Page 32 - Sphere No.27 (Sep 2010)

30 Sphere
“That was thanks to a very dy-
namic management team across our
34 markets,” said Ms Ngai. “We made
the choice to focus on cost discipline
and process optimisation. We have
embarked on an aggressive cost pro-
gramme since the beginning of 2009 as
a major tool to weather the economic
tsunami.
“The discipline helps us to keep
tight financial control while continuing
to work on value offers to keep attract-
ing customers to shop with us. With
strong financial backing from Hutchi-
son Whampoa, we were also able to
capture opportunities during the crisis
situation in identifying good store
locations. We therefore maintained
investment in new store openings in
both Asia and Europe, ending 2009
with over 550 new stores.”
ASW has long had the e-commerce
option in place in its key European
markets, and in selected businesses in
Asia, such as wine and food. The In-
ternet is also a key tool for showcasing
products and stores.
“The Internet provides an ad-
ditional touchpoint to enhance
the customer experience,”
said Ms Ngai. “With fast
development on the Internet space,
we do see the need to continue
to upgrade our models accord-
ing to internet user behaviour.
E-commerce also forms part
of our strategy in building and
retaining customer loyalty.”
Because of the global nature
of the Internet, there are certain
patterns that are common to all
users; its speed and convenience
are prized universally. Handy
though Internet shopping may be, it
cannot begin to replicate the experi-
ence of going to a spacious store with a
dazzling array of enticing products – not
to mention helpful sales assistants, who can offer
expert advice.
Said Ms Ngai, “Retail patterns tend to be dif-
ferent based on the economic status of markets,
that is, mature markets, developing markets and
emerging markets. In mature markets like the
UK or the Netherlands, consumers are gener-
ally demanding on both prices and innovation in
products.
“In emerging markets like Turkey or the
Ukraine, customers aspire to beauty products as a
way for them to feel good. Despite their rela-
tively lower income level, consumer spending of
disposable income is often higher than those in
mature markets.
“In terms of differences in taste, demand is
high among Asian consumers for skin care, while
the Western consumers in Europe spend relatively
far more on fragrances,” said Ms Ngai. “Hair
colourants are in higher demand in Europe as well
as bronzing products, while whitening products
are in higher demand in Asia.
“In the ASW portfolio of 34 markets, we
found that ‘value for money’ continues to be
a major consideration among all consumers,
especially following the global economic crisis at
the end of 2008.”
One of the aims of Global Retail Days – which,
following the success of the inaugural event, will
now be held every two years – is for delegates to
share their experiences in these markets, and gain
more insights into the way ASW is able to lead the
The Internet is a key tool
for showcasing products
and stores.
At ASW, we expect operational
excellence when it comes to
working with manufacturers