Watson: “Personal Nursing Specialist” is deeply rooted

When referring to Watsons, I am afraid that domestic consumers are now familiar. The Watsons Group, the world's third largest healthcare and beauty products retail group, has more than 3,300 retail stores in Asia and Europe. The people who have been to the site really enjoy its comfortable shopping experience. The name of the "personal care specialist" that has never been visited is also very good. Since opening its first store in Beijing in April 1989, it has grown to more than 40. In 2002, Watson’s personal care stores had sales in excess of RMB 61 billion, and China alone exceeded RMB 500 million. Why Watson’s rapid growth in the fiercely competitive domestic retail industry in just 15 years has attracted so much attention and recognition?

First, the brand legend - highlight the style of the century

About 1828, an Englishman named AS Waston opened a western pharmacy in Guangzhou and named the Guangdong Pharmacy. In 1841, the pharmacy moved to Hong Kong and translated the company name into "AS Wastons & company" in Cantonese dialect. This is the origin of Watsons. This company, which started as a pharmacy business, still retains this feature. After becoming a wholly-owned subsidiary of Hutchison Whampoa Co., Ltd. under Li Ka-shing in 1981, it relied on the economic strength and flexible business philosophy of Hwang Woo-Hui, Watson’s business. The brand, which is covered by the brand, has rapidly emerged in Asia and has become a household name retail brand.

Watsons Personal Care Store is the flagship retail brand first established by the Group. With its accurate market positioning, the status of its “personal nursing experts” has become so popular that Watson’s reference to “personal nursing specialists” is reflected in its brand influence.

Second, business strategy - highlighting professional identity

(I) Accurate market positioning

As we all know, the retail industry in China can now be described as a peak in all directions. The group is competing with each other, and local brands are required to develop. Foreign brands must also come in and share a slice. Effective procurement, low-cost logistics and strong terminals are the three magic weapons for winning the retail industry. In the face of fierce competition, Watsons circumvents the pitfalls of price warfare. Based on observations and analysis of Asian markets over the years, he has discovered through his century-old marketing experience that in recent years, Asia’s economy has grown rapidly, and people’s demands for quality of life have become higher and higher. Traditional sales only stay at the stage of making consumers purchase, and attention is only on the products. In the increasingly mature commodity economy, consumers not only purchase goods, but also enjoy the pleasure of shopping and the pursuit of intangible values ​​of goods, such as brands, services, etc., and finally reach the highest level of consumption, that is, through the recognition of corporate culture. Loyalty to the brand.

Undoubtedly, Watson pursues the latter. Its personal care store takes “exploration” as its theme and puts forward the concept of “health, good, fun”. It helps people who love life and emphasize quality to shape the unity of their inner and outer beauty. . In China, Watsons is the first store to operate under the concept of “personal care”. Its unique and accurate market positioning is refreshing. The target customers of the store are locked in 18-35-year-old women. They pay attention to their individuality and have strong spending power. However, they do not really like to go shopping in big supermarkets in time. They are pursuing a comfortable shopping environment. "This is very much in line with our position," said Tan Lijun, a director of the Watsons Group and general manager of China.

(II) Product Strategy

The Watsons Personal Care Store products are all-inclusive and come from more than 20 countries. There are 25,000 kinds of cosmetics, medicines, personal care products, fashion accessories, candy, cards, and gifts, which are divided into two parts: First, Watsons own brand, there are cosmetics and personal care products, etc.; Second, other brands of care products, P & G is not a minority, there are Maybelline, Avon also has a counter in the store. Of course, the products are not only provided for the ladies, but also a variety of foreign-origin foods are enough for the men's diners.

The greatest feature of Watsons' products is that it conveys three major business ideas everywhere. Drugs and health products have retained the characteristics since the establishment of the store, advocating "healthy"; beauty salons and care products accounted for the largest proportion, the largest variety, expressing the concept of "beauty"; and unique fun dolls and candy boutique Passes an optimistic attitude towards life. In order to cooperate with these three concepts, the company's shelves, cash registers and shopping bags will have some lovely signs, "heart", "lips", "smile", giving people a warm, happy and fun feeling.

(III) Price Strategy

Watsons enhances brand value through differentiation and personalization, and pricing is generally relatively high. Ni Wenling, general manager of public relations at the Watsons Group, explained that "it is hoped that prices will be consistent with market demand" rather than "competitive prices." Even so, according to a survey of more than 600 female customers in personal stores, more than 85% believe that Watson’s products are rich and delicate are the primary factors attracting them to this shopping. Thus, for the increasingly homogenized retail industry, prices are not the primary factor attracting customers. "You can buy things that are not available at other shopping venues here," said one Watsons customer.

(D) Marketing Strategy

1. Professional guidance Watson now has a strong health consultant team, including 80 full-time pharmacists and 150 "healthy vitality ambassadors." All of them are professionally trained and provide customers with free advice and advice on maintaining a healthy life.

2. Characteristic services Each Watsons personal care store is clearly divided into different sales areas. The goods are categorized and arranged neatly for the convenience of customers. In the store, various personal care information manuals such as “Skin Care” are displayed. Provides various skin care consultations free of charge; the "healthy confidante" information display rack at the drug counter provides a variety of nutrient partitioning and disease prevention and treatment methods; actively implements computerized plans, adopts an advanced retail management system, and improves ordering and delivery. effectiveness. In this way, we can see that Watson’s concern is not only the sale of goods, but also the caring and meticulous care of customers, and the full display of its “personal care” services.

3, social marketing companies are social enterprises, "take it from the people and use them to the people", Watsons knows its way. In 2002, Watsons Personal Care and the Hong Kong Cancer Foundation launched the “Pink Revolution” to inform citizens about breast cancer prevention and raise funds for research on breast cancer. At the end of 2003, it successfully supported the China Children and Teenagers Fund to implement the "Spring Buds Program." Through the Caring Shopping Action, the donation amounted to 235,800 yuan, and 500 out-of-school girls returned to school. These activities fully embody Watson’s social responsibility and have achieved great social repercussions. The store’s turnover has increased by 80% in that year, and more importantly, it has established a good social image for the company.

3. Some Reflections on the Domestic Retail Industry that Watsons Thinks

Watson’s successful experience is worth learning and learning from the domestic retail industry. The author believes that we should establish such concepts:

(a) Retail competition is no longer just price competition.

Nowadays, many domestic supermarkets and shopping malls have started to advertise more and more under the banner of “parity” and “low price”. It is true that low price is a factor that attracts customers. However, hidden in the price reduction and promotion are the easily lost customers, damaged brands, and the vicious circle of price competition, which are detrimental to the long-term development of the company. From Watsons, we see that the retail industry also needs brands. It also calls on brands to identify their own positioning and service targets accurately in the market. It is the enterprises that are hard at work in the aspects of product quality, category, and service level. Long-term development plan.

(b) The development of specialization and personalization is the trend of the times.

The homogenization of the retail industry has motivated prescient businesses to place greater emphasis on the importance of market segments. Watson’s concept of “personal nursing specialist” was first proposed in China and it can be described as “one stone with many birds”. It not only lays the leading position of its own experts, but also caters to the individualized needs of the target customers. The greater innovation is the promotion of a brand-new shopping philosophy and life attitude, which helps people to make positive improvements in health and beauty and enjoy life in joy. . In contrast, most of the domestic retail enterprises lack clear and accurate business ideas, product homogeneity, target customer positioning is ambiguous, and promotion methods are single. Various factors have constrained the rapid development of the company.

(iii) Retailers should be highly sensitive to the market and anticipate consumer trends.

Watson’s initial investigation of consumer conditions in Asia accurately predicted changes in consumer psychology and purchasing behavior, and found a new entry point for personal care, which was a success. Managers of the domestic retail industry should strengthen their ability to observe and control the overall situation and stand at a higher level to provide accurate guidance on the future development of the company.

"By 2007, Watson will become the world's number one in personal care stores." Mr. Shi Ruibo, Executive Director of Watsons Personal Care Stores, is ambitious. It is said that in the next three years, Watson will open up to 1,000 domestic personal care stores and invest nearly 100 million yuan. When the wolf came, it was both an opportunity and a challenge for domestic retail companies. are you ready?