#Trendspotting 2017

Annet King

VP Global Education

Looking back..

Trendspotting

Industry snapshot and outlook

• Jobs predicted to grow by* – Skin Therapist 12%

– Massage Therapists by 22%

– Stylists/Barbers 10%

– Manicurists 10%

• ISPA -Total Spa revenue up by 5%**– 179 million spa visits

– 21,020 spas

– 890 new spa openings in 2015

• Medical Spa– Continues to grow, AMSPA 20% new members in 2016

– Sales from medical care providers exceed spa for the first

time in 2015

**ISPA, *Bureau of Labor Statistics

***Kline Report Sales in US Professional

Global Wellness Market

TECHNOLOGY

PEOPLE

HEALTH AND WELLBEING

INGREDIENTS AND

TREATMENTS

2017 Trends

On Demand

Zeel

Soothe

Glamsquad

Pretty quickStylistedBeautini

Beautified

Priv

Vensette

theGLAMapp

VR and Augmented Technology

Beauty BotsVR Experiences in the spaGroup virtual fitnessAugmented skincare,Makeup and hair try on apps

Smart Mirrors and Skin

Measurements

HiMirrorSolmomo Kiosk and Wand in store or at homeWayOku

Sidebar for the Spa

• On demand – Corporate events, at work

and home services

• Connect 24-7 via mobile first

– Booking and confirming

– Educate and market services and products

– Purchase and check out process

• Allow clients to self select their treatment

preferences pre appointment

• Consultation, measure, record and

educate about their skin health

People

Stereotypes and Gender Blurring

Gen Z- influence $600 billion in family spending, 1/4th of the population

Millennials

Volume V11 Consumer Snapshot ISPA

18-34 year old's are most digitally connected but report higher levels of stress and loneliness than any other group. GWI

Sidebar for the Spa

• Welcoming to all groups

– Take a VR Tour of our space

• Provide web education on etiquette and

what to expect

• Speed and cost conscious services

– Loyalty programs

– Free WIFI, toiletries and refreshments

• Hiring Millennials & Gen Z

– What’s your higher purpose?

– Flexibility & apprenticeships

Health and Wellbeing What is luxury?

Sleep

Products for better sleep and to combat poor sleep and its effects on skin

40.6 million American Adults sleep less than 6hrs or fewer a day CDC

60% of people spend 6hrs a day exposed to light from a digital device

24%of Chinese consumers

spent more time as

leisure time this year

than they did 12

months ago

60%Of global consumers said

they experience some

struggles with sleep

41%of Millennials say

that it is one of their

goals to manage

their time better over

the next three years

Go Slow, Go Green

New research: a 90 min walk through a natural environment lowered levels of rumination and showed reduced neural activity in an area of the brain linked to risk for mental illness vs Urban environment

Impact on Skin

U.S. consumers % factors that affect skin appearance Mintel

Skin + nervous system

• SAM axis = skin immunity, barrier and genes• HPA axis = aging, fatigue and dry skin.

3C Modern Aging

Air Pollution

Wireless radiation Blue Light Exposure from

digital devices

60% of consumers spend 6 hours a day in front of a digital device

Ingestible beauty

Aptogenic herbs, supplements, chews, shots & drinks

Workplace Wellness and Well Fests

“Unwellness” at work costs the U.S. alone $2.2 trillion each year.

Sensory Personal Experiences

There are opportunities to look beyond basic

aromatherapy and look into the deeper

connection between scent and psychologyMintel 2016

TAKEAWAYS

• What’s your work wellness culture?– What snack & beverages are you

offering?

– Importance of quiet green spaces

• Coach on lifestyle and tune into clients needs– Provide tips and add sleep time to

appointments

• Experts, programs and events– Fitness, spiritual and nutrition coaches

– Strategic partnerships/onsite events with corporations, fitness and festivals for their employees, attendees and members

Sidebar for the Spa

Future Ingredient Trends

Antidotes to Modern Living

HydrationPollution (Polluaging)Visible LightNeuro-aging

Natural High TechEpigenetics & ProbioticsStress and sleep

Oils

• Oils are one of skincare’s fastest growing categories

• Up 40% growth in the first half of 2014

• Dollar sales of skincare oils have more than tripled over the past 5 years

• Sales of prestige skincare oils reached $58.5 million and grew 22% in 2015

(NPD Group)

• USA market size and 2020 forecast: Newer formats (cleansing waters, masks, and oils) and natural ingredients offer

growth opportunities (Mintel US, May 2016)

Superbotanicals

Néré Seed Origin: AfricaStimulate aquaporins 3 Stimulates skin’s H.A.

Himalayan Gentian Smooths vertical linesImproves cell communication to stimulate EGF

Theobroma CacaoOrigin: PeruBlocks Blue UV light and helps with digital aging of the skin (oxidation)

Superbotanicals

Lingonberry Stem Cells protect and corrects against photoaging caused by IR and UV radiation.

Brown Seaweeds (Fucoidans)Regulates PAHs receptor found in cells, inhibits tyrosinase, increases collagen density, improves skin barrier

Superbotanicals

Wild Indigo (Tephrosa Purpurea)Origin: India Blocks cortisol production, boosts endorphins and anti-stress enzymes. Combats effects of pollution, improves redness and skin recovery

MicroAlgaeRestore homeostasis by protecting skin from stress signals and restoring its natural circadian rhythm.

Cherry BlossomOrigin: Provence

Firms, regenerates, repairs, antioxidant andAnti-inflammatory

Spa Therapies

Salt rooms, snow cave’s, amber crystal poultices, pregnancy massage cryotherapy and sand tables

Skin Treatments

Lights, currents, skin tightening lasers, specialized hands on techniques. IV with your facial. Combo’s and extreme.

Sidebar for the Spa

• How can we stimulate the senses more with our

clients?

– Light therapies, touch, temperatures and

aroma

• Does my product line address the latest trends?

– Visible light, pollution, stress and sleep?

• What new techniques or technology do I need to

add to my treatments and menu?