Australian Skin Clinics Franchise: History, Growth, And Competitive Advantage

Australian Skin Clinics- History and Growth

Discuss about the Australian Skin Clinics Franchise.

Australian skin clinics franchise is one of the successful and highly rated medi-aesthetic businesses operating in Australia and offers cosmetic treatments. The business franchise is owned by the CEO Deb Farnworth-wood who acquired it in 2007 during a holiday with the family at the Gold Coast. According to Murphy (2015), Deb spotted a huge opportunity in the non-surgical treatment industry and foresaw the success of cosmetic treatment. The initial Australian skin clinic came into existence in 1996 founded by an Australian doctor in Queensland with a vision of franchise it in Australia (Australian Skin clinics 2016). The business concentrated on simple and limited treatments such laser and skin rejuvenation in the Gold Coast.

Over the past eight years, the single business has developed to a successful franchise operating in the main Australian states. According to Whichfranchise (2016), the CEO spent the initial years of the firm acquisition creating models, enhancing efficiencies and focusing on quality treatment across gender and age. The CEO initiated a pilot project for twelve months to access the functionality of a franchise that emerged to be very successful and prompted them to open another pilot project in a different city that gave birth to the franchise in 2011 (Australian Skin Clinics 2016). The employees of the initial clinic shared Deb vision and mastered the system that enabled the development of a culture of innovativeness and excellence that has propelled the franchise to growth and success (Campbell 2016). Over the past four years, the start-up acquired an efficient supply chain and, launched training camps to sharpen the skills of employees (Businessfranchiseaustralia 2016). Faced with financial difficulties during the Global Financial Crisis (GFC), the franchise initiated post-GFC measures to funds its business growth.  The Australian skin clinic franchise grew in capacity from seven employees to twenty-seven employees in the initial clinic prompting the CEO to initiate training and development programs for the staff.

Currently, the Australian skin clinics franchise is the leading provider of cosmetic treatment in Australia having hit tremendous growth and achievement in the past four years. The start-up has 24 skin clinics in the main Australian states employing more than 50 staffs comprising a skilled General Manager and an advisory board (Stowe 2016). The franchise has been registering revenue growth over the year’s attaining a 78% increase in revenue in 2014 to hit $25.5 million and a remarkable $29.54 million in 2015 positioning itself at 7th in the 2015 BRW fast starters list (Whichfranchise 2016). Moreover, the start-up has grown to extend its acne management training programs to doctors across Australia, New Zealand and in Europe (Hunwick 2016).

Background of the Start-up

Deb Farnworth-wood born in the UK attributes her success to the family values and attitudes instilled in her by the family background. According to The CEO Magazine (2015), Deb embraced her family beliefs of learning everything you can about anything as one does not know when he will need the knowledge. The family philosophy drove her to venture in different jobs. Before purchasing the Australian skin clinic business, Deb worked in retail chain stores and hospitality sectors in the UK and spent more than 15 years in the British health industry and acquired significant knowledge in the running of business. Morrison (2006) note that open to learning is a key character to successful entrepreneurs.  Deb worked in all aspects of the business; stocking taking, audit, display, receipt warehouse, security and on-floor sells. The approval of her various jobs by the family motivated her to own a pharmacy in Britain without knowledge of a pharmacist. Additionally, the family philosophy of continuous learning sent her to school and acquired an MBA in Business Administration and also enrolled for a diploma in Nutrition.

The family nurtured her character of honest and pursuit for credibility. Farnworth-wood admits that she learned to be sincere and truthful in her conduct to avoid harming others; an aspect that has earned her loyal business customers. According to Bradberry (2011), building trust to consumers translate to success in business. The family background gave her a chance to exercise integrity as a virtue insisted by the parents.

Deb Farnworth-wood grew in a society with much emphasis on women empowerment.  She enrolled in Margret Thatcher women empowerment programs that enabled her to grow in the ranks of the business organization through promotion. White (2015) notes that Deb rose from office administration to regional administrator courtesy of the empowerment programs. The training exposed her to different post laying grounds for successful self-employment.

The UK culture of self-love and the need to feel and look good motivated her to venture in cosmetic treatments to promote self-esteem. Deb participated in the Cambridge diet program in 2011 where she lost 28.6 kg through meal replacement (Hunwick 2015). The need to instill self-confidence to all people drove her to acquire the aesthetic and cosmetic clinic. Hence, a culture that valued beauty and self-appreciation opened up the ideas of buying Australian skin clinic. 

The Australian skin clinics franchise is propelled by a mission of making people feel and look good about themselves through affordable and accessible cosmetic treatments. The franchise engages in laser hair removal to give a silky smooth skin irrespective of the skin and hair type. Another treatment, the laser rejuvenation, aims at addressing acne problems, pigmentation and even out the skin tone to give the clients a smoother appearance (Australian Skin Clinics 2016). Moreover, the franchise engages in cosmetics injectable treatment aimed at addressing wrinkles and reducing lines that restore a youthful look to clients. Skin tightening and microdermabrasion aims at bringing out a smoother and younger skin through exfoliation of the outer skin. Furthermore, the franchise offer skin peel and fractional RF that deals with issues of sun damage and pigmentation and removing of stretch marks and wrinkles respectively.

Social-Cultural Background

The Australian skin clinic franchise brand has differentiated itself from competitors through the wide range of services. Murphy (2015) note that the start-up offer affordable and accessible high-quality cosmetic treatment. Additionally, the franchise has invested in the skills of the employees through constant training giving the customers unique services. The Franchise has high-quality machines in beautiful and appealing buildings that draw the attention of potential consumers (Australian Skin Clinics 2016). According to Whichfranchise (2016), the franchise is perceived as a medical model and not as a beauty parlor. The Australian skin clinic franchise has outdone the competition through a culture of customer concerns aiming at making people feel and look good. The training of staffs and having licensed stations in the main states builds credibility and wins more customers.

Deb Farnworth-wood can invest in natural food and Fruits Company to enable her fulfills the philosophy of making people feel and look good. The entrepreneur seeks to promote good-looking skin and beautiful healthy bodies and, the launch of a natural foods and drinks business without any chemicals will promote healthy living and naturally radiant skins. Moreover, Deb has a diploma in nutrition and could open a diet consultation firm and guide people on the best foods for the skin and healthy body in Australia. The right diet mix would give people a healthy life that would grow their self-esteem and confidence (Sunshine Coast Daily 2016). Furthermore, exercises are one of the best ways of gaining a healthy body and rejuvenated skin. Deb could start a business in fitness centers to give the Australian people a place to exercise and build healthy bodies.

The Australian skin clinics franchise can launch more stations in neighboring countries and other continents. The skin problems are common across the world, and the franchise can tap into the huge market globally and compete with international skin clinic franchises. Additionally, the franchise can open up a fully equipped medical facility to diversify its services even more and allow people access medical services and skin treatment in one room.

References

Australian Skin Clinics., 2016. Australian Skin Clinics | Laser Skin Clinics QLD, VIC & NSW. [online] Available at: https://www.ozskin.com/ [Accessed 8 Sep. 2016].

Australian Skin Clinics., 2016. Our History -. [online] Available at: https://www.ozskin.com/about-us/our history.htm [Accessed 8 Sep. 2016].

Australian Skin Clinics., 2015. CEO Magazine Spotlight on Deb Farnworth-Wood -. [online] Available at: https://www.ozskin.com/media/ceo-magazine-features-deb-farnworth-wood-2/ [Accessed 10 Sep. 2016].

Bradberry, J., 2011. 6 secrets to startup success: how to turn your entrepreneurial passion into a thriving business. AMACOM Div American Mgmt Assn.

Businessfranchiseaustralia.com.au., 2016. Deb Farnworth-Wood named as QLD Finalist for EY Entrepreneur Of The Year | Business Franchise Australia. [online] Available at: https://www.businessfranchiseaustralia.com.au/latest-news/deb-farnworth-wood-named-qld-finalist-ey-entrepreneur-year [Accessed 8 Sep. 2016].

Campbell, J., 2016. Asia-Pacific Centre for Franchising Excellence | "Change or Die": Prominent CEO shares strategy with franchisors. [online] Franchise.edu.au. Available at: https://www.franchise.edu.au/home/topics/franchise-management-topics/change-or-die-prominent-ceo-shares-strategy-with-franchisors [Accessed 10 Sep. 2016].

Hunwick, S., 2016. Australian Skin Clinics launches academy. [online] Professional Beauty. Available at: https://www.professionalbeauty.com.au/2016/01/06/australian-skin-clinics-moves-into-education/#.V9PWOKLnFnI [Accessed 10 Sep. 2016].

Hunwick, S., 2015. BRW awards Australian Skin Clinics. [online] Professional Beauty. Available at: https://www.professionalbeauty.com.au/2015/10/22/brw-awards-australian-skin-clinics/#.V9BoI6LnFnI [Accessed 8 Sep. 2016].

Morrison, A., 2006. A contextualisation of entrepreneurship. International Journal of Entrepreneurial Behavior & Research, 12(4), pp.192-209.

Murphy, S., 2015. CEO Magazine Spotlight on Deb Farnworth-Wood -. [online] Australian Skin Clinics. Available at: https://www.ozskin.com/media/ceo-magazine-features-deb-farnworth-wood-2/ [Accessed 8 Sep. 2016].

Stowe, A., 2016. A franchise fast-starter: how Australian Skin Clinics grew and grew. [online] Franchise Business. Available at: https://www.franchisebusiness.com.au/news/a-franchise-fast-starter-how-australian-skin-clini [Accessed 10 Sep. 2016].

Sunshine Coast Daily., 2016. Diet's impressive results. [online] Available at: https://www.sunshinecoastdaily.com.au/news/diets-impressive-results/331646/ [Accessed 10 Sep. 2016].

The CEO Magazine., 2015. Deb Farnworth-Wood. [online] Available at: https://www.theceomagazine.com/business/deb-farnworth-wood/ [Accessed 8 Sep. 2016].

Whichfranchise.net.au., 2016. Interview with Deb Farnworth-Wood of Australian Skin Clinics. [online] Available at: https://www.whichfranchise.net.au/index.cfm?event=getInterview&articleId=2101 [Accessed 8 Sep. 2016].

White, S., 2015. Meet the boss: Deb Farnworth-Wood. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/meet-the-boss-deb-farnworthwood-20150615-ghol9u.html [Accessed 8 Sep. 2016].