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Công ty CP Bán Lẻ Kỹ Thuật Số FPT / Posts tagged "Nha thuoc Long Chau"
11 May

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

11 May

Long Chau chain has decided on 40 locations to open new stores in the second quarter of 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

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

13 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.

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.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.

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

USD on pharmaceuticals of each Vietnamese person, etc.

 

According to Phuong Dong, Vnexpress

 

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

FPT Retail sets 2019 turnover target at 17,700bn VND

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.

Đại hội đồng cổ đông thường niên năm 2019 của FPT Retail

In the morning of March 27 at Continental Saigon Hotel (132 – 134 Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh City), FPT Digital Joint Stock Company (FRT) held its 2019 Annual General Meeting of Shareholders.

The 2018 income statement and 2019 business plan were reported at the AGM. At the AGM, shareholders voted to approve significant contents of the Company including: Approving the 2018 income statement and audited financial statements, the 2019 business plan; the profit distribution plan for 2018 and 2019, the plan of issuing ESOP shares for 2018 and ESOP shares issuing policy for 2019; the report on remuneration for the Board of Management and Supervisory Board in 2018 and the remuneration plan for 2019.

Turnover in 2018 reached 15,298 bn VND

In 2018, FPT Retail recorded a total turnover at 15,298bn VND, up by 16% compared to 2017. Turnover from online trading reached 2,432bn, which recorded a rise by 21%. Profit before tax reached 435bn and profit after tax reached 348 bn, up by 20% compared to 2017. In order to achieve such business results, the Board of Management and Board of Directors implemented effective solutions for the 2018 business plans and continuously generate new business plans.

By the end of December 2018, the total number of FPT Shops is 533 with an increase of 60 shops compared to the end of December 2017. Average sales of each shop scored 2.4bn/month, with a slight increase compared to 2017.

Moreover, the number of F-Studio by FPT shops (including APR and AAR side-by-side shops) reached 14 in 2018. Sales of this shop chain contributed 423bn in FPT Retail’s total turnover, up by 61% compared to the same period of 2017.

After re-activating the F-Friends selling on credit program and the Subsidy selling price support program in the end of August 2018, sales from the two programs contributed 5.3% and 5% respectively in FPT Retails’ total turnover in 2018.

 Bà Nguyễn Bạch Điệp, Chủ tịch HĐQT kiêm Tổng giám đốc cho biết kế hoạch năm 2019 với mục tiêu doanh thu thuần 17.770 tỷ đồng, lợi nhuận sau thuế 418 tỷ đồng, tăng trưởng lần lượt 16% và 20%

Ms. Nguyen Bach Diep – Chairwoman of Board of Directors and CEO of FPT Retail shares that the Company sets its 2019 net turnover target at 17,770bn VND, profit after tax at 418bn VND, increasing by 16% and 20% respectively.

In 2018, FPT Shopsonline trading section continued to grow. Accordingly, the website FPTShop.com.vn had 360,325,253 visits with a 41.6% increase compared to 2017, 1,780,887 visits of which were directly interactive with customers. This aids in a soar in online trading sales of the Company in 2018, up by 21% compared to 2017.

2019 – Year of investing in expansion of the Long Chau pharmacy store chain

In the year 2019, FPT Retail aims to achieve 17,700 bn in turnover and 428 bn in expected profit after tax, which means a growth rate of 16% and 20% respectively compared to 2018.

In order to realize the plan step by step, FPT Retail will implement concurrently its key business retail sections.

As a part of the whole 2019 plan, the Company will expand into other retail sections with pharmaceuticals being at the top of the list as FPT Retail plans to expand the number of Long Chau pharmacy store to 70 and increase coverage nationwide.

According to the Company’s leadership, the pharmaceutical section has significant long-term growth potentials. Therefore, FPT Retail set the initiative to develop into this section with good planning and control as similar to operating the electronic retail system of the Company. The Company will accordingly focus on building logistics, increasing the number of pharmacy stores and developing a staff with suitable management and professional capabilities.

Để đạt mục tiêu doanh thu đề ra, một trong những trụ cột kinh doanh được FPT Retail đầu tư mạnh là bán lẻ dược phẩm, nâng số lượng cửa hàng thuốc Long Châu lên con số 70.

In order to achieve the turnover target of 17,700bn VND, one of the key business sections gets heavily invested is pharmaceutical retail section with the expansion of the Long Chau pharmacy store chain to 70 stores.

In Vietnam, the pharmaceutical retail section is divided practically into 3 channels – hospital channel, clinical channel and pharmacy store channel. FPT Retail expects to gain a market share of 30% of the pharmacy store channel in the coming 3-4 years and the section will contribute about 40% into FPT Retail’s expected total turnover of 10,000bn VND.

Moreover, the Company will also strongly develop the section of accessories and SIM cards. With its many years of experience in the technical goods retail industry, FPT Retail realized the section of phone accessories and SIM cards is one of the highly profitable sections.

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

In the face of the e-commerce boom, FPT Retail will offer numerous promotional and discount programs to fit best the online selling method. To be specific, products of equivalent quality and guarantee policy when being sold on the website will have lower prices compared to when being sold at shops. Moreover, new products will be constantly updated by the manufacturers with priority for eye-catching, trendy products expected to sell well.

 

According The Hai, Bao Dau Tu

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