![]() ![]() HydraFacial, which went public via a SPAC in 2021 that valued the company at over $1 billion, announced in 2022 a three-year plan to double sales and at least triple profit. ![]() This disparity has led many businesses, including Dr David Jack’s, Sugared + Bronzed and Heyday to also sell products, be that own-brand or third-party. The cheapest treatment is £70 for an LED light therapy facial.įurther research from McKinsey indicates that profit margins for services can be anywhere from 5 to 20 per cent, whereas for beauty products, they can reach from 55 to 80 per cent. “There are facial bars, but they don’t have the backing of a doctor to give that level of service.” In his new Belgravia clinic, Dr David Jack has hired four doctors with a minimum of five years experience in cosmetic practice to carry out injectable treatments, while facialists will need ten years of experience. “There aren’t many doctor-led chains in this market,” he notes about his point of difference. “You start with a certain number of units open, and then you can more easily predict that you can maybe open five to 10 more in a year, as long as you’ve proven portability, and that your facial bar that’s popular in New York will also work in Texas or Florida.”ĭr David Jack, founder of the eponymous skincare brand that also runs clinics offering facials and injectables, says he is open to taking on external investment for subsequent future clinics, with a goal to have more doors to offer both medical-grade facials and injectables throughout the UK. “Unlike beauty products, wherein investors have to really bet on a specific brand and hope that it can beat out the competition, once a clinic has a proven concept, it can be much more predictable in terms of how quickly the business can grow,” says Baird’s Leibrandt. When there’s a proven concept, Leibrandt, Kenny and Nadia Pelaez, a director at investment bank RBC Capital Markets who leads beauty and wellness, all noted that beauty services businesses can be straightforward to scale and thus easy to demonstrate to investors. “They’ll wait a year or two for a new car or another big-ticket item, but not the little luxuries.” Easy scale and growth “People don’t give up their habits,” he notes. Danny Kenny, a principal at growth equity company L5 Capital Partners who led Heyday’s 2022 funding round, says he expects some pressure on the market as people rein in some discretionary spend, but that he expects beauty services to be well-cushioned. ![]()
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