Kimberly-Clark Phils eyes Asian markets

Kimberly-Clark Philippines Inc. (KCPI) is eyeing the possibility of becoming the regional source of various infant products to supply the major growing markets in Asia.

KCPI said that the increasing number of double-income households and changing lifestyles in urban areas in the region, is likely to boost the consumption of various consumer products, particularly infant products such as disposable diapers.

Despite cautious consumer spending, KCPI senior vice president and treasurer Leonilo Alfonso said the market is expected to grow by at least 20 percent in 2001 and the Philippines is well-placed to become a major supplier for this expanding market.

Alfonso said Kimberly-Clark has manufacturing plants in Thailand and Malaysia but its Philippine operation has the biggest manufacturing capacity, the expertise and operating efficiency to become a regional supplier for other markets such as Singapore, Vietnam and Indonesia.

"Our advantage is that KCPI has the biggest manufacturing capacity and therefore higher economies of sale," Alfonso said.

Since KCPI started operations about 25 years ago, Alfonso said the company has seen marked increases in the market for such products as disposable diapers, a product that had been an exclusively high-end product until the introduction of more affordable brands of disposable diapers.

KCPI itself manufacturers two major brands of disposable diapers – Huggies, its high-end brand of disposable diapers and Kimbies, the company’s entry-level brand of disposable baby diapers. Disposable diapers account for at least 50 percent of the company’s revenues.