There are two goals for this thesis. One is to analyze the factors for the growth of Watsons. The other is to research the trend of development of the drugstores in China. Based on the Chinese drugstores which are developing with the diversification of the retail industries, we will analyze their external environment and the competition situation. Let's take Watson, the top drugstore in China, as an example and analyze its growth factors based on retail marketing mix theories. 1, to develop PB products and innovate TBFF preferential display method; 2, to provide commodities with low-price and high-value; 3, to implement standardized customer service; 4, to cooperate across industries and expand stores strategically. In summary, here comes three conclusions: 1, Emphasized on PB commodities, differentiated strategies should be implemented for the major products, cosmetics, in this industry; 2, Enhance customer service; 3, For domestic enterprises, it's more efficient to establish store networks steadily than to merge.