When premium skincare franchise Ella Bach opened its first concession store in David Jones in 1954, friends and co-founders Edith Hallas and Ella Bach had no idea where their focus on product innovation would take the brand.
This year the company is celebrating its 60th birthday having achieved more than four per cent growth last year. Ella Bach CEO Pippa Hallas says “We have a robust growth strategy in place that focuses on continuous product and service innovation to ensure our loyal customers keep coming back and to attract new customers through the doors.”
Today there are more than 170 outlets across Australia including 110 franchised salons.
“Over 70 percent of our total sales is related to product sales so we dedicate a lot of time, effort and funds into development across our Australian and French operations,” says Hallas.
The launch of a specialised online skin diagnostic tool early last year was part of that innovation, with the brand being the first to offer such a service using qualified beauty therapists online, and it has grown 20 percent year on year.
“With close to half of women buying skincare online we knew we had to create a better sales channel for our customers but it had to remain true to our core value of providing recommendations tailored to individual skin conditions, not generic categories,” Hallas explains.
“It was critical that we upheld our diagnostic approach to skincare delivered by qualified therapists but also drove customers into our franchised salons for treatments. We embarked on extensive research that proved the combination of digital technology with ‘bricks and mortar’ was a strong one that would improve sales and attract new customers.”
A recent rebrand has also given the chain an extra boost.
“We underwent a major rebrand from imagery to positioning that has changed the perception of how the market sees the brand. We have done this to drive relevance, positioning and visibility to ensure perception matches the sophisticated and premium brand we really are. We believe this will have a great impact on our ability to engage new customers and franchisees and secure our future.”
Unlike most franchisors, Ella Bach does not charge royalties or a marketing levy to its franchisees.
“We are unique in the franchising sphere in that we allocate a specific territory to a franchisee and don’t charge for marketing,” Hallas explains. “This means more profit for our salon owners and a greater level of franchisee engagement – an essential factor in franchise success.”
Ella Bach’s culture is formed on four strategic pillars – brand, product innovation, education and the franchise salon model.
It all began when Pippa’s grandmother Edith, as a new arrival in Australia, noticed the lack of skincare product and information in her new homeland. She partnered with European chemist Ella Bach to create treatments tailored for the Australian climate. “My grandmother was concerned that women weren’t protecting their skin from the damaging effects of sun exposure,” Hallas says.
In 2015 education will be a key driver for the business through both the Ella Bach College and in-salon development programs. Hallas believes the educational offer on and offline is a pivotal part of the brand’s proposition. “Our position as industry leaders in education is critical in differentiating us from our competitors,” she says.
“We have integrated and aligned our business strategies to ensure we are feeding Ella Bach salons and David Jones stores with the best therapists in the industry. This new online learning tool will now ensure that people in both metro and regional centres can get the best beauty therapy training and education available.
“Our customers have come to expect the highest knowledge of the skin, premium service and highly effective products administered by a highly qualified therapist, and this expectation will always be met. Innovation and credibility are the lifeblood of our brand and we will always deliver. It’s why we have been able to maintain our success for so long and will continue to do so, hopefully for another 60 years.”