Homegrown beauty chain sets capex at P40 million

CEBU, Philippines - Beauty and wellness chain Salon de Rose Inc., is allocating P40 million for its expansion plan for the next two years as it braces for the inevitable borderless economy next year.

Salon de Rose Inc., president and chief executive officer (CEO) Bryan Lim said that the company will be adding 10 more branches across the country. The company now has 30 company-owned outlets spread throughout the Philippines.

"Beauty business is strong and resilient, despite the calamities and the various crises we experienced over the years, we continued to grow because people want to feel good regardless of what is happening," said Lim.

Founded by Rosario B. Lim in 1974, along with its sister-company Rose Pharmacy, the salon chain is now managed by the third generation of the Lim family.

Last year, Lim said Salon de Rose posted the highest growth in the history of the company, almost approaching the 15 percent mark, if not for the twin-calamities that hit the Visayas in the latter part of 2013.

Two Salon de Rose branches in Tacloban and Ormoc were badly affected by the strong Yolanda typhoon.

However, despite that Lim said 2013 was the highest performing year for the company, and they foresee this upswing movement to further expand in the next few years as the ASEAN Economic Community opens next year.

Salon de Rose's aggressive move towards preparing itself for a tougher competition in an open economic community was also prompted by the upbeat consumer base in the country's beauty and wellness sector.

Also, beauty and wellness is no longer considered as luxury for today's new generation, but already part of their health, wellness and grooming regimen.

Lim said Salon de Rose is also constantly monitoring the movement of the beauty and wellness industry both in local and international scenes.

In fact, he said Salon de Rose recently attended the Asia Pacific Economic (APEC) Summit, to feel the pulse of the macro-economic movement not only in the Philippines but also in the regional block of Asia Pacific.

Lim believes that the company will sustain its growth and strength amid economic uncertainty and crises, saying the "lipstick effect" had been proven true in the company's 40-year existence.

The "lipstick effect" is the theory that when facing an economic crisis, consumers will be more willing to buy less costly luxury goods. Instead of buying expensive fur coats, for instance, people will buy expensive lipstick, or the Lim's case in the Philippines, when facing economic problems, and other stressful situations people go to salons "to feel good."

Aside from the company's plan to roll out the P40 million capex for outlet expansion starting this year in Antipolo, Rizal; Pampanga; Imus Cavite; General Santos City, and other areas in the country, Lim said the company's board of directors is also eyeing international expansion in United States, and in some parts of Asia.

While all the Salon de Rose outlets around the country are company-owned, Lim said it is also closely taking into account the offering of franchise package to accelerate further their expansion mode, however, careful strategies should be applied in order to maintain the salon's strength of quality and personalized service to its clientele. (FREEMAN)