As we move further away from the recession that resulted in sweeping changes in consumers’ spending habits, the professional skin care industry shows signs of recovery with an estimated 5% increase in overall sales in 2014. Dispensing physicians continue to be the primary source of growth for the industry. The channel is expected to post another strong year of growth this year as companies and consumers spend more on marketing and products, respectively.
Spas are recovering, as more and more consumers return to these venues to spend on skin care treatments and their favorite products. Spa sales are also showing healthy gains, and the number of day spas has increased by up to 15%, as several of the small, independent outlets that had gone out of business return or are replaced by new entrants.
The greatest increase for the market is seen in digital sales, which are up over 10% in 2014. Market leader SkinCeuticals has embraced growing this end of its business through partnering with select websites as well as continuously enhancing its own brand website. Other well-known brands publicly oppose websites such as lovelyskin.com and skincarerx.com, yet still partner with them!
In the future, it is likely that more companies will look for ways to use the Internet to their advantage by means of strategic alliances and partnerships. Some marketers embrace the opportunity to partner with e-commerce sites like dermstore.com that afford a more content-rich experience for visitors. In fact, the website is staffed with aestheticians who are well versed in all of the lines and various skin care issues they solve. As long as consumers seek convenience and easier ways of procuring their preferred products, digital sales will continue to grow. Over the next five years, this channel will grow at a similar pace, if not faster. This is underlined by the ongoing trend of leading brands to implement specific staff to grow the digital segment of the business.
We will discuss more about all these challenges in the 2014 of Professional Skin Care: Global Series. This edition will include reporting on India, Mexico, and Japan, in addition to continuing coverage of the United States, Europe, and China. To learn more about what doctors and spa professionals value most in skin care products, refer to our recently published Physician-dispensed Skin Care: Perception and Satisfaction Survey.