On the Ground With: Skin Laundry - Deborah Weinswig · 6/6/2016 · Skin Laundry treatments...
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1 JUNE 6, 2016 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved. On the Ground With: Skin Laundry Innovation in the beauty industry is a topic of interest at Fung Global Retail & Technology. When we saw Skin Laundry’s presentation at the Women’s Wear Daily Beauty CEO Summit last month, we were interested in learning more about the company’s unique skin care experience. Here, we visit Skin Laundry, which was founded in 2013 and now offers its 15-minute laser and light facial treatment in 14 locations in the U.S. and Hong Kong. We visited the location in New York City’s Flatiron district. DESCRIPTION Skin Laundry offers a 15-minute laser and light facial treatment. The company aims to provide quick and affordable facials that can be done more frequently than other facial treatments, for continuously clean and healthy skin. Currently, there are 14 locations in California, New York, Arizona and Hong Kong. By offering only a single treatment, rather than a range of services, Skin Laundry is able to focus on the customer experience. The company has grown from selling 900 treatments per month in 2013 to more than 11,000 per month today. By the end of 2016, the company expects to reach 30,000 treatments per month. THE SKINCARE MARKET According to MarketResearch.com, the global skincare market will be worth $121 billion in 2016 and reach $154 billion by 2021. Skincare accounted for 35.3% of the global cosmetics market in 2014. The US cosmetics market is the largest in the world, with total revenue projected to exceed $62 billion this year and skincare sales expected to reach $10.7 billion by 2018. So, Skin Laundry seems to be well positioned for growth. However, the company may see some competition from at-home devices. Transparency Market Research valued the global skincare devices market at $7.3 billion in 2014, and the firm expects it to grow at a CAGR of 10.1% through 2023, reaching $17.3 billion. We will be keeping an eye on this developing area of the market.
Transcript of On the Ground With: Skin Laundry - Deborah Weinswig · 6/6/2016 · Skin Laundry treatments...
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JUNE6,2016
DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
On the Ground With: Skin Laundry
Innovation in the beauty industry is a topic of interest at Fung Global Retail &Technology. When we saw Skin Laundry’s presentation at the Women’s Wear DailyBeauty CEO Summit last month, we were interested in learning more about thecompany’suniqueskincareexperience.Here,wevisitSkinLaundry,whichwasfoundedin2013andnowoffers its15-minute laserandlightfacialtreatment in14 locations intheU.S.andHongKong.WevisitedthelocationinNewYorkCity’sFlatirondistrict.DESCRIPTIONSkin Laundry offers a 15-minute laser and light facialtreatment. The company aims to provide quick andaffordable facials that can be done more frequentlythanotherfacialtreatments,forcontinuouslycleanandhealthy skin. Currently, there are 14 locations inCalifornia,NewYork,ArizonaandHongKong.
Byofferingonlyasingletreatment,ratherthanarangeof services, Skin Laundry is able to focus on thecustomerexperience.Thecompanyhasgrownfromselling900treatmentspermonthin2013tomorethan11,000permonthtoday.Bytheendof2016,thecompanyexpectstoreach30,000treatmentspermonth.
THESKINCAREMARKETAccordingtoMarketResearch.com,theglobalskincaremarketwillbeworth$121billionin 2016 and reach $154 billion by 2021. Skincare accounted for 35.3% of the globalcosmeticsmarket in 2014. The US cosmeticsmarket is the largest in theworld, withtotal revenueprojected toexceed$62billion this yearand skincare salesexpected toreach$10.7billionby2018.
So,SkinLaundry seems tobewellpositioned forgrowth.However, thecompanymayseesomecompetitionfromat-homedevices.TransparencyMarketResearchvaluedtheglobalskincaredevicesmarketat$7.3billionin2014,andthefirmexpectsittogrowataCAGRof10.1%through2023,reaching$17.3billion.Wewillbekeepinganeyeonthisdevelopingareaofthemarket.
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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
THETREATMENTSkin Laundry treatments consist of two parts: the first is an yttrium-aluminum-garnet(YAG)lasertreatmentthatworkstovaporizedirt,bacteriaandmakeupfrompores.Thelaser also works to improve pigmentation and collagen production. After the lasertreatment,a technicianappliesacoolinggel to theclient’s face inpreparation for thesecondpartofthetreatment,duringwhichintensepulsedlight(IPL)isapplied,tohelpevenskintoneandstimulatecollagen.Atonerandmoisturizerarethenappliedtotheclient’s face—and the whole process takes just 15 minutes. Together, these twotreatmentshelptoevenskintone,minimizeporesandconditiontheskin.
SkinLaundry’swebsitesaysthatitstreatmentsare“performedbyexperienced,certifiednurses andphysicians’ assistants highly trainedonproven Skin Laundryprotocols andoverseen by a team of medical advisors.” What differentiates the Skin Laundrytreatmentfromotherlaserfacialsisthestrengthofthelaser.SkinLaundryusesamilderlaser thatdoesnotpenetrate theskinasdeeply.Thisgives theskinadeepclean,butforgoes the peeling process and, so, allows treatments to be administered morefrequently.Thismethodoftreatmenthelpsbrightenthecomplexion,reducefinelines,reduce acne and acne scars, reduce the appearance of pores, tighten skin, even skintone,reducesundamageandstimulatecollagenproduction.
Founder and CEO Yen Reis explained to Lisa Bensley of xoJane.com: “We’re simply asmartskinsolution. I’mnotreinventingthewheel inanyway;I’mjustallowingpeopletohaveaccesstothebenefitsoflasers.Butatthesametime,we’readministeringitsoit’s not so invasive. I don’t believe in traumatizing one’s skin or doing something soinvasivethatyou’repeelingforthreedays.”
Source:SkinLaundryPRICING&PRODUCTSSkinLaundry toutsboththeefficiencyandaffordabilityof its treatment.Thecompanyunderstands that most customers are new to laser treatments, so it offers the firsttreatment for free. After that, each individually purchased treatment is $65; anadditional neck and chest treatment can be added for $45. Skin Laundry also offersbundles with varying degrees of discounting, depending on the size of the bundle.Customers have the option to join The Laundry Club, which provides additionaldiscountingaswellasspecialperks,suchasafreehydratingmaskwitheverytreatment.
The skincare company also offers a line of products that range from cleaners andmakeup-removing wipes to face masks, eye cream and even specialty pillowcases.Productpricesrangefrom$15to$160.
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JUNE6,2016
DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
Source:Skinlaundry.com(L);FungGlobalRetail&Technology(R)
THEEXPERIENCESkin Laundry locations are designed to resemble a beach house, highlighting thecompany’sCaliforniaroots.Whenacustomerarrivesforherfirsttreatment,shesignsinusingan iPadatthereceptiondesk.Astaffmemberexplainstheprocedureandwalksthe customer through a few forms, a privacy agreement, information about risks andproperfollow-upcare,andarelease.Whilewaitingtobebroughtbacktothetreatmentroom, the customer is given a face wipe and asked to remove any makeup—eyemakeupcanstayon.
Source:FungGlobalRetail&Technology
Theclient thenhasabrief skin consultation,wherea trained staffmembergoesoveranyconditionsorfactorsthatmightmakethetreatmentunsuitablefortheclient.Theseincludearecentsunburn,chemicalpeelorself-tanning;certainmedications;pregnancy;and Skin Type VI on the Fitzpatrick Skin Type Classification chart. A pair of goggles isthenplacedovertheclient’seyestoprotectthemduringthetreatment.
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JUNE6,2016
DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
Tobesuretherearenounexpectedreactionstothelaser,thetechnicianteststhelaseronthebackoftheclient’shandandthenonasmallportionoftheforehead.If itgoeswell,thetreatmentwillbegin,firstwiththelaserandthenwiththelight.Thetreatmentitselfisquickandrelativelypainless.Thelaserportionofthetreatmentfeelslikeaseriesofpinpricksacross the face; it isnotsensationless,but it iscertainlynotpainful.Withthelaseralsocomesaslightburningsmell,asdirt,deadskinandbacteriaintheporesarevaporizedbythelaser.TheIPLtreatmentiscompletelypainless.Thebrightlightcanbe seen through the protective goggles, but the cooling gel applied before the lighttreatmentprotectsskinfromtheheatfromthelightpulses.
Overall, Skin Laundry does live up to itsmission, offering a 15-minute laser and lightfacialatarelativelyaffordableprice—otherlaserandlighttherapytreatmentscancostwell above $500 per session. The atmosphere and staff both create a soothingexperiencedespitetheshortdurationofeachvisit.
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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:[email protected]
AmandaByrneMarketingAssociateHONGKONG:10thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223002470LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017FBICGROUP.COM
