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Suppliers feel effects of the COVID economy Several South African skincare suppliers report that the second wave of COVID-19, which hit in December, has had a serious effect on demand from salons and spas. According to RégimA distributors, regular clients are now choosing either salon treatments or product purchases, but not both. Because clients are extremely nervous to enter salon spaces (in shopping malls particularly), despite all COVID protocols being in place, the demand for in-salon treatments has dropped. Says one distributor: “Clients are now buying only the basics of skincare. There is a continuous flow of new business, but these new salons have replaced the salons that have closed. Smaller home salons are busier as clients are more confident going into a private space for their treatments.” Another distributor notes that some salons are struggling, with their businesses now halved. “Home salons are recovering slowly but larger clinics in malls have to deal with high rent.” During the second wave, RégimA observed a sharp increase in customer queries related to things that would normally be resolved in discussions with their therapist. “So the separation of customer and therapist has had a markedly deleterious effect on levels of knowledge and awareness of customers in general.” After the first wave of COVID, Exclusive Beauty Solutions (EBS) saw a steady increase in sales, but when the second wave hit, although salons were still operational, there was no increase in sales. Says EBS’ Dalize Havenga: “Sales just flat-lined. Salons said they had lost customers to immigration and financial restraints. EBS is
online @ probeauty.co.za
launching a new Anesi product in these trying times, and the response to the online launch has been very positive. We are all trying to stay as positive as possible and keeping our businesses afloat as best we can, hoping for an increase in sales and new salons following the announcement of Level 1 restrictions.”
The basics Julia Leeson, trade marketing manager of Environ Distribution SA, reveals that the retail side of the business, although slow, has started to see a turnaround. She continues: “We have noticed that the main volume movers are the essential skincare products, so salons are selling more of the basics than specialised skincare and the customer is cutting back on non-essential products. “It’s the professional side of our business that has been the hardest hit. With the drop in salon treatments, the need to replenish professional products has reduced. The last few months in the second wave have been no different to when we first entered this unchartered territory.”
Tough January Marisa Dimitriadis of SIX Skincare and Spalicious reports that December 2020 was, surprisingly, excellent. “We had a 20% growth on December 2019 and even opened new accounts, which is not the norm for year end. However, in January the wheels fell off completely. It was as if the industry disappeared. We did 50% of 2020 January revenue. Our hotel spas did not order one single item. “Fortunately, February revived again and we reverted to normal numbers. The biggest complaints
from salons and spas have been last minute cancellations and no shows.”
Fortunate position L.S. Enterprises reports that neither its brands (including TheraVine) nor business have been severely affected by COVID-19 lockdowns. Says national operations manager, Hilde-Mari Kohrs: “We are fortunate that the effects of the lockdowns were spread due to our export demographics. Since the lockdowns, we experienced an increase in the number of stockists signing up and also concluded two distribution agreements in to new countries.” Wayne La Grange of Blue Sky International, the distributor for Beauté Pacifique, believes that consumers demand evidence of efficacy now more than ever due to the pandemic. “They want evidence that their money on skincare is well spent and almost demand guarantees that the product they purchase will produce the desired results. COVID has taught consumers to hustle and now the game has changed.”
