Page 28 - Sphere No.29 (Jun 2011)

26 Sphere 29
The adoption of the “personal store” tagline, along with
new brand visuals, were hallmarks of what became known
internally as Watsons “second generation” of stores.
“Between generation one and generation two, Watsons in
Hong Kong became more of a lifestyle brand,” observed Tim
Chung, the Group’s General Manager of Store Development
(Asia), who also joined Watsons in 1985. “We wanted to
create a better shopping environment for our customers by
conveying a positive image of growth and development. We
were investing heavily in store design, and in that sense, I
believe we were really leading.”
Regional takeoff
By now, the Group was ready to stretch beyond Hong Kong and
take its distinctive health and beauty retail concept to regional
neighbours. Watsons outlets were established in Taiwan in 1987
and Macau in 1988.
“Macau and Taiwan were the obvious first choice, due to
similar consumer cultures. Watsons, as a concept, was
completely new to Taiwan and was an immediate sensation,”
said Ms Mounger. “It changed the landscape of Taiwan as far
as health and beauty retailing is concerned.”
The following year, in 1989, Watsons re-opened in the
Chinese Mainland. Its presence, initially in Beijing and
Shanghai, was instantly welcomed by expatriate residents,
for whom China at that time was a hardship posting, and by
wealthier local consumers who found it difficult to buy
imported goods. Within 20 years there were 500 Watsons
stores in the Mainland and today there are more than 850.
In Hong Kong, the 90s were a period of organic growth
for the chain, with continued development and promotion of
the Watsons brand. There were many successful marketing
campaigns, such as “Free Shopping Day”. By the end of
the decade, the city had 120 Watsons stores, including
Nuance–Watson outlets at the new Hong Kong International
Airport.
There was also further expansion in Southeast Asia,
including Malaysia and Thailand.
Cultural sensitivity contributed to the successful spread of
the Watsons brand. “Our stores maintained a core consistency
throughout the region, but with local adaptations as
necessary,” said Mr Chung. “What we have developed is
one Watsons for all, a strong global brand but with authentic
local flavour.”
Number one in the world
The dawning of the new century saw Watsons eyeing
opportunities to expand even further afield. Through a series
of strategic acquisitions of leading health and beauty chains in
Europe, it rapidly transitioned from being the biggest retailer
of its kind in Asia to the largest health, beauty and perfume
retailer in the world.
Between 2000 and 2005, the Group acquired the Savers,
Superdrug and The Perfume Shop chains in the UK; Kruidvat
and Trekpleister in the Netherlands and Belgium; Drogas in
Latvia and Lithuania; Rossmann across central Europe; Spektr
in Russia, and Marionnaud in France. In 2006, the Group
acquired DC, the largest health and beauty retail chain in the
Ukraine (recently re-branded as Watsons). These takeovers
were so smooth and subtle that it explains why, even today,
many Europeans have no idea they shop in Hong Kong-owned
chains.
A S Watson becomes a wholly-owned
subsidiary of Hutchison fewer than
10 Watsons stores in Hong Kong.
The Group expands in Europe through acquisition
of Savers, Kruidvat Group, Drogas, Marionnaud,
The Perfume Shop, Spektr and DC.
1981 2000-2006