail market has been saturated, Mrs. Diep said that that is the reason why along with three strategies to consolidate the existing retail business, FPT Retail’s new move is to extend the store chain of Apple Store. Specifically, the company is planning to open about 100 stores per year, expecting the number of stores will reach from 650 to 700 stores by 2020.

Currently, Apple Store is one of the chains belonging to F.Studio of FPT Retail. In particular, F.Studio is a store chain which is Apple’s official authorized retail chain in Vietnam, specializing in selling genuine Apple products, including the store at level 1 which is APR, level 2 which is AAR and level 3, CES. Until the beginning of this year, FPT Retail has reached 12 F.Studio stores.

In depth analysis of this strategy, the Company said Vietnam is the third market in Apple’s distribution channel, behind Thailand and Singapore. At the same time, with the growing market of Apple in Vietnam, while the volume of mobile purchases accounts for about 50% of the market, FPT Retail expects to attract the majority of customers concerning the purchase of genuine products in the future.

Until present, one of the competitive advantages of FPT Retail is to understand Apple and to meet its strict requirements of it (accounting for approximately 90% the total revenue of the mobile phone industry in the world). Therefore, with the two foreign companies, Gel and Thakral Brothers, FPT Retail has been selected by Apple to distribute the products.

In fact, this is not new to FPT Retail when in a meeting with the investors before that, the General Director has said: “If Mobile World (MWG) expands its business based on existing retail management by opening Green Grocery and Green Machine, FPT Retail is not an exception. And the Company has chosen Apple Store based on the strategy to continue exploiting Vietnamese market of Apple. Despite the low margins at the moment compared to other products, the high sales per product along with the accompanying product development strategy, the business in Apple products still have great potential growth”.

 

Tri Tuc

According to Cafe F

ĐHĐCĐ FPT Retail: Tham vọng lớn với mảng dược, mục tiêu 2018 tăng gấp đôi số cửa hàng Long Châu và dự kiến tăng 10 lần năm kế tiếp
2 Sep

FPT Retail’s General Meeting of Shareholders: The ambition with the field of pharmacy, the target is to increase the number of Long Chau stores double in 2018 and in the next year, increase in 10 times.

After joining 1 year, until the beginning of 2018, the number of Long Chau stores was 10 units, this year, they expect to increase this number to 30, soon towards the target of 400 stores.

ĐHĐCĐ FPT Retail: Tham vọng lớn với mảng dược, mục tiêu 2018 tăng gấp đôi số cửa hàng Long Châu và dự kiến tăng 10 lần năm kế tiếp

In 3 years time, the field of pharmacy will contribute 30-40% in the revenue

In 2017, many giant retailers such as Mobile World (MWG), Digiworld (DGW) và FPT Retail started to “engage” in the field of pharmacy with fast growth. However until now, when MWG said they do not hurry to deploy but they are only concentrating on Green Grocery, or DGW still have not had any rapid moves, FPT Retail has been revealing its big ambition in this field.

At the General Meeting of Shareholder at March 28, 2018, Mrs. Nguyen Bach Diep, the General Director at FPT Retail said that after 1 year joining, Long Chau chain’s drugstores have been doubled. Specifically, at the time when the Company started its investment in Long Chau, the chain of drugstores had only 5 stores, and after 1 year learning and developing the software system as well as taking over the supplies, FPT Retail had opened 5 more drugstores. Therefore, until the beginning of this year, Long Chau has reached 10 drugstores. It did not stop there, in 2018, the Company is planning to open 20 additional drugstores in HCMC area, and the number in the coming time is 100 stores/year.

Mrs. Diep also shared that the reason for them to select Long Chau chain when engaging in the field of pharmacy was that according to her observation, FPT Retail recognized that the number of its stores were more than others. Not to mention, the number of drugs in Long Chau was 6-7 times higher than that in others with the affordable price, therefore, there will be very few people take the Long Chau’s prescription to buy drugs in any other nearby drugstores. That led to the high revenue of Long Chau, and with 40% of the revenue from cosmetics, functional foods and medical equipment, it had helped the profitability of this chain outstanding compared to the general situation.

According to the plan, the revenue of the field of pharmacy will be calculated in the total revenue of FPT Retail since 2019, specifically, in 3 years, this field will contribute 30-40% in the Company’s total revenue.

FPT expects to make FPT Retail listed in HoSE before April 30, 2018

At the General Meeting, FPT Retail also submitted the business plan in 2018 with 16,200 billion VND in revenue – up 22% and 377 billion VND in net profit – up 30% compared to the result in 2017. With the above target, FPT Retail expects to divide in cash dividends of 20% and divide the bonus share with the ratio of 70%. With the current charter capital of 400 billion VND, it is predicted that after dividing the shares, the charter capital of the Company will increase to 680 billion VND.

According to the statistics, the business result of the first quarter of FPT Retail is still growing compared to the same period last year, to be specific: The revenue has increased 19% and the profit has increase 32%.

Answering this, Mrs. Diep share: “The profit margin is improved due to the Company’s cost optimization, specifically: to modify the working shifts of the employees during daytime, increase the shifts in rush hours and decrease when the customers are not crowded. Together with that, marketing costs are also being well managed by the Company”.

Additionally, Mrs. Diep said that her shares concerning the above situation were not inclusive of the revenue from the sales of the projects. If in total, the revenue in the first quarter of 2018 of the Company increased, the profit has been up 32% compared to the same period.

It is known that 2017 was the year that had many tremendous changes of FPT Retail concerning the ownership structures as well as the business results. The revenue of 2017 reached 13,147 billion VND, up 21% compared to 2016, the net revenue was up 40% to 290 billion VND. Besides that, in 2017, FPT Retail was massively deployed with the fact that FPT Retail reduced the ownership rate from 85% to 47%, bringing FPT Retail from its subsidiary to FPT’s associate company. The top two investment funds in Vietnam are Dragon Capital and VinaCapital which owns 20% and 15% respectively of FPT’s stocks.

Other noticeable news is that, FPT expects to make FPT Retail listed on HoSE before April 30, 2018 and the listing procedures have been submitted to HoSE. Regarding questions of the listing price of the shareholders, Mrs. Diep said that they could not public the listing price until that moment without the approval from HoSE.

FPT Retail also pushes the Apple Store when the retail market is saturated

Agreeing with the information that the mobile phone retail market has been saturated, Mrs. Diep said that that is the reason why along with three strategies to consolidate the existing retail business, FPT Retail’s new move is to extend the store chain of Apple Store. Specifically, the company is planning to open about 100 stores per year, expecting the number of stores will reach from 650 to 700 stores by 2020.

Currently, Apple Store is one of the chains belonging to F.Studio of FPT Retail. In particular, F.Studio is a store chain which is Apple’s official authorized retail chain in Vietnam, specializing in selling genuine Apple products, including the store at level 1 which is APR, level 2 which is AAR and level 3, CES. Until the beginning of this year, FPT Retail has reached 12 F.Studio stores.

In depth analysis of this strategy, the Company said Vietnam is the third market in Apple’s distribution channel, behind Thailand and Singapore. At the same time, with the growing market of Apple in Vietnam, while the volume of mobile purchases accounts for about 50% of the market, FPT Retail expects to attract the majority of customers concerning the purchase of genuine products in the future.

Until present, one of the competitive advantages of FPT Retail is to understand Apple and to meet its strict requirements of it (accounting for approximately 90% the total revenue of the mobile phone industry in the world). Therefore, with the two foreign companies, Gel and Thakral Brothers, FPT Retail has been selected by Apple to distribute the products.

In fact, this is not new to FPT Retail when in a meeting with the investors before that, the General Director has said: “If Mobile World (MWG) expands its business based on existing retail management by opening Green Grocery and Green Machine, FPT Retail is not an exception. And the Company has chosen Apple Store based on the strategy to continue exploiting Vietnamese market of Apple. Despite the low margins at the moment compared to other products, the high sales per product along with the accompanying product development strategy, the business in Apple products still have great potential growth”.

Tri Tuc

According to Cafe F