Dermalogica Reduces Prices

In a bid to support professional salon owners, Dermalogica will reduce its Australian RRP by an average of 20 per cent as of February, 1.

Announcing the price drop at the press launch of their latest skincare superhero – Multivitamin Power Serum (launching March, 15) General Manager Suzette Cassie said the move will help the “struggling” sector, many of whom are doing it tough trying to compete with online product sales.

“As the world’s leader in professional skin care, Dermalogica’s core mission is to define and bring success to professional skin therapists.” The company expect these price cuts to drive consumers back to the professionals to purchase their skincare products where they can benefit from a professional skin analysis, expert guidance and a tailor-made skincare regimen to treat their individual concerns, explained Cassie.
 

“Many people are seeking cheaper product online, often from unknown sources. This is a huge risk for consumers as they are not protected if the product is expired, faulty or if they develop a reaction.” The discounts will mean huge cost savings for the consumer, for example, Precleanse, which used to retail for $65.50, will now retail for $51 while Daily Microfoliant, which used to retail for $83.50, will now retail for $69.
 

The news will be very welcome to those in the industry who are feeling the pinch from the growing popularity of online product sales. Although Dermalogica agree this trend doesn’t look set to dissipate any time soon, in fact it’s likely to grow in popularity, they understand the need for professional salons to attract new clientele plus maintain their existing client base. The news was well-received by members of the Australian press at the launch yesterday at The Sailor’s Club, Rose Bay.
 

Interview with Suzette Cassie, Dermalogica General Manager:

Why did you take the decision to lower your retail prices so significantly?

The salon professional industry has changed dramatically over the last five years particularly the way consumers interact with us. Most changes have been led by technology and the current economic climate and it’s vital that businesses adapt to these changes. As a leader in the Professional Skin Care Industry we felt a significant reduction in retail pricing was necessary to support our stockists and to encourage consumers back into salon for professional skin care advice.


Why is it so important to drive the consumer back to the professional skincare therapist?

For the Professional Skin Therapist, driving consumers back into their business is extremely important as it reminds the consumer of the true value they can find when visiting a Dermalogica Skin Treatment Centre. Skin needs are constantly changing, new products are being introduced and treatment solutions are updated. Even something as simple as correct product application is something only a therapist can demonstrate. It’s this regular interaction that helps build a long-term relationship between therapist and client and will improve the customers’ overall skin health.
 

Are salons struggling and why do you think this is?

I think the economic climate and rapid shifts in the technology arena have posed a few challenges for salon owners today and salons need to keep evolving to stay one step ahead of the changes while remaining focused on what they do best and what their unique offering is. I’ve found those stockists who have built strong client relationships and embraced the internet as a communication, marketing and educational tool are attracting more customers and achieving success.


How many salons are Dermalogica in across Australia?

We have just over 1,300 stockists Australia wide.
 

What do Dermalogica offer their salons by way of ongoing support and training?

Our stockist support is second to none. We offer free education workshops to all Dermalogica stockists, providing not only practical training for within the treatment room but also business workshops to help support the owners. With five education centres around the country we teach over 8,000 therapists during the year and mentor students through several levels of accreditation achievement. Our workshop materials and content are always being updated to meet the needs of the changing industry. Of course our team of educators and sales staff ensure constant in-centre training is offered at regular meetings. We pride ourselves in working closely with our accounts to help them achieve their business goals. We have a full promotional and marketing calendar throughout the year offering generous promotions. We are particularly excited this year to be offering an exclusive promotion with the fashion designer Kit Willow! We also incentive accounts to achieve sales growth targets by providing annual rebates, along with travel incentives. Last year we subsidised a trip to L.A for stockists to attend a Symposium at our Head Office and are offering a similar incentive to stockists with a trip to Malaysia in June. At the start of the year we also introduced a programme to reward our most loyal Dermalogica accounts. Loyal-d provides instant savings on Dermalogica products and free support material to those brands that only endorse the Dermalogica brand within their business.


What does a Dermalogica-trained therapist offer a consumer that an online sale never could?

A computer can’t analyse your skin! A Dermalogica-trained therapist offers real-life skin solutions and the most accurate skin diagnosis that a website could never offer. Our unique concepts such as MicroZone, Skin Bar (individual coaching session) and FaceMapping are only deliverable through a face-to-face consultation. Even though consumers know what products they generally use in their regimen, skin needs are constantly changing and only advice from a therapist can provide the best solutions.


What feedback have you had from salons regarding this initiative so far?

The news has been greeted with great excitement from our stockist network. The competitiveness of our retail prices particularly against grey-market websites like Strawberry.net has been a contentious issue for many brands for quite some time now. Whilst there still may be websites out there selling Dermalogica product at lower prices, our new recommended retail price reduction combined with a consumer education campaign and unique in-store gift offerings, should encourage more consumers to purchase from Professional Skin Therapists.


Can you tell us about the new serum due to be launched in March?

Dermalogica’s latest skincare innovation – Multivitamin Power Serum – packs a potent anti-ageing punch, thanks to two forms of potent vitamin-A ingredients. The benefits of these ingredients are maximised by advanced liposomal technology which allows for a higher load capacity and therefore greater potency and efficacy.


For more information on Dermalogica call 1800 659 118 or (02) 8437 9600 or visit
www.dermalogica.com.au

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