For beauty business news, beauty store owners turn to Beauty Store Business. Beauty business trends, beauty business profiles and more!
Issue link: http://beautystorebusiness.epubxp.com/i/536106
44 August 2015 | beautystorebusiness.com Skincare Spotlight NO ONE WOULD DISAGREE THAT THE U.S. SPA industry suffered significantly during the Great Reces- sion. And most people would agree that the spa industry is back on track. Numbers from the International SPA Association's 2014 U.S. Spa Industry Survey indicate as much. [See graphic.] However, in my mind, the U.S. spa industry has changed more in the past fi ve years than it has in the previous 10— which is about as long as I have been paying attention to this industry. Not since Marcia Kilgore democratized the spa and made the idea of going to spas whimsical, sassy and "no-attitude" with the opening of the fi rst Bliss Spa in 1996 in New York City has the spa industry changed so much. In many ways, what Kilgore can be credited as hav- ing started (the democratization of spa) has continued to develop. Massage Envy, which today boasts more than 1,000 locations, was founded on the idea that massages and facials should be approachable and affordable to all. Innovation and trends outside of our industry have also impacted the way that consumers look at spas. Maybe it was the fl ash-sale craze (Groupon, HauteLook and more) that led consumers to expect quality services at discounted prices—the new normal. Maybe it was the advent of Uber that created the expectation that apps should rule our world and that everything could be or- dered from our mobile devices. Or maybe it was Airbnb that led everyone to just question the status quo and how things have always been done, and expect more. And, of course, the constant intensifi cation of the role of social media in all of our lives cannot but impact every aspect of our life, including spa. THE SHIFT BY CONSUMERS Regardless of the why, speaking to consumers around the country over the last couple of years suggests very clearly that a shift has happened (and is continuing to take place). A few years ago I would have suggested that consumers' priorities when selecting a spa to visit would have been: • The need for destressing/pampering • Relationships with the esthetician/therapist • Results • Affordability Today, when deciding on which spa to visit, consumers seem more interested in and driven by: • The desire for convenience (geographical availability, the ability to book easily and last minute) • A lack of time (quicker treatments are more desirable than long spa afternoons) • Consistency across locations and geographies • Customization and specialization • Affordability The success of Drybar, launched in 2010, is a perfect example of this shift in consumer priorities. With 40-plus stores and more than $30 million in revenue, and a rapid growth rate, Alli Webb's brainchild is changing the face of the salon industry. Drybar also illustrates another trend in our industry—the evolution of service models that are based on offering a single treatment or service—hyper-specialization instead of the one-stop-shop model. That was then: luxurious retreats offering all services and amenities, focused on taking some time away from "life." This is now: specialized, niche facilities that cater to specifi c beauty needs in an hour or less. Other than Massage Envy, who is driving this inno- vation in the spa industry? Here are three brands that are disrupting the world of traditional day and medical spas, worthy of notice today and hopefully for years to come. SKIN LAUNDRY Concept/tagline: A "dry-cleaning" service for your face Founded by Julian Reis, Chris Carey and Dr. Elson Lai based on two core beliefs: Everyone deserves to have beautiful skin; and beautiful skin should not require in- vasive procedures. Number of locations: Six; the fi rst East Coast location recently opened in New York City Headquarters: Los Angeles Signature treatment: 10-minute "laser facial," $65 Pricing model: First treatment is free, membership, packages and walk-in pricing available Mobile app: no Product brands: private-label brand FACE HAUS Concept/tagline: A facial bar offering high-quality, affordable skin care for the people Founded by entertainment industry vets Karey Burke, Dawn Olmstead and Jenn Worley; with a Scandinavian theme. Dermatologist Dr. Harold Lancer is the consulting physician for the brand. The Changing Face of Spa You've heard of Massage Envy. How about Skin Laundry? Face Haus? The new HeyDay? They're also disrupting this sector. by Ada S. Polla Photo courtesy of Ada S. Polla; photo by Kelli Dailey, Third Line Studios This is now: specialized, niche facilities that cater to specific beauty needs in an hour or less. The Big Five A fi fteen year journey! 20,180 locations 349,900 employees 125,000 employees $4.2 billion revenues $61 per visit 69 million visits 4,140 locations ISPA 2014 U.S. Spa Industry Survey 164 million visits $89 per visit $14.7 billion revenues 2014 1999 Numbers from the International SPA Association indicate that the U.S. spa industry is back on track.