China's offline retail leader appeared: annual revenue exceeded 200 billion yuan, and 16,000 stores were opened

Liu Xian said

2024-06-06 11:14Published in Guangdong

In today's rapid iteration of the retail industry, the boundaries between online and offline are gradually blurred, and the two are integrated with each other to jointly shape the new face of retail. The NRF recently released the Top 50 Global Retailers 2024, and there are 2 retail companies in China on the list, representing online and offline retail.

Online and offline retail go hand in hand

In a global business environment, online and offline retail go hand in hand, forming a core part of a diverse retail landscape, each with its own unique value proposition and strategic mission, complementing rather than replacing the other. Behind this phenomenon is the result of the combination of diversified consumer behavior, the promotion of technological progress, and the complex changes in the market environment. Despite the strong momentum of online retail, offline retail has shown a strong presence and lasting vitality. Brick-and-mortar storefronts provide instant shopping satisfaction and an authentic product experience, especially for items that value sensory experience, such as clothing and cosmetics, and customers are often willing to try them on or try them on in person to make a purchase decision.

According to industry insiders, the mission of offline retail is to create unique consumption scenarios, deepen brand culture, and provide high-quality customer service to form a differentiated competitive advantage. Online and offline retail are equally important, each of which carries a different market mission and jointly promotes the comprehensive development of the retail industry.

Offline retail leader

In the 2024 Global Retail 50, the two Chinese companies shortlisted are Alibaba and Watsons. Watsons, ranked 17th in the world, has an annual revenue of 29.76 billion US dollars (equivalent to about 215.6 billion yuan) and a total of about 16,000 stores worldwide. Founded in Guangzhou, China, the predecessor of Watsons in the 19th century, the company has always adhered to the customer first, and constantly adjusted the product structure and service model, especially in the field of health and beauty.

The reason why A.S. Watson has been able to expand rapidly and maintain growth on a global scale is a successful strategy that deserves an in-depth analysis. First of all, accurate market positioning is one of its core competitiveness. Focusing on the health and beauty sector, A.S. Watson has met the needs of specific consumer groups and established a professional and accessible brand image. Secondly, continuous product innovation and iteration ensure the richness and freshness of the product variety, attracting young consumers. In addition, A.S. Watson's internationalization strategy is also the key to its success, through an in-depth understanding of the characteristics of each regional market, the implementation of localization strategies, effectively overcome the obstacles of cross-border operation. Finally, the continuous optimization and digital transformation of the shopping environment have enabled A.S. Watson to provide more personalized and convenient services, which has enhanced customer loyalty.

Embrace digitalization

It is reported that Watsons in the retail industry innovation, particularly outstanding is its well-crafted offline experience and online convenient shopping model, which not only reshapes the function of traditional retail space, but also profoundly affects the shopping habits of consumers, becoming one of the important factors of its success. For example, if you place an order online for 30 minutes, some stores are equipped with professional customized makeup services and free light services in the store, which can be enjoyed directly in the store. Light services include skin testing, hair braiding, moisturizing, quick makeup, on-the-go fragrance, head, shoulder and neck relaxation, and men's oil control. Breaking the traditional retail model that is limited to buying and selling transactions, it enhances the value contribution of individual customers by increasing service-oriented consumption, and creates a differentiated competitive advantage.

In recent years, Watsons, like many of its peers, has suffered from the pain of transformation, and some stores have closed. However, it actively responds to market changes, embraces digital transformation, and implements a new retail strategy that integrates online and offline. Through smart store transformation, O2O promotion, social media and digital marketing, A.S. Watson continues to optimize customer experience, strengthen consumer interaction, and maintain its leading position in the market.

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