Why SM chose Watsons over Mercury Drug | Complete History

Watsons: The Complete History of the Philippines' Biggest Health and Beauty Retailer

Watsons has become a household name in the Philippines. You will find it in nearly every SM mall, beside every grocery, and in almost every major city.

But how did this happen? And why did SM choose to partner with Watsons instead of Mercury Drug, the most established pharmacy chain in the country at the time?

In this episode of Brand Origins, we uncover the full history of Watsons in the Philippines and how it became one of SM's most powerful retail partners.

From its beginnings as A.S. Watson & Co. in 19th century Hong Kong, to its rapid expansion across Asia, to the critical partnership with SM Investments, this episode breaks down how the brand grew from a small apothecary into one of the largest health and beauty retailers in the world.

We explore how Watsons built its reputation for trust, accessibility, and convenience, and how SM's business strategy helped the brand dominate the Philippine market.

Timestamps

00:00 – Intro

00:58 – Henry Sy's Vow to Crush Mercury Drug

02:40 – How Britain Took Hong Kong

06:49 – The Hong Kong Dispensary

07:55 – A.S. Watson's Rapid Growth

10:17 – Watsons Water

11:07 – Hong Kong and Whampoa Dock

11:23 – How Li Ka-Shing Acquired the Company

12:02 – Brands A.S. Watson Owns

14:20 – Watsons in the Philippines

15:08 – Watsons' Secret Cash Cow (Optimo)

18:39 – Watsons Pink

19:43 – Outro

Sponsorships

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