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In 2004, consumers spent $44.6 billion on anti-aging products and services, and the total anti-aging market is projected to reach $72 billion by 2009 (Business Communications Co., Inc., February 2005).
The Company has established a new division to penetrate the $5.4 billion cosmeceutical industry under the brand name Natural Renu.
US cosmeceuticals demand will grow 8.5 percent annually, propelled by a stream of new products offering age-defying and other appearance-enhancing benefits.
In the medspa operational niche, the company is developing a national medspa chain under the brand name of Virtuoso MedSpas.
Studies show the number of Americans over 55 will grow by 60%
in the next 20 years and their buying power will exceed $2 trillion by 2007.
According to, Nutrition Science News, the term "cosmeceuticals" was coined after numerous products emerged on the market that combined common cosmetic preparations with nutraceuticals. Cosmeceutical ingredients are most often used in products for anti-aging purposes. US cosmeceuticals demand will grow 8.5 percent annually, propelled by a stream of new products offering age-defying and other appearance-enhancing benefits. Skin care products will remain dominant while professional products will grow the fastest.
Virtuoso Medspas
In the medspa operational niche, the company is developing a national medspa chain under the brand name of Virtuoso MedSpas. Virtuoso was founded by leading practitioners and accomplished executives in response to the growing marketplace demand for technology-based medical spa facilities. The standard Virtuoso medical spa model consists of a 2,000 square foot leased facility located in a high-end, retail shopping environment. Virtuoso offers non-invasive cosmetic skin-care procedures in a spa setting and supervised by medical practitioners. The Company’s expansion plans are to acquire existing medical spas that are strategically located and convert those medical spas to the Virtuoso brand.
Solana Medspas Joint Venture
The company signed a Joint Venture Development Agreement with Solana MedSpas of Irvine, California, www.solanamedspa.com in the fourth quarter of 2006. Under the terms of the MedSpa Development Joint Venture, Solana MedSpas has agreed to provide development services, operational oversight and access to their management team for the company with the intent to build a company owned chain of a minimum of 50 Medical Spas, under the brand name of Virtuoso Medical Spas, in the United States over the next 5-years. The services provided by Solana will include site selection and build-out of new MedSpas, design services, equipment and supplies procurement, medical protocol and operating systems, recruitment and training of MedSpa staffing, medical regulatory compliance, and marketing programs. Both Solana MedSpas and MDSP have agreed to focus the company’s initial development program on the acquisition and conversion of existing MedSpa businesses that are not currently in the national Solana MedSpas network.
Recent Acquisition – Natural Skin Care Line
Following the company’s announcement of October 8, 2007, the company recently completed the acquisition of the luxury natural skin care lines from 2M Innovations LTD.
The company acquired 2 professional skin care lines from 2M Innovations including a line of 16 natural skin care products. The Company's all-natural products contain a uniquely exotic and effective combination of hibiscus flower and kukui nut oil. The Company will immediately re-brand this product line to its Natural Renu brand to become the foundation of the Company’s retail natural skin care line. The second line of products, called doceuticals™, is an all-natural line of skin care products that is marketed towards physicians, aestheticians and medspas.
Market Summary
Only 10 % to 15% of demand for medspa services is currently being met in the U.S. marketplace. Americans spent just under $9.4 billion on cosmetic medical procedures in 2003. In 2004, consumers spent $44.6 billion on anti-aging products and services, and the total anti-aging market is projected to reach $72 billion by 2009 (Business Communications Co., Inc., February 2005). Market indicators point to the consumer’s preference for non-surgical treatments. 2,000 Americans will turn 50 every day (1 every 8 seconds) for the next 20 years. Studies show the number of Americans over 55 will grow by 60% in the next 20 years and their buying power will exceed $2 trillion by 2007.
Demographic and Economic Trends
The MedSpa revolution has been closely linked to the growing baby boomer generation in the US. Baby boomers are generally considered to be persons born during the post-World War II birth rate boom, lasting from 1946 through about 1964. As a group, they are well educated, with 87 percent being high school graduates and one in four a college graduate. They are the wealthiest, most sophisticated purchasers. At approximately 75 million, baby boomers are the single largest buying group in the US today.
Baby-boomers make up 51% of the population, controlling 75% of the country’s wealth
12,000 Americans turn 50 every day (1 every 8 seconds)
Americans over 55 will grow by 60% in the next 20 years and their buying power will exceed $2 trillion by 2007
80 million people in the U.S. spend $500 million annually in hair removal procedures like waxing, shaving, and accessories
Over 1 million women spend over $1 billion each year on electrolysis and lasers
Ethnic markets in the U.S. spent $1.5 billion in health and beauty products in 2003.
While baby boomers are largely considered the main target medspa consumers, the variety of treatments and services available in medspas expand this consumer base even further. Laser Hair Removal, Acne Programs, Deep Tissue Facials and non-surgical Cellulite Treatments attract men and women well outside the baby boomer bracket.
A survey by the New American Academy of Dermatology found that 69% of women are bothered by signs of aging, particularly fine lines, wrinkles, uneven skin tone, facial hair and dryness. In the above 45 category, women feel their facial skin makes them look older than they feel inside.
Products & Services
Natural Renu Cosmeceuticals
The company has established a new division to penetrate the $5.4 billion cosmeceutical industry under the brand name Natural Renu. The company’s new initiative is a line of nutraceutical and cosmeceutical products focusing on the anti aging skin care market.
The company will focus its sales efforts primarily through two marketing channels. The first and primary sales channel shall be the Internet. By utilizing its existing skill set and marketing prowess in this area, the company shall initiate an intensive online awareness campaign and drive potential users of this type of product to its web site. The second target audience shall be to plastic surgeons, dermatologists, aestheticians, Day spas, Resorts Spas and Medspas around the world.
Natural Renu with Penzim
The company recently signed an exclusive worldwide agreement with Zymetech from Reykjavick, Iceland, www.zymetech.com, for the exclusive use of Penzim as the essential ingredient in the anti-aging line of products for Natural Renu.
Zymetech owns the worldwide patents for an active ingredient called Penzyme derived from enzymes produced by fish, particularly cod in the North Atlantic. This enzyme has been clinically tested for the treatment of pain, inflammation, arthritis, bursitis, eczema, psoriasis, fybromyalgia, eczema, acne and other skin conditions, such as itching, dry skin and brown spots.
Through the agreement with Zymetech, the Company has signed a manufacturing and fulfillment agreement with GeoPharma, Inc., www.geopharmainc.com, to manufacture Natural Renu and provide fulfillment for the company’s customer orders. GeoPharma is located in Largo, Florida.
Natural Skin Care Line/Doceuticals
The Company recently closed an acquisition of a skin care line from 2M Innovations (see announcement of October 8, 2007) and a cosmeceutical brand called Doceuticals. The company acquired 2 professional skin care lines from 2M Innovations including a line of 16 natural skin care products. The Company's all-natural products contain a uniquely exotic and effective combination of hibiscus flower and kukui nut oil. The Company will immediately re-brand this product line to its Natural Renu brand to become the foundation of the Company’s retail natural skin care line. The second line of products, called doceuticals™, is an all-natural line of skin care products that is marketed towards physicians, aestheticians and medspas.
The Company is in the process of converting this natural skin care line to Natural Renu giving their brand an additional sixteen product lines as follows:
Product Size & Retail Pricing
FACE -
Ultra-Moisturizing Citrus Cleanser 8 oz.
Island Grapefruit Face Polish 2 oz.
Cucumber Toner 8 oz.
Ultra-Light Face Crème 4 oz.
Island Rose Facial Moisturizer 4 oz.
Ultra-Nourishing Antioxidant Crème 2 oz.
Revitalizing Eye & Lip Crème 2 oz.
BODY -
Island Citrus Body Polish 8 oz.
Bora Bora Body Butter 8 oz.
Island Citrus Body Wash 8 oz.
Shea Butter Body Lotion 8 oz.
Mint & Eucalyptus Foot Lotion 4 oz.
TREATMENT -
Mint & Eucalyptus Body Treatment 8 oz.
Lavender Face Treatment 4 oz.
Polynesian Facelift 1 oz.
Passion Fruit & Kiwi Face Masque 4 oz.
The Doceutical product line development will be ready for market in the Fall of 2008. This product line is a cosmeceutical that is targeted for use by medical aestheticians in medical spas and physicians offices.
Brand Re-Seller
As an added feature to the Company's internet retailing strategy, Natural Renu will offer its online customers the ability to purchase the other major nutraceutical and cosmeceutical brands available in the marketplace. The Company will act as a re-seller of those brands. Although the profit margin from re-seller is much less than The Company's own brands, they will substantially enhance their revenues.
As a re-seller, Natural Renu will offer over 60 brands including internationally known products such as Obagi, Bioelement and Prevage. These product lines, as mandated by the manufacturers, can only be sold by retailers that employ licensed estheticians. Furthermore, these products have a well-established demand and customer base. Moreover, these products are intensively marketed by the manufacturers themselves, thus, adding an additional element of credibility to The Company's website.
Virtuoso Medspa Services
Procedures are performed by certified technicians under the supervision of licensed physicians, including:
FotoFacial RF™
Laser Hair Removal
Laser Vein Removal
IPL Laser Acne Treatment
Injectibles
Procedures are performed by licensed physicians, including:
BOTOX® Cosmetic
Restylane®
Aesthetic Services
Procedures are performed by certified aestheticians under the supervision of licensed physicians, including:
Vibradermabrasion
Corrective Facials
Corrective Acne Treatments
Extreme Skin Rejuvenation
Alpha/Beta Peel
Amino Fruit Acid Clay Peel
Live Stem Cell Skin Therapy
The company signed a Joint Venture Development Agreement with Solana MedSpas in the fourth quarter of 2006. Solana MedSpas has agreed to provide development services, operational oversight and access to their management team for the Company with the intent to build a company owned chain of a minimum of 50 Medical Spas, under the brand name of Virtuoso Medical Spas, in the United States over the next 5-years.
Only 10 % to 15% of demand for medspa services is currently being met in the U.S. marketplace.
The Company has signed an exclusive worldwide agreement with Zymetech, for the exclusive use of Penzim as the essential ingredient in the anti-aging line of products for Natural Renu.
A survey by the New American Academy of Dermatology found that 69% of women are bothered by signs of aging, particularly fine lines, wrinkles, uneven skin tone, facial hair and dryness. |
