“Bookstores incur significant costs and inventory pressure when selling textbooks, despite only receiving an 8-10% publishing discount,” noted the leadership of Fahasa Bookstore on the company’s 48th anniversary, which coincided with the back-to-school season.
Fahasa is currently the leading bookstore and book retailer in Vietnam, both in terms of scale and sales. While competitors like Phuong Nam and ADC Book struggled to reach VND 1,000 billion in revenue in 2023, Fahasa left them far behind with nearly VND 4,000 billion. The key to the company’s success and sustainability, according to Fahasa, is their exclusive focus on the book industry.
However, for 2024, Ms. Pham Thi Hoa, Fahasa’s Vice President, shared that compared to the very positive business results in 2023, the company aims for a modest 5% growth in revenue due to the challenging economic landscape and reduced consumer spending.
According to the Q2/2024 financial statements (the company has not yet published consolidated financial statements), Fahasa’s revenue exceeded VND 1,088 billion, with after-tax profits of over VND 7 billion. In the first six months, Fahasa recorded flat revenue of VND 1,787 billion and a slight increase in after-tax profits to VND 22.5 billion.
In August, the peak season leading up to the new school year, Fahasa will organize various promotions and offer gifts to stimulate demand. The company’s 120 branches nationwide have prepared a diverse range of products, including textbooks for all grades, regions, and schools, reference books, school supplies, and accessories like backpacks.
Notably, among Vietnamese bookstores, only Fahasa remains focused on distributing textbooks. Many others are less enthusiastic about this product category due to the minimal profit margins.
“In the textbook business, companies face substantial costs and inventory pressure, while only earning an 8-10% publishing discount. Additionally, businesses must stay updated on which textbooks are used in different localities to ensure they offer the right books for their customers’ needs in various regions. Nevertheless, we persist in this endeavor to serve our customers’ needs,” affirmed Ms. Pham Thi Hoa.
Furthermore, Fahasa believes that selling textbooks, despite the low-profit margins, can stimulate demand for other school supplies and generate revenue for bookstores.
Alongside their traditional bookstores, Fahasa has also expanded into e-commerce, selling books through their website and online marketplaces.
Mr. Nguyen Van Giau, Fahasa’s E-commerce Director, shared that their website, Fahasa.com, offers over 100,000 products and can handle 10,000 concurrent users per second, ensuring customers can quickly search for products, place orders, and receive same-day delivery.
“We have two warehouses in Ho Chi Minh City and Hanoi, covering a total area of over 10,000 sqm. Our warehouse staff efficiently manage the processes of receiving, sorting, packing, and delivering orders. For orders placed before 3 pm, we guarantee same-day delivery,” he added.
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