Younger customers are venturing back to real-world stores, says AS Watson CEO Malina Ngai: ‘They want to be able to touch the product’

 

For years, the retail world has been dominated by one big assumption: Gen Z and young millennials prefer shopping online. From mobile apps to next-day delivery, digital convenience has shaped their choices. But according to AS Watson CEO Malina Ngai, the world’s largest international health and beauty retailer, the trend is shifting again — and it’s shifting fast.

Younger customers are returning to brick-and-mortar stores, and they’re doing it for reasons far deeper than nostalgia.
“They want to be able to touch the product,” Ngai explains. “They want to experience it, feel it, try it out — and most importantly, feel understood.”

This shift is redefining how global retailers design their stores, train staff, and merge online and offline experiences.

The Return of Touch: Why Gen Z Wants Real-World Retail Again

After spending their teenage years surrounded by digital screens, younger customers are craving real experiences. Multiple surveys show that Gen Z doesn’t want to shop entirely online — they want interaction.

1. The need for sensory experience

Beauty, skincare, wellness, and personal care products — AS Watson’s specialty — depend heavily on texture, fragrance, feel, and instant trial.
No amount of online reviews or digital filters can replace the experience of touching a moisturizer, smelling a shampoo, or testing a foundation shade.

2. The desire for instant satisfaction

Young shoppers may browse online, but they prefer buying in-store when they want immediate results.
No waiting. No delivery delays. No returning products that “didn’t look the same as the picture.”

3. The social element of shopping

Retail stores have become a place to:

  • Hang out with friends
  • Get recommendations
  • Try products together
  • Take aesthetic pictures
  • Share content on social media

Shopping is becoming an outing, not a chore.

How AS Watson Is Responding to the Shift

As the parent company behind Watsons, Superdrug, and other leading retail chains, AS Watson is investing heavily in next-generation store experiences.

A new era of “phygital” retail

Ngai emphasizes the need for a phygital strategy—the perfect blend of physical + digital.

This includes:

  • Scan-and-learn QR codes next to products
  • Online beauty quizzes that match with in-store items
  • Exclusive digital loyalty programs
  • AI-driven recommendations
  • In-store product trials guided by trained beauty advisors

The goal is simple: use technology to enhance real-world shopping, not replace it.

More interactive store designs

Stores are being redesigned with:

  • Skincare testing bars
  • Makeup try-on stations
  • Personalized consultations
  • Wellness corners
  • Sustainable refill zones

These experiences benefit younger shoppers who love hands-on engagement.

Digital Still Matters — But It’s No Longer Enough

Ngai points out that younger customers begin their buying journey online but prefer to complete it in-store.

They research online

  • Watch TikTok beauty trends
  • Read reviews
  • Follow influencers
  • Make a wishlist

Then they buy offline

Where they can:

  • Compare shades
  • Test textures
  • Ask store advisors
  • Immediately take the product home

This balanced approach is shaping the future of retail.

The Rise of Loyalty Programs

One of AS Watson’s biggest strengths is its massive loyalty membership base — more than 150 million members globally.

Young shoppers especially love:

  • Instant rewards
  • Birthday discounts
  • Exclusive early access drops
  • Personalized suggestions based on their preferences

Ngai says loyalty programs are becoming the bridge between digital browsing and in-store purchasing.

What This Shift Means for the Future of Retail

The unexpected return of young customers to real stores is a strong signal:

✔ The future is experiential retail, not purely e-commerce

✔ Brands must focus on touch, trial, and personalized advice

✔ Stores need to evolve into interactive spaces, not transactional counters

✔ Omnichannel is no longer optional — it’s essential

Retailers that combine digital convenience with real-world engagement will dominate the next decade.

Final Thoughts

Malina Ngai’s observation isn’t just a trend—it’s a reminder that humans crave experiences, even in a digital-first world. As younger customers rediscover real-world shopping, retailers must adapt to their need for connection, touch, and emotion.

The brands that succeed will be the ones that blend technology + human experience, creating stores that feel both familiar and futuristic.

 

Shweta Sharma