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Canada's number one beauty superstore - Glamour Secrets

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Canada’s <strong>number</strong> <strong>one</strong><br />

<strong>beauty</strong> <strong>superstore</strong><br />

The ultimate shopping experience, with ambient music, hundreds of exclusive<br />

<strong>beauty</strong> brands, tester bars and full-service salon, is heading for new<br />

international markets. Rachel Spaul discovers what <strong>Glamour</strong> <strong>Secrets</strong> has to<br />

offer serious investors<br />

<br />

9


<strong>Glamour</strong> <strong>Secrets</strong> has pi<strong>one</strong>ered a chic,<br />

yet affordable, <strong>beauty</strong> <strong>superstore</strong> that<br />

sits comfortably alongside the<br />

world’s top fashion players. With premium<br />

<strong>beauty</strong> brands and services traditionally only<br />

available to consumers through salons, it has<br />

filled a market niche for leading<br />

brands at reduced prices.<br />

Established in Canada<br />

as Trade <strong>Secrets</strong> in 1989,<br />

the brand has grown to<br />

become Canada’s<br />

largest professional<br />

retailer of its kind<br />

with 66 stores, and<br />

has expanded into the<br />

USA and Kuwait.<br />

“<strong>Glamour</strong> <strong>Secrets</strong> is<br />

100 per cent<br />

successful with no<br />

store closures,” reports<br />

Doug Warren, Director<br />

of Franchising. “We have<br />

11 multiple store owners,<br />

which is a good<br />

indication of our success,<br />

and have ventured into diverse<br />

locations including shopping<br />

10<br />

Advertorial, © 2006 Franchise International<br />

‘We attract people who are<br />

willing to spoil themselves<br />

with better products. It’s a<br />

high repeat business - once<br />

a customer tries Sebastian<br />

or Redken, they never go<br />

back to the<br />

supermarket for their<br />

<strong>beauty</strong> products.<br />

This is a very<br />

underdeveloped<br />

niche.’<br />

centres, financial concourses and airports.<br />

This is a versatile concept suited to almost as<br />

many locations as fast food outlets.”<br />

According to Warren, looking good is an<br />

international industry and <strong>Glamour</strong> <strong>Secrets</strong> is<br />

aiming to establish a presence in 25 countries<br />

worldwide within 10 years. Among these<br />

target markets are the UK, Ireland, France,<br />

Italy, Eastern Europe and the US, where<br />

<strong>Glamour</strong> <strong>Secrets</strong> is looking for Area<br />

Franchisees, the professional <strong>beauty</strong> services<br />

market is a US$62 billion industry (according<br />

to Mintel), and <strong>beauty</strong> is widely recognised as<br />

a recession-proof industry.<br />

A CANDY STORE FOR WOMEN<br />

Former salon owner Joe Belotti founded<br />

<strong>Glamour</strong> <strong>Secrets</strong> having discovered that what<br />

generated the greatest returns was not cutting<br />

hair but selling associated <strong>beauty</strong><br />

products. The result is a<br />

<strong>one</strong>-stop <strong>beauty</strong>


‘We are very choosy about<br />

location and have stores<br />

next to some of the best<br />

retailers in the world. Our<br />

store volumes are very<br />

high and margins are very<br />

good. The average<br />

customer walks out with<br />

between US$60 and US$70<br />

worth of goods.’<br />

<strong>superstore</strong> that combines a wide selection of<br />

<strong>beauty</strong> products with the compliment of a<br />

full-service salon. “We attract people who<br />

are willing to spoil themselves with better<br />

products,” Warren relates. “It’s a high repeat<br />

business - once a customer tries Sebastian or<br />

Redken, they never go back to the<br />

supermarket for their <strong>beauty</strong> products. This<br />

is a very underdeveloped niche. The <strong>beauty</strong><br />

industry is huge worldwide, but at the<br />

moment these brands are mainly sold<br />

through salons.”<br />

The key to <strong>Glamour</strong> <strong>Secrets</strong>’ international<br />

success is replicating the total shopping<br />

experience in every market, from the stylish<br />

shop frontage right through to the ambient<br />

Latin music. Each store also features ‘try<br />

before you buy’ tester bars, stock between<br />

4,000 and 5,000 different items including<br />

hair dryers and curling irons as well as<br />

cosmetics, and are staffed by licensed<br />

cosmetologists. <strong>Glamour</strong> <strong>Secrets</strong> carries<br />

professional, high-end, internationally<br />

known brands from companies such as<br />

Redken, Rusk, Bedhead, OPI and Abba.<br />

Many stores have small salons, where both<br />

men and women can indulge in over 40<br />

services including nails, aesthetics, skin care<br />

and hairstyling.<br />

An average store is between 1,000sqft and<br />

1,200sqft situated in high-traffic, high-end<br />

convenient locations. “We are very choosy<br />

about location and have stores<br />

next to some of the best<br />

retailers in the world,”<br />

explains Warren. “Our store<br />

volumes are very high and<br />

margins are very good. The<br />

average customer walks out<br />

with between US$60 and<br />

US$70 worth of goods.”<br />

MASTER FRANCHISE<br />

OPPORTUNITY<br />

<strong>Glamour</strong> <strong>Secrets</strong> has<br />

identified Master Franchising<br />

as the most suitable method for<br />

entering new international markets, and is<br />

looking for executive entrepreneurs or<br />

organisations with significant business<br />

experience. Candidates do not need specific<br />

experience in the <strong>beauty</strong> industry, but should<br />

have a good understanding of how retail<br />

works in their country and will need to<br />

establish at least <strong>one</strong> corporate store with a<br />

view to sub-franchising.<br />

<br />

11


INTERNATIONAL EXPANSION<br />

“No other company is offering the same as<br />

<strong>Glamour</strong> <strong>Secrets</strong> - a proven turnkey franchise<br />

system that offers the opportunity to develop<br />

your own chain of <strong>one</strong>-stop <strong>beauty</strong> stores,”<br />

Warren remarks. “Franchisees will have the<br />

advantage of years of proven success systems<br />

such as site selection, design and<br />

construction, merchandising,<br />

customer service, accounting,<br />

national<br />

advertising,<br />

ongoing<br />

training<br />

and<br />

support,<br />

and brand<br />

recognition that grows daily. The total<br />

investment required will vary<br />

depending upon the market.<br />

“Europe in particular is a good market<br />

and we believe that like the US there is the<br />

potential for between 600 and 800 stores.<br />

We will train Master Franchisees for four<br />

‘No other company is<br />

offering the same as<br />

<strong>Glamour</strong> <strong>Secrets</strong> - a proven<br />

franchise system that offers<br />

the opportunity to develop<br />

your own chain of <strong>one</strong>-stop<br />

<strong>beauty</strong> stores.’<br />

12<br />

Advertorial, © 2006 Franchise International


‘Europe in particular is<br />

a good market and we<br />

believe that like the US<br />

there is the potential<br />

for between 600 and<br />

800 stores. We will<br />

provide ongoing<br />

support and products<br />

from North America.’<br />

weeks in Toronto on all aspects of the role,<br />

from selling franchises, to support<br />

compliance, store construction, inventory<br />

and warehouse management, and will<br />

provide ongoing support and products from<br />

North America.”<br />

Warren describes the <strong>Glamour</strong> <strong>Secrets</strong><br />

Master Franchise as a “Starbucks-type”<br />

opportunity in that it offers the chance to get<br />

in on the ground floor with a speciality niche<br />

brand. He continues: “We’re offering the<br />

opportunity for franchisees to take full<br />

advantage of over 15 years of pi<strong>one</strong>ering a<br />

success story in the <strong>beauty</strong> product retail<br />

industry, and turn it into a lucrative business<br />

of their own.”<br />

Summary<br />

The Concept: Premium <strong>beauty</strong> product<br />

and integrated salon <strong>superstore</strong>s<br />

Number of outlets: 66<br />

Countries established: USA, Canada<br />

and Kuwait<br />

Overseas expansion plans: Worldwide<br />

Type of licence available:<br />

National Master and Area Development<br />

Franchises<br />

For more information about <strong>Glamour</strong><br />

<strong>Secrets</strong> call Doug Warren on<br />

+1 905 264 2799 ext 222<br />

email doug@glamoursecrets.com<br />

or visit<br />

www.glamoursecrets.com<br />

www.tradesecrets.ca<br />

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