Inside the pharmacy, medicines occupy half the display area; the other half holds healthcare products, cosmetics, dietary supplements, medical equipment…
Thế Giới Di Động, the market's largest phone and electronics retail chain, officially entered pharmaceutical retail by opening a series of An Khang pharmacies in Ho Chi Minh City on 06.01.2018.
Earlier, on 28.12.2017, Thế Giới Di Động's board approved purchasing shares in An Khang Retail Joint Stock Company, owner of An Khang Pharmacy.
All seven existing An Khang pharmacies occupy former Phúc An Khang pharmacy premises. Since late 2017, the Phúc An Khang pharmacy network had temporarily closed for renovation to become a new pharmacy chain called An Khang.
A newly opened An Khang pharmacy on bustling Cách Mạng Tháng Tám Street (Tân Bình District). Photo: Forbes Vietnam.
An Khang pharmacies have green signs with the distinctive human figure used by members of the Thế Giới Di Động group, including the Thế Giới Di Động, Điện Máy Xanh, and Bách Hóa Xanh chains. Unlike the other members, An Khang also has a flashing cross sign in front of its entrance to catch passersby's attention.
Inside the pharmacy, medicines occupy half the display area; the other half holds healthcare products, cosmetics, dietary supplements, medical equipment… An Khang pharmacy staff handle payments and product management through mobile phones, as in Thế Giới Di Động's retail stores. This differs from the Phúc An Khang system, which previously used computers for management.
Inside an An Khang pharmacy, with healthcare products displayed alongside medicines. Photo: Forbes Vietnam.
An Khang pharmacy’s mobile app has appeared on Android. However, pharmacy employees say product ordering through it has not yet launched. The An Khang website is still being completed, but users can look up information about medicines, hospitals, doctors and diseases…
Demand for medicines in Vietnam is forecast to keep rising because the country has ended its demographic golden period and has been entering population aging since 2017. According to FPT Securities, this is the main driver bringing pharmaceuticals into the initial stage of a development process after a long period of spontaneous growth without systematic planning and oversight.
According to IMS Health estimates, per capita medicine consumption in Vietnam was only about USD 33 in 2015 and was projected to reach nearly USD 50 in 2020. Even so, this remains significantly below the global average of USD 180.
A corner of An Khang pharmacy. Photo: Forbes Vietnam.
An Khang pharmacies opened simultaneously on 06.01.2018 after being renovated from Phúc An Khang pharmacies. Photo: Forbes Vietnam.
Pharmaceutical retail, worth about USD 5 billion in 2016 but with no dominant business, is the next target for retail giants.
To enter the market quickly, Thế giới di động planned mergers and acquisitions (M&A) of pharmaceutical retailers. Nguyễn Đức Tài, Chairman of Thế giới di động, shared this ambition at the General Meeting of Shareholders in late 03.2017. Thế giới di động decided to allocate VND 2,500 billion to M&A.
FPT Retail General Director Nguyễn Bạch Điệp recently confirmed an investment in the Long Châu pharmacy chain in Ho Chi Minh City. Digiworld, a technology-product distributor, is also beginning to distribute dietary supplements.
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