In the mainland of China,this company is much inferior to its opponant watson.Watson entered Chinese market 15 years earlier than the company.this is the main reason that this company falls behind Watson.Moreover,this company is much slower than Watson in developing market in second-tier and third-tier cities.Watson now has owed more than 600 retail stores around China.Neverthless,this company didn't adopt the differentiated positioning strategy based on the situation,and because of this,the commodity structure of this company is considered simlar to that of Watson.there are three reasons leading to their failure.First,due to lack of sufficient understanding towards Chinese market,this company failed to make a proper plan before they entered Chinese market.Second,they didn't have a deep insight of consumers' customer.Third,the number of retail store is inadequate.Finally,they failed to adapt their marketing strategies quickly to the changing condition.