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The Significance of Stormeur’s ASX Listing of Cosmetique for Australian Beauty and Wellness
By Ed Kennedy
Stormeur Ltd –the parent company of Cosmetique– is set to launch on the ASX in March.
Its progress is not only interesting for the endeavours it’s pursuing on its behalf, but also for the chapter it will contribute to the story of the wider beauty and wellness industry as a whole.
A Clear-Eyed View
In order to recognise the precise trends being seen in this area of the Australian economy, it’s first important to recognise the particular differences that exist under the broad umbrella of the beauty and wellness’ term.
For instance, while cosmetic surgery involves a beautification procedure, there can be different definitions as to what precisely cosmetic surgery is.
As an example, the Australian Government’s Department of Health and Aged Care defines cosmetic surgery as “procedures that involve cutting beneath the skin”.
But, if one considers a cosmetic dentistry procedure, it’s clear the first definition wouldn’t necessarily be satisfactory to describing procedures that involve treating a tooth (but not the skin inside the mouth).
In turn, the administering of an injectable treatment – such as botox – does penetrate the skin via a needle, but – though it still results in a cosmetic change beneath the skin – it does not involve making an incision in the same way as a scalpel would.
Healthdirect, also a government website, has a broader definition.
It holds cosmetic surgery is “any procedure which aims to improve your appearance”.
That may tick more boxes when it comes to cosmetic surgery, but it wouldn’t necessarily speak for the wellness industry.
Because practising yoga can fall under this term, and – though yoga practitioners of may speak of a glow’ they get following it – it certainly couldn’t be considered a medical procedure in the normal sense.
Thus, for this article, the discussion will focus on cosmetic procedures which which do not involve significant surgical procedures.
In turn, the discussion will not focus on wellness pursuits like yoga, which can increase health and wellbeing, but are not done via a medical procedure.
But, before turning to this discussion as it applies to Cosmetique, a brief mention is worth making regarding the surging demand being seen globally for the wide range of beauty and wellness offerings.
This is due to the ability of this trend to lift all boats’ across the wide span of beauty, health, and wellness.
Social Media and the Surging Demand
While the history of plastic surgery procedures can be traced back to Ancient Egypt, there is no disputing changes in a far more recent period of time have contributed to its growth in demand.
A 2024 study by Boston University dermatologists found a correlation between the rate of social media use and the aspiration for cosmetic procedures.
Also, the easy availability of image editing tools means the capacity for people (even when not on social media) to easily alter their appearance and envision a different – and to their mind, improved – version of themselves is immense.
There is no doubt there are many people who pursue cosmetic procedures and are very happy with the outcomes.
Yet, it’s also the case that there can be many ancillary benefits for the individual and the wider community from any effort that boosts a person’s sense of confidence and positive feelings about their bodies.
For instance, those who (literally) invest in their appearance can also engage in healthy activities to maintain it, like regular exercise.
Such a pursuit will of course not only enhance the health of the person, but in a wider sense, reduce the burden on a nation’s health system due to a healthier population.
Conversely, it’s a reality that not all who pursue a cosmetic procedure are happy with their bodies following it.
True, this may not be solely attributable to a particular procedure – with the individual perhaps being happy with the procedure, but remaining unhappy overall with their appearance following it – but according to Dr. John Mingoia in a 2023 article from University of South Australia, “Research tells us that even after women get a cosmetic procedure, less than 40% are satisfied with their bodies post-surgery.”
Collectively, all these aforementioned trends give context to the consideration of growth in the beauty and wellness sector.
Cosmetique’s Story
Cosmetique was founded in 2017 in Western Australia by Dr. Vivek Eranki.
Prior to his role as Executive Chairman of Stormeur Group, Dr. Eranki has held roles as a cosmetic surgeon, CEO, and Assistant Editor of the ANZ Journal of Surgery.
The founding of Cosmetique occurred with the aspiration to see consumers “have access to high quality aesthetic treatments at affordable prices while retaining focus on patient safety and compliance.”
Starting with one location in the northern Perth suburb of Joondalup, the business today hosts 17 locations across Western Australia, South Australia, Victoria, New South Wales, and Queensland.
As distinct from businesses which operate a stable of premises under a franchise model, Cosmetique locations are 100% owned by Stormeur.
Its upcoming ASX listing on 3 March, ASX code STR ((STR)), follows news in September 2024 of an IPO that sought a capital raising of $7m.
The capital was sought to fund the opening of four (two in Melbourne, two in Sydney) additional Cosmetique clinics.
It progresses toward this ASX listing with a notable differentiator under its belt.
As detailed on the Cosmetique website, it became “Australia’s First Accredited Cosmetic Clinic clinic under the Quality Innovation Performance (QIP).”
The decision to voluntarily apply and obtain this accreditation is undoubtedly – especially when being able to lay claim to being the first business of its kind to do so – a delight to anyone on the Cosmetique team handling marketing matters.
This shows Cosmetique is not only pursuing professional practices in-house, but that it can also offer reassurance to would-be patrons who are concerned about the risks that can arise when treatments like laser procedures are done by those without sufficient training and skill.
A Laser Focus on Beauty
The history of the utilisation of lasers in beauty treatments is of course informed by the invention of lasers generally.
In this regard, anyone who strolls into a laser clinic today owes some credit to Albert Einstein for his endeavours regarding photons!
But, it’s really from 1960 onwards that the modern usage of lasers for cosmetic purposes can be traced, with Theodore Maiman inventing the Ruby laser in the same year.
Thereafter, Dr. Leon Goldman, an American dermatologist and surgeon – credited as the the Father of Laser Medicine in Germany in 1979 during the Opto-Elektronic Conference – became the first person to use laser as a tool for treating a human skin disease.
Broadly speaking, the appeal of laser treatments stems from their capacity to provide results with minimal pain, relative speed, and comparatively smaller risk in contrast to alternative procedures.
For instance, someone seeking to improve the appearance of a varicose vein can look to sclerotherapy, but such a procedure would involve the use of a needle. If utilisation of a laser treatment to pursue the same result is possible, no needle would be necessary.
But while laser treatment can deliver results consumers are very happy with – and all procedures do come with some risk – it can also cause needless harm when there is absence of proper training and care.
As the Victorian government notes, “The application of light-based cosmetic treatments provides a range of benefits to consumers, but the delivery of these services comes with varying degrees of risk depending on the procedure performed.”
In turn, “A wide range of operators provide services with lasers and IPLs. Many are qualified professionals who are trained in the use of lasers and IPLs for cosmetic purposes, however, services are also provided by operators with limited or no training.”
And this is nub of the challenge providers that seek to use great skill and precision face in this market at present.
Even though it may be impossible to eliminate all risks with laser procedures, there is no doubt the risks can be greatly reduced when procedures are done by someone with skill and precision, in contrast to an operator that has been more cavalier in regards to their training and utilisation of the laser equipment.
In this regard, it’s clear Cosmetique has indeed done some hard yards in seeking to show the services they offer come with a high level of understanding and care regarding the use of laser procedures.
Clearly, their efforts to stand out in a positive way within the sector will be an ongoing point of pride (and tool for persuasion with the market) going forward.
Treatments and Hip Pocket Pain
The post-pandemic years interwoven with high interest rates and inflation has seen many consumers cut back on non-essential spending.
In light of this, a reader may well imagine the aspirations of Stormeur regarding Cosmetique occur in a time of immense challenge regarding trends around consumer spending.
But, just as Stormeur is clearly bullish on the future demand for Cosmetique’s services, data showing a wider context on spending supports the promising prospects of the business, even amidst the current cost of living crisis.
As a 2023 study by Finder found that 41% of the population were retaining their beauty appointments in their monthly budget. On average, those surveyed spent $431 each month.
In turn, 57% of women continued with some form of paid beauty treatment over the year prior to the study’s release.
Certainly, these are surely not perfect numbers for anyone in the beauty business, but they also illustrate a strong resiliency within the sector.
Furthermore, for businesses that would typically provide services on an irregular schedule – think a few appointments a year instead of a monthly appointment that many may make for a haircut – they could be even more confident.
Someone trimming back their budget may elect to let their hair grow longer for a few months.
But, in many circumstances, a beauty treatment like a laser touch up’ – where after an initial round of treatment with multiple appointments an occasional once or twice appointment a year to retain and/or restore optimal results may be required – or a botox session (with the Cleveland Clinic holding that the effects last three to four months) means it may not be necessary for patrons of such products to allocate funds for them every month, rather just occasionally.
Noting the Tech Tools that Can Aid Consumers and Business
Notwithstanding the issues cited that can arise by the use of tech as it relates to the beauty history, it’s also clear that numerous emerging technologies are going to increasingly impact the broader beauty industry as we know it.
Already, AR/VR offerings are in use to allow consumers to try on goods virtually, allowing them to see how they would look without needing to physically place an item of clothing on their body.
Then, there’s the growing capacity for AI to deliver cutting-edge analysis of an individual’s hair and skin.
Think a combination of your own personal stylist, barber/hairdresser, and ChatGPT all-in-one.
As well as other eye-catching advances in their area – such as smart mirrors which can offer a person standing before them information about their appearance by its digital display on the mirror (kind’ve like a turbocharged version of a smartphone-connected set of bathroom scales) – the ongoing growth of smartwatches and other wearables is being seen.
These devices enable people to track key health data instantaneously with ease.
Yes, it’s of course not all sunshine and rainbows – the cyber security concerns about an array of personal health data being acquirable and stored online are real – but it’s also certain there is the potential for this technology (when its capacity for misuse and side effects are managed) to help optimise a person’s health.
And also, to even diminish future health risks and anticipate emergency health episodes.
Will Stormeur’s Listing See Cosmetique Drive a New Conversation?
The growth of Stormeur’s Cosmetique is indeed very intriguing.
In turn, the team’s endeavours to underscore their professionalism and safe practices not only offers a marketing advantage in the sector generally, but also augurs well for Cosmetique’s capacity to attract consumers who may perhaps have otherwise not pursued treatments.
Thus, Stormeur’s upcoming ASX listing and wider activities are surely efforts to watch with interest. Not only for what this company offers in its own regard, but also for what new and positive change it may drive more broadly in its industry.
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