FPT Retail and 1001 selling tactics to keep its growth rate at 20%: Boosting selling on credit and sales of accessories and SIM cards, testing 3 new projects concurrently
In order to maintain the 20% growth rate of profit after tax in the context of market saturation for mobile phones and Long Chau pharmacy store chain’s continued loss, FPT Retail employs numerous selling tactics to attract customers.
After 6 years of impressive growth thanks to being a follower, FPT Retail starts to face the other side of the coin. Upon the Company’s completion of its system chains build-up, the market stepped into saturation, which then pushed FPT Retail, a follower with no other choice, into quick hurdles of developing other retail sections in order to maintain the annual 20% growth rate of profit.
Similar to other retail chain businesses, the Company’s situation dictated a priority of market expansion over profit in the beginning. Therefore, the Long Chau pharmacy store chain will bear a 20bn loss in 2019 and only begin to profit from 2021 onwards as stated in the report of FPT Retail’s leadership in the Annual General Meeting of Shareholders held this morning of March 27.
In order to help FPT Retail safely go through the pivotal ahead, the leadership proposed many familiar yet creative selling tactics to help the Company maintain its 2-digit growth rate of both turnover and profit.
FPT Shop and 1001 selling tactics
In 2018, FPT Retail recorded a total turnover at 15,298 bn VND, up by 16% compared to 2017. Turnover from online trading reached 2,432bn, which recorded a rise by 21%. Profit before tax reached 435bn and profit after tax reached 348bn, up by 20% compared to 2017.
In the year 2019, FPT Retail aims to achieve 17,700bn in turnover and 428bn in expected profit after tax, which means a growth rate of 16% and 20% respectively compared to 2018.
According to the plan, this year will see FPT Retail boosting the implementation of F-Friend and Subsidy programs apart from increasing customer traffic both online on the website and offline at shops. These two sections are expected to bring in 1,875bn compared to 1,575bn in 2018.
In 2018, FPT Retail’s F-Friend program had 1 million blue collar customers from 2,500 factories. This year the Company will focus more on reaching white collars – office staff workers – from commercial and service enterprises. As for the Subsidy program, the Company plans to cooperate with Vinaphone, Mobifone and Vietnam Mobile in 2019 to jointly sell mobile phones accompanied by preferential service plans.
According to Ms. Nguyen Bach Diep, CEO of FPT Retail, there are two sections with abundant development ground for the Company: upgrading products through selling on credit and selling accessories and SIM cards.
The turnover from credit-based selling currently accounts for only 32% in FPT Shops’ total turnover, while the ratio is up to 50% at other enterprises in the same industry. The credit-based trading will contribute 45% in FPT Shops’ total turnover in 2019. In order to control bad debts, FPT Retail will utilize various technologies to evaluate more accurately customers’ financial capabilities and credibility points.
The section of phone accessories and SIM cards at FPT Shops has long been overlooked by FPT Retail, while this section is highly profitable. Therefore, FPT Retail sets the target turnover of 1,000bn VND from selling phone accessories and if things go as planned, the profit will be about 100 bn, up by 67% compared to 2018.
The impressive figures stated above are thanks to FPT Retail’s thorough preparation for “The 1,000bn campaign” after negotiating with overseas suppliers, which lowers the import price by 20% compared to previous prices. On that ground, despite selling at very competitive prices, FPT Retail can still achieve a 10% profit compared to previous prices.
With such 1001 selling tactics being implemented in 2019, it is obvious the Company is striving to satisfy every need of consumers from all social classes. Customers can always find items they need in FPT Shop.
Long Chau is a story of the future
Long Chau pharmacy store chain has 22 stores, 20 of which are located in Ho Chi Minh city and Bien Hoa. However, the turnover of the chain is not accounted in the total turnover in 2018. In 2019, FPT Retail will open 50 new stores in Ho Chi Minh City as well as many other provinces nationwide. The turnover from these will be about 500bn VND, while loss is expected to be about 20 bn VND.
According to Ms. Nguyen Bach Diep, Long Chau is a story of the future. In the plan presented at the General Meeting of Shareholders, the number of stores will rise to 217 in 2020 and 700 in 2022. Accordingly, Long Chau chain will break even in 2020, make a profit of 62 bn VND in 2021 and 193bn VND in 2022.
Being a new player in the pharmacy retail industry, FPT Retail experimented various business models in 2018 with a focus on locations which can attract most customers once the store is opened. They have discovered the right model, hence the bold acceleration of market expansion.
Also according to Ms. Diep, if the development of Long Chau pharmacy store chain gets into orbit in the time to come, FPT might as well embark on pharmacy distribution and manufacturing industries.
3 projects in test
For the time being, FPT Retail’s two main retail sections are electronic devices and pharmaceuticals. However, they do not limit themselves in those sections only. As Ms. Diep has shared, this Company will invest into any retail section with high profit.
FPT Retail is currently cooperating with partners to test 3 projects simultaneously, which will be made public once experimentations prove successful. However, the CEO would not disclose which retail section.
According to Linh Dan, Cafebiz
AGM of Shareholders of FPT Retail: Number of Long Chau pharmacy stores can be small, but they achieve 3bn VND of turnover each month, tenfold that of ordinary stores
After 2018, FPT Retail has figured out a model and formula for opening a new store and planned to open stores in provinces neighboring Ho Chi Minh City. As for competitive capacity of Long Chau pharmacy store chain, Ms. Nguyen Bach Diep said: “The number of Long Chau pharmacy stores can be small but each achieves 3bn VND of monthly turnover on average, while an ordinary store can do only 300-400mn per month”.
In the morning of March 27, FPT Digital Joint Stock Company (FPT Retail, FRT) held its AGM of Shareholders of 2019 in order to announce the planned turnover of 17,700bn VND and profit after tax of 418bn VND with increasing rate of 16% and 20% respectively compared to 2018. From such targets above, the Board of Management set the target dividend in cash at no lower than 10%.
On preliminary business results of the first 3 months of 2019, the Company says the iPhone section results strongly affected bottom lines of the first 2 months of the year. FPT Retail is currently researching to engage in new sections and seeking for more partners.
Back to the meeting this morning, a large part of contents in discussion focused on how to increase profit by 20% in 2019? And the anticipated time when Long Chau pharmacy store chain stops loss?
Long Chau pharmacy chain to expand to 70 stores in 2019
Addressing the shareholders at the AGM, FPT Retail leadership stated that the 2019 plan would expand into retail sections with pharmacy being on top of the list. According to the plan, the Company would expand the Long Chau pharmacy store to 70 stores and increase coverage nationwide.
According to the Company’s representatives, the pharmacy section has significant long-term growth potentials. Therefore, FPT Retail set the initiative to develop into this section with good planning and control as similar to operating the electronic retail system. The Company would accordingly focus on building logistics, increasing the number of stores and developing a staff with suitable management and professional capabilities.
In Vietnam, the pharmacy retail section is divided practically into 3 channels – hospital channel, clinical channel and pharmacy store channel. FPT Retail expects to gain a market share of 30% of the pharmacy store channel in the coming 3-4 years. Accordingly, the pharmacy retail section is anticipated to contribute about 40% in FPT Retail’s expected turnover of 10,000bn VND. The potential turnover of FPT Retail is 4.5bn USD without the pharmacy retail section, despite the saturated mobile phone retail section.
As an answer for shareholders’ question “When will Long Chau stop loss?” the leadership informed that the breaking even of a pharmacy store has not yet been recorded accurately so far. Stores in Ho Chi Minh city has quite stable business results without any store breaking even later than 6 months. Since engaging into the new business section in 2018, FPT Retail has tested if this model was effective, which informed the Company on locations with good turnover. Moreover, the Company has dedicated an area inside FPT shops to run Long Chau pharmacy stores. As for the question of loss or profit, FPT Retail’s representatives stated that the time of breakeven depends on the shop type.
After 2018, FPT Retail has figured out a model and formula for opening a new store and planned to open stores in provinces neighboring Ho Chi Minh City. As for competitive capacity of Long Chau pharmacy store chain, Ms. Nguyen Bach Diep said: “The number of Long Chau pharmacy stores can be small but each achieves 3bn VND of monthly turnover on average, while an ordinary store can do only 300-400mn per month.”
Online selling to be boosted
Secondly, as for phone accessories and SIM cards, FPT Retail sets turnover targets for 2019 of accessories at 1,000bn VND, up by 350bn VND, while the collection SIM cards section is expected to increase by 100bn VND. These will be strategic sections contributing into turnover and high profit for FPT Retail in 2019.
The Company will put a special focus on boosting online selling. In the face of the e-commerce boom, FPT Retail will offer numerous promotional and discount programs to best fit the online selling method. To be specific, products of equivalent quality and guarantee policy when being sold on the website will have lower prices compared to when being sold at shops. Moreover, new products will be constantly updated by the manufacturers with priority for eye-catching and trendy products expected to sell well.
Does FPT Retail cross-sell products as Mobile World?
At the general meeting, FPT Retail stated that each line of business needed research on future potentials, there were a series of projects on trial run by FPT Retail, the investments of which would be announced once highly successful results have been reached.
The Company is in negotiation with partners. FPT Retail aims to limit saturated areas and give room for better new areas. For instance, accessories prices of the Company in the past were higher than those of other sellers. Therefore FPT Retail began turning toward working with importers, which cut down prices by 20%.
Moreover, the Company improves the process effectiveness of F.Friends Project in way of further improving and applying many technologies in the process of approving and managing customer files and risks. Furthermore, FPT Retail will develop project staff at each region in order to search for and utilize optimally potentials from affiliated businesses as well as to run the project more effectively.
After re-activating the F-Friends program and the Subsidy selling price support program in the end of August 2018, sales from the two programs contributed 5.3% and 5% respectively in FPT Retails’ total turnover in 2018.
As for details of the F.Friends program, the Company’s representatives said that the F.Friends program would directly reach enterprises for contract signing, after which employees of such enterprises would be allowed to buy any product on credit at the interest rate of 0%, monthly installments would be deducted directly into their salaries. Normal customers buying on credit may get rejected due to ineligibility or there are products not to be paid on credit at the interest rate of 0%. This means more professional buying compared to normal buying on credit.
The general meeting this morning also approved of the dividend payment plan for 2018 at the payout ratio of 25%, of which 10% is in cash and 15% in shares. Dividends are scheduled be paid in the period from the 2nd Quarter to the 3rd Quarter this year. After issuing of shares as dividend payment, the charter capital of FPT Retail will rise to 790bn VND. Moreover, the Company also approved the plan ò issuing 680,000 ESOP shares at 10,000 VND per share. Half of the newly issued shares will be restricted from transfer for one year starting from the completion date of ESOP shares issuance. Members of FPT Retail’s Board of Management and Board of Directors continues to receive no remunerations in 2019.
On the basis of above points, FPT sets the target of a 20% rise in profit in 2019.
At the end of 2018, FPT Retail recorded total turnover at 15,298 bn VND, which is a up by 16% compared to 2017. Turnover from online trading reached 2,432 bn, which recorded a rise by 21%. Profit before tax reached 435 bn and profit after tax reached 348 bn, up by 20% compared to 2017.
The number of F-Studio by FPT shops (including APR and AAR side-by-side shops) reached 14 in 2018. Sales of this shop chain contributed 423 bn in FPT Retail’s total turnover, up by 61% compared to the same period of 2017.
By the end of December 2018, the total number of FPT Shops is 533 with an increase of 60 shops compared to the end of December 2017. Average sales of each shop scored 2.4 bn/month, with a slight increase compared to 2017.
According to Tri Tuc, CafeF
From being an unpaid intern for a year to holding the position of managing FPT Shop phone chain, then conquering Long Chau drugstore chain,… Mrs. Nguyen Bach Diep has been going through many ups and downs. However, the road ahead is still hard because she herself put pressure and challenges herself as she is still far from her opponent.
Talking with businesswoman Mrs. Nguyen Bach Diep – Chairwoman and CEO of FPT Retail Joint Stock Company (HOSE: FRT) on International Women’s Day, March 8th, about career, human affairs …
In 2018, FPT Retail opened 60 more stores, bringing the total number of stores to 550, the average sales of each store also increased compared to 2017, reaching VND 2.4 billion. Although it was launched behind other retail businesses, which is the secret to the effectiveness of FPT Retail business?
The criterias for FPT Retail to open a store are densely populated areas such as near markets, schools, trade centers, and the density of traffic stream. At the same time, the best place is near the opponent’s store, which is a safe point because I can measure the number of customers and that sales of that store.
If I open the stores near those of the rivals, there is definitely an increase in competition. However, in the general market, customers will normally be loyal to certain brands, but there are also neutral customers. For example, among a few thousand products, FPT Shop is promnent in this product, competitors are known for other products, customers will then choose which product is suitable for them. It’s like the way you drink Coca Cola or Pepsi. By nature, you cannot know which one is better, so there are ones prefer Coca, others go for Pepsi. As a result, they both have shares in the market. The phone market somehow works like that. There are also customers who are loyal to one brand and also have more neutral customers, they can deliberate different brands before buying.For other services and programs, the shops are kinda similar, so it is difficult to tell the differences. However, FPT Shop has a strong position in the high-end segment, thanks to previous history. As FPT stores were still a showroom other companies such as Nokia and Samsung, the investment in those store were considerable. At the same time, FPT Retail was also the first company to bring Apple to Vietnam with brand shop stores such as F.Studio … The brand FPT Shop was created from such cases with high-end product lines for comsumers to choose.
FPT Retail entered the pharmaceutical retail business when the mobile phone market, the main retail segment of the company, is gradually entering a saturation phase. According to you, is this judgment true?
By nature, the phone segment is already saturated, because the growth of the phone market is only a few percent per year, so the drugstore chain will be the future direction to help FPT Retail grow more. In 2019, this drugstore chain has not developed enough to contribute much to revenue of the Company.
However, in the telephone segment, FPT Shop will still try to find new directions, exploit other channels to have a growth rate of 15%, such as installment payment (with 10% remaining), sales channel for business, F.Friends … , which means the company will actively find customers rather than customers themselves go to FPT
In the future, what are the main factor that contributes to to the growth of FPT Retail, FPT Shop, F.Studio or Long Chau pharmacies? FPT Shop is still the main business in 2019, Long Chau and F.Studio do not contribute much. Specifically, according to the 2019 plan, the Company’s revenue is VND 17,700 billion, pre-tax profit is VND 560 billion, rising by 20% compared to 2018. In the revenue structure, the share of Long Chau contributes VND 500 billion. Regarding F.Studio, the original plan is to open 100 stores in 3 years but Apple’s policies were not favorable, plus their products were not good enough in the last import. Hence, the Company will stop investing too much on this at the moment. The future plans will still depend on whether Apple’s policies and products change, then FPT Retail will return to set a target for this chain.
In addition, the company also set a target of accessories revenue this year, which is to reach VND 1,000 billion, increasing about 40% compared to last year. There are many ways to achieve this number, such as changing suppliers, choosing products with more affordable price for the market, or investing in employee training … The company also aims to sell products through online channels this year, growing 25-30% faster, while the offline segment is 15%. The reason is now more and more people do not have time to go to the store, so they have goods deliver to the house. FPT Shop currently has a number of 550 stores through out 63 provinces and cities, mostly in Hanoi and Ho Chi Minh City.
About the business results in 2018, can you tell us how Long Chau drugstore chain has contributed? Does the progress of expanding the drugstore chain go as planned and does the company face any difficulties in the implementation process?
In 2018, FPT Retail opened 20 Long Chau drug stores. The plan is to open 50 more stores in 2019, so there will be about 70 drug stores from the end of the year.
Long Chau is divided into two categories: old stores are operating and new ones have been open. From 2018 up to now, FPT Retail has opened many stores with different criteria for testing such as big, small, in crowded residential areas or paired with FPT Shop’s shops to optimize surface. During the time of testing these model stores, a few things happened that helped me to realize many problems, know what needs to be focused. The first priority is still to open big pharmacies, but depending on the process of evaluating the performance of the store, if the efficiency is not good, the pharmacies need to sell another lines of products to produce revenue.
In addition, in the long future, the company wants to be convenient for customers. For example, if customers want to buy specific items, we also have big stores with all kinds of products. For customers only need to buy simple medicines like ones to cure flu, fever and want to be close to home, we also have to have small stores.
This year, FPT Shop plans to open the next 70-100 shops, in the process of opening, if we have an open space but at a little high price, it would be a waste if only FPT Shop uses it. The company will consider opening 2 stores simultaneously. Some points have tested this model of 2 stores in Ho Chi Minh City such as Le Van Khuong, Nguyen Oanh, Hong Bang … Those also have their own effectiveness and difficulties.
In fact, the drug business takes a bit more time than the phone one. In the old days, people used to buy medicines with prestige, beliefs. For instance, people get used to buying in the store with same pharmacist over the years. When the chain entered the market, it has to take time to persuade consumers to try to come the new pharmacies to experience the difference in prices, goods, service … Therefore, sales of medicines often increase slowly but steadily. In the end, it takes a while to see the store’s effectiveness.
This year, FPT Retail will build the entire system for Long Chau pharmacy chain, from operation to logistics … The opening of Long Chau pharmacy has a big advantage when relying on 70% of FPT Shop’s software system. The construction takes much less time. It only takes a few months, not the whole year as in the old days. However, the operation process also encounters two main difficulties. The first one concerns the recruitment, and personnel training. The second one is a more complicated process to get a license as this is a business relating to human health, so it needs the State’s management. Currently, opening a store takes about 30-45 days to apply for a permit.
According to market research companies, the growth of the pharmaceutical industry is 15-16% per year, but the important issue is that there are 30,000 – 40,000 small stores. It similars to the telephone segment 10 years ago. There were so many small phone stores. After that, the model of store chain was launched to give customers better experience, more prestige, so it attracted customers. Since then, the chain has increased strongly thanks to the market share of the other small stores, not from the normal growth of the market. The current pharmacy segment is also similar, and this is the start.
What impact does the new large shareholder group have on the company’s personnel and business activities?
No action has been seen from this major shareholder. But I think, if the current board of directors still maintains good indicators, it is likely that shareholders will be assured so they won’t bring more people in.
Having been with FPT Retail since the early days, to have the position as today, have you ever faced failure and how did you deal with it? Do you intend to find a new environment to challenge yourself more?
I have encountered lots of difficulties, but over the past 20 years, I have never intended to leave FPT. What makes me stick with FPT is the environment here, which gives me opportunities to develop myself, and then be recognized and rewarded. If you go to a different environment, that belief is almost zero and you have to earn it again. No matter how popular you are, others will only recognize you when you prove you can do something. Another part is that you will not be given full authority to decide on the job despite the qualities you have.
I won’t leave FPT Retail since here, I am also fine. There is no big problem causing frustration to leave. Besides, it doesn’t mean that you have challenges only when you go out. Here, the environment is demanding and challenging already. Not to mention my plan is not only to complete the company’s goals but also to keep up with the rival. It means that I can complete the plan with the Company, but the distance with the opponent is still quite far away, which leads to the fact that I have already put pressure and challenges on myself.
So what is your guideline for success as today?
In my opinion, this is just a matter of awareness. When I came to work at FPT, the first year I did not get paid but I still worked even though I was so misarble at that time. I didn’t even have enough money to have my bike patched. I worked becausse of my passion. Then I set a simple goal that this was a time that I could gain more experience rather then anything else.Indeed, after I had accumulated a lot of experience, I had many opportunities to interact with many different customers as convincing Prudential, 3-digit tobacco to buy products with project worth millions dollar. Since then, I have provided solutions for customers. I have grown up, having more experience to handle problems, which helped me to have more work. Then the Company noticed the capacity and here I am! Now, I see a lot of employees who only care about chainging job and complaining about why they do so much but don not get much. But they don’t think that the experiences they have earned are their valuable assets even when they left. It will help them to be more successful later. But they don’t realize that, which means they do not have good perception. It is also important to have good attitude at work. When assigned something, I have to do the best I can. I don’t want others to look at me with the thought that I cannot do something, so I try very hard. And then the opportunity comes.
As a businesswoman, what do you think are the advantages and difficulties women have?
From my personal point of view, women do not have much courage when it comes to taking risks, but they are more cautious in every job, which may cause them losing opportunities. I also missed the opportunity sometimes but I let it go very quickly to focus on another goal.
The second factor is the sensibility in new technologies. It seems that men understand it faster. Women are better at administration. Hence, they are not as good as men when it comes to techconology.
How do you keep the balance between work and family?
In regard to my family and my children, I still can do it well. There is nothing called trade-off when being in this position. My family still lives normally, especially on Sunday, which I have reserved for my family completely. Every day I go to work, but I still maintain common activities with my family like eating dinner together, or taking the kids to school. There is still interaction among family members. We still care for each other.
According to Minh An, Vietstock
“Powerful woman of FPT Retail: Only believe in myself, in the effectiveness of my work rather than what others think of me.
For the first time, Mrs. Nguyen Bach Diep, the “iron woman” of FPT Retail, was honored as one of the 20 most powerful women in business in 2019 on the list of 50 “Most Influential Women in Vietnam in 2019” chosen by Forbes Vietnam.
“Iron woman” Nguyen Bach Diep and her partners have brought FPT Retail from 17 stores, after 7 years of development, to become the second largest mobile phone retail chain in Vietnam with more than 500 stores from North to South.
On March 8, International Women’s Day, Mrs. Nguyen Bach Diep shared her entrepreneurial story as well as the business situation of FPT Retail.
– What is the number of F-Studio stores by FPT Retail, and the sales of each store? What is the current situation of Long Chau Pharmacy?
By the end of December 2018, the total number of F.Studio stores by FPT stores was around 14. Regarding Long Chau Pharmacy, the number of drugstores is 26 up to now. In the near future, FPT Retail will speed up the opening of new pharmacies with an average of 70 pharmacies / year and aim to have 400 Long Chau pharmacies nationwide by 2022.
The company also expects FPT Pharma to account for 30% of the market share which is equivalent to VND 10,000 billion of pharmaceutical revenue; and within the next 3-4 years, the pharmacies segment will contribute 40% to the revenue of FPT Retail.
– What is business plan of FPT Retail in 2019? What are the long-term objectives and business strategy of the company in the next 5-10 years?
In 2019, FPT Retail’s expected revenue is 17,700 billion dong, pre-tax profit is expected to be 522 billion dong. In the near future, we will increase the investment in Long Chau pharmacy chain, which is a new direction and is forecasted to contribute to the future growth of FPT Retail.
In addition, we still focus on FPT Shop chain to maintain the growth and increase revenue. The investment is concretized by activities such as actively seeking customers and accessing multi-channel customers, promoting the deferred payment program for officials and employees at enterprises called F.Friends.
Besides, we continue to promote installment sale; invest heavily in phone accessory industry because this is one of the segments with great profits. Along with producing revenue, FPT Shop will improve the quality of service, which is also one of the core values that the company is holding onto: “Serving customers with care”.
– As known as the “iron woman”, what do you think about this?
I’m not sure when and how I got being called that way. I’m a bit hot-tempered, determined at work, and hard to accept something half-hearted, so I have argument with my boss often. I also do not accept an unclear explanation from employees. Anything must have a satisfactory explanation.
Moreover, I only believe in myself, believe in the effectiveness of my work rather than what others think of me.
– Many people are tired and exhausted because of the work overload, what is the way that helps you to maintain your spirit, motivate yourself to do everything as planned?
For me, work is not a burden but actually a hobby. I don’t like the idea of quitting. When I do any job, I have to finish it. I do not accept being said that I could not complete my job. That is the driving force that makes me try constantly to achieve my goal.
I like to work, to maintain discipline. I’m a perfectionist and but also a hot-tempered woman. For me, once the promise has been made, it must be kept. There is one thing that I always keep in mind. When I choose to occupy a position, I have to do my best in that position. Instead of complaining, I should concentrate on doing my job well.
– What is the percentage of women in FPT Retail? How to win over your people so that your company can operate effectively?
In FPT Retail, the number of female employees accounts for more than 36% of total employees. For employees, we need to have a clear punishment and reward regime to in order to encourage but also help them to develop themselves.
In the view of my administration, those who work with me, and follow me, I must ensure the rights for them. In return, they also know that working with me can be stressful, pressured. They have to satisfy many demands as well. But through that process, they would grow up. The most important thing is the sincerity. When we reward or punish them, it must be clear. Why are they given reward? Why are they punished?
From the beginning, I have been determined to build a transparent, and fair working environment with a clear punishment and reward regime. But most importantly, there are always sincere sharing and encouragement from the boss to the staff.
– Can you share your story from being a salesperson to becoming a powerful woman at FPT Retail?
In the 90s, I was a student whose major was Business Administration. I applied for an internship as a seller at a FPT store. There, I had the opportunity to practice listening skills and setting goals for each specific milestone. I forced myself in a month to know how to advise customers to accept purchases, how to gradually increase the success rate. Then gradually increased my goals such as how to get into the list of best sellers in the store, then company.
During nearly a year of working, although I did not receive any reward salary, the culture of respecting differences and appreciating the talents helped me to stick with FPT. As a result, I was appointed to the position of store manager.
Due to the young age and the lack of management experience, in the beginning, I had a lot of “objections” from the staff. Some even intended to “overthrow” me. At that time, I was angry at them but also at myself. I could not avoid being shocked for a while. After calming down, I found ways to communicate and help “disgruntled” employees achieve their work goals.
From the position of store management, I later had the opportunity to work at many different companies in FPT Corporation such as FPT Information System (FPT IS), FPT Mobile Technology Company Limited, FPT Telecom Joint Stock Company (FPT Telecom) and FPT Trading Company Limited (FPT Trading) …,
In 2010, FPT set up a joint venture project with Indonesia’s leading supermarket chain. I was trusted to be Alpha Mart Project’s Director. However, after one year of learning and getting to know the process, the system has just negotiated, FPT suddenly withdrew to focus resources on buying EVN Telecom, I returned to FPT Trading.
At that time, FPT Trading was mainly a distributor but also carried out the retail segment, which led to the rejection from other partners. Therefore, FPT Retail was not taken good care of. Its profits was “just enough to support itself”.
In the first phase in 2012, FPT had 5 – 7 retail stores but mainly made “showrooms” for other firms. With the background knowledge learned from my Indonesian counterpart, I drew up a proposal of establishing an independent retail company and protected it before the FPT’s leaders. On February 1, 2012, FPT Retail was officially launched to implement the Group’s retail chain project.
– What is your concept of a successful person? In the family, does the success of one partner cause pressure on the other?
I don’t think there is any pressure because in order for one partner to succeed, the other need to understand, sympathize, and support sympathy. For me, my husband always understands, shares family work and supports so that I can freely develop my career.
According to Minh Anh, Ha Mi
At FPT Retail, Mrs. Nguyen Bach Diep is known as the “iron woman” due to her determination at work. To achieve success, according to her, is to work hard as there is no easy roads to success.
Bà Nguyễn Bạch Điệp.
The “Trump card” of FPT Retail
Chairwoman and CEO of FPT Retail Nguyen Bach Diep appeared on the cover of Forbes Vietnam in March 2019 along with four inspiring female leaders, including Mrs. Mai Kieu Lien, CEO of Vinamilk; Mrs. Nguyen Thi Phuong Thao, CEO Vietjet Air; Mrs. Truong Thi Le Khanh, Chairwoman of Vinh Hoan and Mrs. Nguyen Thi Mai Thanh, Chairwoman and CEO of REE. Mrs. Nguyen is the youngest of all.
“I am truly honored to be chosen as one of 50 most influential women in Vietnam in 2019 by Forbes Vietnam, and to have a chance to stand next to the “older sisters” who are pioneers in various fields, from politics, business, management, research, social work … ”, Mrs. Diep proudly said.
Needless to say, in this list, for the first time, the “iron woman” of FPT Retail was honored as one of 20 most powerful women in the business sector in 2019.
Nguyen Bach Diep is a not-so-strange name in digital retail market. Over the past 7 years, with her colleagues, she has developed FPT Retail from 17 stores to the second largest phone retailer with more than 500 stores from North to South.
Despite its rapid expansion, FPT Retail still ensured the growth in depth, which was shown in business results in 2018 with the revenue of nearly VND 16,000 billion, profit after tax of VND 348 billion, rising by 20% compared to same period in 2017.
Witnessing a slowdown in the retail segment as the market was close to saturate, Mrs. Nguyen continued to hit the mark when FPT Retail participated in the pharmaceutical retail segment after successfully acquiring Long Chau pharmacy chain.
By the end of 2018, this pharmacy chain has 25 stores and plans to open 50 new stores in 2019.
Having been with FPT since graduating from university (1994), she had held many positions, from business staff to manager, and gained great experience in many areas such as Internet, telecommunications before participating in developing FPT Shop. There is no easy way to achieve success for business women like Mrs. Nguyen. Along with the increase in the number of selling points established and the growth in revenue, and profitability are the concerns and difficulties in finding places to open retail stores, predicting how the market will be, and keeping balance between work and private life to fulfill the role of a wife and a mother.
In 2012, FPT Digital Retail Joint Stock Company whose trade name is FPT Shop, officially operated. Since then, Mrs. Nguyen has occupied many important positions in FPT Retail. She is even considered to be the “trump card” of the company.
Recalling her working journey, she said to the reporter from Investment Magazine: “I have been with FPT Retail since the first days. In the beginning in 2012, FPT had only 5-7 retail stores, mainly were showrooms for firms. With the fundamental knowledge I learned from my Indonesian partner when I was in charged of the Alpha Mart Project as a Director, I worked out a plan which is a proposal to establish an independent retail company. I then defended it against FPT leaders. On February 1, 2012, FPT Retail was officially launched to implement the Corporation’s retail chain project”.
It was not as simple as it was said. The pressure that was on Mrs. Nguyen when establishing the company was unrelenting.
The most important thing when it comes to retail is to have a nice space, especially when the products were first launched. In the first 2 years, in addition to pressure to find places, the pressure of training employees in each region to meet the qualities to open the chain soon was also hard to deal with. There were many unsolved problems such as how to build the optimal process concerning goods returning to selling, the process of importing goods, goods delivery between chains, software systems for managing goods, money, website development …
Then FPT Retail made a remarkable progress when becoming an authorized Apple reseller in Vietnam with F.Studio by FPT system. Mrs. Nguyen shared: “There is no denying that Apple products appeal enormously to millions of people who are eager for new products when first launched. Additionally, Apple products are consumed all over the world, including Vietnam. However, if you buy Apple products through an unauthorized business, customers may buy fake products. If you buy iPhone locked (lock) from the US, Japan, the buyer must buy the code to unlock network or use a transparent SIM, which is relatively complicated. In the long run, the products become unstable and may be locked by Apple.
The establishment of F.Studio by FPT solved the problem of purchasing genuine equipment at an authorized business, helping users to avoid the limitations and shortcomings of products.
“I’m lucky to have my family understand.”
After the success and rapid growth of FPT Retail, Mrs. Nguyen admitted: “During the past time, due to the pressure from being a leader, especially during the time when FPT Shop was new to market, I once put my work before my family. In other words, I do not fulfill the position of a woman in a family. ”
Although there are many “imperfect” times, Mrs. Nguyen Bach Diep is a lucky woman because not only her family, but also a lot of her associates altogether help, and wholeheartedly support her.
“You know, if behind a successful man is a woman who silently sacrifices, then behind a successful woman is a group of people who silently sacrifice for her,” Mrs. Diep appreciated.
I am very fortunate to have my family sympathize and support me a lot. In return, I try to make use of any free time of the day for my family.
Mrs. Nguyen talked what brought her joy every morning with a voice filled with love and excitement: “Every morning, I wake up to prepare breakfast for the whole family. When I go to work, I take advantage of the time in the car to talk to my children. I work until 7 pm, then go home, have dinner, check my children’s homework. Sometimes after the kids go to bed, I check my email, then I actually take a rest.”
As a senior at the company, is it hard to be a wife or a mother when she’s at home? She said: “I am not a boss at home, which helps to show my respect the role of the man in the family. Besides, I also try to take up the same hobbies as my children so that whenever I have free time, the whole family can share something in common. Thanks to that, my children and I can get closer and closer.
Chat with businesswoman- Mrs. Nguyen Bach Diep
To be honored as one of 50 most influential women in Vietnam? How do you feel?
This is absolutely my honor, and also an unexpected great gift for me in the first days of the New Year. I would like to express my gratitude to Forbes for giving me this honor and to my family, my colleagues at FPT Retail who are always by my side through ups and downs. This is also a great encouragement for me to strive more in the future.
Business has never been easy, in which, digital retail is a specific field. What is your secret about bringing FPT Retail from 17 stores to Vietnam’s second largest retail phone chain with more than 500 stores from North to South after 7 years of development?
I don’t think it’s a “secret”. I’d like to call it as my personal experience.
Firstly, the important factor to develop a retail system is the location. It is necessary to select a good place.
Secondly, this is the fair profit. The organization must have an objective and honest evaluation system which is based on transparency and publicity.
Thirdly, never stop learning. Today must be better than yesterday and never be afraid to learn from the leaders.
You have been with FPT Retail since graduation, so what is the “attraction” that keep you stay at the company for that long?
There are 2 main things that help me stay with FPT Retail that long. Firstly, FPT in general and FPT Retail in particular have brought me great environment to develop, to demonstrate my abilities, to be recognized and to be trusted. Secondly, I have always fallen in love with my current job. Though the current environment is dynamic, it is also demanding so that I can conquer new challenges.
As the position you are in now, there are surely a great deal of tempting invitations with better income, so was there a time that you felt tired of the work at FPT Retail that you considered to change your workplace?
On the last journey, although there were difficult times, I had never thought of that.
What is your way of relaxing when having days off? How do you “recharge” yourself?
My way of “charging” is simple. That is spending all my time with my family.
According to Hai Yen, Bao Dau Tu
In the Top 50 most influential women in Vietnam recently honored by Forbes Vietnam is Mrs. Nguyen Bach Diep, CEO of FPT Retail, the “iron woman” of the second largest digital retailer in Vietnam.
Mrs. Nguyen Bach Diep
This year, there are many new faces in the business sector such as Mrs. Tran Thi Dao (General Director of Imexpharm); Mrs. Tran Thi Lam (President of Hoa Lam); Mrs. Tran Kim Lien (Chairman of Vinaseed); Mrs. Le Hong Thuy Tien (General Director of IPP) and Mrs. Nguyen Anh Tuyen (General Director of Sanofi Vietnam).
Notably, among the business women who were honored was the name of Mrs. Nguyen Bach Diep, General Director of FPT Retail.
According to Vietnam Forbes, Mrs. Nguyen Bach Diep has occupied a crucial role in building and developing FPT to be successful as it is today.
The “iron woman” experienced many senior positions in many companies such as FPT Information System (FIS), The Corporation for Financing and Promoting Technology FPT (FMB), FPT Telecom (Ftelecom). She also attended the retail joint venture project with Alpha Mart- the second largest retailer in Indonesia in 2010.
Mrs. Nguyen Bach Diep is known as a calm and energetic person, the “iron woman” who made substantial contribution to the development of FPT Retail since 2011. From 17 stores to a system of over 500 retail stores, FPT Retail has become second largest retailer in Vietnam after The Gioi Di Dong.
Under the leadership of Ms. Nguyen Bach Diep, this business reached the revenue of VND 15,298 billion at the end of 2018, rising by 16% compared to 2017.
In which, online revenue made up 2,432 billion, up 21%; profit after tax in 2018 was VND 348 billion, rising by 20% compared to 2017.
In 2018, the total number of FPT Retail stores was 533. In comparison with the end of 2017, it had more 60 selling points. Moreover, the average sales per store reached VND 2.4 billion / month, which increased slightly compared to 2017.
Besides digital retail segment, FPT Retail also broke into pharmaceutical retail market after successfully acquiring Long Chau pharmacy chain.
In 2018, this enterprise officially announced the establishment of FPT Pharma, entering the pharmaceutical market with chartered capital of VND 100 billion, of which FPT Retail contributed VND 75 billion.
Mrs. Nguyen Bach Diep, Chairwoman of FPT Retail Board, represents all of FPT Retail’s contributed capital at FPT Pharma, and is the legal representative of the company as well.
By the end of 2018, this pharmacy chain has 25 stores and is expected to open another 50 points in 2019.
According to Nguyen Duc, ICT News
The core strategy in the near future is that the company will develop F. Studio strongly by making use of the existing distribution channels to have a strong development for the Apple Store chain with a target of 100 stores in 2018.
40 million FRT shares of FPT Retail – the owner of FPT Shop – will be officially listed on HoSE on 26th April with the starting price of up to 125,000 VND/share.
This price corresponds to the capitalization of FPT Retail of 5,000 billion VND, which is equal to the valuation of the Mobile World when listed four years ago. This price is much lower than the price on the OTC market. At the end of March 2018, VFM and VinaCapital Funds recorded the value FRT shares of 140-150,000 VND.
Regarding the business situation, FPT Retail currently owns two retail chains:
(1) FPT Shop: The retail chain of technology products of various brands such as Sony, Nokia, Samsung, Dell, Acer, Toshiba, HP, etc.
(2) F.Studio: F. Studio is Apple’s official authorized 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.
The target of 100 Apple stores until the end of 2018
The core strategy in the near future is that the company will develop F. Studio strongly by making use of the existing distribution channels to have a strong development for the Apple Store chain with a target of 100 stores in 2018.
Vietnam is the third market in the distribution channels of Apple in South East Asia, after Thailand and Singapore. At the same time, the scale of Apple market in Vietnam is increasing while the volume of mobile purchases is about 50% of the market (value of 450 thousand USD), the potentiality is seen, FPT Retail expects to attract a number of above customers in the genuine product store chains in the future.
“Many countries in the world have 400-500 genuine Apple stores attracting a large number of customers, so that is the global trend and in the future, Vietnam will not be an exception. That is why FPT Retail are strongly focusing on Apple Store“, the General Director Nguyen Bach Diep added.
Mrs. Nguyen Bach Diep, the General Director of FPT Retail
In order to carry on, FPT Retail said they will proceed to push the service (reimbursement, warranty, training, etc.) in order to attract customers, increase the competitiveness with the mobile products which have more affordable price thanks to the break in tax.
The Board of Director of FPT Retail also revealed new information which is they were proceeding with the rental service of Apple products in the future, for example, iPhone, iPad, etc. It means that the customers do not need to spend money to possess iPhone, they can rent iPhone and use it with a cheaper price.
The basis for this idea comes from the buying habit of Vietnamese people, typically Grab or Uber service which is very popular, many subjects from offices to vendors, from young to middle-aged people, etc. prefer to be taken by motorcycle. Therefore, FPT Retail plans to use this convenient model in the technology product’s segment, so far this is a relatively new and attractive service in the Vietnamese market.
What does FPT Retail have to satisfy Apple hard customers?
According to FPT Retail, until now, Apple has no concept of exclusive distribution of products in Vietnam, they understand that anyone can sell Apple products. One of FPT Retail’s competitive advantages is to understand Apple and meet its strict requirements (accounting for about 95% of the total profit of global mobile phone business). Not to mention, it is not easy to be distributed Apple products, because it takes a big cost to meet the rigorous criteria of this mobile giant in the world.
Accordingly, the representative of FPT Retail confirmed that it cannot be said that other competitors cannot sell Apple products, the issue is whether they have the decision to engage in this segment or not. Currently, with two foreign companies, Gel and Thakral Brothers, FPT Retail is a Vietnamese company chosen by Apple to distribute products with 12/15 total stores selling Apple products.
In 2018, FPT Retail expects to raise the avenue to 16,020 billion VND, up 22% compared to 2017. The net profit is expected to increase 30%, up to 377 billion VND. At the same time, FPT Retail’s average growth plan for 2018-2020 is 19.5% per year in the revenue and 26% per year for the net profit.
In addition to the main field of digital business, in December 2017, FPT Retail has “set foot” in the pharmaceutical industry with the acquisition of Long Chau drugstore chain. Having answered the questions of shareholders about the development of pharmaceutical field, Mrs. Diep said that in the next 3-4 years, this segment will contribute 40% of FPT’s revenue. So far, the revenue of the pharmaceutical segment has come from three parts: one third from the hospitals, one third from the clinics and the doctors, the rest from the drugstores. FPT Retail has an ambition of holding 30% of the market share, equivalent to the revenue of 10,000 billion VND in pharmaceutical industry.
According to Cafe F
Foreign investors spent hundreds of billions to purchase shares of FPT Retail (FRT) during the floor trading session
The FRT trade was quite active with the matching orders of 871 thousand shares only after the first one hour and the buying source mainly came from foreign investors when they bought 840 thousand of FRT shares, equivalent to 126 billion VND.
In this morning session (April 26, 2018), 40 million FRT shares of FPT Digital Retail JSC – FPT Retail were officially listed on HoSE with the reference price of 125,000 VND/share.
The FRT trade was quite active with the matching orders of 871 thousand shares only after the first one hour and the buying source mainly came from foreign investors when they bought net 840 thousand of FRT shares, equivalent to 126 billion VND.
FRT is currently in excess of buying 333,000 shares, as opposed to the doldrums on the common market. At the price of 150,000 VND/share, the market capitalization of FPT Retail is 6,000 billion VND.
It is known that FPT Corporation is still the largest shareholder, holding 47% of FPT Retail. The next two major shareholders of the company are Dragon Capital (holding 20%) and VinaCapital (holding 15%).
In 2018, FPT Retail expects to raise the avenue to 16,020 billion VND, up 22% compared to 2017. The net profit is expected to increase 30%, up to 377 billion VND. At the same time, FPT Retail’s average growth plan for 2018-2020 is 19.5% per year in the revenue and 26% per year for the net profit.
At the present, FPT Retail owns two retail chains, including (1) FPT Shop: retail system of various technology products such as Sony, Nokia, Samsung, Dell, Acer, Toshiba, HP, etc. and (2) F.Studio: F. Studio is Apple’s official authorized Apple Store 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.
In addition, at the end of 2017, FPT Retail has “set foot” in the pharmaceutical industry with the acquisition of Long Chau drugstore chain.
According to Cafe F
In the first quarter, FPT Retail profited 64 billion dong increased over the same period last year by 33%
FPT Retail also opened 13 new stores in this quarter, which made the sum of stores in system get 400.
FPT Retail ( code: FRT) has already released the summarized turnover statement of the first quarter in 2018.
The revenue got 3,884 billion dong increased 17% comparing with the same period last year. In this revenue structure, FPT Shop retail chain has got 97%; F. Studio chain has got 3%.
The profit reached 64 billion dong, which increased over the same period last year by 33% and completed 17% of the plan in this year.
Table: the summarized turnover stement in the first quarter in 2018
In this quarter, FRT opened 13 new stores; therefore, there is 486 stores in total.
In this morning (April 26th), FRT shares started to be directly traded in Ho Chi Minh Stock Exchange (HOSE) with par price VND 125,000 / share. As a result, thanks to 40 million listed shares, FRT is evaluated 5,000 billion dong.
In 2018, FPT Retail has been scheduling that turnover will have got 16,020 billion dong, which gets over 22% as comparing the same period. Besides, profit after tax will have got 377 billion dong, which has an increase more 30% than the same last year. According to the initial plan, FPT Retail is going to divide dividend not lower than 20% in cash; the directors board is commissioned to decide the payment time.
(Nguoi Dong Hanh)
40 million FRT stocks which belong to FPT digital retail joint stock company-FPT retail are official in the stock exchange with the reference price of VND 125.000 per share. Both a consecutive decrease of the domestic stock market and concern about a rapid increase of the U.S.A bond revenue make the investment community very careful at the beginning of the session.
Almost large market capitalization is down. VIC has been pressured by profit taking after the recent market reversals that made the market less supportive. MSN, GAS, VRE… as well as these stocks such as: ACB bank, CTG, MBB, VPB… all decrease. Those stock groups like: VND, SSI, SHS… are sold sharply, too.
In contrast, VNM,VCB, SAB become the supports of the market. In spite a slight increase, it could not help the market go up.
Today ( April 26 th), HSX stock exchange has a new comer, 40 million FRT stocks which belong to FPT digital retail joint stock company – FPT retail are official in the stock market with the reference price of VND 125.000 per share.
FPT group is known as a majority owner, has 47 percent in FPT Retail. Dragon Capital and VinaCapita are smaller shareholders.
In 2008, FPT Retail is planning to raise their turnover to VND 16, 000 billions increasing 22 percent compared to last year. This morning, the strong support from foreign investors helped this stock keep the price ceiling at 150, 000 VND per share during the trading
Acording to VTV