Beauty Store Business

SEP 2015

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20 September 2015 | beautystorebusiness.com As far as successes, we knew we needed to be innovative and persistent in order to come up with a solution to ensure our brick-and-mortar sales could compete with online sales. Therefore, from planning to creation to implementa- tion, we came up with a solution to mon- itor our brand image and value online with a series of software innovations and legal prowess, resulting in a 50% price-point increase online at the point of sale; thus giving brick and mortars a first-time opportunity to compete with online retailers in beauty. This remains our greatest accomplishment to date with Mavala. Bill: We can't say specifically what we're doing on the back end regarding that, but when we started in August 2014, Mavala STOP, for example, was selling for $8 to $9 on Amazon—that's close to 50%-off the retail price of $15.50. There was no policing of it. We had to come up with a way to get that brand value back. Our strategy allows us to look at who those sellers are and prevent them from selling in the future without authorization from us. Now we have a half-dozen major manufacturers contacting us to ask what we did. Essentially, we've created an environment where a business can sell at full retail, which allows for a 100% margin compared to last year on the same prod- uct. Most retailers operate on a 20% to 25% margin; so they're seeing four times what they used to for the same product. Also, in the beginning, when taking a global look at Mavala, I knew instantly that we would need to focus on implement- ing a strategy to "reintroduce" Mavala to the U.S. market while simultaneously increasing our brand value to our custom- ers. In part, we set about doing so by launching a brick-and-mortar awareness campaign. In 2015, we attended Cosmo- prof North America, as it is arguably the largest beauty show we have in the states each year, and most manufacturers introduce new lines there. Additionally, we attended the Western Buying Confer- ence and the Eastern Buying Conference. These shows are typically where you have an opportunity to speak with your buyers one-on-one twice per year. We have simultaneously been traveling the country visiting with our existing customer base. We've explained the importance of reel- ing in unauthorized Mavala online sales and creating a stronger Mavala brand presence in the storefronts, resulting in Mavala sales increasing by four times over the previous year. What's next for your business as you continue to expand your reach in the states? Bill: Mavala nail polish, known as the Mini, is very unique, especially the size of the bottle and the cap shape. Each Mini polish provides 10 full manicures. The Mini's small volume is actually its strength as the last drop remains as fluid as the first. Thanks to the Mini's unique and smart formula, which has been held secret for years, each Mini polish ensures that the polish continues to apply as perfectly as it did the first day. At the same time the Minis have become worry-free thanks to the never-ending pursuit of perfection and innovation of formula that results in all Minis being free of dibutyl phthalate, tolu- ene, formaldehyde, paraben, camphor and collophane, with no added nickel. Other manufacturers are following suit coming out with similar bottle and cap designs, which we've had for 50 years. While the Mini polish makes up 40% of global gross revenues for Mavala Switzerland, it makes up less than 1% of sales in America. We have all of these businesses within the business, but we can only grow so fast. Note that our nail polish is coming to America! We will be launching polish in the fall and into next year. Over the next 18 months, the beauty industry will take notice of Mavala Minis. Mavala Switzerland is always innova- tive in its research. So we're confident there will be new products to hit the global beauty industry. However, because we already have hundreds of items yet to hit the U.S. market, we'll introduce past products as well as the new and innovative products that come out. If we introduced 10 products per year that have never been sold here, we could introduce them for 20 years before we even get to new innova- tions! That's how big the company is. Finally, Mavala currently owns and operates the Top 10 esthetician schools in Belgium, France and the United Kingdom. It is our intention to further replicate this education program for purposes of training new estheticians entering the profes- sional field of beauty and continuing education for existing and new customer accounts. We are focused on identifying select U.S. esthetician schools to create a Mavala-branded experience at the time of initial introduction to the beauty industry in an effort to further enhance the client's experience in receiving a proper Swiss manicure. Is there anything else you'd like our readers to know? Bill: Mavala is the world leader in natural nailcare research and manufacturing, and we have had some notable recogni- tion lately. Mavala was voted Best Nail Brand by The Beauty Shortlist for 2015. Recently, Mavala was mentioned in The New York Times by Grammy Award- winning artist St. Vincent. She revealed that she won't leave the house without her Mavala lipstick. We were shocked by the amount of calls we received! Stacie: We encourage anyone to learn more by calling me at 704.843.2607, by visiting mavala-usa.com, or by emailing info@mavala-usa.com. ■ Tracy Morin is a freelance writer and editor based in Oxford, MS. "When a product is well-respected in 160 countries and is considered the No. 1 natural nailcare brand in all of Europe, that's a huge statement." Images courtesy of Mavala USA

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