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Is Private Label Right For Your Spa?

By: Kristen Wegrzyn
Posted: May 1, 2014, from the May 2014 issue of Skin Inc. magazine.

As the skin care industry climbs its way out of the Great Recession, spas may be considering exploring ways to innovate their business practices in order to increase overall revenue. Is developing your own line with the help of a private label manufacturer on the horizon for your spa?

As stated by editor, Cathy Christensen, in Skin Inc.’s December 2013 issue highlighting the “Top 10 Professional Skin Care Industry Trends for 2014:” “Business is back [however,] these days, crossing your fingers and hoping everything will work out just doesn’t cut it.” Skin care professionals educating themselves on trends, tactics and the overall ins and outs of a new business endeavor is an absolute must—read on to begin the process of deciding whether private label is right for your skin care facility.

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“People are frequently looking for what’s new and trendy,” says Suzie Sommer, senior vice president of marketing for private label manufacturer, Ready Care. “After 25 years in business, we keep up on new formulations and results-oriented treatments. We also invest in the latest equipment and state-of-the-art packaging to stay ahead of esthetic trends,” she adds.

“Farm-to-spa movements, in which spas want ingredients that are indigenous to their home state or region is a current trend in private label,” says Christina Alves, regional vice president of sales for Ready Care. “Seaweeds seem to be more of a trend in areas close to the ocean, and ingredients, such as lavender and honey, are more popular in the land-locked regions of the country.” This inclination falls in line with the segment of skin care consumers who prefer natural product options.

Multifunctional products. Recent research by Mintel found that 42% of consumers look for products with multiple benefits—so how are private label companies meeting the need for multifunctioning product formulations? Alves says they offer all-in-one shower gels suitable for hair and body, which are perfect for convenience-seeking men—who now make up 47% of the overall spa-goer population, according to the International SPA Association’s (ISPA) 2013 U.S. Spa Industry Study. Richard Lee of private label company RDL International, Inc. says that, although multifunctional products are a current trend in the industry, their facility has been formulating with multifunctional features since its establishment nearly three decades ago.