Text: Li Ting Shidan
ID: BMR2004
Consumers who were happy to buy New Year's goods were accused by Watsons anchors of being "mad dogs" who scrambled wool. At the beginning of 2022, Watsons unexpectedly rushed to the hot search with a gesture of apology.
This event is due to Watson's New Year's Day mask promotion on the Meituan platform on January 11, 2022. After using the coupon, consumers can use 0.01 yuan to grab the original price of 49 yuan and 59 yuan respectively. Masks (limited to 5 boxes per person), but this activity only supports offline store pickup after consumers place an order. However, a number of consumers complained on the black cat platform that most offline stores said that the event products were out of stock, while some stores did not know about the event at all, and some stores even had stocks but did not write off.
In this regard, some consumers went to the Watsons live broadcast room to ask why the store could not pick up the goods, and what is the corresponding solution? But surprisingly, the Watsons anchor directly replied to the consumer: "Just for a penny, I want to pick it up and bite people like a mad dog." The staff in the live broadcast room also helped: "It's here, Then I don't think it's cheap, I didn't get it, and I came here to bite people." After that, the anchor blocked consumers and said, "I'll be happy if I kick you, I deserve it."
On the evening of January 14th, Watsons China issued an apology statement for the incident and stated that due to system reasons, a large number of abnormal orders that far exceeded the inventory were generated in a short period of time. In response to the inappropriate remarks made by the anchor, Watsons stated that the anchor is a third-party agency personnel. The next day, related topic #Watsonsapology# rushed to Weibo hot search,As of January 21, 2022, the topic had a total of 350 million views.
However, many netizens believe that this is Watson's "third-party" behavior, and many consumers said, "In those days, offline stores could not pick up the goods. But the live broadcast is still being sold, which is using price marketing to lure consumers into information." "Watsons' activities are not authentic, and consumers are insulted when offline products are out of stock, which morally despise consumers. Customers are not gods, Watsons is. !" As of January 21, the number of complaints about the Watsons mask incident on the Black Cat Complaint Platform exceeded 1,600.
In addition, on January 17, Tianyancha showed that Beijing Watsons Personal Products Chain Store Co., Ltd. Yanqing No. 2 branch was fined for allegedly using false prices to lure consumers into transactions. 50,000 yuan. The reason for the penalty is that the parties want to make customers feel that the promotion price is strong and cheap, so as to increase sales. However, the products involved have never been traded at the original price advertised.
In response to related questions, the reporter of "Business School" contacted Watsons and sent an interview letter. As of press time, no reply has been received from the other party.
Live "Overturning"
"Sisters, this is a rare opportunity, we are stocking up on Watsons New Year's Day masks!"
On January 11, Watsons launched on the Meituan platform" Only 0.01 yuan can buy some facial masks" promotion, many netizens ran to tell. However, this marketing campaign can only be ordered online and picked up offline.
"Does anyone have the same experience? I bought a Watsons mask, and the offline store said it was out of stock... However, the live broadcast is still selling." "There is stock in the store but it will not be written off,If Watsons can't afford promotions, don't do this event, and you love to play? ”
Watsons frequently experienced shortages in offline stores or unknowingly failing to write off the goods. According to the “Daily Economic News” report, some consumers provided photos taken in Watsons stores on January 14. File photo, which details how sales staff should respond to consumer questions. If consumers ask how to solve the mask incident, the company advises employees not to answer. In this regard, a reporter from "Business School" sent an interview letter to Watsons China to confirm the issue. Whether the news is accurate or not, the other party has not responded as of press time.
"Just for a penny, I want to slap it and bite like a mad dog. "I got it, and then I didn't think it was cheap. I didn't get it, and I came here to bite." "
On January 14th, some consumers came to the live broadcast room to ask the host in the live broadcast room because the Watsons offline store could not pick up the goods, and the Watsons service hotline failed, but the host directly responded to the consumer "like a mad dog", Pulled black and said: "I'm happy when I kick you, I deserve it. In addition, some consumers mentioned that in the live broadcast on January 13, the Watsons anchor also insulted consumers who participated in the mask promotion activities as "beggars". Watsons, who is open-minded, was sent to the hot search because of this, and netizens commented: "It's really not wrong.
The Watsons mask incident continued to ferment. At 11:59 p.m. on January 14, Watsons issued a low-key apology, saying that the anchor involved was a third-party agency staff member of the company. The training and supervision of all the company's staff and third-party partners can prevent similar incidents from happening. As for the facial mask promotion, Watsons said that the event was due to system reasons, resulting in a large number of abnormal orders that far exceeded the inventory in a short period of time, and the company decided to We will continue to fulfill the remaining orders by means of replenishment. On January 15th, #Watsonsapology# rushed to the top of the hot search. Many netizens said, "It turns out that not only the offline service is not good, but also online, the female anchor scolds consumers. 'Mad dog' is too outspoken. "The third-party personnel of the anchor do not represent who Watsons represents? our customers? ”
was originally a promotion for good businessmen, good users and everyone.It eventually evolved into a marketing "rollover accident". However, is Watson's "accident" just a matter of anchor control?
Shen Meng, executive director of Chanson Capital, said in an interview with a reporter from Business School that the Watsons live-streaming event was the result of a combination of multiple factors. Shen Meng said, "First of all, Watson's anchors are hired by a third party, because Watsons will not set up relevant positions independently, so the interests of Watsons and the anchors will be different. And this incident does have Watson's improper management of the anchors. , such an incident does not rule out that Watsons did not effectively communicate and restrain various details of the goods with the anchors and their units, resulting in the anchors making gimmicks to stimulate traffic, and finally making the situation out of control. In addition, the current consumption environment is getting colder, consumption Consumers are more sensitive to prices than ever before, and Watsons underestimated the current price sensitivity of consumers, greatly underestimating the scale of demand for 'taking advantage' in the current economic downturn, so it is easy to amplify the explosiveness of this event in public opinion."
However, Shen Meng also said, "To what extent the 'penny purchase' campaign, the core dispute in this incident, was Watson's original intention or the anchor's temporary behavior, and Watson's pre-planned marketing investment was roughly in What is the scope? These are the details of this event, and a large retail company should not have any adequate preparations in these areas. In addition, from the perspective of the current live broadcast delivery industry, it is in a state of jungle competition that lacks a systematic system. There is a lot of vicious competition. From this point of view, Watsons has underestimated the complexity of the live broadcast mode, and it has not well controlled the various details of the live broadcast event.”
brand marketing consultant Zhang Zhengze believes that the main problem is not the anchor Management and control, but the management of the enterprise has made a low-level error, and this low-level error is a sign that the enterprise is going downhill. Zhang Zheng said, "Watson's statement is to reduce its responsibilities and reduce the damage to the brand. However, this empty statement does not actually make up for the loss of time and disappointment that consumers have paid for it. For example, Watsons will bear the freight by itself. The cost of expressing the mask to consumers or compensation with vouchers, etc. Therefore, an apology statement will not play a positive role. A company that cherishes its reputation is an excellent company, and this incident of Watsons revealed that the current Watsons is not an excellent one. enterprise.If Watsons doesn't take this as a warning, it will overdraw the brand. ”
Stay away from the younger generation
Watsons was once the guarantee of shopping mall traffic and sales.
Watsons is an old brand store with a history of 181 years. According to the official website, Watsons The establishment time was fixed in Hong Kong Pharmacy in 1841, but before that, Watson's predecessor was the "Guangzhou Pharmacy" established in Guangzhou in 1828, but later entered Hong Kong. Later, the shares of the Hong Kong Pharmacy were transferred by the boss to The nephew Alexander Skoven Watson (AS Watson), and the big pharmacy officially changed its name to Watsons (Watson) in the name of Watson in 1871. Under the leadership of Watson, Watsons went out of the Hong Kong market, and its business gradually spread Expanded to many regions around the world.
In 1981 Li Ka-shing acquired Watsons, and opened the way of expansion, acquiring chain enterprises in France, Netherlands, Russia and other countries. In 1989, Watsons entered The mainland market has continued to grow rapidly. Since 1989, the first Watsons store in Beijing was opened, the first Watsons store in Shanghai was opened in 1992, and the store returned to Guangzhou in 1994. In just 6 years, in 2005, Watsons opened its 100th store. The store opened in Foshan, Guangzhou.
Retail e-commerce think tank and founder of Bailian Consulting, Zhuang Shuai said, "At that time, the coverage of Chinese beauty brands was low, and the channels for imported products were limited, while Watsons The emergence of this well fills this gap. ”
Another 6 years, Watsons has almost maintained an average rate of opening 150 stores a year in various cities in China. In 2009, Watsons opened its 500th store,In 2011, it opened its 1,000th store in Shanghai. Then, in 2014, Watson's offline stores surged to 2,000. This stage is also the highlight of Watsons in the Chinese market. It has rapidly developed into the largest cosmetics chain retail brand in China, and is also known as the "traffic harvester" of the shopping mall. At that time, local brands such as Meiji, and Limei , which had achieved the best sales in the Chinese market at that time, all used Watsons to increase their sales and gain popularity in the market.
"At that time, I thought Watsons was very trendy. There were a lot of imported cosmetics on the shelves, and the prices were not very expensive. I like to go shopping with friends, but what I don't like is that the shopping guide has been following along." Proficient in cosmetics Zhao Ling (pseudonym) told the "Business School" reporter that Watsons is very popular among female consumers because of its rich makeup and skin care products and the attraction of its own products.
However, around 2015 may be a turning point in China's beauty industry, and cosmetics consumption has been upgraded this year. Before 2015, the beauty market was still dominated by offline channels. After 2015, online channels such as major e-commerce platforms and brand official websites became active. According to the statistics of the Prospective Industry Research Institute, from 2015 to 2020, the total share of cosmetics including traditional supermarkets, KA (supermarket sales) and CS (cosmetic specialty stores) channels dropped from 37% to 28%.
For the beauty industry, channel control is particularly important. The changes in the times in 2015 are also directly reflected in Watsons. In 2015, Watsons’ mainland business experienced negative growth for the first time, with same-store sales falling by 5.1%. Since then, it has experienced same-store declines for three consecutive years. From 2015 to 2017, Watsons’ same-store sales growth rate varied. It is -5.1%, -10.1%, -4.3%, and according to Euromonitor International data, Watson's single-store revenue and ping effect have decreased year by year since 2012, and the decline expanded from 2016 to 2017, and the single-store revenue in 2017 4.92 million yuan, 11,200 yuan per square meter per square meter, less than half of that in 2011.
However, Watsons has also made efforts in the channel,In 2017, Watsons stores began to upgrade and transform, providing shopping services such as store pickup and lightning delivery. The new crown epidemic has accelerated the digital reform of the beauty retail industry, and Watsons is also making changes. In February 2020, Watsons launched the official cloud store applet, and through offline store resources, it has achieved one-hour lightning delivery and online delivery. Live broadcast, one-to-one exclusive charm consultant and other services. According to the official financial report data, Watsons' online sales in 2020 increased by 123% year-on-year compared with 2019. However, the total revenue of Watsons China in 2020 still fell by 19% year-on-year to 16.739 billion yuan, much higher than the overall retail decline.
The financial report explained that the decline in performance was mainly due to the impact of the new crown pneumonia epidemic. However, judging from its development in recent years, even though sales performance has declined, the pace of store expansion has continued. 3,000 stores were opened in 2017, the 3,800th store will be opened in 2019, and by 2021, there will be over 4,100 stores. However, the financial report shows that in the first half of 2021, Watson's same-store sales increased by 17.8% year-on-year, and its performance has recovered.
However, the beauty market is also upgrading and changing, and Watsons always seems to be half a beat late in responding to the development of the times. The most criticized by netizens is that this marketing campaign can only be placed online, and the offline self-pickup is a little old. In this regard, Shen Meng believes that Watson's original intention is to use its own network coverage to drive store consumption traffic through online live broadcast and offline delivery.
However, in Zhuang Shuai's view, this also reflects the problem that Watsons' digitalization and online channels are insufficient or its operational capabilities cannot keep up. "In this Watsons mask incident, Watsons chose to let users pick up the goods in offline stores instead of placing orders online and delivering them to their homes. First of all, this design has already cost users new time and physical costs. Second, it is said that digital upgrading and transformation, but Watsons Obviously, this work has not been done enough. Offline pickup, the most important digital inventory synchronization is not given to offline stores, and consumers cannot know how much inventory a store has and how much inventory is progressing online. Third, there are One possibility is that the profit distribution of online and offline stores was not done well, which ultimately hurt the interests of consumers. Watsons sacrificed the interests of offline stores to promote online growth.The KPIs of the two parts are different, that is, the department of the offline store may give it to the user at its own cost to bear the cost. Among them, it may be that the online sales and profit assessment are not well allocated with the offline store, which also leads to the failure of the online store. The store does not know about it, and there is even a situation where the goods are not written off. "
Future development geometry
After 30 years of entering the mainland market, Watsons has gone from "top-class" to "unfamiliar" to young people, and with the improvement of people's living standards and consumption upgrades, The beauty retail industry has also become a huge market. In the future, how will Watsons develop?
Watsons official website shows that Watsons, as a flagship brand of the Watsons Group, operates over 7,800 stores in 14 Asian and European markets, of which With more than 4,100 stores and 65 million members in more than 490 cities in mainland China, it is a well-known retail chain of health care and beauty products.
However, with the changes in China's beauty retail market, Watsons The number of competitors to face is also increasing. According to incomplete statistics, in 2021, HARMAY's Plum, East Point and West Point, THE COLORIST colorist, WOW COLOUR, ONLY WRITE solo writing, HAYDON black hole, zero beauty selection, poetry and kaleidoscope, etc. Beauty collection stores have all received capital support. Among them, poetry and kaleidoscope, KNOWIN trend laboratory, HAYDON black hole, THE COLORIST colorist, etc. have all received hundreds of millions of financing. "Business School" reporters visited some stores and found that Watsons The display and shelves of the store have not changed much from the previous years, but there are no more shopping guides to follow the sales. However, stores such as colorists and trend labs are more fashionable and new, and their displays and designs cater to the interests of the younger generation.
According to the "China Beauty Collection Store Industry Report" data, 73.5% of consumers go shopping in new beauty collection stores because they can buy brands and products that are not available in traditional beauty collection stores, 66.3% and 49.5% % of consumers will go to the new beauty collection store for on-site trial and purchase of samples.
In this regard, Zhuang Shuai believes that young people like rapid changes, are highly adaptable, and yearn for the improvement of aesthetics. Then, if Watsons wants to develop in the future, it must upgrade its products, services, and interior decoration, because these are all youthful moves. Zhuang Shuai said, "At present, there is a lag effect in Watson's stores, and the store decoration has not changed much compared to the past. It has not catered to young people to create new aesthetics, and no young people have said that they have taken pictures and punched in Watsons. On the other hand, there are commodities, why? Will there be new brands? Because new brands will use new materials, new designs, and new marketing methods. If young people seek changes, these new brands will have traffic. Combining these changes, Watsons is the real process of rejuvenation, not It once made young people's aesthetic fatigue."
Shen Meng analyzed from the other hand that young people dominated by online shopping habits are less and less likely to consume offline as before. Pick-up and drop-off attracts consumers to go to the store and make more related purchases. For Watsons, perhaps the challenge is not the so-called "rejuvenation", but the "networking" of consumption. Watsons' retail products are still very competitive.
However, for Watsons to develop in the future, perhaps the key is to solve the internal management problems exposed by this marketing campaign.
You need to know that for the "Putting Wool" series of marketing activities, the merchant's profit can be maximized. On the one hand, it can improve the visibility and reputation of the company, and on the other hand, it can also attract customers well. In an interview with the "Business School" reporter, Zhuang Shuai said, "The way companies sacrifice commodity profits to acquire users is actually the same as the nature of advertising. Advertising requires money and does not necessarily guarantee its conversion rate. Now some customers are acquired. The cost is very high. The cost of Watson's mask may be about 20 yuan, which is equivalent to Watson's obtaining customers at this cost. In addition, the follow-up operation is very important. The process behind the activity, such as picking up goods, express delivery, etc., does not have the problem of who takes advantage , but whether the company's operational capabilities can match its activities. If it matches, then the marketing activities must be that the company's revenue is greater than that of consumers, and for consumers, they also get value-for-money goods and services.Increase loyalty and recognition to the company. So a good activity is the result of multiple benefits. "
"And this Watsons activity exposed the problem of its insufficient operational capacity, first of all, the dislocation between its activity settings and expectations. There must be inventory restrictions for live-streaming panic buying, and it is completely possible to achieve good cost control. Second, the risk control is not done well. For example, some activities can be set to require ID card or mobile phone number registration to grab, instead of any email or ID, which can not only control risk control, but also allow enterprises to obtain user information to the greatest extent. The third is compliance. When an activity is in progress, especially a product delivery activity like Watsons, the follow-up performance reflects not only the user information and order volume, but more importantly, the user’s satisfaction after picking up and receiving the goods. Zhuang Shuai said, at the same time, this also revealed that Watsons is not only relatively backward in digitalization, but also its internal management and corporate culture are not consumer-oriented, but more KPI-oriented. If the KPI cannot be completed, it may harm the interests of users.
"In addition to the apology and extension of the delivery time, there is no actual compensation for this event. Even the apology did not say whether the cooperative company wants to terminate the contract, and how to improve the corresponding personnel and process. Zhuang Shuai said that this also revealed that Watsons still does not know enough about consumers and is not consumer-oriented. In order to develop in the future, Watsons needs to make many adjustments, such as the adjustment of the offline competition system and the combination of online and offline digitalization. , service adjustment, internal operation process, management mode, corporate culture adjustment, etc., as well as online channel expansion and operational capability improvement, product iteration adjustment and in-store display service adjustment, etc.
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