As it has grown from a small dispensary to the world’s largest international health & beauty retailer, AS Watson has weathered challenging times over its 180-year history. Now, AS Watson Group is not only one of the longest-standing companies in Hong Kong, but also the world. Our Group Managing Director Dominic Lai reflects on AS Watson’s 180 Years of Love, and looks ahead to the next chapter of our story.
It’s a combination of two main factors – intense focus on customers and agility.
Since the very beginning, when this business was just a small dispensary, there has been a strong sense of focus on the needs of the customers. Obviously, those needs have evolved over time, and they vary from market to market, but the same strong passion to serve has always been there.
But good intentions and even good deeds don’t necessarily make for a successful business, particularly in the intensely competitive retail industry. So, what has been an essential element of continued growth has been agility – a willingness to be in a state of constant transformation, being innovative and being at the forefront of retail development and meeting consumer needs. Agility also means making big, bold decisions and responding quickly to changing conditions.
Today, we still focus on putting a smile on our customers’ faces, but the way we do that is always changing. That’s not just good business, it’s also incredibly exciting!
Well, the only constant has been that customers’ expectations just keep on rising, and we’ve played a part in that by constantly refreshing what we offer and leading the innovation in retail over the years.
By innovation, I don’t just mean making the shift from physical stores to online stores, and integrating the two. I also mean making the shopping experience more convenient, more fun, more exciting and even more memorable.
The focus on the experience is a subtle but important shift. Shoppers can get just about any product they want now from anywhere in the world, but what they can’t easily get from just anywhere is the way a retail brand makes them feel.
We see our stores as a “third space” that offers a unique and engaging shopping environment. We’ve always worked to improve the in-store shopping experience, through our displays, demonstrations, themed zones and advisory services. We’re delivering all-important human interactions as well as setting up transactions. And we’re constantly refreshing stores so they match the way customers not only want to shop, but want to feel.
Physical and online stores are perfectly complementary in our business. The integration of our online plus offline (O+O) strategy is a big part of that – making shopping easier and quicker, yes, but also more tailored to the needs of individuals at any given time.
Our loyalty programmes now have over 138 million members worldwide. That’s a great pride to me, but also a rich source of consumer insights that can help us not just anticipate customers’ needs and preferences, but also adapt to them. Loyalty schemes, including our VIP programmes, are also a great way to say “thank you” to our customers in a way that’s meaningful to them and helps them see how much we value them.
As you can imagine, over 180 years we’ve been through many trials and challenges. But 2020 has been a year like no other. The conditions we and our customers faced have been incredibly demanding, but we’ve turned the crisis into opportunities and established an even closer relationship with our customers.
What we’ve done everywhere in the world is to focus on being relevant, caring, and showing people we understand what they’re going through. The pandemic has definitely led to a change in lifestyle so we’ve swiftly adapted to meet people’s changing needs.
Our O+O strategy has been more important than ever. We’ve used technology to stay close and connected to our customers. Most markets have seen a surge in eCommerce, so we’ve accelerated the digital transformation that has been under way since 2012.
In fact, our survey with over 22,000 customers showed that all of them would go back to physical stores to shop. This really underlines people’s desire for a human connection. So, while we’re improving our online offering, we also understand the role in people’s lives of friendly faces they know and trust.
Well first, after a year like we’ve had, I’d like to take this opportunity to say a heartfelt, enormous thank-you to each and every one of them. Our 140,000 colleagues all around the world have represented us to love our customers and helped keep the wheels of business turning.
There’s no instruction manual for how to lead at a time like this, and we’re fortunate that what we believe in - loving our people and customers, which have helped us through this time of crisis.
As we look back at how the company has grown over its 180-year history, we can see that so many people have played a role in making the business what it is today. Our colleagues all around the world are making history right now. They are putting our vision into practice, helping us put a smile on customers’ faces every day and most importantly, shaping the future of AS Watson. So they’re truly amazing and I’m deeply proud of what we’ve been able to achieve together.
Right from the very beginning, AS Watson has been about more than just a business. It realised its mission is to care for people’s wellness so it offered free medicines to the needy when it was small dispensary. We see ourselves as not just being present in communities, but playing a role in them, and we take that responsibility very seriously and want to do MORE for our customers, communities and the planet.
Our Global CSR committees were established 10 years ago, with ambassadors in each market, to ensure that our global priorities are applied in ways that can make the biggest difference to each community. More recently, we’ve set up a Global Millennials CSR Committee. Young people are the future of our world, and this is a way to make sure their voices are heard. The 13 millennials from Asia and Europe help us bring us fresh ideas and accelerate along our CSR roadmap. They are doubling as Chief Smile Officers, leading our Global Smile Campaign to boost global happiness by encouraging everyone to smile.
We’ve just announced AS Watson Smile Community to get smiles on the faces of 1.8 billion people worldwide to mark our 180th birthday. We’re collecting cheerful photos from all over the world and aim to reach the 1.8 billion smiles target by March 2021, to coincide with the United Nation’s International Day of Happiness.
A willingness to adapt to the world in which we work – while retaining our mission to care for our customers, people and communities – will continue to underpin everything we do.
We’re investing in the best technology so that moving between online and offline experiences of our brands becomes truly effortless for consumers, and they can enjoy the best of both worlds, wherever they are.
We’re also investing in our incredible team of people, because we know that it’s the human connections that can really make the difference to customers’ lives.
Over 180 years, so much has changed, and it’s impossible to imagine what AS Watson might be like 180 years from now. But I’m confident that guided by the same strong principles that have helped us grow to where we are today, we will be at the forefront of retailing and play a vital role in our customers’ lives all over the world. And we’ll still be putting a smile on our customers’ faces.
Watch the AS Watson's History Video:
