anti-aging skincare pro ducts drive practice...

According to Medical Insight, Inc., (Aliso Viejo, Calif.)global sales of physician-dispensed cosmeceuticals reached$774.9 million in 2008 – an increase of 13.4% in just oneyear. Through 2012, growth of this segment is projected atup to 17.1% per year as physicians continue adding skin-care lines to augment their aesthetic treatment services.

By Cheryl Whitman, Contributing Editor

Anti-Aging SkincareProducts DrivePractice Profitability

THE Aesthetic Guide July/August 2009 www.miinews.com62

THE Aesthetic Guide July/August 2009 www.miinews.com 63

The last thing anyone should do is sittight through a slow economy and watchthe recession attack their bottom line.Consumers continue to spend billions ofdollars each year on anti-aging skincareproducts and implementing these prod-ucts into your practice can increase totalrevenues by as much as 40%. Anti-agingskincare products can achieve greatresults for your patients’ skin as well asyour practice.

Anti-aging products are the leadingcategory within the U.S. skincare mar-ket, and by 2010 they will account for60% of overall cosmeceutical productdemand. Between now and 2011, theU.S. population over age 50 willincrease by 56%. This group’s collectivespending power currently exceeds $900billion per year, which is a healthy indi-cator, as well as a good reason to con-sider adding anti-aging skincare to yourpractice in the near future.

“The benefits of adding medical gradeskincare and non-surgical enhancementsto your practice have been broughtabout by the current recession,” notedboard certified plastic surgeon, Joel B.Singer, M.D., of Imperial Plastic Surgery,LLC in Westport, Conn. “While the vol-ume of big ticket surgeries is way down,injectable, laser and other non-surgicalenhancements have held up reasonablywell. People will withhold spending alarger sum on a big project during peri-ods of financial uncertainty; however,they will spend a little for maintenance.Furthermore, the currently unemployedwill carefully use their available funds tohelp them look their best, especiallywhile the job market is so competitive.”

Since you already have patients whotrust you, you have a golden opportunityto increase revenue through new productand service lines. Becoming your clients’personal skincare expert and guidingthem in product selection and daily regi-men is a smart way to capture returnbusiness and referrals for your practice.

Ran Rubinstein, M.D., a board certi-fied facial plastic surgeon at Laser and

Cosmetic Surgery Specialists, PC (New-burgh, N.Y.), uses what he calls theThree D’s of Aging to explain the agingprocess to his patients. The steps usuallyoccur in the following order: 1. De-terioration of the skin; 2. Deflation or lossof facial volume; and 3. Descend or sag-ging of the skin.

“If one only one of these indicationsis addressed, for example, treatingsagging skin via a face-lift, it can oftenlead to an unbalanced and unnaturalrejuvenation result,” explained Dr.Rubinstein, an assistant clinical profes-sor at New York Presbyterian Hospital(New York, N.Y.). “It is for this reasonthat skincare and volume restorationare such an integral part of my rejuve-nation treatment plans.”

Maintaining patient trust is a top prior-ity, so finding the right products to dis-pense – products you can truly believe in– is imperative. New chemicals andcompounds arrive on the market almostdaily. Becoming knowledgeable aboutthe ingredients, effectiveness and poten-tial marketability of cosmeceuticals, aswell as other anti-aging skincare prod-ucts is the first step to adding them toyour practice.

Currently one of the hottest trends inanti-aging skincare is the advent of newproducts that contain natural andorganic ingredients. “Green” productsare divided into two categories, botan-ical organic, which include floweracids, honey, green, white and redteas, and marine elements, which con-tain extracts from organic seaweed andalgae. A 2008 report from theBenchmarking Company (McLean, Va.)indicated that approximately 45% ofwomen select natural beauty productsdue to their fear of chemicals and 41%are willing to pay more for a productthat is certified as 100% organic.However, more than 60% of womenfind it difficult to tell which products arenatural or organic. Offering organicselections right in your office can createa whole new identity, as well as rev-enue streams, for your practice.

Ran Rubenstein, M.D.Board Certified Facial Plastic SurgeonLaser and Cosmetic SurgerySpecialists, PCNewburgh, NY

Approximately 45% ofwomen select naturalbeauty products due totheir fear of chemicalsand 41% are willingto pay more for aproduct that is certifiedas 100% organic.

Anti-Aging Skincare Products Drive Practice Profitability

Joel B. Singer, M.D.Board Certified Plastic SurgeonImperial Plastic Surgery, LLCWestport, CT


“As a skin cancerspecialist, I have seenthe significant benefitsof adding medicalgrade skincare andnon-surgical enhance-ments to my practicefor my patients.”

Large companies entering the natu-ral/organic skincare market includeAnna Bellina (Suwanee, Ga.), Labora-tories Luzern (New York City, N.Y.),BORBA (Woodland Hills, Calif.), Shiseido(Tokyo, Japan), LUSH (Vancouver, BritishColumbia, Canada), Origins (New York,N.Y.), Aveda (Blaine, Minn.), Olay (Cin-cinnati, Ohio) and GNC (Pittsburgh,Pa.).

Another emerging trend is green sci-ence, including green packaging forproducts of all types. Be sure to considerthe environment when selecting a skin-care product line – and remember thatgoing green is not only a matter of con-science, it’s a powerful selling point formany clients and it’s great for public rela-tions and marketing.

Within the past five years, anti-agingskincare products featuring stem cellshas emerged. Stem cells have the capa-bility to divide and develop into differentcell types within the human body, includ-ing skin cells. Products with stem cellswork by stimulating adult stem cell reser-voirs in the epidermis to provide rejuve-nation. There are two types of stem cells:embryonic and adult. According todermatologist Jeanette Jacknin, M.D.,(Phoenix, Ariz.) skincare specialists donot use embryonic stem cells as it isimpossible to incorporate living cellsinto a skincare product. Instead, com-panies are creating products with spe-cialized peptides, enzymes and/orplant stem cells to help protect humanepidermal stem cells from damage anddeterioration, while stimulating the skin’sown stem cells.

Although most cosmeceutical productsare not directly regulated by the Foodand Drug Administration, the key to eval-uating their effectiveness is by under-standing how they are tested. Activeingredients are evaluated using poly-merase chain reaction (PCR) testing,which characterizes biologic activityand determines if the ingredient is anantioxidant or anti-inflammatory. Typ-ically product efficacy is evaluated byusing double-blind, vehicle-controlled

studies, and most cosmetic manufactur-ers use open-label user studies, wheresubjects apply test creams for a fewweeks and then assess their improve-ment over baseline.

Marcy Street, M.D., of Doctor’sApproach Dermatology and Skin CancerCenter in East Lansing, Mich., shared,“As a skin cancer specialist, I haveseen the significant benefits of addingmedical grade skincare and non-surgicalenhancements to my practice for mypatients.” She noted that these productsand procedures “improve the overallhealth of the skin and counteract sundamage. It is one of the best ways to pre-vent pre-cancerous changes on the sur-face, while restoring moisture, elasticityand collagen tissue. These products reju-venate the skin and your clients see visi-ble results. They look and feel youngerand return for more of your expertiseand care.”

Another key step is to learn about themajor manufacturers that produce anti-aging skincare products for distributionin the U.S. New companies are enteringthe cosmeceutical manufacturing marketat a rapid pace. Most cosmeceuticalcompanies work in partnership withphysicians, dermatologists and surgeonswho give credibility to product perform-ance and effectiveness claims. Amongthe top manufacturing companies areAllergan (Irvine, Calif.), La-Roche Posay(New York, N.Y.), Obagi (Long Beach,Calif.), SkinCeuticals (Garland, Texas),SkinMedica (Carlsbad, Calif.) andValeant (Aliso Viejo, Calif.).

Knowledge is power so it is importantfor you to know your patient’s home skin-care and spending habits. A recent pollby Smartskincare.com discovered that45% of patients spend between $50and $99 per month on skincare, and asmany as one-fifth of those polled spendover $500 a month. However, a surpris-ing number of those surveyed said theyfelt unsatisfied with the effectiveness oftheir skincare products, regardless ofhow much they spent. Consider conduct-ing a simple patient survey to learn how

Marcy Street, M.D.Doctor’s Approach Dermatology andSkin Cancer CenterEast Lansing, MI


THE Aesthetic Guide July/August 2009 www.miinews.com 65

new and existing patients are caring fortheir skin at home, how much theyspend on skincare products and howhappy they are with the results. This isalso an easy way to start a conversationabout your new product line and getvaluable information.

If you are ready for the adventure, con-sider launching a custom skincare line allyour own. A well-developed privatelabel skincare line extends your clients’visits by providing personalized productsthey can use at home. The process of cre-ating a private label skincare line is lesscomplex than you might think and thebenefits are plentiful.

Having an exclusive line of qualityskincare products with your name andlogo on it raises your practice’s credibil-ity, creates name recognition and is alogical extension of the other investmentsyou have made in your business.Offering your own private label skincareproducts in your office provides conven-ience for your clients and creates cus-tomer loyalty, ensuring return traffic andreferrals. There is less likelihood of com-petition – even on the Internet – whenyou create your own product line andthe end result is a unique, branded iden-tity for your practice.

With a private label skincare line, youare in control. You have the option of cre-ating your own cosmeceutical com-pounds in your office, developing newproducts in cooperation with a skincarelaboratory, or simply placing your nameand logo on existing products from awell-respected manufacturer. You alsohave a wide-range of choices when itcomes to packaging, pricing/mark-up,display, mail order or Internet sales andmarketing/advertising. You can evendesign private skincare packaging tocoordinate with your office decor to giveyou a signature look.

A custom skincare product line can beextremely lucrative, adding between30% and 40% to your total revenues.The mark-up on private label products

can be as much as 300%, dependingon the types of products you choose.The up-front costs of custom labeling (ini-tial sourcing, creative/graphic designand development) are slightly higherthan with existing manufactured productlines, but the return on investment is fivetimes as high.

Many skincare manufacturers workwith physicians to create their own pri-vate label products including RAYALaboratories, Inc. (North Hollywood,Calif.), Kira Labs (Pompano Beach, Fla.)and G.S. Cosmeceuticals (Livermore,Calif.). The initial investment of timeand money to develop a private labelproduct line is not as sizeable assome expect – it is possible to beginwith small quantities. Additionallythere are ways to simplify the processand save both time and money. In thelong run, private label skincare prod-ucts are very cost efficient, and theadded benefits in branding, controland customer loyalty make it wellworth the effort.

As briefly mentioned, physicians alsohave the option of compounding theirown prescription skincare products inthe office. This method enables you toselect higher-grade elements and tocontrol the combination and prescrip-tion strength of each active ingredient.The ability to customize products forthe unique needs of each client fostersthe ultimate brand loyalty and ensuresrecurring sales.

Make sure to research the specificlaws and dispensing regulations thatapply to retail sales of cosmeceuticalsand prescription products in yourstate. Some states provide guidelinescovering the amount of mark-up aphysician can add to a sale and whethera pharmacist must be used for pre-scription products.

Finally, there are two things neededto compete and succeed in this chang-ing economy: openness to new oppor-tunities and flexibility to adapt. Some


Top CosmeceuticalIngredients

Defined as a marriage between cos-metics and pharmaceuticals, cosme-ceuticals are widely recognized asthe fastest growing segment of the nat-ural personal care industry. Theseproducts are applied topically, butcontain ingredients that influence thebiological function of the skin. Theyare divided into categories based ontheir active ingredients:

• Antioxidants help reduce the harm-ful effects of free radicals, whichare molecules that injure the skin’scells, causing inflammation, increas-ing sun damage and contributing tothe development of skin cancer.

• Peptides are smaller proteins thatstimulate the production of collagenand thicken the skin.

• Growth factors are compounds thatact as chemical messengers betweencells and play a role in cell division,new cell growth, blood vessel growthand in the production and distribu-tion of collagen and elastin.

• Anti-inflammatories/botanicals areplant-based ingredients that haveanti-inflammatory properties, as wellas anti-carcinogenic and anti-muta-genic functionality.

• Hydroxy acids are chemical com-pounds considered to be useful build-ing blocks in organic synthesis,which can reduce wrinkles and thesigns of aging. The newer polyhydroxy acids (PHAs) have largermolecular structures and penetratethe skin more slowly thus decreasingsensitivity and discomfort while main-taining their effectiveness.

• DNA repair enzymes are designedto help cellular components of skinrecover from past damage. Theyhelp restore thymine dimers, whichare pieces of DNA that have beenbroken by UV exposure.

(continued on next page)


Top CosmeceuticalIngredients

A great source of detailed informa-tion about the formulations and activeingredients in cosmeceuticals is MedicalInsight’s recent report, Physician-Dis-pensed Cosmeceuticals: Strong GrowthDriven by Innovation. According to thisreport and others in the industry, the topcosmeceutical ingredients in 2009 are:

• Tretinoin and retinol (vitamin A)

• L-ascorbic acid and vitamin C ester(vitamin C)

• Tocopherol and tocotrienol(vitamin E)

• Alpha lipoic acid

• Ferulic acid

• Hyaluronic acid

• Coenzyme Q-10

• Kinetin (a cytokinin)

• Glycolic, citric and other alphaand beta hydroxy acids

• Argirelene, GHK and copper(peptides)

• DMAE (a choline)

• Idebenone, thiotaine and otherantioxidants

• Peptides

• Squalane

• Waglerin-1 (a peptide found inTemple Viper venom to achieve aneurotoxin type effect)

• Growth factors


key activities that will help to ensureyour success include:

• Determine your plan. Having adetailed business and marketingplan will help you prepare for thecost of doing business in a newindustry. A good starting point is abasic summary of what you hope toaccomplish with your new venture –your vision, financial goals, objec-tives and strategies to accomplishthose objectives. Creating a businessand marketing plan that is realistic,factual and executable is a crucialstep that requires thoughtful planningand analysis. Engaging the help ofan expert or consultant with expert-ise in this area can provide valuableinsight and make this task a creativeand informative experience.

• Get all your staff involved. Institutingan incentive program for youremployees based on the new prod-ucts will create a team approach tosuccess. In addition to financialincentives, your staff needs to befully educated on the new products.Start by having them use the prod-ucts themselves so they will know thebenefits and key selling points.

• Don’t be shy. Place promotional/col-lateral material in your lobby, wait-ing area and other appropriateplaces. Depending on your spaceand taste, in-office displays can besimple or elaborate, and marketingefforts can include special take-homekits, free trials, samples, couponsand more.

• Inform patients of what you’re doing.Provide a short introduction of yournew products to every patient. Playan audio/video presentation on con-tinuous loop in your waiting area topresent your new products to existingpatients.

• Don’t overlook the option of offeringproducts for other skincare troublessuch as acne and pigmentation

problems or those that address theskincare needs of specific ethnicgroups or men.

• Don’t forget the extras such as addinga shopping cart to your website totake product orders while you sleep.

Furthermore specialized consulting andeducational resources are available toguide you in branding, strategic market-ing and retail operations if you choose toadd brand name or private label skin-care products to your practice. TheAesthetic Medical Success System: AComplete Educational Guide to Building,Managing and Marketing Your CosmeticPractice or Medical Spa provides acomplete guide to building, managingand marketing your cosmetic practiceor medical spa. �

Cheryl Whitman is inter-nationally recognized asa pioneer in aesthetic, med-ical spa, wellness, anti-aging and retail market-

ing business consultancy. She is apublished author, popular speakerand has been a beauty industry con-sultant for more than 30 years. Asfounder and CEO of beautiful forev-er (Englewood Cliffs, N.J.), Ms.Whitman leads a successful team ofaesthetic business consultants andprofessionals, highly experienced inbusiness coaching, partnerships,venture capital programs and cre-ative financing. Ms. Whitman alsodeveloped The Aesthetic MedicalSuccess System: A Complete Edu-cational Guide to Building, Man-aging and Marketing Your CosmeticPractice or Medical Spa, which is anaesthetic business/medical spa man-ual available through the AmericanSociety of Plastic Surgeons (ASPS).For more information please visitwww.beautifulforever.com.


anti-aging skincare pro ducts drive practice...

Documents