This was implied yesterday by Trade and Industry Manuel Roxas II who disclosed that the local retail drug and cosmetic sector is currently dominated by Mercury Drugstore.
Mercury currently controls about 70 percent of the market, and its near monopoly has led to consumer complaints about its "exorbitant" and "over-priced" drugs.
Roxas admitted that investors with capital and who want to target that market could offer stiff competition.
Representatives of Hutchinson Whampoa, the holding company of Hong Kong-based Watson’s, had met with Roxas last week along with representatives of the ShoeMart Group.
SM and Hutchinson Whampoa plan to enter into a joint venture to put up around 250 Watson’s stores in the country.
With a cost of around $1 million per store, Hutchinson Whampoa would invest at least $200 million into the country.
Roxas welcomed the possible entry of Watson’s especially if it leads to lower drug prices.
One of Roxas’ pet project is to bring down the cost of medicines.
Earlier, Roxas was able to bring in cheap drugs from India through parallel importation of generic drugs.
Watson’s, which is popular in Hong Kong and Singapore, offers medicines and beauty products.