Flip flop retailer confident to meet 50% growth target

CEBU, Philippines - As the Philippines develops into one of the preferred tropical destinations in the world, it likewise became one of the top five revenue contributors of Brazilian flip flop brand “Havaianas” from among 120 countries worldwide.

Thus, despite the perceived financial difficulties Havaianas sub-distributor in Central Visayas and Eastern Visayas projects a 50 percent growth in revenues by end of 2009.

Aimil Sarmiento, managing director of AL Amizade Marketing Inc., the sub-distributor of Havaianas in Central and Eastern Visayas, said that since the company started sub-distributing Havaianas in 2003, it has been posting annual revenue growth.

“Havaianas continues to lead in the country’s flipflop market,” she said in an interview following the second Make-Your-Own-Havaianas (MYOH) event at the Northwing of SM City Cebu late last week, which she and partner, Leanne Tonette Florendo organized.

The three-day MYOH activity this year adopted a “Pinoy-theme,” with buttons inspired by traditional Filipino items like the jeepney, vinta, the tarsier and the Philippine map adorning the casual rubberwear.

“The Philippines has now become quite an important market to Brazil, that is why the company is open to inputs from Filipinos,” Sarmiento said.

For her part, Florendo, who is Managing Director for Amizade said the bulk of Havaianas Philippines’ market are women buyers, accounting for 70 percent; men buyers at 20 percent and the children market at 10 percent.

However, while it is gaining popularity among Filipinos and tourist markets Sarmiento said it has also been experiencing problems of widespread imitations, thus the brand has to continuously introduce unique and fashionable style to curb brand piracy.

She said that they will be introducing 20 to 25 new styles every two months, a move she said will “help curb the fake Havaianas sold in the market.”

Sarmiento and Florendo both urged the public to buy only authentic Havaianas flip flops sold in authorized retail outlets in the country as consumers are assured about a product that doesn’t only have a well-trusted brand name but is also functional and of very high quality.

“Piracy is not a unique concern in the Philippines, but also in other countries where Havaianas has a distribution network. That’s why we are strengthening our advocacy to buy only genuine Havaianas flip flops,” said Sarmiento.

This Brazilian brand has pioneered the trend of flip flop casual footwear in the Philippines. It has significantly, made a big hit in the country, including Cebu, and other neighboring provinces despite its high cost component, because of the tropical environment.

Like cellphones, Havaianas brand has also become a social-equalizer product, as it is now hitting the mainstream market, not only to the more sophisticated consumers.

A pair of Havaianas flip flop would cost from P795 to over a thousand, depending on the design and thickness.

Despite its high cost, more Filipinos, significantly from the regional key cities have joined the flip flop market bandwagon from all age brackets, Florendo said.— Ehda M. Dagooc