The Business Behind Beauty Brands
The skin care industry is a competitive market whose diversity spans an array of companies and brands, ranging from large, multinational corporations to smaller independent brands and startups, and many brands standing strongly in between. Licensed skin care professionals know the importance of choosing the right brand because it can be the difference between staying in business or not. This article examines the pros and cons of working with different types of brands with the understanding that there is not a one-sizefits-all solution; it is more so about each individual finding what works for them and their spa’s unique needs.
by Lauren Snow, licensed aesthetician
MMAKING A MATCH
When selecting a brand, it is important to make sure the line supports the professional’s clientele. Selecting a brand that has heavy emphasis on treating aging skin is fruitless for the professional whose main demographic are those seeking acne treatments. Beyond choosing what aligns with one’s ideal clientele demographic, the criteria for selection should range from accessibility, price point, customer service standards, efficacy, marketing resources, and account support. All these factors can play an integral role in overall success.
As mentioned, there is not a collectively perfect skin care brand, nor is there near perfect brand for most! It is up to each skin care professional to decide what is right for them. Understanding some of the intricacies of the business behind all beauty brands can also offer a greater understanding of the options – ultimately, helping the professional choose a brand that fits their needs best.
THE BEAUTY (& THE BEAST) OF MASS MARKET BRANDS
If a client has not had a regular skin care provider, it is likely that
when they first think of skin care they picture major corporate giants like Olay, Clearasil, Cetaphil, Neutrogena, and other drugstore brands. This is because they are exposed to these brands through mass-advertising in commercials, magazine advertisements, and displays at stores they often shop at.
When it comes to the multinational brands and corporations, owned by conglomerates like L’Oréal, Estée Lauder, Johnson & Johnson, Proctor & Gamble, and Unilever, these mass-market behemoths have extensive research and development capabilities and vast distribution networks with significant marketing budgets which allow them to get in front of consumers easily and often.
Professionals compete for these sales and can be quick to frustration when clients choose these products to fill their sink counters; however, these brands also bring positive aspects to consumers that skin care professionals cannot. From creating a mainstream perception that there is a need for skin care products to the consumer education happening because of these companies, their far and wide reach helps tell the story to consumers about why they should care about their skin. Teaching people why they should care
about their skin is half the battle, and the other half is teaching them how, which is where skin care professionals come in.
The Pros
So often professionals come after these brands declaring their inefficiency and danger to consumer skin but that is not always a fact. Rather, it is something skin care professionals can lean into as an argument to counter the case for choosing professional skin care.
Consider the breadth of the portfolios of brands held by these giants. For instance, L’Oreal’s flagship brand is L’Oreal Paris, which offers over-thecounter skin care available at drugstores and supermarkets, as well as La Roche-Posay, CeraVe, and Vichy, which are dermatologist recommended brands found at Sephora and Ulta Beauty. However, L’Oreal also owns SkinCeuticals and SkinBetter, which are only available through medical spas and licensed professionals.
When the dots are connected, it becomes evident that many over-thecounter products are made by the same corporations who own brands reserved for professionals to use and sell. Skin care professionals need to get clearer on their efficacy argument
because with a vast portfolio like L’Oreal has, they certainly have access to innovative ingredients, proven research and development, real clinical studies on results, and as a result, effective formulations readily available for consumers.
Unilever is another parent company who owns nearly 400 brands. Some of the brands include Dove, Pond’s, and Paula’s Choice but also brands like Dermalogica and Murad
a professional can see with their own eyes and touch with their own hands? There are so many more mainstream options available, and sometimes consumers seek the services of professionals because the over-thecounter products are not meeting their needs or providing the results they are looking for, likely because they have not chosen the right products or used them correctly, although that is certainly not always the case.
to place advertisements in household publications but again, big brands like L’Oreal and Unilever are doing the heavy lifting of convincing consumers to care about their skin. Professionals are doing the job of teaching them how. This is a win-win relationship! These brands may not have the far and wide reach of the corporate giants, but they do have something professionals can offer clients that they cannot get many other places
“Success in the skin care industry lies in finding the right balance between meeting consumer needs and aligning with business objectives.”
Skin Care – that still find a place in some professionals’ backbars. As Unilever says, Dermalogica continues to train 100,000 professionals every year in more than 80 countries.
Likely, because of larger funding, Unilever has fostered a technologyfirst mindset for their prestige brands, where they have launched the firstever virtual human to deliver skin care education to professionals for Dermalogica. Murad also offers an online-exclusive digital self-diagnostic session with artificial intelligence to allow consumers to customize their face serums. While these brands may not be the perfect fit for every professional, they are doing a lot of heavy lifting when it comes to marketing and innovation.
Mindset Shift
This may be an unpopular opinion, but what if the argument for clients to not use these brands shifts from efficacy to supporting small businesses instead? Another argument could be that consumers should choose personalized services and customized skin care based on what
BRAND TYPES Direct-to-Consumer
Another set of larger brands that fit somewhere in between the mass market and mid-market are those that sell directly to consumers but also have professional treatments and backbar available for professionals. Although this may sting a little for some professionals, as they want to earn income from the sale of products, some brands still allow items to be dropshipped to clients so professionals can collect money when their clients purchase through them.
Professional-Only
In the middle sector of the skin care industry lies brands that remain strictly for professional use only, where they do not show up on retail store shelves or appear in commercials or consumer magazines. Instead, they are only available to skin care professionals, who, in turn, sell them to consumers. Many of these companies are the ones seen at industry tradeshows and in industry publications.
Mid-market companies do not have the budget backing of L’Oreal
and that is exclusivity, meaning personalized skin care recommendations for clients based on what is seen by the professionally trained skin care provider.
When choosing to work with a mid-market brand, higher-quality customer service, more opportunities to work and speak with actual people, and a more customer-centric business model can be expected. In fact, these brands employ brand educators and sales representatives who not only help professionals learn the product line but also give them a contact to reach, for assistance, in placing orders. This specialized service can be very helpful for professionals who appreciate the personal relationship with their brands and for those that like to be in the know of things going on with their brand partners.
Professional-only brands also can innovate, pivot, and respond to market changes quickly because they do not have the bureaucracy and red tape often associated with changemanagement at large organizations. This allows brands to analyze trends and get in on them without presenting
extensive research to a boardroom full of executives to get financial backing and approval.
Education Focused Brands
Some brands can be heavily focused on education, which can be particularly beneficial for professionals who are self-described skin nerds or want additional support. Professional-only brands are the ones who have robust aestheticianfocused education because when one is successful at knowing, loving, and selling certain products, the brand is also successful. It is in a brand’s best interest to invest in their customers (skin care professionals) to offer exciting and informative education, so professionals can be more successful.
Independent Brands
Independent brands, or smaller bespoke skin care brands, have also appealed to skin care professionals for their niche market, exclusivity, and small business charm. Often, these products are formulated in one of the major laboratories in the United States, which have to work their way into the production line with the bigger players. This may cause some disruptions, but they also can offer something extremely unique. Professionals can also lean into a limited availability mindset with clients when choosing a brand like this. One thing to consider when working with a bespoke brand is that while the formulations may be fantastic, the company as a whole may not be for everyone, especially for professionals who may run into limitations in bandwidth and funding when seeking additional support.
Niche Brands
Niche brands, or brands that focus on specific skin conditions or concerns are also popular because a professional partnering with a company who provides solutions to something they are particularly pas-
sionate about seems like a no-brainer. For instance, brands that specialize in acne treatment or on sensitive skin and oncology-approved treatments can offer safe and effective solutions for specific conditions.
These companies can be a match made in skin care heaven when a professional is passionate about a particular condition and builds their business around it. Getting to geek out, dive in deep, and specialize can also be very profitable when the right niche is chosen and clientele is consistent.
If the spa’s clientele is diverse, meaning clients are not all acne sufferers for example, the professional may need to diversify product offerings to accommodate a larger range of conditions and clientele. This is a disadvantage to investing heavily in a niche market skin care brand, as all client concerns may not be able to be met with one brand, so supplementing or carrying more than one line is often the perfect solution.
It is important to understand the makeup of different brands and companies in order to choose what is right. Keep in mind, what is right for one skin care practice may not be right for another, but remember, there is room for everyone in the everevolving skin care landscape.
RECAP
Navigating the diverse landscape of the skin care industry requires a keen understanding of the various brands and their offerings. From mass-market giants to professionalonly brands and from educationfocused to niche and independent brands, each segment brings its own set of advantages and considerations for skin care professionals.
The decision of which brand to align with ultimately hinges on a multitude of factors, including the demographics of clientele, accessibility, price point, customer service standards, efficacy, and marketing
resources. While there is no one-sizefits-all solution, the key is to find a brand that resonates with an individual’s unique business needs and values.
Mass-market brands, despite their ubiquity and marketing power, offer consumer education and accessibility that can benefit the industry as a whole. However, professional-only brands provide exclusivity, personalized service, and agility in responding to market demands. Educationfocused brands cater to the skin care professional’s thirst for knowledge, while independent and niche brands offer unique formulations and specialization.
Ultimately, success in the skin care industry lies in finding the right balance between meeting consumer needs and aligning with business objectives. Whether it is advocating for small businesses or prioritizing personalized service and specialized solutions, the key is to stay informed, adaptable, and true to one’s professional ethos. In this dynamic landscape, there is ample room for diversity and innovation, ensuring that every skin care professional can find their place and thrive.
Lauren Snow is the director of brand management and communications for Circadia. She also leads the global organization’s communications, developing and implementing internal and external strategies to promote Circadia’s overall identity and mission to further position itself as the global leader in skin care innovation. As a skilled licensed aesthetician and spa marketing expert, Snow has landed coverage in consumer publications such as The Chicago Tribune, Good Housekeeping, and FitFabFun. Her contributions are also regularly featured in industry trade magazines such as ASCP’s Skin Deep, Les Nouvelles Esthetique, and DERMASCOPE Magazine. Snow also currently serves on the board at Be The Reason Charities, a nonprofit organization for marginalized women and children.