When Napoleon Perdis recently announced his plans to expand his makeup empire into Priceline Pharmacies, it confirmed that pharmacies are taking over a giant share of what was traditionally a salon and department store beauty market.
Napoleon’s 25-year old brand, which until recently was available in 442 stockists including signature stores, 149 beauty salons as well as online, will now be stocked in Priceline outlets across Australia.
“Priceline has a reputation as a beauty playground and my range and new products fit perfectly with people who are looking for that exceptional beauty experience in hundreds of locations,” Napoleon said.
He revealed the company’s move into pharmacies was unlikely to have a negative impact on its beauty salon partners, but said he believed other Australian cosmetic companies are now likely to follow his brand’s move into Priceline.
The new strategy by the prestigious brand confirmed that gone are the days when customers opted for destination beauty shopping to satisfy their needs. Traditionally, it was a stop at department stores for buying a mix of high-end luxury cosmetics, and spas and salons for specialised treatments including facials, skin consultations along with waxing and brow shaping and salon skincare.
Pharmacies were the go-to for great priced beauty buys, while stocking up on health products. Not anymore, now the ever-evolving face of the beauty industry has seen large national pharmacy chains upping their game.
Along with Priceline other pharmacy giants including Chemist Warehouse and TerryWhite Chemmart are all extending their beauty offering to provide customers with everything from in-store beauty advice and online tutorials to special occasion make-up and brow shaping services that have long been the domain of traditional salons.
Priceline has been offering women the most up-to-date beauty buys at an affordable price point since it first opened in 1982 at Highpoint, Victoria.
Now with more than 440 stores Australia wide the chain has expanded its beauty offering. The chain has more than 650 in-store beauty advisors to help customers choose the perfect look and shoppers can now opt for a make-over. “
In addition, the store’s online presence not only offers a choice of more than 13,000 products but also the convenience of booking a range of beauty services including skincare consultations and special occasion make-up applications along with eyebrow shaping services at the click of a button with a 10 percent discount off all cosmetics and skincare purchased on the day of an appointment.
Confirming this shift in women’s cosmetic and beauty habits, Roy Morgan Research research shows that in the six months from December 2016-May 2017 around 840,000 Australian women made their last make-up purchase at a Priceline store ‒ making it the country’s most popular pharmacy for cosmetics.
While customers flock to Priceline in-store, the company has also taken advantage of the digital era by launching an online Beauty School offering tutorials to help customers nail the latest beauty basics, step-by-step lessons on how to get the seasonal looks along with showcasing hair and makeup trends straight from the catwalk.
Acknowledging this, Michele Levine, CEO Roy Morgan Research says pharmacies remain the most popular place for Aussie women to buy make-up with nearly one in every five making their last cosmetic purchase at a pharmacy.
“Like all retailers, they’ve had to adapt to the digital age. Priceline’s Instagram feed is heavily cosmetics-focused, while their website has a dedicated Beauty School section containing step-by-step lessons,” she reveals.
Chemist Warehouse has also become a major player by extending ïts beauty offerings and services, launching The House of Wellness online, profiling the latest beauty trends, edits of top performing brands and tutorials.
This company also offers The House of Wellness TV, a weekly segment dedicated to help customers live and feel their best along with an instore magazine filled with the latest beauty trends and plenty of product inspiration.
For the beauty savvy customer, this one -stop approach has made it a convenient and affordable way to satisfy their needs.
So just how has this new expansion by pharmacies affected the traditional salon and spa owners?
Anna Field, the sole director of The Paddington Beauty Room admits in business there is always going to be potential threats to your company.
“Consumers understand the old adage that you get what you pay for. It concerns me that the therapist in these roles are most likely straight out of college/training and in these environments, they are less likely to have an experienced therapist around to guide and develop them,” she says.
“The most effective way of competing is to ensure your staff and your business message communicates the salon’s point of difference,” Field says.
TerryWhite Chemmart has also extended its services, launching the Beauty Room at TerryWhite Chemmart-Australind in WA.
Customers have the option of manicures and pedicures at a competitive price point ranging from $30-70, a Napoleon Perdis 30-minute makeover priced at $90 fully redeemable on products purchased on the day along with tanning services and waxing.
This extensive approach can potentially mean loss of market share for traditional salon power players such as Ella Baché –an award-winning skincare brand, with over 150 salons across Australia and distribution through David Jones store nationally.
Pippa Hallas, CEO Ella Baché says although chemist brands have expanded their beauty offering, salons still hold a point of difference in the industry.
“Whilst we offer beauty services such as eyebrow shaping, our core business centres provide skincare solutions by educating and empowering women to achieve healthy and vibrant skin with expertly tailored solutions underpinned by the philosophy that “no two skins are alike”.
“Leading in industry standards and training, Ella Baché provides therapists with education via the Ella Baché College; a Registered Training Organisation (RTO) which offers the Graduate Certificates as well as Australia’s leading Diploma in Beauty.
“It’s this commitment to education and expertise that keeps clients coming back to our network.”