Watsons doubles down on China as parent CK Hutchison ponders listing
Watsons currently operates more than 17,000 stores in 31 markets around the world
Hong Kong health and beauty retailer AS Watson Group, owner of the iconic Watsons brand, is intensifying its focus on key growth areas, particularly instant retail and community stores in mainland China, as the company explores strategies to “enhance long-term value for shareholders”.
The retail arm of conglomerate CK Hutchison, Watsons had accelerated its expansion in mainland China by increasing the number of physical stores and boosting online sales in response to shifting market dynamics, according to analysts.
“Watsons’ core advantage lies in its robust omnichannel coverage and channel influence built through years of expansion on the mainland,” said Wang Tianshi, an analyst at Shanghai-based LeadLeo Research Institute. “The capillary network of Watsons serves as a gateway for international brands seeking access to the Chinese market.”
Watsons currently operates more than 17,000 stores in 31 markets around the world. In January, it announced plans to open another 1,000 stores worldwide this year and invest HK$3.8 billion (US$487 million) on opening new stores, upgrading existing ones and enhancing its retail technology and supply chain.
China remained a crucial market for Watsons and any future fundraising initiatives, which could include an initial public offering (IPO), analysts said.