Executive Summary
AS Watson's growth strategy has evolved through several generations, focusing initially on operational excellence, then customer-centric approaches, integrating offline and online channels, and now emphasising connection and community under the ABC of LOVE strategy. This strategy centers on agility, bonding, and building a customer community to foster sustainable and passionate growth. Every colleague plays a key role by collaborating effectively, listening to customer feedback, innovating, and engaging customers to enhance experiences and strengthen relationships.
Our path to sustainable growth is rooted in LOVE, but it’s not just a feeling - it’s a deliberate strategy. By focusing on the ABC of LOVE, we ensure our organisation thrives, our customers stay loyal, and our community grows stronger.
Malina Ngai
Group CEO, AS Watson
In this issue of WatsOn, we share with you the evolution of AS Watson growth strategy and how you play a part in it.
At AS Watson, our strategy has always been about building on our strengths while embracing new innovations to deliver sustainable growth, even in volatile times. This has been our foundation as we evolve with the changing needs of our customers, employees, and partners.
An Evolution in Strategy
Our journey in the recent two decades can be divided into four key generations of strategic focus, each generation building upon the progress of the last:
Generation 0 (G0): 2007–2009
We began with a focus on operational excellence, aiming to strengthen the fundamentals of our retail business following a series of acquisitions in Europe between 2002-2006, positioned AS Watson as one of the world’s largest health and beauty retailers. This phase was about fixing the basics - laying the groundwork for future growth by improving efficiency and reliability in our operations.
Generation 1 (G1): 2010–2018
The next stage was about going beyond operational processes and becoming more customer focused. We introduced the DARE strategy, emphasising:
Different: Providing differentiated offer to customers
Anywhere: Being accessible wherever our customers need us
Relationship: Building meaningful, lasting connections
Experience: Delivering exceptional experiences that mattered to our customers
These core principles became the foundation of how we connected with and served our customers.
Generation 2 (G2): 2019–2024
We embraced the O+O (Offline + Online) strategy, evolving from traditional physical retail to an integrated offline and online model. This allowed us to serve customers anywhere, anytime, combining the convenience of digital channels with the personal touch of physical stores.
Generation 3 (G3): 2025 and Beyond
Looking ahead, we step into G3, where the focus is on building connections - with our colleagues, customers, and partners. This phase is all about unity: empowering our people, fostering deeper bonds, and creating a thriving ecosystem of collaboration.
G3: The ABC of LOVE
The essence of G3 can be described through the Chinese character for LOVE, which symbolises the core of our strategy:
This ABC of LOVE defines how we approach the next phase of our growth, ensuring that every interaction, decision, and initiative is rooted in empathy, connection, and innovation.
What is ABC of Love Strategy
1. A for Agility
Agility is the foundation of our success. It starts with building a capable, united organisation that operates with excellence and passion. This means empowering our team with the tools, skills, and mindset they need to deliver exceptional results. With the right ability, we act with purpose and pace, adapting to customer needs and staying ahead of the curve.
2. B for Bonding
Bonding is the heart of LOVE. It’s about creating meaningful connections within our organisation and with our customers, business partners, and stakeholders. Internally, we foster a culture of unity and collaboration to ensure we move forward together. Externally, we go beyond transactions, building trust and long-term relationships through personalised service, shared values, and genuine care.
3. C for Customer Community
Community is where LOVE grows and thrives. We aim to create a vibrant, engaged customer community that feels a sense of belonging with our brand. Through shared experiences, authentic interactions, and opportunities for customers to connect with one another, we transform transactions into relationships and customers into advocates.
The ABC of LOVE is more than a strategy - it’s our commitment to growing with passion, purpose, and people at the center. By focusing on Agility, Bonding, and Community, we ensure that our company not only grows but truly connects with the hearts of those we serve.
Our strategy continues to combine the strengths of the past with forward-thinking innovations. With G3, we are committed to empowering connections, enhancing experiences, and staying ahead in an ever-changing world.
Together, as one united team, we're ready to embrace the opportunities of the future. Thank you for being an integral part of this exciting journey. Let's continue to make a difference together!
Malina Ngai
Group CEO, AS Watson
