A.S. Watson and Shiseido partner to launch D Program

Date : 17 April 2019

Japanese cosmetics company Shiseido and A.S. Watson have partnered to launch an exclusive derma skincare range under the “D Program” brand.

A.S. Watson working closely with brands

A.S. Watson partners brands to drive innovation. Last month, we outlined how it is partnering L'Oréal's AI and AR firm ModiFace have launched a virtual makeup service.

The retailer's latest initiative is to launch a new derma skincare range in Thailand, Taiwan and China. Masahiko Uotani, Shiseido's President and CEO, said, "A.S. Watson is the largest health and beauty retailer in the world that acts with speed, innovation and vision making them the perfect retailer to bring Urban Damage Care to the high street.”

The two businesses have co-created a range that maximises their respective strengths, A.S. Watson’s strong distribution network and customer insight and Shiseido’s expertise in R&D and innovation. The project started with a customer survey on a selected panel of Watsons members 18 months ago.

1,300 new stores this year...

A.S. Watson continues to expand its store network across the world. Like in 2017 and 2018, this year it has committed to opening more than a 1,000 stores. Sales growth remains higher than store network growth, with the retailer performing strongly in 2018. The retailer also has a strong and growing base of returning customers, with approx. 135 million members worldwide. Dominic Lai, A.S. Watson's Managing Director, said, "Continuing this momentum, we will be expanding at the speed of one store every seven hours. In 2019. we target to open over 1,300 stores, around one-third will be in China."

To drive offline and online integration, it has been investing in digital transformation in order to connect its customers through different channels. Click and collect, which links 13,000 stores to the respective localised ecommerce sites plays an important role in the retailer's O2O strategy. It allows customers, for example, to browse online and pick up in any of the stores the next morning. This helps drive more purchases when customers visit the store. Malina Ngai, A.S. Watson’s COO, said, “So on average, 20 to 30% of the shoppers will buy something else [...] in some markets, like Taiwan, that rate grows as high as 52%."

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