How has A.S. Watson adapted to changing consumer behaviour?

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A.S. Watson Adapts to Evolving Consumer Demands Through Strategic Expansion and Customer-Centric Practices

A.S. Watson has demonstrated significant adaptation to changing consumer behaviour by expanding its global footprint, growing its store network, and increasing its member base, while also embracing a customer-centric philosophy that prioritises flexibility and understanding evolving values, particularly in sustainability. This strategic approach has enabled the company to navigate the complexities of modern retail, where consumers are increasingly dynamic and value-driven.
Global Expansion and Network Growth

Since 2019, A.S. Watson has strategically broadened its international presence by entering three new markets: the UAE, Qatar, and Saudi Arabia. This expansion has increased its operational reach to a total of 28 markets. Concurrently, the company has significantly scaled its physical retail infrastructure, growing its global store network to exceed 16,100 locations. This physical expansion is complemented by growth in its customer engagement, with the global member base increasing from 137 million in 2019 to 148 million.
Embracing Consumer Dynamism and the Concept of 'Sheng Yi'

Malina Ngai, CEO of A.S. Watson (Asia & Europe), highlighted that consumers are becoming more emotional, unpredictable, educated, and socially conscious, exhibiting less loyalty and having less time. In response, Ngai explained the business philosophy of '生意' (Sheng Yi), which underscores customer centricity. The character '生' (Sheng) represents a need for liveliness and flexibility, while '意' (Yi) is a composite of determination, daily effort, and consistently considering the customer's perspective. This framework guides the company's approach to adapting to consumer shifts.
Aligning Business Purpose with Customer Values on Sustainability

A.S. Watson places importance on aligning its business purpose with customer values, particularly concerning sustainability. The company believes that by integrating these values, it can collectively create a more positive impact on the planet. Ngai has called for collective efforts between retailers and manufacturers to address sustainability, recognising its far-reaching implications and the necessity for collaborative action to achieve significant impact.

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How has A.S. Watson adapted to changing consumer behaviour?

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