In the last lesson, we discussed branding, which made me think of the brand strategy of Watsons. As the leading personal care retail brand in Asia, Watsons holds an important position in the market with its extensive product selection, quality service experience and innovative marketing methods. However, in recent years, new brands continue to emerge, Watsons products and brand image are facing the risk of homogenization. Many personal care and beauty brands tend to offer similar product categories and prices, and it may be difficult for consumers to distinguish Watsons from other competing brands. In the mainland, beauty collection stores such as The Colorist and WOW colour are expanding rapidly. In Hong Kong, stores such as Manning and Matsumoto Kiyoshi pose a threat to Watsons. Therefore, how to maintain the uniqueness and high recognition of the brand has become an urgent problem for Watsons.
In the face of this problem, Watsons coping strategy is very worthy of reference.
- Private brand development: private brand products are produced by suppliers designated by retail enterprises, affixed to the brand of retail enterprises, and sold in their own stores, saving intermediate links and more competitive prices. At present, Watsons has more than 1,000 private brands, which is equivalent to 20% of the total number of products sold. These private brands are mostly concentrated in skin care products, beauty products and daily necessities, which are also the most representative products of Watsons, increasing customers' trust in its professionalism. Although it has the advantage of large quantity and low price, which can resist the impact of other competitors to a certain extent, the popularity of Watsons own brands is generally low. How to let more people know about Watsons private brand may be the next step to think about.
- Co-branding: Watson collaborates with beauty brands such as NYX and L 'Oreal to launch limited-edition co-branded products to meet consumers' pursuit of freshness. This co-branding not only enriched Watsons' product range, but also expanded its exposure on social media with the influence of the beauty brand. In addition to beauty, Watsons is also trying to work with brands in other areas. In 2018, Watsons opened an offline themed store under the name of Love and Producer, a popular game among young girls. It was also the year that Watsons partnered with Xiaomi to introduce electronic products to its stores. These crossover attempts have earned Watsons attention.
- Store service and scene experience: In order to strengthen the brand positioning of health and beauty, Watsons has added interactive experience areas in stores, such as skin care consultation, beauty trial, etc., to enhance customers' shopping experience. In some of Watsons' offline stores, we can see mirrors and dressers placed in the center of the store. The staff were very enthusiastic and ready to help us try beauty products. In addition, Watsons has also opened a number of concept stores with the theme of "health, life and beauty", breaking the single scene of traditional retail. For customers who love the experience, this arrangement is very attractive. But younger users may prefer to do their own shopping in the store and dislike the interference of clerks, so this strategy doesn't work for everyone.
In general, Watsons brand strategy contains multiple directions, and has played a certain effect. In the future, Watsons may need to think about how to further innovate and maintain the market position and reputation of the brand in the face of more diversified customer groups.
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ReplyDeleteThank you for the thought-provoking analysis of Watsons’ brand strategy and highlighting the the need for differentiation it faces in a competitive market. You provide a great overview of Watsons’ brand strategy and clearly articulate the pros and cons of private brand development, co-branding, and store service enhancements.
ReplyDeleteThe co-branding strategy seems promising, particularly in leveraging the influence of popular beauty brands. The effectiveness of co-branding ultimately depends on careful selection of partners and the creation of unique, appealing products. And your discussion of store service and scene experience is interesting. While providing interactive elements can be a draw for some customers, you acknowledge the potential for alienating shoppers who prefer a more independent experience. Given the diverse demographics of Watsons’ customer base, how can they develop targeted strategies that appeal to specific age groups and preferences? Finding a balance between personalized service and self-service is crucial for maintaining a broad customer appeal.