Twenty one years later, VMV has the third largest retail sales figures in an industry dominated by Avon. "Avon is in a league of its own," said Rowell, a former president of Avon Phils., which generates sales more than four times the P120 million in retail sales registered by VMV.
To keep VMV growing, Rowell and Verallo-Rowell are eyeing the export market.
"Between now and 2010, we’ve got to get into the export bandwagon. It’s a whole new world for us but we need to do it to give VMV its second growth spurt," Rowell said, adding that VMV is reaching the local ceiling for hypoallergenic products.
To expand the production capacity of its Pasig factory, VMV is currently negotiating for a loan from the Small Business Guarantee Fund Corp. SBGFC is a subsidiary of the Department of Trade and Industry, which extends loans to small- and medium-sized exporters.
The company intends to increase its export volume of sun block products to New Zealand and Australia. But it is the Southeast Asian market that VMV intends to focus on, primarily because VMV’s formulations for the skin tones found in the Philippines – from Caucasian white (with pink undertones) and Chinese white (with yellow undertones) to Malay brown to aborigine dark brown – can be sold without changes in neighboring countries.
In terms of price, VMV products are positioned lipstick-to-lipstick against Clinique and Maybelline.
VMV’s success stems from early identification of its market niche. Being a dermatologist, Verallo formulated products for Filipinos who either had sensitive skin or wanted to avoid skin problems. Her first commercial formulation sold by VMV was an astringent that not only cleansed the face but also prevented acne.
This year, VMV has gone one step further in matching its products to the needs of its customers. For a slightly higher price, VMV will customize products such as lipsticks, pressed powders and eye make-up to the color and texture specifications of the customer.
VMV’s willingness to listen closely to the needs of its customers has been a major factor in generating sales. The setting up this year of a marketing arm called Skin Prescriptive Marketing Inc. under daughter, Laura Rowell-Bertotto, has also helped. Unlike its competitors, for example, VMV continued to generate brisk sales last month despite the weaker economy.
Verallo-Rowell also spends time in the laboratory to bring up the local raw material content of VMV’s products. Right now, the company imports 85% to 90% of its raw materials, which places a great strain on its pricing structure as the peso continues to fluctuate against the dollar.
Rowell applies a basic principle in both his executive search business and in VMV: finding the right chemistry. He says the right chemistry between the employer and his would-be executives ensures a fruitful, lasting relationship. It goes without saying that VMV has had the right chemistry with its customers for the past 21 years.