Bangkok--9 Nov--KASIKORNBANK
KBank and Fascino – a leading retail pharmacy franchisor – have agreed upon financing for Fascino's franchisees; they retail medicines as well as health and beauty products. Without needing any prior business experience, borrowers may obtain unsecured loans of up to 70 percent on their investment funding, or up to THB15 million, over a maximum installment term of 10 years. If these businesses are well managed, their breakeven point may be reached within only four years. KBank's 2017 loan target for this program is THB100 million.
According to Mr. Pipavat Bhadranavik, KBank First Senior Vice President, KBank has engaged in cooperation with Profascino Co., Ltd. – the owner of Fascino pharmacy franchising – to offer loans per the K-SME Franchise Credit program. Financing will be limited to 70 percent of the investment value per franchise, or THB15 million, on a term of up to 10 years with no collateral required.
The drugstore business has a positive growth outlook, given that medicines are one of four basic necessities. High growth already seen in this business is now attracting more investments, even by existing pharmacists. Franchises are generally low risk; their brands are well known, and their products and services have been proven to sell well. With sound management, such businesses may reach their breakeven point within only a few years. KResearch has revealed that the value of pharmacy business in 2017 could reach around THB40 billion, rising 8-10 percent over-year, via approximately 18,500 drugstores. Out of that total, there are around 16,900 stand-alone establishments, often run by professional pharmacists, and 1,600 chain stores owned by large business operators using their own funding and facilities. The total share of chain stores should rise rapidly, since they are expanding by at least 70 branches per year. This situation, therefore, offers interesting business possibilities.
Mr. Chaisen Pisanwalerd, President of Profascino Co., Ltd., revealed that the company's investment strategy is to expand their pharmacies into more locales with good business prospects to better respond to the public's needs. They use a standardized store management system that distributesquality pharmaceuticals and healthcare products, and has qualified pharmacists available at each store to serve customers. Thus, Fascino has become a recognized brand. This year, they have improved after-sales service on patient care equipment, boosting customer confidence toward their brand. In addition, the company now stresses:
1. Pharmacy Locations as an essential element to the success of a franchise, especially for newcomers. The company approves acceptablelocations by considering the store's goals, customers, products and analyses of the business potential vis-à-vis rivals in the area, and whether they are located in close proximity to community centers, residential areas and healthcare facilities.
2. Professional Standards are important for any health-care service because customers expect 100-percent correct medicines from pharmacists. Thus, in-store pharmacists have to have an in-depth, accurate knowledge of current pharmaceutical products, and be able to give easy-to-understand advice about medicines, which is Fascino's main selling point to attract customers.
Mr. Chaisen added that Fascino is already a leading pharmacy chain in Thailand. Having been in business here for over 26 years and having over 100 branches nationwide, Fascino retails a diverse range of quality drugs, health and beauty products, all at reasonable prices. The company has a professional management team and adheres to international business standards. Over the years, Fascino has focused on improving training programs for our pharmacists and their assistants to offer the most satisfying and efficient service experience to customers. Sales and marketing programs are undertaken continuously to meet the needs of our customers. Fascino has opened 24 branches so far in 2017 and is targeting 35 more branches within Bangkok and other provinces.
Mr. Pipavat stated that aside from the K-SME Franchise Credit extended to Fascino, KBank has also assisted them to carry out their business more flexibly with QR Code payments via the K+ SHOP mobile app and special discounts for Fascino's customers using K-Credit Cards in payments. KBank is targeting the extension of THB100 million in K-SME Franchise Credit to Fascino franchisees during 2017.