Page 25 - Sphere No.10 (Dec 2003)

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with its former competitor Trekpleister, which was acquired in

1998.

Kruidvat is the market leader with branches not only in the

bustling cities but also in the smallest villages while Trekpleister is

rapidly emerging as the No.2 thanks to its compelling brew of a wide

product range sold at low prices in a customer-friendly atmosphere.

Similarly, Savers and Superdrug in the UK run as parallel

chains occupying different niches. Superdrug is postioned

as a variety retail chain with spacious stores situated in prime

spaces on the high street, whereas Savers is discount-oriented and

operates out of smaller outlets.

A mature market in the UK, with strong competition in the

health & beauty sector and the internal challenge of operating two

brands side by side, creates a unique set of circumstances for doing

business there.

“Our competition comes from some of the best and most sophis-

ticated retailers in the world,” says Philip Ingham, CEO of Health

& Beauty UK. “There are several other major players but at the

other end of the spectrum there is also a growing band of small

aggressive discount competition.”

Mindful of its particular market characteristics, the UK division

aims to grow the profitability and size of both Superdrug and Savers

by continuing to offer a wide range of products at good value while

at the same time dazzling customers with innovative stores and

exciting promotional themes.

L

OCAL

C

HARM

The characteristics of each country’s market environment natural-

ly shape the nature of the stores that operate within it. Regulations

in Continental Europe have meant that brands now owned by

ASW have developed as cut-price health & beauty retailers rather

than as chemists, whereas health & beauty operations in Asia and

the UK typically evolved out of businesses geared towards dis-

pensing pharmaceuticals.

Kruidvat started life as a grocery company in 1928, opening its

first health & beauty outlet in 1978. These stores have a broader

focus than pure health & beauty, targeting young families with

Savers

began in the UK in 1988 and was acquired by A.S.Watson in 2000.The chain operates more than 300 stores in England, Scotland andWales. Savers’

mega-discount format, accentuated by simple store design, strong logistics and low operating costs, matched the values of A.S.Watson from the outset, and

the company is rapidly expanding. It offers fast-moving health & beauty products, high-quality brand names, fragrances and photo services.

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countries …