Making top-of-the-line beauty products affordable to all
MANILA, Philippines - It can be expensive, this business of being beautiful. Beauty products and treatments can cost a hefty sum and significantly dent the budget.
But Dr. Rosalinda Ang-Hortaleza is a firm believer that “everyone has the right to be beautiful.” As chairman and CEO of personal-care retailer HBC, she contends that top-of-the-line beauty products should be accessible to all.
“If beauty products are too expensive, you exclude a lot of people. Our main clientele are very conscious about getting the best value for their money,” claims Hortaleza. She reveals that although HBC targets the so-called C and D income brackets as the company’s core customers, “even those who can afford to spend more buy certain products because these really work.”
At HBC outlets, a simple tube of lipstick can retail for as low as P50, while the most expensive item is an all-in-one anti-aging, whitening and sunblock formula called Perfecting Cream. Hortaleza admits, “We were initially hesitant to launch the cream thinking that it was too expensive at P750. But the customers ended up loving it. As long as products deliver the expected results, people will be willing to spend.”
The average transaction value at HBC outlets is P300 per customer, but monthly sales of Perfecting Cream currently reach between P2 million and P3 million per month and supplies constantly run out. Of course, the product is significantly cheaper compared to similar products on the market.
“The trend now is for younger people to use beauty products,” Hortaleza observes. To address this market, hypoallergenic products have been specifically designed for the young set. Called Allue after Hortaleza’s daughter Allue Krisanne, the three-year-old line is fast attracting a loyal customer base.
HBC’s goal is for “happy and beautiful customers.” And to increase its competitive edge, free facials, makeovers, foot spas and hair treatments are offered at the stores. This is coupled with “activation programs” where trained beauty professionals visit various offices or barangays to offer free treatments. “We bring the HBC experience to people,” says Hortaleza. “We’ve always believed that each customer is special, so we try to create beautiful experiences for them.”
The extra effort to introduce HBC has paid off. From six stores in 1993, the company has expanded to 217 branches in 2009 — 207 of which are company owned. These include outlets in Singapore, Bahrain, Oman, Los Angeles, Las Vegas and 17 stores in Seafood City Outlets in California. “We are where our countrymen are,” explains Hortaleza. “We want Filipinos all over the world to experience HBC’s tatak exclusibo legacy of world-class yet affordable products, and exceptional Pinoy customer service.”
Expectedly, revenues have risen with more stores. Sales in 2008 were recorded at P1.2 billion, and in 2009 reached P1.3 billion. The figures represent an 11-percent growth in retail sales, higher than the industry growth forecast of eight percent. Still, says HBC chief operating officer Noel P. Manucom, “We are only hitting three percent of our target market. Our goal is to reach seven percent. This will translate to about P2 billion in sales. We aim to reach 15 percent of out market within two years.”
By 2012, HBC plans to expand its network to 500 stores. This will be a mix of company-owned, franchised and store-within-a-store outlets. Each expansion will be supported by continuous product innovation and retail strategies that promote customer loyalty. “We see a lot of potential in the business because we haven’t been able to reach certain areas yet,” continues. Manucom. “Our challenge is to increase the company’s penetration levels.” He cites, for example, that both Visayas and Mindanao merely have 16 outlets each. In addition, easy franchising arrangements should make an HBC outlet an attractive choice for a business venture.
“You could say that HBC is a social equalizer,” says Manucom, and he is not merely pertaining to the fact that physical beauty should not be dependent on paying capacity. With the potential of empowering people towards financial success and more comfortable circumstances, an HBC business venture is one pathway towards a more beautiful life.
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HBC, Inc. is the leading, world-class retailer of health, beauty, personal and home-care products and services. Call HBC customer care at 984-5555 local 228 or visit www.hbc.com.ph.
