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Skincare the VMV way

Source:Happi Asia Release Date:2014-07-07 639
Food, Beverage & Personal CarePersonal CareOthersPackaging Equipment & MaterialsProcessing EquipmentRaw Materials & Ingredients
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Instead of following trends, VMV is setting the pace through a science-based approach to developing a wide range of hypoallergenic personal care lines




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Anna Marie T Anastacio, VMV Ltd chief business development officer, and president of the Chamber of Cosmetic Industries in the Philippines (CCIP)  


VMV, a leading brand of skincare and cosmetics, is well-known not only where it was conceived and continues to be developed – the Philippines, but also in other markets where there is a growing demand for products that are hypoallergenic. The company's dermatologist-developed products are more focused on the free-from needs of extremely sensitive consumers. In this sense, VMV goes beyond the organic and natural trends to offer an even higher level of safety.  


Anna Marie T. ANASTACIO, chief business development officer of VMV Ltd, spoke to Happi Asia about what differentiates VMV Hypoallergenics and the company's approach to product development. As young-looking industry veteran, Ms. Anastacio has had 20 years of experience in the Personal Care industry, which includes handling internationally well known, various skin care, cosmetics and fragrances brands. She is also currently the president of the Chamber of Cosmetics Industries in the Philippines (CCIP).  


How would you describe the average VMV consumer in the Philippines?  When it comes to demographics, are there dominant segments?
We always say VMV consumers are from “diapers to dermabrasion”. This is because our product lines address different ages and skin concerns that cut across age brackets. Our core customers, however, are women from ages 25-55. Men account for a fairly large percentage at roughly 25 percent.  


Tell us about the general trends, and how VMV product development relates to them.  

A key trend in the Philippine market is organics and naturals but more because customers tend to equate them with safety.  VMV's commitment to being “The safest, most proven effective care on the planet” addresses the underlying desire of this trend.  


However, there are organic and natural ingredients used for skin care and cosmetics that are actually allergenic.


For example, essential oils are natural but some can be very allergenic – such as lavender.  How VMV defines its hypoallergenicity is based on the removal of all 76 common allergens, as identified by the North American Contact Dermatitis Group (NACDG) and European Surveillance System on Contact Allergies (ESSCA).


What is the company strategy in terms of expanding the product portfolio?  Would you say VMV is pro-active, i.e. anticipating market demand or creating market interest, or responsive, i.e. developing competitive products?

VMV does not primarily develop products based on consumer market trends or popularity. In my years of handling different brands, mostly international ones. I have not seen another cosmetic brand that has the same product development philosophy as VMV.  


Our core market starts from among those who have very sensitive or problematic skin and cannot use any product in the market.  Our products can be used by those with eczema, atopic dermatitis or psoriasis.  And we had to offer products from head to toe because the same predisposition towards sensitivity is true around your body where skin is present.  And these sensitivities can also be passed on from generation to generation.  So we develop products based on this target market's needs first.


So VMV doesn't really focus much on what is out there in the market in terms of trends.  It instead keeps its ears on the ground for what its core customers need (much of VMV's product development actually begins with patients at its own clinic and clinical researching company, the VMV Skin Research Centre + Clinics) and reading from dermatological articles and journals.  It also does not use an ingredient based on market popularity, but rather ensures that there is enough medical literature to support its safety and efficacy before considering it for use in any VMV formulations.


Because our sources are patients, dermatologists and medical research, we end up being able to anticipate what will be the next big “concern” and we've been able to keep ourselves competitive, current and even ahead of the curve.


One of our top-selling products is Essence Skin-Saving Shampoo which is free from fragrance.  Normally, customers would want scent on their shampoo.  But why is it top-selling?  Because there is this niche of customers who experience allergies or acne from the fragrances and comedogenic additives of their shampoo.  Then we developed non-flouride, flavorless toothpaste for those who suffer from peri-oral dermatitis (which includes developing acne around the mouth and chin area) - again, another top seller.


Can you describe an example of a VMV development that reflects this strategy?

One clear example of this is our Armada sun care line.  VMV has been into research on sun and light since the 80s.  Because of its research and those by other researchers abroad, VMV felt that it should have a sunscreen that does not only give UVA and UVB protection but also protect against infrared and visible light.  This is why Armada is among the first sunscreens in the world with protection factors against UVA, UVB, infrared and visible light, and both outdoors and indoors.


Another of our top-selling products is Essence Skin-Saving Shampoo which is free from fragrance.  Normally, customers would want scent on their shampoo.  But why is it top-selling?  Because there is this niche of customers who experience allergies or acne from the fragrances and comedogenic additives of their shampoo.  Then we developed non-flouride, flavorless toothpaste for those who suffer from peri-oral dermatitis (which includes developing acne around the mouth and chin area) – again, another top seller.


As a pioneer in the use of VCO (virgin coconut oil) and “free-from” personal care and cosmetics products.  Are you seeing similar products in the mass category?

For VCO, yes.  In fact, I know of other brands and retailers already developing their VCO body and bath, and skin care lines.

In terms of “free from” and exclusion list of allergenic ingredients from the formulation, I doubt if the same technology will be made available in the mass category.  Some of the identified common allergens by NACDG and ESSCA are extremely common cosmetics ingredients.  For example, ingredients used as preservatives.  Because they are allergens, VMV excludes them from its formulations; but to develop and use different materials for preservation, VMV had to use ingredients that may not necessarily be commonly available in the market and which can be quite rare or costly.  When an ingredient is rarely used, the demand is low, therefore, the price is high.


Another example is vitamin E, which is a great anti-oxidant and widely used in skin care and cosmetics.  Unfortunately, it is a common allergen.  We had to replace vitamin E with another great anti-oxidant which may not necessarily be widely used yet, and we had to do this in almost all 300 SKUs.  Again, because the ingredient is not widely used yet, then it is more expensive.


To replicate such technology in the way that VMV omits 76 ingredients that have been identified as allergens – plus our quantity of testing, including expensive randomized, double-blind studies – is expensive and may be prohibitive for mass-market price points.


What are your best-selling brands, and in what way did you establish these products?

Our top selling category in any market is Armada, our sun care line.  This line's business was really built on consumer education that sunblocks or sunscreens are not just needed when going to the beach.  VMV stressed the importance of sun care as part of daily regimen, as a preventive measure against skin cancer which affects all skin types, colors or and races, and information campaigns on how indoor and visible lights can cause skin darkening and melasma (dark spots).


Why Armada has achieve great market acceptance is because of its texture and most especially, its efficacy.  Many outdoor sports enthusiasts will vouch for Armada's effective sun protection. Plus it is the only among the few brands that has protection factors against indoor and visible light as well.


Other best sellers include our treatment toners and Re-Everything Eye Serum, our Id Monolaurin Gel for face and body acne (and sweat acne), and our Skin Bloom Blush. Interestingly, many of our most basic products like toothpaste (for those with acne/rashes around the mouth, chin and jaw) are also top sellers.


In what way is the Filipino personal care consumer different from or similar to other Asian consumers?

Filipino consumers do share certain skin concerns with other Asian consumers.  For example, the desire to be “whiter” and the association of fairness with beauty is still strong not only in the Philippines, but also in several other Asian countries.  Whitening as a key benefit has also penetrated other product categories such as men's care and feminine washes.  While whitening toothpaste has been around as a product form, this has also recently become a focus of some oral care companies with the addition of whitening mouthwashes.


VMV's Illuminants+ line provides active therapy for tyrosinase inhibition to address concerns of dark spots (melasma) and other hyperpigmentations, as well as giving the skin an even-toned, brighter glow.


Related to this interest in whitening is the growing demand for SPF products.  Consumers now understand that brighter, even-toned skin is also achieved by using products with SPF so sunblock have become a popular addition to the basic skin care regimen.


What about the personal care category for men?  How is this evolving in the Philippines, and how are you doing in this market both domestically and in your other markets?

The men's market is definitely growing, but the market base is still small as compared to women purchasing skin care.

At VMV, we've always had a good percentage of male users, which is interesting because we have never gone out of our way to focus on gender. Our focus is skin, and under a microscope, skin cells are skin cells, really only differing in certain behavior (darker skin would produce more pigment, for example).  So VMV has always focused on skin conditions and concerns - and these concerns cut across gender.  An acne treatment proven to work on women should work on men (why you don't see lasers or prescription drugs for male or female acne, for example).  While more men get skin cancer than women, a sunburn is the same whether for a man or a woman.  Because of that, we have always had men as part of our regular customer base as well — and although 25% may far smaller compared to our women customers, it's a rather impressive percentage considering we've never specifically targeted men (we target skin).  Historically, the biggest seller among men, with avid fans and ambassadors, is our Armada Sport 70 sunscreen, which is the favorite of golfers, Ironman athletes, and other outdoor enthusiasts.


We just recently launched a shaving line.  Naturally, one would think that it would be mainly targeted towards men, but even for that line, we don't alienate women who also may prefer shaving their body hair than waxing.  It is still a very new line but we did notice that the market was quite receptive to the line because we really concentrated on creams to give the smoothest shaves based on hair type, but aftershave solutions that really addressed skin concerns based on skin type.


What part does social media play in your marketing strategy?

Years ago, social media was perceived as a complementary tool to our above the line and below the line marketing strategies.  But social media has been proven to be the most powerful primary tool, especially for a brand like VMV.  The beauty of social media, besides being more cost-effective, is that we're far more intimately engaged with our customers. Our customers are very smart, very skeptical of cosmetic product claims, many have really chronic or severe skin problems or spend lots on dermatological procedures, and, when they finally find something that's really safe for them and that really works for them, they are loud. Our customers tend to be ambassadors for the brand and big sources of word-of-mouth referral — and this includes our fans among doctors and beauty editors. Social media is a natural fit for such avid fans who also have very insightful questions and suggestions. In fact, now, VMV is shifting its marketing strategy to social media first, before anything else.


Consider these figures*: there are 38 million internet users in the Philippines, 70% of whom are under 30 years old, and 22 million Filipino Facebook users are accessing FB through their mobile devices.  And the Philippines leads in Southeast Asia in terms of “brand engagement” at 25.6% of all Internet users having interacted with a brand online.  Many of these people are VMV's market of skin researchers, smart and/or skeptical users and fans.  These are the people who like to understand more about what they purchase and use on their skin.  These are the ones who read blogs and articles, who research, then purchase after getting the information they need and then, who avidly share their finds and experiences.  


What do you see as the next big thing in the Personal Care and Cosmetics market in the region?

I think that the trend towards organic and natural products will continue to grow – as this same mindset is not only seen in personal care and cosmetics but also in food and diet.  It will be holistic and lifestyle in approach.


Another category is the sun care category.  More and more people are aware of the effects of sun and other light sources to skin, and the reality of skin cancer.  And the shift of lifestyle and sports to marathons, Ironman, surfing, etc. in the Philippines will continue to drive that category up.


What challenges remain for the Personal care and Cosmetics industry in the Philippines as economic integration approaches?

There are a lot of good Philippine-made products (not just Filipino-owned companies and brands but even for products produced for multinationals) in the market.  But there is a lot to improve in terms of branding, packaging and promoting these products to other markets.  With the integration happening, there will be stiffer competition.  As of today, the Philippines is hardly considered a top cosmetic exporter.  However, I do believe that in the face of competition, the Philippine companies’ and brands' creative and innovative ways will also come to the fore.


How will the economic integration affect VMV, if at all?

VMV is present in international markets such as the US, where we have a stand-alone boutique in NYC plus growing distribution in clinics, spas and online, Italy, Sweden, Mexico, Singapore, Hong Kong and other countries.  With the economic integration, this only opens more doors in ASEAN for us!  So it is a very good opportunity for us to find great distribution partners and expand our market. (Athle W. Estacio, athle@ringiertrade.com)



* Ms. Anastacio cited figures from DCOM Philippines; IMMAP; Blended, Comscore and Effective Measures; Facebook Ad Planner; and Pure Digital Communications  



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