It stands out as a beacon of innovation and customer-centricity.

In the ever-evolving realm of health and beauty retail, Watsons Singapore has not only weathered the storms of market challenges but has also emerged as a beacon of innovation and excellence over the past 24 months. It has attained outstanding achievements, innovative strategies, and remarkable performance.

The company continues to lead and has maintained an impressive Brand Equity Index of 4.6 despite turbulent market conditions. Its online platform has also witnessed exponential growth through offering enticing promotions, competitive delivery costs, and a seamless shopping experience.

It has experienced substantial growth across all categories, consistently outperforming the market in terms of category value growth and market share expansion. This is exemplified by its robust presence on platforms such as Instagram, TikTok, and Facebook, achieving remarkable increases in followers, reach, and engagement, and establishing itself as a trendsetter in the digital space.

Watsons Singapore has also highlighted several unique initiatives in the past year, which includes the ShopSavvy campaign for Watsons' own label products. This has boosted sales volume and attracted new own label users. At the same time, its innovative omnichannel initiatives have seamlessly integrated online and offline experiences, leading to a remarkable growth in online sales, app downloads, and order volumes.

Meanwhile, it has organised an internal river clean-up kayaking event in collaboration with the World Wildlife Foundation for its staff. Externally, it has engaged its customers through a range of initiatives including the Earth Hour programme, sustainable choices campaign, and the expansion of refill stations and plastic recycling kiosks to additional stores.

However, these achievements did not come without its fair share of challenges.

With the COVID-19 pandemic’s impacts still presenting challenges to the retail industry, Watsons Singapore continues to implement comprehensive safety protocols, accelerate its e-commerce initiatives, and introduce innovative solutions such as express delivery and virtual AI tools. It has also expanded its footprint by opening seven new stores in 2023 despite facing market saturation and escalating property costs.

The Singaporean workforce are also faced with increased expectations for development, competitive pay, and growth opportunities. To address these expectations, Watsons' Human Resource team prioritised initiatives to enhance employee satisfaction and well-being. It has implemented policies promoting work-life balance, performance-based rewards, tailored development plans, and diversity initiatives.

Meanwhile, the company has also been marred with supply chain disruptions amidst market challenges. Watsons Singapore has optimised its supply chain, diversifying sourcing strategies, and leveraging technology to accurately forecast demand.

Watsons Singapore’s initiatives would not have borne fruit if not for the dynamism of its Mobile App, which has served as a catalyst for driving shoppers into stores whilst seamlessly integrating online and offline experiences. The nature of the app also caters to customers’ evolving needs and is responsive to market dynamics.

Watsons Mobile App has incorporated groundbreaking innovation in merging augmented reality (AR) technology with beauty retail, which allows customers to virtually try on various makeup and provides them with a highly immersive and personalised shopping experience.

The app has also been upgraded further with a brand new skin analysis AI tool, “Skinfie Lab,” which provides customers with highly personalised skincare product recommendations based on their selfies.

Members can also earn and redeem points through the app’s QR feature, ensuring that they never miss out on exclusive deals. They can also view their exclusive coupons, vouchers, promo codes within the tool.

Watsons Mobile App also provides a smooth and intuitive online shopping experience with features like personalised recommendations and easy checkout. Customers can also track orders and view their purchase history effortlessly. The search function within the app can be via keyword text, product photo, as well as simply scanning the product barcode.

Customers can easily identify products that are sustainable through the app, especially those that are categorised under Clean Beauty, Refill, Better Ingredients and Better Packaging. The system features specific UDA tagging to each of these categories and the icon will appear in corresponding products.

From a business perspective, the app has had a profound impact on Watsons' sales performance, with 75% of own platform sales transacted via mobile, demonstrating its effectiveness in driving revenue growth. Additionally, the app's ability to provide personalised recommendations and promotions based on customer preferences has led to improved customer satisfaction and loyalty.

Watsons Singapore's remarkable milestones, innovative strategies, and outstanding performance over the past 24 months have solidified its position as a trailblazer in the health and beauty retail sector. By overcoming challenges with resilience, driving growth with innovation, and fostering customer and employee loyalty, Watsons has set industry benchmarks and redefined excellence.

This major feat has been acknowledged by the coveted Retail Asia Awards 2024, with the company bagging the Health & Beauty Retailer of the Year - Singapore win, and the Watsons Mobile App clinching the Retail App of the Year - Singapore category.

The prestigious event honours companies that have recently launched innovative retail projects or initiatives, as well as industry leaders that have propelled their respective brands to maintain a competitive edge.

The Retail Asia Awards is presented by Retail Asia Magazine. To view the full list of winners, click here. If you want to join the 2025 awards programme and be acclaimed for your company's exceptional products or initiatives in the Retail industry, please contact Jane Patiag at [email protected].

Jumping over the hurdles put by the pandemic can mean life or death for retailers and F&B, says RSM Singapore Partner.

Almost three decades of experience in the auditing profession has made David Eu, Partner in RSM Singapore, a well-renowned industry figure in the Food & Beverage, retail and consumer products sector.

Starting his career with Ernst & Young back in 1994, he was initially responsible for handling a diverse portfolio of public listed and privately owned clients in banking, shipping, services, manufacturing, agriculture, and construction industries. He also handles initial public offering assignments and was also the engagement manager for several initial public offerings and due diligence assignments.

Prior to joining RSM Singapore as the director of audit services back in 2007, David was the general manager of an Indonesian Palm oil group, managing the group’s corporate finance, especially loan arrangements.

As an upcoming judge for the Retail Asia Awards 2022, Retail Asia sat down with David Eu, a practising member of the Institute of Singapore Chartered Accountants, to trade insights on what food and beverage retailers have to do to overcome the challenges posed by the COVID-19 pandemic.

Can you tell us about your experiences as an audit leader for food & beverage and retail & consumer products? What are the most important experiences that have shaped your career?

Food & beverage entrepreneurs are passionate about their businesses, often too focused on improving food quality and increasing sales.  They tend to overlook the importance of timely financial information.  Without timely and accurate financials, business owners and operators will face challenges in managing their working capital and cash flows.  

I have seen companies struggle to produce updated financial information and management accounts for annual audits.  This struggle is often compounded by the high staff turnover in the finance/accounts department.  Through my experience, timely financials will enable owners and operators to adjust their business strategies quickly and effectively.

What advice can you give food and beverage firms that are looking to improve their product range and quality?

F&B firms can improve their product range and quality by using more fresh ingredients, versus frozen or processed foods.  To maintain the freshness of ingredients delivered, proper handling and storage are critical.  This can be achieved by adequate staff training and quality control procedures.  

What trends, products, or technologies do you see as making a big impact on the food and beverage retail industry today? How will they fare in the future?

Plant-based milk and meats, sustainable foods, and health products are trends we are seeing in recent years.  Food trends cover everything from eating right to maintaining mental health and immunity, and minimising food wastage, to technology and food delivery.  At the same time, there is an increase in demand for food transparency and sustainability.

How has the pandemic changed consumer behaviour?

Over the past 2 years, more consumers have gone digital or online for their purchases.  You can buy almost everything with just a few clicks.  Consumers are overloaded with data from social media to advertisements.  Consumers are looking for the best deals with the least hassle.  Hence, to keep customers coming back, vendors need to ensure that the delivery of goods or services creates a memorable experience.    

As a judge in the Retail Asia Awards, what projects or innovations are you expecting to find amongst the entries? What are your criteria for judging?

Covid has changed the landscape for several organisations. What had worked pre-Covid may not hold water now. The efforts put in by the applicants to increase and expand their social commerce space will be a significant factor in judging. 

Moreover, in the current climate, retailers need to attract and retain the attention of well-versed consumers who are not just looking for the best prices and products but also the efforts put in by these retailers in giving back to society and their efforts in sustainability. Applicants who demonstrated this definitely took an edge over the others.

A healthy balance or a calculated risk can make or break a company’s success, says EY’s Olivier Gergele.

Olivier Gergele’s 20+ years of experience in consulting, consumer and retail industry, and deep knowledge regarding developed and developing markets have made him an EY-Parthenon partner and EY ASEAN Consumer Products & Retail Leader with vast operational and consulting experience in the consumer products and retail sector globally

He covers projects on growth strategies, innovation, value creation, go-to-market, sales and marketing effectiveness, profitability improvement, cost and complexity reduction, change management and large-scale transformation, and assists clients in engagements such as strategy development, operating model and organisation review, go-to-market definition, value creation, and large-scale commercial and cost transformation programs.

Helping businesses rethink their strategy for meeting ever-evolving consumer needs, Retail Asia sat down with him to trade insights on his upcoming role as a judge at the Retail Asia Awards 2022, emphasising how companies should read trends and maximise profits without sacrificing their quality and credibility.

Can you tell us about your experiences as a Consumer Products & Retail Leader? What are the most important experiences that have shaped your career?

Olivier is the EY Asean Consumer Products & Retail Leader based in Singapore. He also leads the EY-Parthenon Consumer Products & Retail practice across Asia-Pacific. With vast operational and consulting experience in the consumer products and retail sector globally and across Asia, his experience spans strategy development, operating model and organisation review, go-to-market definition, value creation, and large-scale commercial and cost transformation programs. Olivier credits his experiences of working across multiple geographies and cultures as key factors to have shaped his career. He holds an MBA from Warwick Business School in the UK.

What trends, products or innovations do you see as having the most lasting impact?

According to our recent EY Future Consumer Index survey (FCI), approximately 40% of consumers will now shop online for products previously bought in stores. In that context, companies are increasingly looking at how they can provide a seamless and curated experience across the traditional offline and emerging online channels. Importantly, we are also seeing an emergence of new business models with non-traditional competitors disrupting the consumer sector. This has given rise to the creation of digital ecosystems, with businesses across different sectors coming together to collectively fulfil consumer needs to provide an integrated experience. Companies need to closely look at the role of digital ecosystems in the consumer life journey and how they can build dynamic ecosystems that can create long-term value and comparative advantage.

How can companies add value to their existing products? What advice can you give companies looking to improve their profitability?

As consumer behaviour is constantly evolving, companies are required to continually reimagine how to best serve their consumers. According to the FCI survey, approximately 65% of consumers today are willing to share personal data for a more tailored experience and approximately 40%are intending to spend more on experiences. Consumers want their life to be easier and more fulfilling.

In light of the future consumers’ needs, retailer value propositions must evolve. They can position themselves to become the following:

i.) “a time saver” by focusing on speed, convenience and efficiency,

ii.) ”a problem solver” by creating personalised solutions, and 

iii.) “an experience creator” by focusing on providing enriching experiences in and outside the store.

How should companies approach cost reduction without sacrificing product quality? Is this possible?

Cost reduction can be approached from multiple angles. Products and services can be optimised by focusing on what really matters for the consumer and deprioritising the rest. This requires organisations to have clarity on the key consumer acceptance drivers for their particular consumer segment. Significant value can also be unlocked through automation and driving the efficiency of the backend. Leading players are also looking to increase the value of their proposition so that premiums can be justified.

As a judge in the Retail Asia Awards, what projects or innovations are you expecting to find amongst the entries? What are your criteria for judging?

I am looking forward to seeing projects that are helping to deliver a seamless and curated experience across offline and online channels, as well as projects that are looking at how to further engage consumers over and above the typical value proposition

He shares trends for retail companies in rebuilding strategies and becoming more resilient.

Three decades of experience in professional assurance specialising in IPO advisory, business and due diligence reviews, asset injections, and M&A activities have made Michael Cheng an industry expert when it comes to consumer markets, serving as PwC’s Asia Pacific, Mainland China and Hong Kong Consumer Markets Leader since 2013, responsible for coordinating practice strategy and service delivery for companies in the Consumer Markets sector of Hong Kong, Mainland China and the Asia Pacific region.

In his role as a judge in the upcoming Retail Asia Awards 2022, Retail Asia traded insights with Michael Cheng on trends, rebuilding strategies to adapt, and enduring the pandemic.

Can you tell us about your experiences as a Consumer Markets Leader? What are the most important experiences that have shaped your career?

Since 2013, I have been Asia Pacific, Mainland China and Hong Kong Consumer Markets Leader at PwC. After I took up this industry role and was invited to join our PwC Global Consumer Markets Industry Sector Council, I started to learn more about my clients’ pain points from a global and regional perspective and was able to leverage my extensive experience in auditing and reviewing retail and consumer-related companies to contribute to the industry and help my clients in exploring different ways of engaging with consumers and overcoming their challenges. This passion has led me to where I am today in my exciting role overseeing the Asia Pacific consumer markets and specialising in IPO advisory, business and due diligence reviews, asset injections and M&A activities in Mainland China and Hong Kong.

As a member of the Hong Kong Retail Management Association’s (HKRMA) Digital Advisory Panel, I have further built up my passion to promote Hong Kong's retail industry and present a unified voice on issues that may affect and help all retailers in Hong Kong. I made a conscious effort to share my voice and experience, and view on trends and outlook of the Hong Kong retail market to retailers and was invited to deliver keynote speeches at a number of public speaking events including HKRMA’s Retail Innovation Conference, and industry sharing organised by InvestHK and the British Chambers of Commerce. I was also invited to be a member of the organising committee for the Retail Asia Conference 2020 and 2021 to provide consultation on themes and content direction, as well as a judge for Retail Asia Awards 2021 and 2022. 

What trends amongst consumers have you seen in the Hong Kong and China and Asia Pacific markets? Will those trends last?

Asia Pacific, including Mainland China and Hong Kong, is home to a robust base of consumers who have shown resilience throughout the pandemic enabling strong economic recovery. 

The ‘store of the future’ will be omnichannel and experience-rich and will integrate the physical and digital worlds. Technology will continue to revolutionise online and physical retail, forcing rapid change and innovation as retail consumers will expect frictionless, tech-enabled experiences now more than ever. Traditional marketing channels will continue to evolve as retailers and manufacturers embrace a direct-to-consumer model. Health and safety concerns will linger for retail.

Conscious consumerism will continue to grow as people seek brands they trust and align with their values. Consumers will gravitate towards purpose-driven brands that are responsive to an array of environmental, social and governance (ESG) concerns. 

Brands will have to articulate meaningful value propositions to win customers and leverage the influence of social media on brand perception and reputation.

The supply chain of the future, in response to pandemic-induced disruptions, will evolve to be more shock-resistant and technology-enabled, making ‘smart’ decisions to self-regulate. Rapidly changing consumer expectations and behaviour are forcing supply chains to be more responsive and transparent. End-to-end visibility will be a fundamental requirement for effective supply chain management whilst digital enablement of the sales journey will be key in evolving the supply chain.

How should retail companies shift their strategies to become more resilient, especially having endured the economic effects of the pandemic?

The pandemic has catalysed the growth of e-commerce in Hong Kong with an upsurge of online shopping activities among local consumers over the past two years. It is fair to say that online shopping in Hong Kong is gradually gaining traction as major brands and shopping platforms are expanding their e-commerce footprints. However, we should not overlook the importance and resilience of brick-and-mortar shops; they are well-positioned to rebound strongly with retail sales recovery and the easing of travel bans and other restrictions in the upcoming months as the Covid-19 situation eventually stabilises. 

In the case of Mainland China, the resurgence of Omicron cases has weighed on consumption growth whilst adding to the e-commerce ecosystem. The recently concluded Two Sessions set forth a modest path for economic growth with a focus on stimulating domestic consumption. The theme of ‘common prosperity’ will prevail in the country’s quest to boost personal incomes through multiple channels and the improved income distribution system. We are likely to see the deepening integration of online and offline consumption, and a new wave of consumption upgrading induced by the shift towards spending on greener products and smart home appliances. 

Looking forward, physical stores will need to provide consumers with experiences and interactions to stay relevant as opposed to solely selling products. Brands that will survive the post-pandemic environment will have a robust online presence and relevant physical setups that revolve around experience. As the online and offline worlds converge, consumers expect, more than ever, to obtain products and services at any time and place. Hence, there is a need to do more to blend physical and digital experiences, as consumers are willing to pay higher premiums for emotional connections. The future of consumption in the post-pandemic era will likely take on a hybrid form, combining the features of both online and offline settings to offer a seamless, unified omnichannel experience for shoppers.

Driven by greater investor demand and stricter regulatory requirements on ESG issues, retailers should take more proactive action to embed ESG goals and ideas into their corporate culture and daily operating activities. Retailers should also strategically invest in sustainability and ESG actions. Examples include proactively driving inclusivity and social impact of new net-zero products and solutions, upskilling and reskilling to enable an inclusive workforce transition, integrating social metrics into reporting and disclosure around net-zero, and incorporating inclusion into policy advocacy efforts.

What is your advice to companies with regards to IPO amidst an unpredictable world economy caused by conflict and the pandemic?

IPO activity in Asia Pacific was relatively muted in 2021 with some regional headwinds impacting the key markets of Mainland China and Hong Kong. Total issuance in the region continued to increase in 2021, up to 1,108 with proceeds increasing to $162bn, driven by technology, healthcare, and consumer discretionary sectors. 

Whilst Mainland China and Hong Kong faced challenges in 2021, South Korea, India and Australia all experienced significant growth. Despite recent financial markets turmoil, geopolitical tensions, and interest rate hikes impacting company valuation, investor confidence in strong brands and the growing number of regional unicorns are expected to lead IPO performance in 2022. 

For many people in developed economies, the pandemic has put more money in their pockets in the form of stimulus checks, fewer dollars spent on travel, and more time to manage investments, thanks to the growth of mobile trading apps and increased work flexibility. The revelation is clear. Retail investors are more likely to invest in consumer-facing brands that they can trust and associate with. For retail companies planning to go public, apart from having strong financial statements, they will also need to be able to tell a compelling brand story, and demonstrate the use of funds towards building brand trust and creating values for their customers. 

As a judge in the Retail Asia Awards, what projects or innovations are you expecting to find amongst the entries? What are your criteria for judging?

It is a great honour for me to be invited again by Retail Asia as one of the judges this year – particularly at a time with the renewed outbreaks in Hong Kong and China presenting an opportunity for innovative ideas and solutions to meet the present challenges. 

Amongst the entries, I expect to see how participants innovatively create their products, especially for product development, when there is an insatiable demand for advanced technologies. Besides, remaining connected with consumers through digital networks regardless of geographical boundaries and time limitation is key to success. Participants will have to differentiate themselves by demonstrating high responsiveness to customer needs and making use of big data to understand customer experience and behaviour. 

Not only do they have to demonstrate high competency across several standard attributes – achievements, challenges and solutions, innovation, and success and impact – I am excited to see how participating companies will go the extra mile to come up with innovative product ideas to take advantage of emerging consumer trends.

Companies need to adapt to a new normal of business in order to survive, says Euromonitor senior consultant.

Seven years of experience in the industry as a consultant has made Hianyang Chan the go-to expert when it comes to consumer research and formulating actionable insights based on an in-depth analysis in industries such as digital consumer, retailing, consumer foodservice, consumer finance, and retail innovation and consumer insights.

As a senior consultant at Euromonitor International, Chan works closely with digital consumer and retailing teams and is responsible for the research output and client support across the Australasia region, which includes retailing, digital consumer, consumer food service, consumer finance and travel, and a special interest in how innovation and technology are reshaping payments and retailing.

As an upcoming judge for the Retail Asia Awards 2022, Retail Asia gathered his insights on what common challenges companies face and how companies can better adapt themselves with better use of market findings.

What career milestones have you achieved as a senior consultant at Euromonitor International? Can you tell us about your experiences?

As a Senior Consultant at Euromonitor International, I help to oversee the firm’s digital and retail research in Asia-Pacific, providing actionable insights and in-depth analysis into how tech advances are reshaping the way consumers browse and buy goods and services.

I regularly write and speak about the firm’s research with speciality spanning payments, internet retailing and mobile commerce. Some of my career milestones include participating in a live TV panel discussion on Sky Business, sharing my expertise across industry events in the capacity as a speaker or moderator, leading and helping the firm uncover new research methodologies to create better market research findings and most importantly, advising and sharing knowledge with some of the largest global retailers and payment solution providers.

What are the common challenges companies face today as digital payments become more common among consumers?

While many countries within Asia have a plethora of digital payment options on offer, each often operates with its own technology with localised systems and networks and within specific rules. Settling on a digital payment infrastructure will be a concern for many merchants now and in the future, as many will not be willing to bear the cost of additional setup and management fees and are less inclined to facilitate every available digital payment system in the current fragmented digital payments landscape. As digital payments move towards the mainstream and become more attractive, it will be vital for payment operators to better bridge the gap to facilitate more seamless cross-border payment capabilities. 

The change and growth in digital payments will also spark off challenges to better cater to the unbanked and underbanked population, the older demographic and consumers that heavily favour utilising cash as their main payment options. Payment operators will need to continue to make access to digital payments easier for all by not only breaking down barriers to create financial inclusion for all but also providing better education to bring new communities into the world of digital payments.

How can companies better utilize market research findings in their strategies?

In this current retail environment, there are already many companies doing great work within this space to better position themselves in this hyper-competitive retail environment. Gathering tactical data and utilising the latest data science techniques is important, but it might not always be able to provide the necessary context and analysis that is often required when making strategic decisions. By bridging methodologies based on data science and on-the-ground research, companies can better gather context to strategic and tactical data, helping them to understand some of the biggest trends that are driving the market and answering their biggest challenges and identifying opportunities.

What would you advise your clients who are slowly recovering from the economic effects of the pandemic?

Retailers now are suddenly operating in a “new normal”, forcing them to re-evaluate their operations and re-think their long-term strategies. The pandemic inspired and accelerated digital trends that were already in motion, including predictive personalisation, quick commerce and venturing into the metaverse. The expanding influence of tech will continue to be one of the most pronounced long-term impacts of the global pandemic. Technology will play a pivotal role as it can enhance the entire commerce lifecycle from improving operational efficiencies to elevating the consumer experience.

Retailers and consumer brands who were not investing or more broadly adopting a digital-first mindset pre-crisis will need to buckle up their seatbelts and be quick to embrace a digital future or risk falling that much further behind their peers. Do nothing and they risk alienating their consumer base, which is likely to have become much more digitally savvy during this period of rapid digital transformation.

As a judge in the Retail Asia Awards, what projects or innovations are you expecting to find amongst the entries? What are your criteria for judging?

Opportunities for growth in this region remain extensive and I will be expecting innovations and projects that encompass new and better store formats and concepts that blend online and in-store shopping, initiatives and solutions that seamlessly address health and safety while still able to provide an immersive in-store customer experience, responding and supporting a renewed focus on tackling climate change or integrating mechanisms and partnerships to better improve customer loyalty. 

Some of the criteria for these projects or innovations I’m looking for include:

• How seamless and impactful it is
• Does it cater to a wide range of consumer groups
• If there is potential for longevity
• And sometimes the simplest ideas are the best and it does not always require a high capital investment.