AS Watson and HSBC have grown together since the very beginnings of Hong Kong
Malina Ngai, group CEO of AS Watson, reflects on 160 years of partnership and shared commitment to the city
Hong Kong is a renowned commercial and financial hub, and that status can be traced to the 19th century, when early entrepreneurs laid the foundations for the city’s success with some of its most enduring household names. Among these is AS Watson, established in 1841 – as The Hong Kong Dispensary, with just a single shop.
Over the following decades, the company’s significance in Hong Kong grew alongside the city’s rapid development. AS Watson was appointed chemist to the Hong Kong governor in 1869, and inspired by the need to have safe, clean water during the plague of the late 1890s, the company established Watsons Water in 1903.
Today, as the world’s largest international health and beauty retailer, AS Watson Group operates more than 17,000 stores in 30 markets around the globe, with some of the most recognisable brands including Watsons, ParknShop, Fortress, Superdrug and many more. All share a strong focus on customer experience, innovation and community.
For Malina Ngai, group CEO of AS Watson, much of the company’s success can be attributed to its long-standing partnership with HSBC, the Hong Kong-founded bank which celebrates its 160th anniversary this year. “The story between AS Watson and HSBC goes back 160 years,” Ngai says. “In fact, AS Watson appeared on HSBC’s very first customer ledger in 1865. I believe that trust, understanding and shared experiences have defined the relationship over the last 16 decades.”
Beyond sharing values, both AS Watson and the bank have grown together to become deeply ingrained in Hong Kong society. “We have been touching the lives of different generations in Hong Kong through our retail offerings … and HSBC has also been part of the everyday life of Hong Kong,” Ngai adds.
Together, the two Hong Kong stalwart brands strive to make a positive impact, contributing to a better future for the city and beyond while supporting their customers. “We’re proud to call Hong Kong home, so our shared success has grown from here,” Ngai says. “For both HSBC and AS Watson, we remain as committed to Hong Kong as ever. It’s this shared purpose that strengthens our bond, taking it beyond just business.”
One manifestation of this is the AS Watson Group Hong Kong Student Sports Awards. Created in 2005 in line with the group’s mission to nurture young local sporting talents, it is the first and only recognition programme for high-performing student athletes from all primary, secondary and special schools across the city. Award winners receive a scholarship to continue their outstanding efforts in sports – and at school. To this end, HSBC enables AS Watson Group to effectively disburse funds with its Faster Payment System (FPS) solution. Using this technology, the bank helps the company to distribute scholarship payments directly to the student athletes. It is not only a quick and simple way to settle scholarships but also a great way to encourage more young sporting talents in the city.
Throughout the 160-year relationship, HSBC has been present for key moments in AS Watson’s history, supporting it through rapid growth and international expansion, as well as challenging times that required resiliency and skilled navigation. These moments include establishing a factory in Kowloon in the 1940s and another in North Point in the 50s; expansions into Taiwan, Macau, Singapore, Malaysia and Thailand in the 80s and 90s; and the acquisitions of the retail chain Savers in the UK in 2000 and Netherlands-based Kruidvat in 2002.
At the heart of the partnership – and arguably its major strength – is innovation. HSBC has taken a collaborative approach to its association with AS Watson, actively contributing to the company’s strategic planning and offering valuable insights so that it can respond quickly and effectively to changing markets and consumer demands. By bolstering AS Watson’s ability to adapt, the bank has helped keep the company relevant and competitive, in good times and bad.
“HSBC’s commitment to innovation and to going the extra mile to meet our evolving needs really helps us drive long-term values through Asia, Europe and the Middle East,” Ngai says.
Of key importance are the bank’s digital transformation and provision of financial solutions that align with AS Watson’s strategic objectives, allowing the latter to focus on delivering excellent customer experiences. One example is the innovative O+O (Offline plus Online) ecosystem and a platform for converting loyalty points and enhancing customer engagement in the digital marketplace.
The partnership will continue to grow as AS Watson moves into new markets. Over the past 10 years the company has entered Vietnam, Qatar, the United Arab Emirates, Saudi Arabia and Bahrain, and plans to expand further in Asia, Europe and the Middle East. “Alongside each other, HSBC and AS Watson have a shared story of global expansion from our roots in Hong Kong to becoming truly global players,” Ngai says. “AS Watson values the strong partnership of HSBC in enabling our growth journey to continue. Our story with HSBC will carry on, and our purpose statement is the best way to conclude: to put a smile on our customers’ faces, today and tomorrow.”