Botox and Skincare Clinic Investment Research
The research provides a competitive and SWOT analysis of the medical aesthetic industry, with a focus on the Victoria region of Canada. It identifies top competitors that operate skincare-related clinics. The medical aesthetic industry primarily consists of specialties (medical aesthetics), spa and beauty (traditional esthetics) clinics. The Victoria market is considered to be competitive, with many clinics and leading clinics offering similar services and products core to the business. Despite COVID-19's negative on the spending power of consumers, the growth of premium skincare or medical aesthetics products and services is expected to continue post-COVID.
Competitive Landscape in Victoria Canada
- Based on the customer reviews from Google and Yelp, it is estimated to be approximately 20 main skincare clinics in the great Victoria region of Canada. In space of estheticians, the total of clinics in the region is expected to be between 60 and 95. Due to many clinics, the market is considered to be competitive, however, the intensity of competition is not certain, as there is a lack of market share information on market participants.
- According to the reviews of Google, Yelp and ThreeBestRated, as of October 19, 2020, the following top six clinics in the Victoria region are selected, based on the number of client reviews, ratings, and the number of employees:
Deco De Mode (799 reviews, 4.8 stars)
- Located on 1016 Broad Street, a full-service beauty clinic that offers skincare and laser removal services and products.
- Founded in 2010, the latest estimate of its annual revenue is $7 million and the company hires 38 employees, according to Zoominfo.
- The clinic offers 67 skincare products and the price ranges between $16 and $266. However, the majority of its products cost less than $100. Treatment services include laser, microneedling, and dermaplanning, among others. The laser treatment service (full face) costs $375 while $100 is for spot treatment; laser hair removal costs between $105 and $695. Skincare treatment service costs between $50 and $150.
- Deco De Mode has received an A+ rating, the highest score, from Better Business Bureau. The rating indicates the company's interaction with clients. Google Review also gives the company a star rating of 4.8 out of 5, among the highest in the Victoria region.
Derma Spa (224 reviews, 4.8 stars)
- Located on 1830 Oak Bay Avenue, a medical aesthetic clinic offering skin and spa services and products, using advanced medical and laser technology.
- Founded in 1999, the company hires 15 employees.
- The clinic provides various medical-grade skincare products (no price information available) and treatment services, such as Botox, Belkyra, Radiesse, Juvéderm Dermal fillers, microneedling, laser genesis, and laser hair removal. Treatment service costs between $11 per unit of Botox Cosmetics and $1,000+ per skincare treatment.
- Derma Spa has the highest rating A+ from Better Business Bureau. Google Review also gives the company a star rating of 4.8 out of 5.
Cosmedica Laser Centre (40 reviews, 4.8 stars)
- Located in 1990 Fort Street, a dermatologist center that provides advanced skincare treatment services and products.
- Founded in 1999, Dun&Bradstreet estimates the business's revenue to be $2.13 million and the company hires 12 employees.
- The center offers 5 skincare product brands and a variety of skincare treatment services, such as CoolSculpting, laser genesis, dermal fillers, and microneedling, among others. No price information is available on the company Website, whereas some promotional offers were available on Groupon and the undiscounted price was $350 for one spider-vein laser treatment and $1,050 for three spider-vein laser treatment.
- The company is founded by Dr. Mark Lupin, who is a dermatologist and laser specialist; his rating on RateMds is 4 out of 5 from 81 customer reviews. The company is given an A+ rating by Better Business Bureau. In 2016, Cosmedica Laser Centre was one of the 81 finalists nominated for the Vancouver Island Business Excellence Award.
MD ESTHETICS (103 reviews 4.8 stars)
- Located on 1910 Sook Road in Colwood, part of the great Victoria region, MD ESTHETICS specializes in non-surgical facial and skin rejuvenation services, such as laser, Botox, Belkyra, dermal fillers, and CoolSculpting, as well as medical-grade skincare products.
- Founded in 2007, the company has 9 employees.
- It offers 6 major skincare product brands as recommended by physicians. The price range for the Skinmedica brand is between $68 and $281, while the price for Jane Iredale products ranges from $19 to $125. No price information is available on treatment services.
- The company has received an A+ rating from Better Business Bureau. Google Review also gives the business a high rating of 4.8 out of 5.
The Rosenthal Clinic (72 reviews, 4.8 stars)
- Located on 4450 Chatterton Way, a medical aesthetic clinic that specializes in a range of skincare treatment services and products, using the latest techniques and procedures.
- Founded in 2006, the clinic has 4 employees.
- The clinic offers 10 cosmeceutical and cosmetic brands and a variety of skincare treatment services, including Botox, dermal fillers, CoolSculpting, laser genesis, and microneedling, among others. No price information is available.
- Founded by Dr. Gillian Rosenthal, Google Review gives the company a star rating of 4.8 out of 5. In contrast, Better Business Bureau could not give a rating due to insufficient information or ongoing file review.
Dr. Anna Medical Aesthetics (62 reviews, 4.7 stars)
- Located in 1964 Fort Street, a specialist that offers a variety of skincare and medical aesthetic services and products.
- Founded in 2015, the company has 4 employees.
- It offers skincare treatment services, such as Botox, laser, microneedling and dermal fillers, with no pricing information available. The price of skincare products for women ranges from $25 to $75; products for men cost between $15 and $99; and products for teens cost between $25 and $99 while one product for children costs $15.
- Dr. Anna Sylwestrowicz, the founder of the business, has a good reputation in the practice of plastic or cosmetic surgery; she has received a rating of 5 out of 5 from 41 client reviews on RateMDs. Google Review also rates the business 4.7 out of 5.
Cutting-Edge Treatments in Victoria
After reviewing the above-mentioned six major clinics in the space of skincare, medical aesthetics and dermatology, four groups of treatments are identified consisting of procedures, technologies and products; they are perceived to be market-leading and cutting-edge in the Victoria region, as most of them are commonly used and/or registered brands:
- Surgery & body contouring: CoolSculpting, Smartlipo, ThermiRF, and Thermage.
- Injectables/rejuvenation: Botox Cosmetic and Therapeutic, Belkyra, Juvéderm dermal fillers, Radiesse dermal fillers, and Platelet Rich Plasma (PRP).
- Laser treatment & microneedling: Laser genesis, Titan, Lightsheer laser hair removal, Clear+Brilliant, Fraxel, MiXTO SX CO2, and Skin Pen.
- Medical aesthetics/cosmeceuticals: HydroFacial MD, Latisse, and a variety of hyaluronic acid, salicylic acid, alpha hydroxy acid, glycolic acid or lactic acid, retinoid, and vitamin C skincare products
Botox and Skincare Clinics SWOT Analysis
- Strengths: Canada saw a booming beauty economy in 2016, which became the fourth largest business sector following real estate, cars and tourism. The Canadian market had approximately 3,700 cosmetics manufacturers and 1.54 million parlours in 2016. In Victoria, there are between 60 and 95 specialties, spa or beauty clinics (as mentioned above) in the space of medical aesthetics or traditional esthetics. The market is healthy and regulated, as top clinics specializing in skincare are led by qualified professionals, such as medical doctors; these clinics offer industry well-known treatment solutions and medicine-based products either prescribed by doctors or recommended by physicians.
- Weaknesses: According to research by the US Med Spa Association in 2017, some weaknesses are common in the medical spa market. 37% of medical spas did not perform the initial assessment of patients as per regulatory requirements, resulting in non-compliance issues; 31% of medical spas pay commissions on medical treatments, leading to potential fee-splitting and kick-back issues, among others. Moreover, some devices, such as laser equipment, are not allowed to be operated by non-physicians or by staff without the supervision of a physician; the device regulation is also changing in Canada, which reflects the potential safety and health issues in the practice.
- Opportunities: Taking into account the impact of COVID-19, the Canadian skincare market is not expected to post any growth in 2020. However, hand soothing and moisturizing products witness strong demand driven by the increased awareness of handwashing essential for disease prevention. With the emerging trend of health and wellness in 2020, low-price or volume products are resilient to the impact of COVID-19, as most consumers are expected to switch from premium to volume products, instead of stopping the purchase.
- Threats: Globally, there is increasing concern over the health risk of chemical products in skin treatment. It is expected to see increasing competition from emerging brands that provide innovative products, for example, natural, organic or plant-based skincare products.
Botox and Skincare Industry Trends
- As a major material or procedure used in skincare treatments, the global botulinum toxin (botox) market is expected to see a noticeable growth of 8.9% between 2020 and 2026. The growth is driven by the rising demand for esthetic surgery, esthetic medicine and the increased access to botox. Women aged between 40 and 54 represent a key consumer segment of skin rejuvenation and minimally invasive cosmetic procedures. For example, Shoppers Drug Mart started its first beauty clinic in Oakville ON offering the dermatology service in December 2018, which expects the market to double in the following five years.
- Next to botox, facial injectable products are another type of dermal filler expected to see significant growth in the future. The rising demand for facial injectable products is driven by the availability of minimally invasive surgery. The surgery offers the fast healing of wounds and the visible effect after treatment. The aging population in Canada and the US is the underlying driver of demand growth, while other drivers are the increased awareness of state-of-the-art treatments and the popularity of youthful appearance. In 2017, Botox A treatments and facial rejuvenation treatments ranging from OxyGeneo to microneedling saw marked demand in Canada.
- Young Canadian people also seek preventative measures to delay aging appearance; non-invasive treatment was most popular in the age group between 35 and 64, representing more than 7 million women in Canada. Regarding injectable treatment, 60% of women were aware of the treatment and 20% of them (1.5 million Canadian women) would like to consider aesthetic injection treatment. Moreover, the millennial population and men are also expected to be future trends influencers.
The research looked through a series of customer review sites, company Web sites, and industry databases. Information is lacking on business revenues and market shares, as all the businesses in skincare, medical aesthetics and dermatology are private. This led to the difficulty in assessing the market landscape from a quantitative perspective. Hence, the research team selected the top six market participants based primarily on customer reviews, ratings, and the number of employees. Due to the lack of information on the Canadian medical aesthetic or skincare industry, regarding trends, weaknesses and threats, the research team drew data from the global and the US market and shed light on likely trends and potential issues in Canada and the Victoria region.