Splash expands direct-selling network beyond Metro Manila

By Neil Jerome C. Morales, BusinessWorld

Posted at Apr 12 2010 12:04 AM | Updated as of Apr 12 2010 09:58 PM

MANILA, Philippines - Homegrown cosmetics manufacturer Splash Corp. is expanding its direct-selling business network to major cities outside of Metro Manila to take advantage of the P18-billion direct-selling market.

“We plan to open a lot more distribution centers this year, so that by the end of the year, we will be in the double digits,” Gary Morales, chief of Splash’s Direct Selling Division, said in a statement yesterday.

Mr. Morales said they plan to expand in key cities like Dagupan City in Northern Luzon, Cebu in Central Visayas, and Davao region in Southeastern Mindanao.

In November, listed Splash launched its first direct-selling business center at the Starmall in Shaw Boulevard, Mandaluyong.

Splash’s second business center started operations at the Araneta Center in Cubao last month.

“Direct selling will be our third growth engine, the other two being our domestic retail sales, and our international operations,” he added.

Mr. Morales added that the division showed strong potential for revenue growth as reflected by a 100% increase in sales every month since the first business center opened last year, without citing figures.

Strong sales were attributed to solid brand equity of Splash products in the retail market.

For instance, the personal care firm said products like SkinWhite, Maxi-Peel, Kolours and Vitress are number one in their respective categories.

Profits of Splash, one of the leading local companies in the P35-billion personal care, beauty, health and wellness industry in the country, sharply fell to P12.31 million in the nine months to September last year from P165.85 million year on year.

“We decided to expand to this new distribution channel because in a way, we wanted to be more up close and personal with our target market,” he said.

The company, which was incorporated in 1991, is into the development, bottling, packing and marketing of cosmetics, beauty products and pharmaceutical products in the Philippines and abroad.

Its products and brands are classified into four basic categories -- hair care, skin care, naturals, and health and wellness.