Watsons China welcomes important personnel changes.
Recently, there were reports that “Mr. Chen Zhihao, Co-Managing Director General Manager of Watsons China, has resigned.” In response to this matter, CHAILEEDO first contacted relevant parties at Watsons China for verification, and they responded, “Mr. Chen (Chen Zhihao) retired normally in March of this year.” Furthermore, they indicated that the company had previously informed employees of this personnel change through internal announcements.
It is worth mentioning that in March last year, Watsons announced the appointment of Chen Zhihao and Nie Wei as Co-Managing Directors General Managers of Watsons China. This appointment officially took effect in April 2024, marking the first time Watsons China adopted a Co-Managing Director system. It is reported that after Mr. Chen Zhihao’s retirement, Ms. Nie Wei will continue to serve as the Managing Director General Manager of Watsons China.
Veteran Retires, Once a Key Contributor to the O+O Strategic Transformation
After reviewing Chen Zhihao’s career history, CHAILEEDO found that this “veteran,” who worked at Watsons for over 10 years, made significant contributions to the company’s expansion and transformation.
Public information shows that Chen joined Watsons in 2011 as the Operations Director for South China. In 2023, he was promoted to General Manager of Operations.
It is worth noting that since Chen joined Watsons, the company’s presence in mainland China has grown from just over 1,000 stores to 3,800 O+O stores.
In April 2024, Chen Zhihao and Nie Wei were appointed Co-Managing Directors of Watsons China, marking the first time the company implemented a co-leadership system.
Reportedly, during his tenure, Chen Zhihao was committed to nurturing frontline operations management talent and was one of the key drivers of the company’s O+O transformation.
Regarding the two newly appointed executives last year, Dominic Lai, Group Managing Director of Watsons and Co-Managing Director of CK Hutchison Holdings, once stated that both Nie Wei and Chen Zhihao played vital roles in successfully transitioning the company to an O+O (offline and online) retail model. During their term, they also continued to drive the company’s growth strategy to adapt to the rapidly changing mainland Chinese market while focusing on delivering a differentiated shopping experience, high-quality products, and exceptional service.
Now that Chen Zhihao has retired, will there be a new successor to the Co-Managing Director role in China?
In response, CHAILEEDO promptly reached out to Watsons China for verification, but received no comment. However, based on currently available public information, it can be confirmed that Nie Wei will continue to serve as the Managing Director of Watsons China.
Nie Wei joined Watsons Group in 2018 as Marketing Director and was promoted to General Manager of Customer Growth in 2021. In 2023, she took over the procurement department, and the following year, she was appointed Co-Managing Director of Watsons China.
Watsons has stated that during her tenure, Nie Wei brought a new perspective and innovative thinking to the company, helping the brand adapt to changes in the mainland Chinese market. She also demonstrated her ability to manage multiple business areas and led several industry-acclaimed projects.
Specifically, she built a 43-million-user consumer interaction platform via WeCom, launched the Watsons Cloud Store mini program for the O+O business model, and successfully established the retail media business OptimO. Customer loyalty also saw continuous growth, solidifying Watsons’ position as a market-leading brand.
It is worth noting that Watsons has seen a series of management changes since last year.
In addition to the appointment of Chen Zhihao and Nie Wei as Co-Managing Directors of Watsons China, in April last year, Watsons announced the appointment of Ann Ngar-Ling Lau as CEO of Watsons Group. (See CHAILEEDO’s special report “For the First Time! Leadership Change at Watsons Group”)
Reportedly, Ann Ngar-Ling Lau joined Watsons Group’s parent company CK Hutchison Holdings Limited (formerly Hutchison Whampoa Limited, hereafter CK Hutchison) in 2000. The following year, she transferred to Watsons Group, where she held various leadership positions and was appointed Group Chief Operating Officer in 2013.
In 2019, she became CEO of Watsons Group (Asia and Europe), and under her five-year tenure, Watsons achieved strong performance in both regions.
In the announcement of her appointment as CEO of Watsons Group, Dominic Lai stated, “Over the past decade, Ann Lau has played a critical role in successfully driving the digital transformation of Watsons, implementing the O+O (online + offline) business model, and promoting a positive cultural shift.”
Building a New O+O Retail Landscape
Accelerating Expansion in Lower-Tier Cities
It is worth noting that in the leadership profiles mentioned above, the promotion and implementation of the “O+O” strategy were consistently emphasized, underscoring its role as a key driver of Watsons’ digital transformation.
Reportedly, as early as 2018, Watsons began accelerating its digital transformation and launched the “O+O” strategy. This strategy aims to integrate online and offline channels by directing traffic across platforms and guiding consumers to place orders through physical stores, mini programs, or the app.
In addition to in-store pickup, Watsons has partnered with platforms such as Ele.me and Meituan to offer beauty product delivery services. Leveraging its vast retail network, Watsons has also launched “one-hour delivery” and “30-minute delivery” in select areas.
Earlier this year, CHAILEEDO learned that Watsons announced plans to open 500 new stores in 2025. In line with the rising trend of instant retail, the company will launch community stores to extend the shopping experience into neighborhoods that fall within a 15-minute living radius, aiming to integrate into consumers’ “15-minute lifestyle circles.”
At the same time, Watsons will also accelerate its expansion into third-tier and lower-tier cities. It plans to use flagship stores as hubs to radiate and support smaller satellite stores nearby, adopt a more refined, tiered store management strategy, and provide affordable services to further unlock consumer potential in these markets.
At the Watsons O+O Ecosystem Summit held in May this year, Nie Wei stated that Watsons will continue to embrace evolving consumer demands through its O+O ecosystem. The company will focus on six key areas of “commitment” and “innovation”: store network planning, brand collaboration, differentiated product assortment, membership systems, health business, and AI-enabled services. Together with partners, Watsons aims to co-create and share in building a new O+O retail landscape.
In addition, during the summit, the Watsons OptimO Brand Innovation Growth Center officially unveiled six upgraded core capabilities: regional activation, IP co-creation, service co-development, private domain audience operations, targeted media placement, and cross-industry major event planning.
Accelerating Business Restructuring
As of now, CK Hutchison Holdings’ 2024 performance report shows that Watsons Group maintained relatively steady growth in 2024. During the reporting period, Watsons achieved global revenue of HKD 190.193 billion, marking a year-on-year increase of 4%; EBITDA (earnings before interest, taxes, depreciation, and amortization) reached HKD 16.395 billion, up 1% year-on-year.
Specifically, in 2024, Watsons’ Europe market recorded revenue of HKD 117.187 billion, representing an 8% year-on-year increase, with same-store sales rising by 5.7%. In Asia (excluding China), revenue reached HKD 37.362 billion, up 6% year-on-year, with same-store sales up 6.5%.
In the financial report, CK Hutchison Holdings also stated that looking ahead, the Watsons Group’s business in Europe and ASEAN markets is expected to maintain strong performance, while its non-ASEAN Asian business is also projected to improve through network optimization and strategic initiatives. The report further emphasized that, backed by a loyal customer base of 170 million members, the group will focus on enhancing customer engagement, maximizing long-term value, maintaining a short store investment payback period, and driving revenue growth through its online and offline platform strategies.
However, in contrast, Watsons’ performance in the China market remained underwhelming. Annual revenue fell to HKD 13.508 billion, a year-on-year decline of 18%, while same-store sales dropped by 15.3%.
Against this backdrop, Watsons has been actively pursuing transformation. For example, in June last year, the company announced a US$250 million investment over two years in the Asian market to open and upgrade 6,000 stores. To enhance in-store experience, in the first half of last year, Watsons launched two new store formats—Health Concept Stores and Watsons Pink—and announced plans to introduce over 150 Watsons Pink locations through new openings and upgrades of existing stores.
In addition, last year, Watsons partnered with Universal Studios’ popular IP, Minions, to launch a range of exclusive merchandise. These products not only met consumer needs in daily travel, beauty, and personal care, but also added creativity and fun to traditional goods. For example, the Minions-branded facial towel campaign launched in July 2024 used attractive pricing and cost-effective packaging to successfully draw consumer interest and significantly boost member engagement.
Furthermore, according to CK Hutchison Holdings’ financial disclosures, as of December 31, 2024, Watsons Group operated 16,951 stores across 30 global markets under 12 retail brands, with 168 million members in total. Watsons China saw a modest 1% year-on-year increase in store count, reaching 3,875 locations.
Since initiating a comprehensive transformation in 2018, Watsons has continued to advance its O+O retail strategy through business optimization and leadership restructuring. Whether this retail giant can achieve renewed vitality amid rapid market changes remains to be seen—but the industry is watching closely.
