Some obfuscators are much better than others but that protects code from being reverse engineered, not data from being seen, it protects you from non-motivated hackers but not much else.
If you are trying to protect the data from someone who has decompiled / recompiled your code successfully then the data should never be in the clear unless the user authorizes it with a password that is not stored on the device and is used to encrypt/decrypt the data on the fly.
The simplest way I think would be to use password secured HTTPS session for data transmission and then either encrypt/decrypt it on the fly using that same NEVER TO BE STORED password or store it encrypted in SQL using that same NEVER TO BE STORED password.
This can get pretty sophisticated dependent on what you are really trying to do, how secure it really needs to be and how much control you have on the server side etc. lots of stuff on the web that is more detailed, this is an interesting read for instance
If you do want to go custom then Android pretty much has secure key exchange protocols, private / public key support, and a lot of general crypto support so it's all doable but I am not sure I would try and roll your own unless you are pretty comfortable with all of the protocols and proper use there of.
People don't usually need as much security as they think they do, but you can get pretty dang secure if your willing to put in the infrastructure and take the time to review it.