Cosmetics chief's goal is fashion success

Kulvinder Birring employs his restless energy to transform Watsons China into a lifestyle label

At 2 pm on a hot, humid, hectic weekday in Guangzhou, Guangdong province, Kulvinder Birring, acting CEO of Watsons China, is unfazed, spirited and full of energy.

Is this guy for real? He appears more like a footballer, restless before a key kickoff, than a top executive. Sitting upright, he reaches for a box of mints and a coffee, and consults his smartphone for his schedule.

Since April, he has been leading China's largest health and beauty retailer, intent on turning it into a leading fashion brand.

The going has not been easy. The interim results of Watsons' Hong Kong-listed parent company showed that first-half revenue from the Chinese mainland was HK$10.6 billion ($1.35 billion; 1.13 billion euros; ￡1 billion) - down 6.2 percent year-on-year but better than the previous first-half's 8.5-percent decline.

The company attributed the decline to currency fluctuations, and external and cyclical factors.

The pressure is on, and Birring, 46, knows it. But his demeanor is, well, one of a restless footballer who can't wait to kick, pass, head and tackle.

He is aware that the China market's backdrop is a retail sector in the throes of stiff challenges.

According to a report by the China Commerce Association for General Merchandise, which surveyed more than 200 retailers across China in the first half of this year, about 58 percent of retailers have experienced declining revenue.

"Some shut down outlets to reduce losses, and some upgraded their stores to bring about an upswing," the research note said.

Birring, with a proven record in turning failing businesses around and growing profits within a short period of time, is expected to do an encore.

Before his latest job, he served as chief operating officer of Watsons China. Before that, from 2009 onward, he was managing director of Watsons Malaysia. Throughout, sales grew rapidly under his stewardship.

Asked how he would apply his "magic" solutions to turn the current situation into great success in China, Birring says: "At Watsons, we don't necessarily believe in luck, especially in the retail business. Focusing on the customer is one of the key things. For me, it's a longer-term strategy and it takes time to implement, but ultimately I think it's about creating a business that has a real focus on the customer. That's always been my philosophy."

In China, Watsons is investing significantly in developing both online and offline channels. An obvious change that consumers may find at many of Watsons' refurbished - or "G-next" - stores is the new location of shelves for cosmetics. They have been moved from corners to upfront, with more space, more lighting and more choices.

Birring says the change is in line with the company's move to win back customers - "to understand who they are, what they want, what their preferences are, and catering to their needs".

The profile of Watson customers remains the same though - young, female, trendy, early adopters - but the speed of accepting new ideas is getting faster.

Another challenge in China is the diversification of communication channels. Social apps, news apps, mobile media, direct marketing, friends and key opinion leaders (or KOLs) could all be sources of information.

This will mean Watsons needs to deploy more resources in both online and offline channels.

"Digital is definitely something we pursue now. You can get in touch with us via our website, WeChat and our app Wosun," he says.

As for brick-and-mortar stores, the number grew from 2,920 at the beginning of the year to more than 3,040 in August.

Technologies like virtual reality and "beauty artists" - trained shop assistants who demonstrate cosmetics - will help consumers choose products to suit their personal tastes.

"We are not selling products we want to sell. We are selling what consumers need. What I want to create is an environment people will come and explore. Watsons should be a playground, especially because cosmetics are about having fun, and it's not a serious category. We are constantly evolving and trying things - it's like 'have a go, have a try'."

Focus on high-value-added products and services will put Watsons in competition with more market players. In the past, Watsons' major competitors included Manning's and convenience stores selling personal care products and cosmetics. The latter are growing in number. New competitors include the cosmetics floors of shopping malls, and cosmetics retailer Sephora.

wuyiyao@chinadaily.com.cn

(China Daily European Weekly 09/22/2017 page28)