He’s been a pioneer in the health, wellness and beauty market, featured twice on BRW’s Fast 100 list and successfully developed and distributed lifestyle products in over 40 countries – one could say that there is a lot to learn from IGEA CEO Alex Sisiolas when it comes to business. Taking time out from his busy schedule, Sisiolas talks to bd about his company’s $30 million turnover, the place for health supplements in the beauty market and where the Australian beauty industry is headed.
Where did your career begin?
I have always been involved in the development and promotion of health and wellbeing products. This includes publishing, which I learnt at university … publishing a number of magazines, newspapers and multimedia content in the early 1990s. The big leap came in 1996 when I merged a direct marketing agency I owned with a beauty business my brother owned, and created a series of now iconic brands, including Skin Doctors and Fatblaster in a company [called Cat Media] that dominated the better part of a decade of Australian health and beauty.
What inspired you to create the IGEA Group?
In 2006 we sold Cat Media, leaving me in an ideal position to start a new venture that I could design from the ground up, and incorporate all of my philosophies about health, beauty and wellbeing. My vision was to deliver health and beauty solutions in a unique and innovative manner. I teamed with Geoff Jowett, my current business partner, who shared that vision. So creating IGEA, which means health in Greek, came naturally.
Why does IGEA continue to be so successful despite difficult economic conditions and heavy competition?
Ultimately IGEA’s success is underpinned by consumer demand. Despite what I believe to be great marketing, without continued repurchase, success of any newer SME will struggle. Our business model combines two key elements: the first is creating products/brands that are expert and authority-led such as David Babaii and Bodytrim, or are cutting-edge, high-tech such as Skin Physics. The second is the integrated marketing model combining direct to consumer (not just online) with retail. These combined with a great management team create a business that has a high appetite for experimentation (R&D, trial and error) but with conservative balance for continued success.
Can you tell us about the growth of the business?
IGEA launched explosively with Bodytrim in late 2007, becoming a national bestseller in 2008 and 2009. We followed with David Babaii, using the same aggressive marketing techniques as Bodytrim, but softened by the face of Kate Hudson who had just come into her prime. Continuing its momentum, IGEA launched Skin Physics with patented LED and cosmeceutical technology that still cannot be matched let alone beaten by competitors. In less than five years, IGEA has gone from $0 to $30 million. The growth of the business has been intentionally slowed down slightly in order to maintain excellent levels of customer service. However, we are about to enter our next growth phase right now with huge amounts of NPD and heavy recruitment.
What do you consider before you take a brand on?
We have developed all of our brands internally with the exception of David Babaii for Wildaid, which we have acquired and are relaunching. What we look for in a new brand is offering true value and engagement to the consumer. Innovation is almost a given. We define value by a unique offering, combined with quality, service and price.
You're hoping to expand the business offshore. Where will you be looking to launch into?
In my last business, I successfully engaged over 40 international markets. Whilst we understand that the post GFC era is extremely risk averse, we have strong demand from all the English speaking markets and are currently launching in the USA and UK. Following that, we will look at distribution into selected Asian markets.
Why do you believe supplements have a big place in the beauty industry?
A holistic approach to beauty is ultimately what works best; diet, lifestyle and therefore supplements. Beauty from within is a growing category globally. Whilst the preferred option by consumers continues to be topical applications, supplements and devices are quickly becoming mainstream.
Do you believe the trend is only going to grow stronger?
As consumers become more educated, they are embracing the idea of holistic health and hence using supplements and diet as part of their beauty regime. The trend is therefore not only destined to grow, but actually become quite dominant. Australia lags behind many countries in the western world in terms of adoption of supplements for beauty. Most of this is a result of regulatory differences in Australia preventing foreign brands from entering the AU market unless they are listed with the TGA.
Where do you think the future of beauty in Australia is headed?
The Australian beauty industry is essentially part of the global stage. We need to be globally innovative and competitive in order to just survive in Australia. The strong AU dollar and online shopping has sealed this fate in case anyone still had any doubts. However, just as the Europeans are leading with active ingredient innovation and the Americans in marketing, Australia leads with sun protection technology partly due to the necessary adaption to the harsh Australian sun.
Can you tell me some of the plans you have in store for David Babaii in Australia?
The David Babaii global relaunch is happening in Australia in October. The brand will launch with 16 SKUs including shampoos, conditioners, treatments and styling products. In addition, David’s limited edition runway accessories and styling tools will be launched in Australia first!
What are some of the upcoming plans for IGEA Group in Australia?
IGEA has forecast to double in revenue to over $70 million in the next two years. This growth will be driven by NPD and new channels of distribution.
