A good idea for a product or service isn’t always enough. It takes a special kind of business person to turn dreams into reality and concepts into dollars. Key traits of a successful entrepreneur include identifying the right opportunities, having a passion for your business and an exceptional ability to work hard. Segue to Craig Schweighoffer
SKIN PHYSICS® was a sleeping giant. The brand took the anti-ageing sector by storm when it launched in 2007 because of its first-to market active ingredients, world class stem cell technology and extensive clinical background in phototherapy and retinol.
Craig Schweighoffer has built a formidable reputation in the beauty and lifestyle category as the co-founder and CEO of Ecoya/Trilogy. Four years ago, he took over Biophysics Australia, the brand owner of the best-selling Australian-based cosmeceutical brand, SKIN PHYSICS®. Schweighoffer’s strengths are branding and re-branding and SKIN PHYSICS® was a sleeping giant. The brand took the anti-ageing sector by storm when it launched in 2007 because of its first-to market active ingredients, world class stem cell technology and extensive clinical background in phototherapy and retinol, he says. “The core products had a strong and loyal customer base and I could see there was incredible potential to evolve and premiumise the offering. Our aim is to become the most awarded skincare brand in Australia and category leaders”.
Chic New Packaging/Ongoing Success/Improved Formulas
Claiming that he was happy with the way things were going after 12 months, Schweighoffer reveals that SKIN PHYSICS® is in the top 8 per cent of best performing skincare brands in Priceline, according to IRI Scan Data YTD mid-October 2018. “We decided to bring out a neck product which isn’t easy to do and Advance SUPERLIFT® Neck Lifting & Firming Cream is the number one neck cream in Priceline. SUPERLIPS is number two in the lip segment and all three of our eye creams are among the top 25 – Advance SUPERLIFT® Eye Lifting & Contouring Serum, OXYGEN-C Immediate Eye Lift Serum and EYELIFT-360® Eye Treatment”. SKIN PHYSICS®’ iconic Dragon’s Blood range is already a major hit. Facial Sculpting Gel, known to its fans as the liquid facelift, is ranked number three in the day cream sector at Priceline and Dragon’s Blood Ultra Plumping Night Cream has attained the number four slot among night creams. Total sales of both products have surpassed 500,000 units. It’s a complete 24/7 regime, says Schweighoffer, and each formula works in synergy to maximise results.
The future looks even brighter – literally. Following the online launch in October 2018, Dragon’s Blood is now available in a new fire engine red packaging in Priceline and Priceline Pharmacy from January, to stand out on the shelves. In addition to the original formula Facial Sculpting Gel, there will be three new and improved formulas. The 3-in-1 Advanced Treatment Cleanser has superior foaming action to purify the skin. Radiance Daily Moisturiser offers extra protection from infra-red radiation, blue light and pollution – three of the fastest-growing concerns in skincare, especially in Asia. Ultra Plumping Night Cream is gentler on the skin to suit a wider variety of skin types while retaining its potency and firming effects.
Export Focus – Explosive Chinese Growth
The Chinese market, notably e-commerce and daigou shopping channels, have become a major focus, says Schweighoffer. “We have invested heavily and are enjoying great success. SKIN PHYSICS® has launched on JD.com and Alibaba’s Tmall. We also have a flagship on Xiao Hong Shu (the little red book), a social media and e-commerce platform launched in 2013. It has 100 million registered users and 30 million monthly active users, with 60 per cent aged under 30. The Chinese market now accounts for 30 per cent of our business and is growing fast”. The youthful demographic of Xiao Hong Shu is crucial for SKIN PHYSICS®, says Schweighoffer. In Australia, our core market is women aged 45 to 65. But in Asia, it is 20-plus because women start looking after their skin at an earlier age. We are also on Weibo and WeChat, the two largest social media platforms in China, because Chinese women are seeking out high quality skincare products that work”. The UK is also looking promising as an export market. SKIN PHYSICS® is available on Amazon UK and we will appoint a distributor this year, says Schweighoffer. The brand has a distributor in Thailand and will enter the Vietnamese market over the next few months. New Zealand is a strong market through distribution in all Green Cross Health stores and Farmers department stores.
Targeted New Products/Extension into Nutraceuticals
Mid-2018 saw an elevated launch schedule for SKIN PHYSICS®. The hands give away a person’s age faster than the face and Advance SUPERLIFT® Caviar Age Recovery Hand & Nail Renewal Cream is a luxury formula packed with antioxidants, vitamins and keratin to smooth lines and wrinkles and even skin tone. “We have also had incredible success with our new LASH & BROW MAGIC, a natural formula that adds length, depth and fullness to eyelashes and brows”. Global sales of collagen supplements are expected to reach US$9.3 billion by 2023, reports Transparency Market Research. SKIN PHYSICS® entered the rapidly expanding nutraceutical market in June with COLLAGEN BEAUTY ELIXIR. Collagen is one of the body’s two major support proteins and diminishes with age. Made from 100 per cent natural ingredients, COLLAGEN BEAUTY ELIXIR is a powerful blend of marine collagen, superfoods, pre-biotics and organic turmeric. Leading dermatologists have known for many years that nutrition is a critically important part of maintaining youthful and healthy looking skin, says Schweighoffer. “As a leading provider of cosmeceutical skincare, we too at SKIN PHYSICS® believe it’s crucial to take care of your skin from the inside”.
Reinvigoration of RAPID LOSS® – Next Generation of Meal Replacement Programs
But the ingestible that’s top-of-mind for Schweighoffer is RAPID LOSS®, acquired by Biophysics last May. With widespread consumer recognition, RAPID LOSS® was launched in 2008 and was one of the first meal replacement brands in Australia. The acquisition is the first step in a bigger growth strategy for Biophysics and we are well placed to capitalise on the proven success of SKIN PHYSICS® and further expand the portfolio into other health and wellness brands, he adds. “Using our knowledge and dedication to ingredient purity, market leading formulas and the latest technology already demonstrated in SKIN PHYSICS®, we plan on creating a portfolio of brands that the Australian consumer can trust”. There’s plenty to build on. The global meal replacement market is predicted to grow at a CAGR of 6.83 per cent through to 2021, reports Research and Markets. In IRI Scan Data YTD to October 2018, Rapid Loss Shake Chocolate ranked as the number one shake in the Total Grocery Diet and Sports Nutrition category. But Schweighoffer is looking to another macro trend – wellness. Ingestibles and supplements that add extra nutritional benefits, superfoods and more health conscious ingredients to hectic modern lifestyles are expected to grow at a CAGR of 5 per cent through to 2022, says Technavio, with the Asia/Pacific region the main driver of increased sales. RAPID LOSS® has reached household name status in the weight loss sector, but we will extend into diffusion products under the RAPID® WELLNESS banner which will be focused on protein supplements, health food snacks and products that promote a healthier lifestyle, says Schweighoffer. “Our goal is for the wellness products to account for 50 per cent of the RAPID LOSS® business. There are huge opportunities in Australia but also the US and New Zealand. “The new and improved RAPID LOSS® formula has 30 per cent less sugar and comes in seven on-trend flavours including latte. The brand is a perfect addition to our portfolio. It has a proven history of success and we are investing heavily to launch RAPID LOSS® back into a destination brand. We also have exciting new products such as RAPID® KETO in the pipeline, based on the most recent scientific evidence into meal assisted weight loss, which will expand the RAPID LOSS® portfolio into the next generation of meal replacement programs”.
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