India's Wipro Announces Plans To Expand Splash Products To Chinese Market
Indian consumer goods and information technology conglomerate Wipro revealed plans to target Chinese and Hong Kong markets with its recently acquired personal care products. The announcement comes at the heels of Wipro's recent acquisition of the Philippine's largest personal care product firm, Splash Corporation.
Wipro's health care products division, Wipro Consumer Care, will reportedly be offering Splash Corporation's products to the Chinese market, including its SkinWhite whitening lotion, Kolours hair dyes, Maxi-peel Exfoliant Solutions, and other personal care products.
Wipro Consumer Care already has a presence in China, through its partnership with Zhongshan Ma Er Daily Products, but it plans to expand that presence using its own and acquired popular brands.
According to the incoming CEO of Wipro's recently acquired company, Neeraj Khatri, Splash will be bringing some of its most popular products outside the Philippines to various markets in Southeast Asia and in China.
Prior to its acquisition, Splash was ranked as the fifth largest personal care firm in Southeast Asia, with annual revenues of over US$80 million. The exact amount Wipro had paid to acquire the company has not been disclosed. The acquisition is the latest in a string of buyouts by the Indian conglomerate. Wipro recently purchased the Chinese bath goods producer Zhongshan in 2016. Since then, Wipro has grown the brand to become the third largest player in southern China.
Wipro's regional director for East Asia, Africa, and Europe, Nagender Arya, boasted that the company has the ability to make brands successfully because it has access to world-class research and development facilities.
The executive further stated that they will be conducting a number of consumer tests in China and Hong Kong to develop specially-made products specific to the market. Wipro is aiming to consolidate its position in Hong Kong and Macau as well as in major Chinese provinces such as Hainan and Guangdong, where it already has a strong following.
The Indian company is expecting its business to significantly grow in the coming years with the recent acquisition and its planned expansion. The company is banking on the fast-growing cosmetics and personal care markets in China, which has grown by double-digit numbers over the past few years.
According to market experts, the overall consumer goods market in China had grown by over 14 percent last year.
Consumption in China of packaged goods, including toiletries and personal care products, has also grown significantly, with consumers in the 25 to 30-year old age groups spending the most money.