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Focusing on Retail Mix and Performance Measures

Dori Soukup September 2011 issue of Skin Inc. magazine

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The professional skin care industry is not capturing its share of the personal care market. According to a recent SRI International & Global Summit study, the beauty and anti-aging market is a $679 billion industry with spas barely capturing a sliver of this market. How can you gain market share? By focusing on retail mix selection and performance measures.

Retail mix

One of the biggest mistakes in skin care facilities is the lack of variety in retail mix. Most get stuck on skin care, hair and maybe nail products. Instead of expanding into other retail items, they expand on skin care products and carry way too many skin care brands. As a rule of thumb, it’s wise to have one primary and one secondary skin care line. Free up your inventory budget to buy other retail items to help your clients continue their experience at home.

Attend gift trade shows and select stress-reduction products, such as music, aromatherapy, books and neck wraps. Focus on products your target market would like to have. In addition, consider selling or giving away branded items, such as t-shirts, stress balls and hats as gifts with purchase. This turns all your clients into business promoters; not enough facilities practice this. Other important factors include selecting products at the right price point and making sure you manage your inventory, order the right quantities for your sales cycles and manage your cash flow.

Measuring performance

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