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Fall 2013
Organic Innovation: Lifting the Face of Specialty Retail

Adore Cosmetics

Phone Number: 866.539.3337

Websiteadorecosmetics.com

HQ: Miami, FL

Warehouse Locations: Miami, FL

Number of Stores: 40

Projected Number of Stores, 4th Quarter 2016: 120

Countries: World Wide

Employees: More than 60 + freelancers.

Mission: To be the leading innovator skin care company delivering anti-aging products through organic innovation.

Strength: The experience we have. The long relationships we have. There’s millions of businesses out there. It’s the people who care to move it forward.

A dazzling array of beauty products. Cutting-edge innovations. A sleek upscale boutique look. All why Adore Cosmetics is set to make waves in the specialty retail industry.

If you’re a specialty retailer or shopping center developer, there’s a good chance you’ve seen Adore’s sister concept, Deep Sea Cosmetics, a line of products with ingredients from the Dead Sea, in more than a
few shopping centers. It would be hard not to – there are now 700 specialty retailers selling the concept throughout the world.

With a foundation richly steeped in skin care experience, and a wealth of relationships with specialty retailers and shopping center developers alike, the first Adore Organic Innovation store opened its doors in September 2012. One short year later, that number has multiplied to 40 stores.

“By having Deep Sea Cosmetics as a sister company for ten years, we had already built a platform of operators and shoppers,” says Shay Sabag Segev, President of Adore Cosmetics, based in Miami, FL.

Thus retailers who have bought into the Adore concept have largely been Deep Sea specialty retailers, 80% in fact, that desired to upgrade their business to a permanent inline store, whether keeping their existing Deep Sea RMU, or not. “There isn’t competition between the two companies because the concept and technology of the products differ – having two different skin care brands at the same mall in different lease programs does not contradict each other,” Segev says.

“We created a blend between temporary and permanent leasing. The growth into permanent leasing is an extension of the retailer’s experience, our knowledge and our product reputation. Everything is born from specialty retail,” he adds.

Tziyona Cohen the VP of Adore emphasizes that retailers are eager and excited – many want to branch out and grow into a permanent and stable business for years to come. “Many of the retailers in the skin care industry are looking to expand,” Cohen says. “The potential to grow with a permanent program is much higher and stable.”

CellMax-Group-copyAdore is offered as a permanent inline option. Occasionally, kiosks are taken only in high-end malls, but when a permanent store deal is confirmed, the kiosk is transitioned into the permanent store. Because Deep Sea has established relationships with major mall developers, assisting Adore retailers with store locations becomes that much easier. Deep Sea Cosmetics is the biggest bidder in the specialty retail market in the last five years for common area space, says Segev. “We have more than 180 leases. We work with major developers, such as Simon Malls, General Growth Properties and Westfield,” he says.

“Back when I started as a cart owner in 2001, I was knocking on the doors of leasing management offices, waiting for specialty leasing managers to get back to me. It is much different for our retailers. We offer the service of a leasing department,” says Segev. “This service includes assisting with finding locations around the globe and brokering between parties,” he says.

In addition to a leasing department, Adore supports its retailers with a retail and service department. The retail department answers any questions or concerns about products and their uses. We are there to back our retailers up,” says Segev. The service department handles mall management issues and assists with order tracking. “Everything is through us. It is much more fluent,” he says.

Specialty retailers need to be comfortable with their finances, as permanent stores come with substantially higher rents (keep in mind, sales will be approximately 4-5 times higher than those on an RMU, says Segev). They also need to be comfortable with the length of a long-term lease, as permanent leases run an average of 5-10 years. And last, but certainly not least, are build-out expenses. These can run between $60,000 (min renovation)—$250,000 and up for a full renovation (Shell structure), says Segev, as opposed to $3,000-$5,000 for a cart. On the plus side, Adore provides all drawings, designs and professional services by an in-house architect and graphic designer, eliminating high expenses.

Because the stakes are higher, Adore carefully screens potential retailers to make sure they have what it takes. “Operators who come in to open an inline store need much more experience than a cart operator going into business for the first time,” says Segev. “They have to have the experience to operate a store and they need the finances to support it,” he adds.

Adore will be a fully functioning franchise very soon. Specific details are not available at this time. “Not too much changes,” says Segev, other than, “Customers will know they are in an Adore store. Each store will have the same layout and design.”

Organic innovation 

Golden-Touch-Group-copyYou might have heard of stem cells before, but probably not about all their amazing potential for skin care. Stem cells deliver the anti-aging magic found in every Adore product. They are the key to the skin’s ability to renew itself. According to the National Institutes of Health (NIH), a part of the U.S. Department of Health and Human Services, in Bethesda, MD, “The primary roles of adult stem cells in a living organism are to maintain and repair the tissue in which they are found.”

To fully understand their capability: “Researchers are working toward using stem cells to replace damaged heart cells and literally restore cardiac function,” reports the NIH. If stem cells can be used in life threatening situations, it isn’t hard to imagine the wonders they hold for the skin.

“Stem cells prevent aging,” says Segev. “Scientists have found that the stem cells of apples are similar to the stem cells in human beings. Through the use of biotechnology, science is able to utilize these fruit stem cells by using them in cosmetics, so they are able to penetrate the skin,“ says Segev.

According to Adore, studies have shown plant stem cells protect against UV damage, reduce wrinkles and delay natural aging by maintaining skin stem cell activity. Plant stem cell formula is in every Adore product (there are approximately 90 in total).

“This is anti-aging technology; creating new cells and helping exhausted cells renew themselves, like a Botox injection,” says Segev.

Added to this stem cell formula is a rich blend of vitamins, essential oils, organic flower extracts and organic vegetable proteins, to further promote and restore healthy-looking skin. For anti-aging benefits to take place, an entire treatment needs to be applied. There are six treatments in all (including a men’s line), each one targeting a specific skin type. “We made it simple. It’s not about multiple sales. It’s about the complete treatment,” says Segev. Most treatments break down into three steps: pre-treatment, treatment and post-treatment.

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Adore’s newly introduced new treatments series are:

  • Oxygen Booster Microdermabrasion line, created to deliver oxygen to the skin’s capillary system, which provides a boost to collagen production. Adore’s Vitamin C series was created to eliminate the appearance of age-related discolorations, such as pigments, stains and uneven skin tones. This line is gaining in popularity as the awareness of Vitamin C’s effectiveness becomes more widely known, says Segev.
  • Adore’s CELLMAX line contains the highest concentration of stem cells, and is one of the top-selling series. This series features CELLMAX Superior Facial Mask, CELLMAX Elite Facial Serum and CELLMAX Redefining Facial Cream.
  • Adore Overnight Complete Treatment features Chronogen, a bio-engineered peptide that is proven, Segev says, to restore proper rhythmic gene expression, boosting natural cellular defense against UV damage during the day and improving skin’s DNA repair at night. Segev says the result: complexion is refreshed, restored and rejuvenated.

Also worthy of mention is The Golden Touch series, featuring the power of pure gold. Pure gold reduces the appearance of sun damage by slowing down melanin (a dark pigment) secretion, as well as the breakdown of elastin (a protein in connective tissue), reports Adore.

Every Adore product comes with a certificate of authenticity. “This is very important,” says Segev. “In order to preserve and keep the brand from grey marketing [when a product is bought and sold outside of the manufacturer’s authorized trading channels], we are monitored 24/7 by a law firm that specializes in intellectual property and manages online activity. It is the reason we are strict about who we sell to. We want to keep the brand as strong as possible,” he says.

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A door to Adore 

Adore communicates their technological edge in every corner of their store. From giant graphics picturing youthful models holding apples (plant stem cells waiting in the wings) to the words “Organic Innovation,” customers are stepping over the common area threshold to the sleek and shiny boutique-like atmosphere of Adore. Carefully placed among neighbors who mirror this image.

Spaciously placed throughout the store are beauty demo stations and plush seating. Perhaps customers enjoy an espresso or a glass of wine, different operators offer different refreshments. “We want them to enjoy being there, to feel like they are at home,” says Segev.

Demo stations offer customers the ability to see how their skin reacts right before their very eyes and feel confident about the products they are buying. Associates are at the ready to target their needs and guide them to a series that will serve them best, says Segev.

If customers are interested in a full treatment, the treatment room is suggested. “We created a treatment room so the shopper can be isolated in a spa-like environment with no pressure from outside. They can receive personalized attention and are better able to focus on the product knowledge from the demonstration,” says Segev.

Tzyiona Cohen, the VP of Adore Cosmetics states; “by having a boutique skin care store, a solid confidence is gained among the customers. “Shoppers enjoy the feeling of purchasing from a permanent store and definitely from a high-end boutique which employs professional employees as ours,” Cohen says.

Adore feels strongly about staying innovative, always evolving and always being first through excellence. “We have made it a company mission to introduce a minimum of twenty new products every year,” says Segev.

“This is time for revolution to evolution, it’s a promise that you will Adore it.”

Emily Lambert

Lambert, a senior writer for SRR, resides in Philadelphia. She can be reached at emilylambert@comcast.net.
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