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P&G is collaborating with A.S. Watson Group to launch a skincare brand and sell the products on Watsons' online platform and in its physical stores in the Greater China market, tapping into the growing demand for sustainability products. The two businesses co-launched the brand "aio" which takes sustainability as a core consideration, from product packaging to the selection of ingredients.
P&G said this is the first time it is working with a retail partner to co-create a new skincare brand from scratch, adding that it is aimed at attracting Gen Z and Millennials, and expects to have a larger proportion of sales from online channels. "We are delighted to team up with A.S. Watson Group to learn together and co-design the 'aio' proposition for the wellness needs of the customers. This is the future of retailing and skin care. We are very excited to bring this brand now to the Hong Kong and Taiwan markets,” said Markus Strobel, global president, P&G Skin and Personal Care.
Strobel added that "aio" is designed with fully recyclable packaging which is "very meaningful for P&G’s responsible beauty and sustainability goals.”
Malina Ngai, CEO of A.S. Watson (Asia & Europe) and group chief operating officer also commented on the new brand, “Starting from figuring out the customers’ needs, to product design and brand building, 'aio' is the result of close collaboration between A.S. Watson Group and P&G. Sustainability is our top priority and we are happy that the packaging is fully recyclable, making it eligible to be listed as clean beauty product under Watsons' Sustainable Choices section."
She added that the creation of "aio" is a result of its online plus offline platforms and sophisticated customer insights.
Watsons has been working on its sustainability product offerings. It has been leveraging its offline plus online retail strategy to meet the increasing demand from customers across the region for more environmentally-friendly products. The business has launched over 1,600 sustainable products both in stores and online as a result of a strengthened collaboration with global supplier partners such as Beiersdorf, GlaxoSmithKline, Johnson & Johnson, Kao, L’Oréal, Procter & Gamble, Reckitt, Shiseido and Unilever. To help customers better navigate the online and brick-and-mortar stores, these products are easily identified as the retailer has established the Sustainable Choices section, so customers can quickly locate the products that best suit their needs.
The company has also worked on other sustainability-related initiatives across the region. For example, in Hong Kong, it has launched the “Plastic Reborn” campaign with P&G, a three-year programme which is aimed at rewarding customers with gifts in return for bringing in empty personal care plastic bottles from any brand for recycling. About 3,400kg of plastic has been recycled since February.
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