Page 30 - Sphere No.6 (Jun 2002)

R E T A I L
SPHERE
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medicines at affordable prices.”
In turn, Roxas is confident that
Philippines’ products will gain access to
theWatsons worldwide network of retail
stores.
Imported products are usually priced
at a premium in the Philippines, but
Watsons has perfected the art of keeping
prices down by sourcing directly from
manufacturers and by-passing middle-
men, notes Casey. “People always like
the idea of imported products at afford-
able prices.”
Staffing the outlets is not a problem
either. “Unemployment is high at
around 11-12%, yet educational levels
are also high and people prefer working
for companies with a good name. You
have to be a graduate in science or nurs-
ing to work in a pharmacy here, and
we’re having graduates lining up for
interviews.”
Watsons plans to “penetrate major
cities first”, says Casey. But the aim is to
expand wherever possible. “We’re talk-
ing to the other major megamall owners
in the Philippines, including Ayala and
Robinson’s, and looking anywhere else
we can – from airports and hospitals to
university campuses.”
“Overall,” adds Ingham, “there are
some really exciting prospects. It’s going
well so far and if this continues, our
expansion target for the next five years
might increase significantly. There could
well be 300 new stores, not 150.”
S HOPPERS IN TAIWAN HAVE
been enjoying even greater variety
since the introduction of British-
brand Boots products inWatsons stores.
Both companies have been delighted
with the results of a trial that started in
July 2001 and received an overwhelming-
ly positive response from consumers.
“The addition of unique products sold
by Boots has enhanced the feeling of
‘discovery shopping’ in Watsons where
customers are highly appreciative of the
extra choice and convenience,” says
Philip Ingham, CEO of A.S.Watson Group
Retail Non-Food Division. “The partner-
ship with Boots is a breakthrough in the
industry which we see will benefit con-
sumers.We want them to look good, feel
great and have fun.”
The rollout plan commenced in March
this year and will be completed by early
2003 with around 100 Watsons stores
on the programme. Boots’ net invest-
ment will be some £2 million (about
US$2.9 million).
Watsons has an island-wide chain of
excellent retail stores in Taiwan while
Boots has a strong established brand that
complimentsWatsons’ extensive product
range.The tie-up thus not only creates a
compelling offer for consumers but also
real value for each partner.
The implants will occupy approximately
10% of Watsons floor space and offer
between 800 and 1,200 beauty and per-
sonal care products featuring Boots
brands. Watsons will benefit by the cre-
ation of a differential in their offer against
the competition, leading to increased
footfall and sales.
Watsons first opened in Taiwan in
1987 and now operates 223 stores
island-wide while Boots has been oper-
ating in Taiwan for about 18 months.
Consideration is being given to expand-
ing the partnership into other Asian
markets where Watsons has stores.
TAIWAN TIE -UP
Most Watsons’ counter staff are science or nursing graduates. Customers go not only for prescriptions, but also for advice.