Thursday, July 26, 2007 Filipino firm bares plans to get bigger share of global market
GROWTH in the global beauty health and wellness sectors has strengthened the resolve of a Filipino-owned company to establish foothold in the international market.
Splash Corp. chief executive officer Dr. Rolando Hortaleza said the company also plans to capture a broader share of the international market for food supplement, particularly in North America.
Hortaleza said Splash Corp. is slowly penetrating the North American market, specifically in the western coast, through small scale operations or distributorship.
“We want to grow gradually and convince the people there that there are benefits in the use of virgin coconut oil (VCO),” he said.
While Splash Corp. sees potential to expand the VCO market in the United States, Hortaleza said “political arguments” have hindered the full-force distribution of the product since the US is pushing the use of soya-based products.
“It may be tough and slow but it is needed to sustain international operations,” he said.
In an interview with the press during the Meet the Business Legend forum of the Cebu Chamber of Commerce and Industry yesterday at the Sarrosa International Hotel, Hortaleza said Splash Corp. is looking into opening new international markets for its personal care products.
International presence
Splash International Inc. (SII), the marketing arm of Splash Corp., has started establishing its presence in major countries such as Indonesia, Malaysia, Singapore, Hong Kong and Vietnam.
SII has also created a mark in the Middle East, including the United Arab Emirates, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain as well as in Sudan in Africa.
Hortaleza said total international exports contribute 10 percent to the company’s revenues or about P280 million to P320 million annually.
In the production of VCO, for example, the company has shipped eight containers in the last eight months.
He said the Cebu market, which he describes as the fastest growing market, accounts for 25 percent of the company’s revenues.
Another potentially huge market is Europe since many Europeans “embrace” the use of natural supplements, especially those coming from tropical countries like Indonesia and the Philippines, Hortaleza said.
When asked about expanding in China, he said “the market there is still difficult.”
Hortaleza said the company is capitalizing on millions of overseas Filipino workers (OFWs) as customers, especially in Middle Eastern countries.
“We see our personal care products growing in the Middle East because many OFWs are now bringing our items through hand-carried luggage,” he said.
Hortaleza also said the company is strengthening its position in the Philippine market by developing more products and increasing marketing efforts.
Splash is willing to allocate P528 million this year for marketing and advertising, he said.
“We want to create value by selling brands than products. By building more brands, you create competitive advantage,” he said.
Hortaleza said the company will launch two new brands in the personal care line between August to December this year.
Splash Corp. was established in 1988 as a backyard business. (MMM)
