Industry news

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 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.”

Professional Beauty’s industry-wide virtual event

The Professional Beauty Online Conference and Expo will take place on Sunday, 23 May and Monday, 24 May, on a fully interactive digital platform.

Says Professional Beauty commercial director, Phil Woods, “Due to market conditions resulting from the economic fallout of the COVID-19 pandemic, and over which Professional Beauty has absolutely no control, we have decided to replace our previously announced series of monthly themed virtual events with a single, all-inclusive event on 23 and 24 May. This will cover the whole gamut of the industry – namely beauty, nails, make-up, lashes & brows, spa, aesthetic medicine and hair. There will be informative conferences dedicated to each sector, as well as an exciting virtual expo featuring a host of

Environ wins international Decade Award

South African-born professional brand, Environ Skin Care, has been recognised as the Top Medical Skincare Line of the Decade at the Aesthetic Everything® Aesthetic and Cosmetic Medicine Awards in the USA.

In 2018, 2019 and 2020 Environ won the Top Medical Skincare Line category at the same awards. This year, in addition to the Decade Award, Environ also notched up the Top Training and Educational Programs Awards.

The Aesthetic Everything ® Aesthetic and Cosmetic Medicine Awards is an annual, global competition established in the USA that recognises excellence across a range of categories. More than 40,000 votes were cast to reward and recognise the people and companies that the industry, their patients and clients love most. In 2021, Aesthetic Everything® created ‘The Decade Awards’ to celebrate and recognise standout performers within the industry who have received the most awards over the past 10 years. “Environ has focused on the cosmetic aspects of medical skin science from the very beginning and we are honoured to be recognised for achieving major steps towards our goal of achieving a glowing, beautiful skin for a lifetime,” explain Environ’s Scientific and R&D directors. Val Carstens, Environ group chairman, adds: “Thank you Aesthetics Everything® in honouring Environ with this prestigious recognition and awards. I would like to express my gratitude to my employees, the distributors, skincare professionals and Environ clients for their continued loyalty and dedication to the brand. As a team you made this award possible.” Environ’s exclusive distributor in the USA is DermaConcepts, a research and results-oriented skin care company owned and managed by Rob and Carol Trow, who were also recognised at the awards.

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top professional brands showcasing their latest products and services.”

Woods points out that the event is free to delegates wanting to attend and offers an unparalleled online platform for connecting with the industry via a network lounge and interacting directly with brands. There will also be ‘speed dating’ style business sessions in which registered delegates can participate.

The event will offer exhibitors the opportunity to showcase their latest wares and connect directly with the owners and managers of salons, spas and medical aesthetic clinics, as well as with therapists.

Government increases National Minimum Wage

The National Minimum Wage (NMW) in South Africa increased to R21.69 per hour from 1 March 2021. This development is in line with the NMW legislation that came into effect on 1 January 2019, at a level of R20 per hour. In terms of the NMW Act of 2018, the policy framework is a floor level below which no employee should be paid.

According to the Act, it is illegal and an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the NMW. The NMW is the amount payable for the ordinary hours of work and does not include payment of allowances (such as transport, tools, food or accommodation), payments in kind (board or lodging), tips, bonuses and gifts.

Workers who have concluded learnership agreements are entitled to allowances, as determined by the National Qualifications Framework Level. (Source: SAnews.gov.za)

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Esse partners with Cleanhub to go plastic neutral

South African certified organic skincare brand, Esse, is partnering with Cleanhub to collect plastic waste in developing countries before it can reach the ocean.

Says the Esse team: “Every living thing depends on the ocean, yet, millions of tons of plastic end up in our ocean every year and with deeply damaging results to marine ecosystems. Today, 91% of global plastic does not get recycled. Single-use plastics such as plastic bags, candy wrappers, water bottles and food containers end up in water courses destined for the ocean.

“Esse is carbon neutral already and has now stepped up to help protect the ocean by going plastic neutral. We calculate our plastic usage to ensure that an equivalent amount is collected and recycled. This also empowers local communities in developing countries to set up collection businesses.”

Cleanhub is a software company dedicated to track the impact of plastic waste management projects and has a growing network of collection partners in India and Indonesia.

New president for SAAHSP

Qualified aesthetic therapist, Ansa Bronkhorst, has been appointed president of SAAHSP, the Professional Body for the Skin, Body & Nail Care Industry.

Bronkhorst, who has a great love for education and is committed to the upliftment of the industry, has been serving on the SAAHSP board for the past 18 months as a director.

Says Bronkhorst: “It is with sincere honour and pride that I stand before you to serve as the SAAHSP president for the term 2021-2023. I wish for you to join hands with me as we strive to make SAAHSP the sturdiest advocate for industry regulations and support of our professions.”

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