Growing the ‘cosmedic’ market

If the flurry of activities and developments within a company is an indication of dynamism, then Aia-Hinoki Clinical deserves the description.

In the last few months, the company has appointed an old hand at direct selling to the board and has changed its corporate name.

Appointed as chairman emeritus is Jose Tabora, who founded Beautifont and successfully battled multinational companies until he sold the company to Avon Phils.

Aia-Hinoki has also changed its corporate identity, reflecting the joint venture of Aia Products, which was founded by former Beautifont officers led by Teodoro Gutierrez, and Hinoki Shinyaku Co. Ltd., one of the oldest and most respected skin care companies in Japan.

"Although Aia has carved a name for itself in the local market, we wanted to also emphasize the superior technology of Hinoki," said Gutierrez, the president of Aia-Hinoki. "We included the word, Clinical, in our corporate name to highlight the uniqueness of our products. Our products have been developed not only for beauty enhancement but also for skin treatment and disease prevention."

The joint venture is a win-win for both partners. Through Aia, Hinoki brings its products to the Philippines quickly and efficiently through a distribution network that knows the local market very well.

"Hinoki wanted a partner which is not after quick profits. They wanted a company with the right commitment and dedication to promote the products to the consumers," said Gutierrez.

Cutting edge R&D

Through Hinoki, Aia gains access to cutting edge skin care research and technology, which Japan is globally known for, at the least expense.

Aia-Hinoki’s best seller is the basic skin care line, which encourages the CCR regimen of cleansing, cleaning and restoring. Like all Hinoki products, this line carries a core compound called hinokitiol, an extract from a cypress tree called hinoki. Formulated in 1955, hinokitiol stimulates the regeneration of epidermal skin cells as well as heals inflammations.

Aia-Hinoki has currently six branches, all of which are located in Luzon.

"We’ve concentrated first on Metro Manila and the surrounding area where market demand is big. In due time, we will be expanding down south," Gutierrez said. Each of the branches is called a cosmedic center, an acronym for cosmetics and medical. "In Japan, the cosmedics market focuses not only in making the skin beautiful but also in improving its condition through treatment and prevention of skin disorders. It is the focus of Hinoki products," he said. Aia-Hinoki’s corporate statement says it another way – "to convince consumers to use products that will restore their natural beauty, effectively and safely."

Direct selling

Unlike Shiseido, which caters to the high-end market, and is advertising heavy, Hinoki is more reasonably priced. It is also sold through sales specialists who visit women at home or in their places of work. These sales specialists undergo a rigid sales training and orientation program that include Beautifont-tested seminars on good grooming and total personality development that help maximize their earnings. Commissions go up to 60%, depending on the position of the sales specialist in the sales ladder. As a further incentive, top producers or those who go over their targets are given all-expenses paid trips abroad.

"The market has become more discriminating and conscious about product composition. They expect to get the best value for their money and we make sure our people and our products deliver," Gutierrez said.