Thriving on IP Protection

After graduating medical school in 1985, newlyweds Dr. Rolando Hortaleza and Dr. Rosalinda Ang-Hortaleza saw a lot of potential in a special cuticle remover formula that their cousin had invented. Not content to let the opportunity pass them by, they decided to pool together the 12,000 Philippine Pesos (₱) they received as wedding presents to use as start-up capital for a small cosmetic repacking business called RBH Cosmetics. They purchased the cuticle formula from their cousin for ₱5,000 and spent the rest on necessary inventory and packaging materials. With the help of a newly hired assistant, the fledgling company packaged and distributed the special cuticle remover, ordinary acetone and cold wave lotion to local beauty parlors.

Complemented by the couple’s strong entrepreneurial spirit, demand for their products grew, and by 1987 they had already made their first ₱1 million. Their small business eventually became Splash Corporation (Splash), which is now a multi-billion peso conglomerate of companies that develops, manufactures, bottles, packs and markets cosmetic, beauty, personal care and pharmaceutical products for domestic and international markets. In 1996 Splash enjoyed revenues of over ₱1 billion and it became one of the top 300 corporations in the Philippines in 1998. In 2007 it was listed on the Philippines Stock Exchange. This has firmly established Splash as one of the most formidable and successful companies in the Philippine personal care industry.

Inspired by the outcome of this first innovation, Splash launched another pioneering product in 1988—the Philippines’ first fruit-based facial cleanser. The new astringent (a chemical compound that protects skin) formula was a mild but effective facial cleanser with a moisturizing and natural healing effect because it was based on natural ingredients. This new product was marketed in avocado and cucumber variants under the Extract® brand name. Splash quickly began making waves with this innovation, and in 1989 sales reached ₱40 million and Splash became the second largest company in this industry in the Philippines, knocking on the door of long-established multinational corporations.

These two early successes solidified the importance of R&D to Splash, and it began setting aside funds specifically for R&D of new products. Its next success came quickly, when in 1991 it developed an exfoliant (a chemical that removes dead cells from the skin’s surface) that is effective in lightening skin, preventing skin ageing, controlling pimples and smoothing skin by hiding scars left by pimples. Marketed as Extradem®, it was a success and changed the Philippine facial care market, which at that time was considered to be in decline. Another successful product developed was Skin White®, which is now the leading skin whitener in the Philippines.