Friday, 10 April 2015

Franchisee Experience

Franchisee Experience


In 1994, Watsons Malaysia opened its first outlet in Holiday Plaza, Johor Bahru. In 2005, Watsons successfully acquired the Apex Pharmacy chain, in which consists of 18 stores nationwide. This significant milestone brought Watsons to a higher level in the pharmacy business. Today, Watsons operates over 350 stores in Malaysia serving more than 50,000 customers per day.



NORTHERN REGION                                      
1. Alor Setar                                                        
2. Penang One Stop                                            
3. Bukit lambul                                                    
4. Komtar                                                            
5. Megamall Prai                                                  
6. Bukit Mertajam                                                
7. Kinta City, Ipoh.                                                
                                                                             
SOUTHERN REGION
1. Batu Pahat
2. Kluang,
3. Holiday Plaza
4. Perling Mall,
5. Pelangi Leisure Mall
6. Plaza Tasek,
7. Plaza Angsana
8. City Square

CENTRAL I                                                          
1. Leisure Mall                                                      
2. Bandar Utama                                                    
3. Alpha Angle                                                        
4. Ampang Point                                                    
5. Pandan Kapital                                                  
6. Sunway Pyramid                                                
7. KL Plaza                                                            
8. Summit Square USJ                                            
9. Amcorp Mall                                                      

CENTRALII
1. Sungei Wang
2. Kota Raya
3. Selayang Mall
4. Bandar Baru Klang
5. The Mall
6. Centre Point Klang
7. Kuantan Parade
8. BerjayaMegamall
9. Mine

Franchise Operation


WATSON'S BRANCHES IN WEST MALAYSIA

Watson's stores in Malaysia were located at most of the major shopping complexes.Watson's first store was opened in Johor Bahru in 1994. Since then, Watson's had opened another 42 stores throughout West Malaysia. The headcount in a store varies, in which it depends on the size and location of the store. In order to have a better control,the management has divided into 5 regions namely Northern, Southern, Central I, Central II and Central South. An Area Manager headed each region, which consisted of Store Managers and/or Assistant Store Managers, Supervisors and/or Assistant Supervisors, a Back Room Clerk and the Sales Coordinators. Each outlet was given a sales target to achieve where by the high achievers would be rewarded in terms of bonus at the end of the year.




Franchisor Management

HUMAN RESOURCES DEPARTMENT

The Human Resources Department was headed by Ms Lim Soh Buay, the Human Resources Manager  with at least 20 years of experience as a human resources practitioner with the assistance of 2 Officers and a Clerk. The total workforce of Watson's was about 550 people throughout West Malaysia. The main function of human resources was to recruit the staff for the operation in the Klang Valley as when and where needed. For the outstation stores, the Store Managers were empowered to recruit and trained by the management in the stores. It was compulsory for a newly joined staff to undergo the induction training and on-the-job training for 3 days upon reporting to work before placing them at the specify store in the Klang Valley. However, when there was an urgent basis, some of the newly joined staffs were send to the shop floor before they had the chance to undergo the proper training.

The turnover for the sales personnel were high in Klang Valley compared to the outstation stores.Through the exit-interview that was conducted in Klang Valley, the following were the reasons
of the high tumover:-

1. Wider job opportunity even though at this economic downturn as more new giant retailers were opened such as Tops,Giant etc.
2. The working environment in Watson's was humid and hectic especially at the busy stores such as Watson's Kota Raya and Sg Wang. Both stores generated the highest sales compared to other stores.
3. The sales personnel felt that there were no career development for them.
4. Relationship with superior - was only a one way communication whereby store management only gave instructions and orders without any guidance to the sales personnel.
5. No proper training as sometimes the store management did the recruitment themselves without the knowledge of Human Resources Department.
6. Salary was not attractive compared to the workload that need to be done as Watson's had different promotions monthly.
7. The sales personnel found difficulties to understand in the language being taught as most of the training modules were in English. Majority of the sales personnel were only Form 3 and Form 5 dropouts.

Besides that, the other reasons were some of the staffs were terminated by the management due to dishonesty and mishandling of cash money and they were immediately sent to the police.

OPERATIONS DEPARTMENT 

Ms Ho Lai Lan , the Operations Controller joined Watson's since 1997. Prior to that, she was attached with KFC (Kentucky Fried Chicken) for 17 years and her last position was as the Country Manager before joining Watson's. As the Operations Controller, she was fully responsible for the total operations in all the outlets throughout Malaysia.

BUYING DEPARTMENT 

Buying department was led by Catherine Williams, the Merchandise Controller which was based in Watson's Singapore. She was assisted by 2 Merchandise Managers i.e. Ian Cruddas who was in-charged of the Toiletries and Cosmetics Department and had only joined the company 6 months ago while Loo Chii Shian, a qualified Pharmacist was in-charged in the Confectionery and Pharmaceutical Section, had been with the company for the past 4 years.There were 2 Buyers and 4 Buying Assistants to perform the task in the Buying Department.

The task of Buying Department were as below:

a) plan for centralized buying
b) plan for centralized promotion
c) plan for the layout design
d) negotiate with suppliers on the trading terms and pricing

Despite the monthly centralized promotion which was planned one year ahead by the HQ (Head Quarters), Catherine still receive complaints from the operations on the ordering of stocks to be allocated to the stores. There was no proper planning; all was done on ad-hoc basis. Some of the store did not receive the promotion stocks although the promotions had already started or quite often, there were insufficient stocks to be sold to the customers. For ordering of stocks, the Buyers decide the quantity of stocks to be ordered. This had raised dissatisfaction among the Area Managers on this issue. Many times, during the monthly meeting with the Buyers, they brought up this matter. Their argument was that since the management staff in the operations knew best which stocks were top sales and which were not, they were the best person to do their ordering of stocks instead of the buying department.


History in Malaysia

Watsons Personal Care Stores (Malaysia) Sdn. Bhd. is part of the Health and Beauty Store chain of A.S Watson, the largest health, beauty, cosmetics and perfumery retailer in the world. Today, Watsons H&B Asia is the leading health and beauty chain in the continent with successful operation in 9 markets (Hong Kong, China, Singapore, Malaysia, Thailand, Indonesia, Korea, Taiwan, and the Philippines)

In 1994, Watsons Malaysia opened its first outlet in Holiday Plaza, Johor Bahru. In 2005, Watsons successfully acquired the Apex Pharmacy chain, in which consists of 18 stores nationwide. This significant milestone brought Watsons to a higher level in the pharmacy business. Today, Watsons operates over 350 stores in Malaysia serving more than 50,000 customers per day.

Watsons strives to live up to customers’ expectations through marketing campaigns, a wide variety of high quality merchandise at great value and provides an exciting shopping experience. The wide range of merchandise also encompasses competitively priced house brand and private label products.

With more than 1000 brands ranging from medicines, health supplements, skincare, toiletries and cosmetics, Watsons Your Personal Stores is your one-stop Health, Wellness and Beauty solution centre.

Wednesday, 8 April 2015

Background of Watson




WATSON'S BACKGROUND 

A.S. Watson & Co Ltd is a subsidiary of Hutchison Wbarnpoa Limited and is one of the best
known trading names in Asia. The company began as a small dispensary in Guangzhou, China in 1828, opened in Hong Kong in 1841, and became one of the first companies in the world to produce carbonated soft drinks. By the turn of the century, A.S. Watson had became a major trading force in Hong Kong, China, Macau, Taiwan, Singapore, Malaysia and Thailand with more than 300 retailing and dispensing branches. In Taiwan, the group has a major chain of 145 drugstores. The 90 stores in Singapore and Malaysia are expected to increase steadily by about 15 per year, while the number of stores in Thailand will grow to 25 in the near future.

In China, A.S. Watson operated in excess of 90 outlets, the largest chain of foreign owned stores in the mainland. This is expected to grow at the rate of 40 to 50 stores a year and to provide profitable returns within the decade. Watson's is the original personal care retailer with more than 150 years of retail experience in the region, with over 300 stores throughout Asia. Watson's regularly carry more than 25,000 items sourced from over 20 countries, including its own label that is GIANETTO. These imported items contributed most to the total profits of Watson's. 

GlANETTO can be divided m SIX major product groups:-
* Personal Care
* Lifestyle
* Beautiful You
* Sweet Expressions
* Health and Fitness
* Fun and Games

The store count has doubled in the last 4 years and is poised to exceed 500 stores by the year 2000. Today over 10 millions shoppers visit Watson's each month in Malaysia, Singapore, Taiwan, Macao, China, Hong Kong and Thailand. The store range in size from 2,000 to 12,000 sq. ft. with the ideal size being 5,000 sq.ft.

WATSON'S MISSION
Attain and subsequently maintain leadership position in the health, beauty and fashion stores sector through:

a) building a reputation for excellence in meeting customer needs
b) generating continuous profit growth
c) believe in, create and maintain virtuous circles