H&B chains are more than just another retail space; they are essential hubs that meet the needs of all demographics.
For many beauty consumers, H&B retailers like Watsons or Guardian are their first and most common touchpoints. From teens with specific skin care needs to adults seeking wellness products, these chains have become indispensable.
However, with competition heating up offline and online, these retailers have been challenged to give today’s consumers a memorable shopping experience.
Sharon Kwek, director of consulting at Mintel told the Beauty 4.0 Podcast that H&B chains are feeling the pressure of catering to an “overstimulated” consumer.
“It’s very hard being a retailer these days. You need to keep up with the trends, you need to understand your consumers, you need to think about your whole store layout so that you engage them from a shopping experience, even before they step into your store,” said Kwek.
This challenge is further exacerbated by the online landscape, where consumers can hunt for deals in the comfort of their own homes.
“Personally, I find the online shopping experience a lot more engaging and exciting because of the way pictures are being shown to us and the amount of vouchers and promotions,” she said.
Additionally, the consumers themselves are changing. Kwek highlighted the major shopper profiles that retailers must cater to – the toe dippers, the deal makers, the quality seekers and the impulse explorers.
She elaborated that toe dippers are drawn toward experiences that may go into a store for the fun of it. Dealmakers and quality seekers, on the other hand, are more purposeful and are likely to have done their research before walking through the door. Lastly, impulse explorers are likely to enter the store if something catches their eye.
“If you think about it fundamentally, what’s driving all of them is whether there’s a value or experience,” said Kwek.
The rise of the wellness movement gives H&B chains a major opportunity to reinvent themselves.
Kwek highlighted their need to pivot and focus on how to fulfil the wellness needs of the modern consumer.
“It has evolved to a point where we now talk about beauty and wellness together. It seems like the evolution started with colour cosmetics and ultimately to health. Everyone focuses so much on well-being these days and H&B retails can become a care concierge, a one-stop wellness hub.”
To listen to more insights on H&B retailers and how they are evolving in South East Asia, check out the podcast above.
