A LASER APPROACH TO BUSINESS
Cutting edge techniques shape laser clinic performance.
Cosmetic injectables, laser hair removal and skin treatments are standard fare at medical aesthetic clinics, and are increasingly popular.
Your local beauty salon is likely to be a one-off. In fact, it’s probably one of several in your town or suburb. And while there are highly recognisable franchised beauty salon brands around the country, the independents are far and away the significant group. However, the prevalence of indie salons doesn’t equal the power of the franchise brand. Independents have a tough fight on their hands.
The Personal Services IRC’s 2018 Skills Forecast outlines the competitive pressures for businesses in the beauty sector, suggesting they are much harder for the independent salon to counter than a franchised outlet. It points out that “franchised businesses are able to provide low-cost hair and skin treatments through the use of intense pulsed light and laser equipment and by providing special offers on deal sites that aggregate these offers”.
The Skills Forecast indicates three elements are driving increased demand from both female and male customers:
• population growth
• rising incomes
• body consciousness.
On the one hand beauty salons choose to focus on niche services rather than offer a broad selection of treatments. At the same time there is a narrowing of the distinction between medical practitioners and cosmeceutical beauty therapists. This reflects the growing trend for invasive, results-driven treatments.
Franchised laser clinics have shown their capabilities, harnessing technological advances to deliver promised results and meet customer expectations on safety and care.
The Skills Forecast also points to the importance of social media as an essential, given customers’ tendency to research treatments, and an ideal way for clinics to promote their businesses and handle complaints and feedback.
What do franchisors say?
SILK’s Gita Coorey agrees the medical-aesthetics industry is booming, with clients increasingly knowledgeable about treatments.
“Our clients regularly express that their health, self-confidence, personal grooming and, in some cases, vanity are very important to them in this digital era,” she says.
“Clients are increasingly time poor and seek corrective skin treatments that are results driven with minimal down time. We have seen a major shift from clients requesting occasional long, fluffy, feelgood skin treatments to regular lunchtime skin health maintenance services,” she reveals.
Coorey points out that it’s common for clients to research their skin concerns, treatment options and prices long before booking in a consultation with an expert.
“We need to be the ‘go to’ resource for our clients. There are always new aesthetic services available on the market, however it’s important to ensure that as a practitioner you research the effectiveness of a treatment before investing.”
Ongoing education and an understanding of techniques and treatments are crucial to providing a personalised service that achieves great results, she suggests.
Sarah Tehrani, Evolution marketing manager, points out that differentiation in the consumer marketplace is crucial. Tehrani says franchisees can be confident in the brand name.
“The reputable brand of Evolution has been operating for over 15 years,” she says.
“We offer advanced training to all our therapists to ensure our clients are informed of all the benefits and safety precautions of laser hair removal and to achieve maximum results by gaining the trust of our clients and gaining a long-term relationship.
“Our aim is to ensure we deliver client satisfaction to achieve maximum results
Cutting edge techniques and aesthetic principles shape laser clinic performance.
for our clients,” she says.
Over the next 12 to 24 months Evolution plans to open three to four new locations a year.
Evolution has some clear points of differentiation to attract franchise buyers, Tehrani points out: no upfront franchise fees, training fees or shop-fit management fees, for instance. The laser clinic also passes on rebates from manufacturers, suppliers and shopping centres.
At SILK Laser Clinics, which has more than 50 stores across the country, franchisees can be business investors or medically-qualified dermal therapists or cosmetic nurse injectors.
At its heart there is a focused executive support team, backed up with group buying power.
“We consider our franchisees as partners. We work together as a team, problem solve and celebrate successes together,” says Coorey. “We are client driven. We listen, we learn and we implement.”
The clinic is focused on careful and strategic signing of franchisees, rather than a headlong rush into multiple locations, she says.
“Franchise selection is key for our business, and we want to ensure that we work with the right franchise partners that fit our business model. We’re particular with who we introduce into the SILK family and our site selections but provide robust support to overcome hurdles that may arise.”
REPORTING ON THE INDUSTRY
Analysis firm IBISWorld says the limits set by weak economic growth around Australia have been balanced by a consumer willingness to spend on premium services, if they can. Such services include laser hair removal, microdermabrasion and chemical peels.
Tom Youl, author of the Hairdressing and Beauty Services in Australia Report (August 2019) writes, “The permanent hair removal services segment is forecast to increase as a share of industry revenue over the next five years. Both men and women are anticipated to drive growth in this segment. Growth in male grooming speciality salons will likely support growth from the male demographic.”
There’s also an increased demand in the age group 35 to 54.
But he does point out that two elements may have an impact on the level of growth: a rise in DIY laser hair removal devices, and an expected tightening up of of regulations for laser and intense pulsed light (IPL) treatments.
We need to be the ‘go to’ resource for our clients. There are always new aesthetic services available on the market, however it’s important to ensure that as a practitioner you research the
effectiveness of a treatment before investing.