Everywhere you look, people are very cautious about their spending in a down economy. High gas & food prices coupled with global supply chain issues has led to one of the largest inflation rates in history. While people are hyper-focused on budgeting and saving, they are still spending money to enhance their looks and seeking to improve the quality of their skin. Surprisingly, there is an overwhelming demand for beauty and high quality skincare products.
What is even more shocking is the fact that skincare sales are on the RISE. Large companies are looking to capitalize and create a stake in the skincare space. In fact, the 2nd quarter of 2022 had record sales for major beauty/skincare brands including:
Ulta Beauty reported a 16.8% year over year increase in net sales to $2.3 billion
e.l.f. Beauty reported a 26% increase to $122.6 million
Ulta Beauty's CEO, Dave Kimbell, reported "seeing strong growth across all aspects of our business. Every category performed in double digits, saw strength across channels, stores and ecommerce services." What is most interesting about his statement is the fact that he mentioned growth in all segments of income levels which means the beauty and skincare space is thriving in a down economy.
If you have not considered Private Labeling your own skincare, this might change your mind. Your clients trust you to help improve the one thing everyone notices - THEIR FACE! They look to you as the expert and trust you know what is best for their skincare concerns. This is one of the many reasons why you should capitalize on the fact that the skincare space is growing profits. Providing your own brand to your already established patient base will enhance your practice, bring in more clients and provide a large revenue stream which is often overlooked.
70% of all aesthetic outcomes will be a result of the skincare regimens a patient uses day and night
Skincare patients want to be told which products they should use and when
Branding your own skincare will increase profits, drive revenue and enhance aesthetic results. Creating your own brand creates an affinity between you and your patients. Patients trust you and the skincare space is extremely profitable. With so many companies entering the space, why put money in large corporations' pockets when you can private label your own medical grade skincare and provide more effective results? The truth of the matter is, if you do not market your own product line someone else is capitalizing on your skincare patients. What is most concerning is your patients are more likely to purchase products you would never recommend!
CVS Health just announced opening skin care centers inside their CVS store locations. Their goal is to retail prestige brands directly out of their stores. This reminds me of the Sephora model. A skincare patient walks in and a "skincare expert" will advise them on which products they should purchase. The problem with this model is these "experts" have little to no skincare training and will recommend the products they receive the most amount of commission. These 'experts' are less focused on providing skincare results for your patients and more concerned with hitting their sales goals for specific products. The other thing to keep in mind is CVS is owned by Aetna Healthcare. Aetna is all about driving profitability while keeping costs low. What type of skincare are they labeling as "prestigious" and how beneficial will these products really be?
Food retailers are also jumping in on the benefits of increasing profits through skincare. Thrive Market, an online natural food grocer, is launching their own private label skincare line to their consumers. With little margins of profitability in the grocery space, it is no wonder why a food grocer would private label a skincare line and try to capitalize on the skincare trend.
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