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Price Competition Between Watsons and Other Retailer in Singapore

In: Social Issues

Submitted By lixlpy
Words 3398
Pages 14
Introduction
Retail stores in most area around world have competitors close enough to affect their pricing, product availability and other operations. In all countries, the main competition is domestic, not foreign. However, these competitions could limit the growth opportunities and reduce profitability. The retailers operate in highly competitive discount retail merchandise sector. From there, the price war happens. Watsons Personal Care stores are one of the main retailer chains in Singapore and it is fighting in price war with its competitors. In this assignment, I will analyse the problem and the conditions of the firm using suitable models and recommend on how to improve and overcome the current problems.
Company Background
With a history dating back to 1828, the A.S Watson group has evolved into an international retail and manufacturing business. It is the largest health and beauty retail group in Hong Kong, with over 11,400 stores in 34 markets worldwide serving over 27 million customers per week. The forerunner of the A.S Watson, a small dispensary named The Canton Dispensary, opened in 1829 in Guangzhou, China. In 1871, the company changed its name to the A.S Watson & Company Limited. Today, the A.S Watson is a subsidiary of Hutchison Whampoa Ltd and is based in Fotan, Hong Kong. The A.S Watson operates retail stores that offer health and beauty products, perfumeries and cosmetics, food and electronics. The company also produces and distributes a range of own label beverages from distilled water, fruit juices to toiletries for retail , office and domestic supplies. Various wine labels are offered through international wine wholesalers and distributors also.

As for the Watsons Personal Care Store, it is the Asia’s leading health and beauty retailer with over 3,500 store and more than 900 pharmacies in 12 Asian and European markets, including…...

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