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Source: TMT Observation Network

In the vast universe of the retail industry, Watsons was once a shining star, leading the trend of beauty retail. However, as time goes by, this star now seems to be in an unprecedented predicament, becoming the object of "dislike" by both suppliers and consumers.

The news that Watsons has restarted its IPO plan seems to be a shot in the arm, trying to wake up this long-sleeping giant. However, it is regrettable that behind this ambition is Watsons' sluggish performance in the Chinese market. The number of stores has gone from the glorious expansion in the past to the frequent closures today, the performance has declined, and the brand has aged. These problems are like mountains that have made Watsons breathless.

Data shows that in 2022, Watsons China closed 343 stores, and the total number of stores fell below 4,000. On average, Watsons closed a store almost every day in mainland China this year. By the first half of 2023, the number of Watsons stores in China had further shrunk to 3,780.

Watsons' own brands used to be an important source of profit, with a gross profit margin of about 60%. However, these high-profit products have become a "hot potato" that sales staff find difficult to sell. Consumers do not have a high degree of recognition for own brands, and sales staff have to work hard to meet sales targets, but the results are often unsatisfactory. This not only affects the income of employees, but also greatly reduces the image of Watsons in the minds of consumers.