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Estée Lauder chairman Leonard Lauder referred to it as the “lipstick effect” – the increased demand for small luxuries during times of economic uncertainty. The theory behind this phenomenon is that during periods of stress, beauty and self-care rituals provide a sense of psychological comfort.
Even McKinsey has reported a rise in demand for skincare and wellness products amid the pandemic. With concerns of a potential economic downturn looming, could this trend also apply to more affordable alternatives to surgical procedures like tummy tucks?
LaserAway, one of the most well-known dermatology brands in the U.S., has expanded to over 120 locations and reports an annual growth rate of over 20% in America. CEO Scott Heckmann attributes LaserAway’s success during recessions in 2008 and 2020 to patients turning to lower-cost providers such as medspas rather than traditional plastic surgeons and dermatologists.
As the CMO of Vagaro, a software provider for the wellness industry, I have observed a shift towards non-invasive procedures like body contouring due to advancements in beauty technology. These methods are more accessible and less daunting, leading to a growing trend away from surgical interventions. I believe LaserAway’s growth offers valuable insights for other beauty brands looking to navigate through unpredictable economic climates.
Related: 7 Strategies to Recession Proof Your Business in 2024 and Beyond
1. Embracing a Changing Market
Transparency is crucial when it comes to procedures that involve sensitive areas like the body and face. LaserAway’s social media strategy includes real-life videos of treatments, showcasing real people and nurses, to build credibility and trust. Providing a realistic expectation of outcomes ensures customer satisfaction, leading to a rise in demand for non-invasive aesthetic treatments.
Technology plays a key role in making these treatments accessible to a larger market, including men who are increasingly embracing skincare. Diversifying services and offering a wide range of treatments can help medspa businesses thrive and maintain steady income through economic fluctuations.
Related: 5 Recession-Proof Businesses to Start in a Turbulent Economy
2. Diversification for Resilience
Medspa chains like LaserAway benefit from diversifying their services while maintaining expertise in each area. Offering a variety of treatments can lead to repeat customers and increased revenue. Balancing high and low-value offerings can help sustain income during uncertain economic times.
Technology with integrated payment options makes treatments more affordable and appealing to consumers. Non-invasive procedures offer similar results to surgery with shorter recovery times, making them a popular choice. Focusing on referrals and authentic marketing strategies can help beauty businesses thrive in a changing sales landscape.
3. Leveraging the Power of Referrals
Utilizing influencers and real-life case studies can influence consumers in a more authentic way than traditional sales tactics. Consumers today prefer to be informed and empowered to make their own decisions before engaging with sales representatives. Referrals and word-of-mouth marketing play a significant role in the beauty and wellness industry.
By adapting to the evolving expectations of consumers and leveraging data to anticipate trends, beauty brands can build credibility and establish lasting relationships with their customers.
Related: How Small Businesses Can Survive and Thrive in a Recession
