Published: Oct 22, 2008
By Rosanne Ullman

Most years come with a roadmap that previews where the industry will be heading. But 2009 is not like most years. The map for the coming year has been marked up, shredded and taped back together so many times that it’s barely legible. A volatile economy will do that.

But shaky stock markets, chaotic mortgages and fluctuating gas prices don’t stop the clock for aging baby boomers. And financial worries certainly do nothing to lighten the stress that drives consumers to the spa. Far from throwing up their hands, cautious observers in the spa industry are developing strategies designed to generate at least modest growth throughout the coming year, and all roads lead to value.

“Guests are very discriminating about where they’re spending their dollars and their time,” states Jane Wurwand, founder of Dermalogica and the International Dermal Institute.

“Guests are still coming in for a hair cut, facial and massage,” confirms Daired Ogle, owner of Daireds Salon and Spa Pangéa in Arlington, Texas. “But they’re measuring us more critically, thinking, ‘What did I get for $100?’ They don’t mind paying the money, but the value had better be worth it.”

- targeted services
- quick and simultaneous
- products follow suit
- technician role and training
- green blends in

targeted services

Whereas clients used to come to the spa for feel-good services, this attention to value has them increasingly aiming to problem solve. “If the service offers only what we call ‘steaming and creaming,’ it’s not enough,” says Wurwand. “Going to the spa and feeling indulgent, lying in a dark room listening to Enya? That’s no longer worth it to clients. They want treatments that give them results they can see, feel and benefit from.”

Client demand for the basic facial is way down, agrees Tracey Samyeh, global general manager for Murad’s professional division. “Clients take it for granted that a facial will make them feel good, but now they want more,” she says. “Spas should develop facials that address various problems and educate clients on their options.”
 
With middle-agers seeking to extend their years of life in physical and emotional wellbeing, the anti-aging industry is thriving as a $60 billion global spa economy, according to Samyeh. One reason for anti-aging’s good health is that people cannot do effective treatments solely on their own, adds Wurwand, who advises spas to focus on resurfacing/exfoliation and acne/extractions for the same reason: People demand tangible benefits from in-spa treatments. And they demand them now.

“People want to see results fairly quickly,” says Becki Tuggle, national sales manager for Hale Cosmeceuticals. “But unlike going under the knife, a topical treatment will not be a one-time cure-all.” Clients must understand that it will take a regimen of regular spa visits supported by home maintenance.

For medispas, though, lasers are beginning to bridge the gap between the knife and topical treatments. Daireds’ guests can pay $5,000 for a new, one-time Fraxel laser treatment that Ogle reports “really changes the texture of the skin. It removes impurities, tightens the face, softens scarring, lightens wrinkles and increases collagen.” Although there is a healing period, clients need no follow-up laser treatments.

quick and simultaneous

When money’s tight, consumers want the biggest bang for their buck. That’s nothing new, and the luxurious day, or even half-day, at the spa has been just a memory for a while now. To help spas make up that income, the 2009 roadmap shows a change of direction. The old path stretched out services to keep clients in the spa as long as possible. The new path gets them in more often for shorter spurts. The old path built on services delivered consecutively. The new path builds in these same add-on treatments by delivering them simultaneously.

A full consultation may not sound like a shortcut, but observers say the esthetician’s expert skin analysis is the key to expediting the client’s visit. “Consultations have a negative connotation, because people think they lead to product recommendation,” says Brenda Gallagher, vice-president of national sales for Sothys. “But the consultation should be a free-flowing sharing of information that includes making sure the client understands how to use the recommended products.”
 
Wurwand agrees, “We have to get back to being skin therapists who can recommend the right product to achieve results. Invite guests in to try it out. Turn your weekends into micro-treatment events.” When Dermalogica’s flagship spas did exactly that, they recorded an average product purchase of $45 for every $25, 20-minute exfoliation.
Repêchage is marketing its Facial Bar to offer clients a lunchtime, come-with-your-girlfriends type of service. The concept of bringing skin care out from behind closed doors works well for a salon/spa, according to Repêchage Vice-President of Sales and Marketing Shiri Sarfati, who suggests placing the bar in open view so that hair clients are aware of the services.

“Instead of reading a magazine between salon services, the client can go to the facial bar,” Sarfati explains. There they can get an anti-aging hand treatment, a conditioning skin treatment or Repêchage’s Opti-Firm eye contour to depuff the eye area. Sarfati reports that a recent two-day event promoting Facial Bar services plus retail grossed more than $12,000.

The Facial Bar is in line with a trend to offer multiple, coordinated experiences. Such double- or even triple-duty services are likely to become commonplace this year. Repêchage founder Lydia Sarfati has partnered with Belvedere to design equipment that accommodates three services—manicure, pedicure and facial—at the same time. With three technicians working on the client, the trio of treatments totals no more than 60 minutes.
 
“With space at such a premium, spas can use the same room for massage, waxing, facials and body treatments,” explains Shiri Sarfati. “If you have no massages scheduled, you’re not wasting an entire room. We’re looking at the spa from a 360-degree view and asking, ‘Where can we turn a profit?’ That’s what salon owners need to do today to ensure they’re here tomorrow.”

products follow suit

Mirroring their service choices, in 2009 clients will likely opt for action-oriented products that zero in on specific issues. “Clients used to be brand-loyal to a whole line, but that’s changed,” says Wurwand. “They are now cherry-picking within each line to find the best anti-aging treatment, the best exfoliant.”

Gallagher agrees, adding that it’s more important than ever to establish communication with your clients in order to help them figure out which cherries to pick. “The trained eye of an esthetician will know when the client is not using the right product or not using it correctly,” she says. “You have to share that information.”

The more complex the product, the more education the client needs, adds Wurwand. Exfoliants, she predicts, will continue to sell as long as clients understand how to use them; she foresees the staples of cleansing and moisturizing products remaining steady, while masques are already dropping.

Peptides and hyaluronic acid will be the year’s hot ingredients, Tuggle anticipates. “Adding peptides and hydration will give clients’ skin elasticity and make it smooth to the touch,” she says.

Also echoing the newer services, the 2009 products are more likely to be multipurpose. Sothys will kick off the year with an at-home peel system from its new C cosmeceutical anti-aging line, which includes a microdermabrasion masque that both detoxifies pores and resurfaces, and a serum that doubles as a make-up base. Murad’s two-in-one shaving product for men acts as both a cleanser and shaving tool. Wurwand ticks off a list of new, dual-functioning products from Dermalogica: a treatment for fine lines with a chemical-free sunblock to be applied around the eyes; a masque that also treats pigmentation; an exfoliating cleanser; and a moisturizer/sunblock.

One thing that isn’t changing is that service will drive retail. Sothys’ C line products are designed to follow up on an in-spa facial, and one aim of Repêchage’s Facial Bar is to introduce spa guests to the company’s at-home regimens.

“When you’re doing facials at the Facial Bar, it’s easy to get your service/retail ratio to 50/50,” says Shiri Sarfati.

Estheticians can be trained to say, “This quick treatment will give you results, and here’s the cleanser, toner and moisturizer to continue seeing those results.”

technician role and training

As the level of care expands and rises, so must the quality of the staff, say observers. When they’re thinking “value,” consumers will gravitate toward spas that provide outstanding expertise, especially since they’re educating themselves by reading and surfing the internet.

“When things are good, a lot of service providers can get by,” says Wurwand. “When times tighten up economically, people go to the providers with the highest level of skills.”

Samyeh suggests that the perfect professional has a natural talent for touch and is trained in cutting-edge skills and knowledge. “You can offer something useful and targeted like an acne class or a session in menopausal skin care, and the esthetician can give all of the proper information,” she says. “But if that technician doesn’t have the sense of touch to make the guest feel good, and if she does not connect well, you won’t have the balance for success.”

The delivery of training will continue to take new routes, with manufacturers offering more web-based, long-distance education. Product companies’ online programs also offer technicians the opportunity to experience instruction from trainers in other parts of the world.

“There will always be a need for traditional hands-on training,” says Wurwand. “But for the future, we’re focusing more heavily on podcasts and webinars. Subjects like anatomy, physiology, product knowledge, marketing, promotion, merchandising—all of that can be taught online. We do have podcasts of techniques, but we don’t see that as replacing hands-on teachers. However, all of our testing now includes an online component.”

green blends in

While it’s difficult to tell whether the green graph continues to climb or is beginning to flatten, what’s clear is that environmental concern is coexisting with, not replacing, cosmeceuticals.
 
“The emotional tie to green and organic is still very big,” says Dermalogica founder Jane Wurwand. “People want to know that they’re working with a company that’s ecologically responsible. But if I put two products in front of a client and say one is green and the other will deliver results, she’ll choose the one that will deliver results. The wish list is that a green product will deliver results but, truthfully, I’m not sure we’re quite there yet.”

Becki Tuggle of Hale Cosmeceuticals agrees that all green concerns may not be satisfied. “Anything you use over a period of time must be preserved,” she notes. “Preservatives and ingredients are changing, and people do look at the ingredients list and question anything that does not look familiar—which is why we bring our chemists to trade shows!”
 
According to Dallas-area spa owner Daired Ogle, clients tend to compartmentalize regarding ecological concerns.

“A lot of people having Botox are the same people who are concerned about the environment,” Ogle notes. “Currently there’s no organic alternative for these fillers, but they’ve been proven to be very safe. In our newsletter, we’ve listed all of the green things we do. It’s important to show clients that we’re doing what we can.”

- targeted services
- quick and simultaneous
- products follow suit
- technician role and training
- green blends in





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