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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.

page 6 of 7

Private label is another tool for skin care facilities to promote themselves, says Alves. “We can make a line that is uniquely theirs. It won’t be available at any other spa, or Sephora,” she says.

“The first key to success one has to accept is that retail product sales is an essential part of a successful business model. Once this realization takes root, the larger margins available from private label become the other part of the equation for that retail strategy,” says Fitzpatrick. “If your skin care business has a great client base from continued services, why not capitalize on great home-care products to enhance the great services already being provided?” Fitzpatrick adds that competition has become even more difficult because various brands now sell directly to the client through their own websites. “So you are not only competing against every retail channel that sells that brand, but with the brand owner themselves,” she says.

“The primary benefit of moving to private label is the ability to control your own brand. This is unequivocally the greatest asset a business owner can have; however, it can also be the greatest downfall,” warns Lee. “Simply having your own brand is not enough. Marketing efforts, user adoption, quality products, continuous research and development—these are all necessary to grow private label brands.”

The skin care industry is changing the way it views private labeling. “Many of the spas that I speak to feel as though they have ‘made it’ if they have their own logo on products, and can promote their own in-house brand,” says Alves.