bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

urlAlias

moreOnThisArticles

sponsorType

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Chris Davis

international award

CONTINUOUS EFFORTS IN business expansion and an aggressive strategy to penetrate new markets has secured AS Watson Group (ASW) the DHL/SCMP Hong Kong Business International Award.

On average, ASW, the retail arm of the Hong Kong-based  Hutchison Whampoa conglomerate, is growing organically at a rate of two stores every day, and including acquisitions is adding one store every four hours to its global network.

Ian Wade, ASW group managing director, said ASW had grown from a small dispensary in Guangdong province that in 1828 provided free medical services  into what is now the world's largest health and beauty chain by number of stores.

In 1963, the Hutchison Group took a controlling interest in AS Watson, which became a wholly owned subsidiary of Hutchison Whampoa in 1981.

The company employs more than 90,000 staff and operates a retail network of more than 7,100 outlets. Mr Wade said ASW had a goal to continue expanding and to have at least 10,000 stores in operation by 2008.

ASW business activities include health and beauty, luxury perfumeries and cosmetics, food and electronics. The company has a presence in 34 countries, covering more than 1,600 cities. In addition, ASW operates a successful chain of airport retail outlets.

Also an established player in the beverage industry, ASW provides a full range of beverages from bottled water, fruit juices, soft drinks and tea products to the world's finest wine labels.

With its foundations firmly set in Hong Kong and southern China, ASW eventually branched out and opened its first retail stores in Singapore and the mainland  in the mid-1980s. Mr Wade said the company began expanding in 1987, first in Asia and then increasingly in Europe.

'When the Asian economies were badly hit in the late 1990s by the recession, we decided it was no longer wise to keep all our eggs in the one basket. We took our knowledge and experience and stepped up our expansion activities in the European market,' Mr Wade said.

He said ASW was a leading example of how a Hong Kong company could internationally expand its activities and successfully blend its management and operation style into culturally different markets.

'Cheung Kong and Hutchison Whampoa chairman Li Ka-shing has led the way by building and respecting personal relationships, and we embrace the same concept,' Mr Wade said.

Europe  represents about 70 per cent of ASW's turnover. In November last year, ASW established a 50-50 joint venture with leading Korean retail company GS Retail (formerly LG Mart Co), and the first Watsons, Your Personal Store opened in Seoul in March last year.

'The success of any joint venture depends on the complementary strategic values each party can bring to the business,' Mr Wade said.

March 2005 also saw ASW enter Turkey with the acquisition of Cosmo Shop, a local health and beauty retail chain and the opening of the first Watsons, Your Personal Store in the country.

Mr Wade, who has been with the company since 1982, said  there was a sense of pride in the way the company had developed its retail interest without compromising its manufacturing businesses.

However, the company has not made inroads into the United States market. Mr Wade said it was difficult to ignore a market that consumed 30 per cent of the world's health and beauty products and that the US market was still on the radar screen regarding future expansion plans.

Mr Wade, who has been at the helm for more than 20 years, said his focus was on the future development of the company and ensuring it remained healthy.

He said giving back to the community had always been an important part of the way ASW conducted its business.

This was achieved through sponsoring tennis and other sports, such as the Watson's Athletics Development programme.

'Sport is an effective tool in enriching young people's lives,' Mr Wade said. 'By giving them opportunities, we are giving our society opportunities.'

quick facts

AS Watson Group, the retail arm of Hong Kong-based  Hutchison Whampoa, was established in Guangdong province in 1828 as a small dispensary providing free medical services to the poor.

The company runs 6,800 retail stores in 34 countries and employs more than 90,000 people. It  is growing at a rate of two stores every day. Including acquisitions, it adds one store every four hours to its global network.

The AS Watson portfolio encompasses some of Asia's favourite brands and retail chains, including health and beauty specialist Watsons Your Personal Store, ParknShop supermarket, TASTE food galleria, Great Food Hall, Gourmet boutique-style fine food hall, Fortress electrical appliance stores and Watson's Wine Cellar.

Through its acquisition of Swiss-based Badaracco, ASW is one of the world's leading fine wine trading companies.

Judge's comment

'AS Watson's success in becoming a leading global player is a unique example of a Hong Kong company making a mark on the world stage. It has established itself as one of the largest health and beauty retail chains in the world with 90,000 employees worldwide. An outstanding achievement'

Kam Hing-lam

Group managing director  Cheung Kong Infrastructure Holdings



Watson drives global growth