Wipro, an Indian conglomerate with interests spanning consumer goods to information technology, said on Monday it will target China and Hong Kong following the recent acquisition of Splash Corporation, one of Philippines’ largest personal care company.
Wipro Consumer Care said the company will bring Splash’s SkinWhite whitening lotion, Maxi-peel Exfoliant Solution and Kolours hair-dye and other products to China, where it already has a presence through Zhongshan Ma Er Daily Products.
“We will take Splash products and leverage them through the Wipro network outside the Philippines to markets like China, Hong Kong, Malaysia and Indonesia,” said Neeraj Khatri, incoming CEO of Splash, which ranks fifth in the Southeast Asian nation’s personal care industry with revenues of US$80 million last year.
Wipro signed a deal to acquire Splash on April 29 for an undisclosed amount, one of its string of buyouts in recent years.
Wipro acquired the Chinese shower and bath goods maker Zhongshan in September 2016. Since then the company has grown to become the third biggest player in consumer care goods in southern China, said Nagender Arya, Wipro Consumer Care’s regional director for East Asia, Africa and Europe.
“We are able to cater to local consumers much better as we have world-class research and development facilities available regionally. We can do consumer tests in China or Hong Kong and develop products for these markets,” said Arya.
He added the company is aiming to consolidate its position in the Greater Bay Area, which includes Hong Kong and Macau and has a strong position in Guangdong and Hainan among young women.
The company said it expected its business to grow to US$2 billion in the next four years after reaching a turnover of US$1 billion last year.
According to research from US data firm Nielsen, the fast-moving consumer goods market, which includes toiletries and other packaged goods, remained strong in China in 2018 with a growth rate of 14 per cent. Chinese consumers have also become more “rational” rather than blindly buying highly priced goods, according to Nielsen.
Chinese market research firm Daxue Consulting also found the cosmetics and personal care market in the mainland experienced positive growth last year, with consumers in the 25 to 29 age group most willing to buy.
Although China has been fighting an economic downturn and an ongoing trade war with the US, Arya said he does not anticipate any impact on Wipro’s sales in south China. “Obviously consumers are holding back a little but we are finding Chinese consumers are willing to pay a premium for good quality products,” he said.
