Beauty Store Business

JAN 2014

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"We're doing a heavy sampling program. [And] we have other programs designed to help salespeople as well as help salons sell the product." which is mother of pearl. It's used in ancient Oriental remedies to give a soft, smooth appearance to skin and moisturize. It also helps with the mineralization of the skin and gives a really luxurious experience so that the lotion feels nice—not gunky or medicinal. Frantzis: The way we approached the design of the products was to first connect with the professionals who work long hours in the salon every day, plus industry leaders, so we could get all perspectives and understand exactly what the products need to address. In the list of needs that hairdressers mentioned, hand creams were at the top. They wanted creams for their hands, but none of [the creams on the market] seemed to satisfy their needs. They needed more than moisturizing—their hands are constantly exposed to chemicals and irritants, in contact with water, wearing gloves or working with high heat from equipment. The ingredients that Linda mentioned address those needs. And because of the range of needs, we had to go with two different formulas. What are the formulas, and how do they differ? Frantzis: Daily Moisturizing Cream is a fast-absorbing cream for normal-to-dry hands that rebalances skin, leaving hands moisturized and revitalized. It's not greasy, so that hairdressers don't have to worry about working in the salon environment—they can pick up scissors or a blow-dryer right after applying the 58 January 2014 | beautystorebusiness.com cream. When we hand out samples in salons, salon professionals love how the creams help protect the hands during repeated washing and how water is repelled because of the protective layer the creams provide. So we expect this cream to be used on a daily basis in the salon, multiple times each day. The second cream is Intensive Moisturizing Cream. This is a much richer, more emollient formula for very dry hands that need an extra touch of nourishment. When we talked to salon professionals, we realized that some need a product to prevent damage; whereas the Intensive formula is for those who already have an advanced issue and are looking for something to heal the problem. The cream immediately comforts dry, dehydrated, overworked hands and deeply nourishes them. It leaves hands soft, radiant, youthful and smooth in appearance, and that's exactly the kind of pampering effect we wanted to give. Where will your manufacturing take place? Frantzis: Our base is here in Switzerland. So we worked with experts in our area and in France, the epicenter of beauty. We have great teams that helped us define great compositions for the formulas, but we want to produce those products in the United States. That was a very conscious choice—to manufacture just outside New York because we wanted to be part of the community where we operate. We will exclusively market KALLISTA in the states. That's our focus, and we want to establish the products there before we even think about the rest of the world. So it was important to support the community where our products will be sold and distributed. We also have a central warehouse in Kansas. A person very experienced in the industry created it with a new team, so we're working with them on warehousing and distribution. And there is a network of experts across the United States that helps us with the commercial and manufacturing aspects. How are you developing your online presence? Frantzis: Our website is KALLISTA beauty.com. The site currently tells about our mission and the products. As we launch in the market, it will become much more interactive, with stories about the products and how hairdressers feel about the KALLISTA creams. We want our website to become a reference, with health and beauty tips for professionals. There will also be a Facebook page, which is under development. We are telling a story that's so emotional and relevant to hairdressers; so there's no better platform than Facebook to create that community and get constant feedback and reassurance that we're doing the right thing for our target market. What will be your distribution strategy? Gillette Parodi: We feel quite blessed to have had great meetings with handselected distributors since July. We're offering exclusive territories, and we're looking to match up with distributors that have a philosophy of caring for the hairdresser, because that's the heart of KALLISTA. The distributors should also see the need in the market for our products. We've had success already and will be launching with six very strong distributors; so we'll have distribution on the West Coast, in Texas and the Midwest, upstate New York and the Carolinas. We hope to have complete distribution by October 2014. So we still have some areas we're looking to fill in. Frantzis: Our distributors are handselected. They must be the type of distributor that cares and wants to improve the health and well-being of stylists and that wants to do that with the help of KALLISTA products. Also, we work with distributors that understand the needs of the market, understand the industry and are willing to support us to make KALLISTA a success and improve the lives of hairdressers. What support are you offering the distributors you're working with? Gillette Parodi: With KALLISTA, we support our distributors quite heavily. For example, as we're entering the market, we're doing a heavy sampling program. Once hairdressers use it once, they can feel the difference, and there's nothing better than experiencing the product

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