Watsons announced its plans at a time when the government has issued a series of favourable policies to boost consumption and expand domestic demand.
HONG KONG: Hong Kong-based health and beauty retailer Watsons plans to open 500 stores in the Chinese mainland this year and explore community store models, as the company has firm confidence in its growth potential in the country and will continue to make investments by leveraging the consumption upgrade trend.
Watsons announced its plans at a time when the government has issued a series of favourable policies to boost consumption and expand domestic demand.
In the recently delivered Government Work Report, it listed boosting consumption as a priority among this year’s tasks.
Brick-and-mortar retail is expected to embrace new business opportunities, with the trend of quality upgrades, digital transformation and the building of more commercial infrastructure in county-level cities, the company said.
Meanwhile, Chinese consumers’ purchasing habits are increasingly shifting toward instant fulfilment by buying products in advance, or storing for a rainy day – a shopping habit which sometimes involves discounts.
Community stores that are located close to consumers have high levels of operational flexibility.
Additionally, with the advantages of instant retail, such stores can reach a wider consumer base, more effectively attract offline customer traffic, enhance the efficiency of store services and boost customer and brand loyalty, said research house Nielsen.
Facing new retail trends and consumer demand, Watsons plans to launch community stores near key residential areas in first and second-tier cities this year, and satisfy the instant demand of consumers for daily necessities such as facial masks, personal care products and health-related goods. The company plans to launch beauty services such as hairstyling, manicures and facial work at some of its stores to make such services more convenient for those living nearby in residential communities, it said.
Earlier this month, the State Council, China’s Cabinet, issued a guideline regarding special action plans to boost consumption. The guideline noted that the government encourages unleashing consumption potential among seniors by actively developing businesses such as tourism and anti-aging care products and services. —China Daily/ANN
