Belo group income drops as vanity takes backseat

CEBU CITY, Philippines — The Belo Medical Group, Inc. posted a 20% drop in revenues as of October as vanity took a backseat and beauty-conscious customers cut spending amid a global economic slowdown. "We’re really feeling the pinch because 60% of our clients are foreigners who are mostly Americans," Victoria "Vicki" Belo, medical director of the Belo Medical Group, said in an interview last week. She said revenues would likely drop further next year as fewer customers come in for facials, peels, nose lifts, breast augmentations, liposuction and other beauty treatments. "Given recent bad economic forecasts, we expect the worst next year," she added. Liposuction, which is the most expensive service offered by the Belo skin care and cosmetic surgery center, is the most popular among foreigners, Ms. Belo said. Foreigners come to the Philippines, she said, because of world-class quality results and affordable prices. Despite gloomy projections, Ms. Belo said she remained confident and was prepared to expand her clinic’s market reach. The group recently embarked on a P30-million expansion project in Cebu, where the first Belo clinic outside Metro Manila will be opened. Located at the Terraces of Ayala Center Cebu, the 150-square-meter clinic will house the company’s signature facial services starting February next year. To date, the group has seven clinics along Tomas Morato and Trinoma Mall in Quezon City; Greenhills in San Juan; the Medical Plaza and Rustans in Makati; Alabang West Gate in Muntinlupa; and The Podium in Ortigas, Pasig. "I admit it’s really untimely because of the economic crisis, but I’ve been wanting to do this for a long time — to open a branch in Cebu," Ms. Belo told a briefing. She also noted that Cebu serves as a gateway to other cities and provinces in the Visayas and Mindanao. Ms. Belo’s parents are from Cebu. She also cited the potential market of Korean tourists in the province. She expects the Cebu clinic to make money within one-and-a-half years. The clinic will not offer surgery to conservative Cebuanos, Ms. Belo said. — Regina T. Aguilar, BusinessWorld