Hortaleza profits zoom 13 times on Filipino obsession with white skin
Many Filipino women continue to spend their disposable income on whitening products to look good and boost their self-confidence.
With strong purchasing power and aggressive consumption propensity, more and more Filipino women are turning to products to lighten their skin color.
Cosmetics companies are enjoying robust sales with new innovations and an intensified advertising campaign that feature celebrities with dewy complexions.
One company that is cashing in on the multi-billion peso industry is Splash Corp. of the Hortaleza family which saw its net income surge more than 13-fold last year on the back of higher sales in both local and overseas markets.
In a statement, Splash said net earnings skyrocketed to P160 million from only P12 million in 2014 as sales grew eight percent to P3.78 billion.
?The sales increase came mostly from higher sales of the personal care business for both the Philippine operations, which grew by 12 percent, and the international operations which registered a sales increase of 13 percent,? Splash said.
Sales of flagship products SkinWhite and MaxiPeel continued to grow despite aggressive marketing of competing products which increased their media and in-store promotions spending.
?Our communication strategy highlighted the strength of our products in terms of quality and pricing and strong affinity with their consumers. Splash was able to optimize its marketing spend and even managed to decrease its selling expenses through the rationalization of its trading terms with national supermarket and drugstore chains and the efficiencies derived from the integration of distribution under Prime Global Distribution,? Splash said.
SkinWhite Glutathione, a new whitening variant, doubled its sales after a very creative advertising campaign. Also registering a significant increase in sales was Flawlessly You.
The company?s international operations division continues to build its distribution base, focusing on markets where the retail landscape is still developing, like Nigeria in Africa and Indonesia in Asean.