AS Watson launches incubator to scale brands across global retail network

AS Watson has launched a new data-driven platform designed to identify, develop and scale brands across its global retail network.

The platform builds on the company's integrated O+O (Offline plus Online) capabilities, distribution network and consumer insights derived from more than 180 million loyalty members.

According to AS Watson, the initiative is intended to support both the development of new brand propositions and the expansion of existing brands across multiple markets.

It is positioned as an alternative to traditional brand incubator models by embedding brand development within the company's retail ecosystem. Rather than focusing on brands prior to market entry, the platform uses customer data, shopping behaviour and category trends to inform brand development and commercial decisions within existing markets.

Dr Malina Ngai, CEO of AS Watson, said the model reflects the company’s structural advantage: "We don’t wait for brands to find the market - we build them where demand already exists and scale them through our ecosystem."

Brands participating in AS Watson Brand Lab will progress through a structured growth framework, from initial validation through to regional expansion and category development. Support will be provided at each stage across areas including market insight, distribution, marketing and investment.

According to the company, this staged approach is designed to help prioritise resources, improve brand development outcomes and maintain capital discipline.

The platform will focus on categories including Asian beauty trends such as K-beauty, J-beauty and C-beauty, ingredient-led skincare, health and wellness products, and premium personal care products.

AS Watson says the initiative is expected to strengthen its ability to develop proprietary and exclusive brands while improving speed-to-market and operational efficiency.

The company cited brands including COSRX, &honey, E.l.f. Cosmetics and Essence as examples of brands that have expanded across multiple markets through its retail ecosystem.

AS Watson said the launch of Brand Lab reflects a broader strategy to utilise its retail footprint not only for distribution but also for brand development and expansion. The company describes the platform as a more structured approach to identifying and scaling brands across its portfolio.