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Best Practices for High-performing Spa Partnerships

JuE Wong April 2012 issue of Skin Inc. magazine

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With 2012 in full swing and with a more optimistic economic outlook still on the horizon, now is the time for every member of the skin care industry to work together to make sure that the field is indeed poised for growth.

In recent years, both niche skin care brands and spas have been hit hard. Product development costs have increased, brand competition has led to market bloating and skin care facilities have been challenged by reduced consumer spending. To combat these challenges, one solution is channel exclusivity.

Exclusivity is difficult for a skin care brand. If a publicly listed professional brand commands $120 million wholesale in total revenue a year while another top public beauty brand brings in $3 billion, then the earnings gap between the spa industry and other channels of distribution becomes grossly apparent. When the industry does not command top dollar, it becomes difficult for the professional skin care field to reach the next level.

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