Cosmed (康是美) and Watsons (屈臣氏), the nation’s two largest drugstore chain operators, are initiating large-scale renovations and offering more diversified products to counter growing competition from newcomers in the market.
Cosmed last week unveiled a NT$700 million (US$23.22 million) plan to gradually upgrade all of its outlets to “second-generation” stores over the next three to five years. President Drugstore Business Corp (統一生活事業), a subsidiary of President Chain Store Corp (PCSC, 統一超商), owns Cosmed, the nation’s second-largest drugstore chain.
President Drugstore operates 364 Cosmed stores nationwide, with the total number of outlets expected to reach 370 by the end of the year.
Cosmed’s second-generation stores are to have up to three times the floor space of existing stores. New stores would be about 60 ping to 90 ping (198m2 to 297m2), it said.
CUSTOMER EXPERIENCE
Cosmed plans to enhance the customer experience by offering more space for prospective buyers to try new skincare and cosmetic products, the company said.
The drugstore chain also plans to add more beauty consultants to help boost the quality of its service.
“The second-generation stores should help boost company sales and profitability,” President Drugstore president Martin Chang (張聰本) said.
President Drugstore, one of PCSC’s profitable subsidiaries, generated NT$113.67 million in net income in the first half of this year. Last year, sales stood at NT$8.4 billion, data provided by PCSC showed.
The company has already upgraded two outlets, one in Banciao District (板橋), New Taipei City, and another in Hsinchu City. The three-floor store in Banciao saw sales double in the first two weeks after it reopened in the middle of last month, Chang said.
Chang said the company has concentrated on sales of cosmeceutical skincare products for 12 years, and accounts for about 50 percent of the sector’s annual sales in Taiwan, which stood at about NT$2 billion last year.
Following the launch of new drugstore brands over the past few years, such as Tomod’s Health Solutions and Japan Medicine Shop (日藥本舖), the original drugstore chains are also focusing on increasing brand diversity to create a niche market.
Watson’s Personal Care Stores (Taiwan) Co Ltd (台灣屈臣氏), the nation’s largest cosmetics and drugstore operator, has also renovated a flagship store on Zhongxiao E Road in Taipei.
The outlet reopened in May and sales have risen, the company said, but did not provide specific figures.
FASHIONABLE LOOK
The renovated Watsons outlet also focuses on enhancing the customer experience by offering a more fashionable interior for buyers to try out different cosmetic and skincare products.
While Cosmed focuses on cosmeceutical skincare products, Watsons is banking more on sales of natural and organic skincare products and has set up a special sales area for these products at most of its outlets.
The company might further raise the total number of its outlets to 500 by the end of this year, from the current 480.
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