Setting up shop in the UK? Considerations before transferring or starting a business

02 February 2019
Volume 8 · Issue 1

Abstract

The UK market is saturated with aesthetic clinics, so businesses need to demonstrate that they are doing something special if they are to stay afloat among the competition. Claire Hool, former Operations Manager for Centros Unico, explores what needs to be considered if you are to succeed in the UK by drawing on her own experience working for the company

Centros Unico is the largest aesthetic company in Europe. Launching in 2009 in Spain amidst a recession, the odds should have been against them, with treatments like laser hair removal and injectables becoming a luxury few could justify spending money on. Yet, while other establishments folded, Centros Unico thrived. They were affordable and approachable; being conveniently located in shopping malls meant they were accessible to the masses, demonstrating that even during hard times, clients could indulge in treatments without breaking the bank. Their success grew and grew, and soon, the orange and brown Centros Unico logo became commonplace in many European cities and the go-to company for aesthetic treatments. There are now around 200 Centros Unico clinics operating across seven countries; or so there were until June 2018, when the decision was made to cease some of its UK operations.

I worked with Centros Unico for 7 months, being hired to help try and turn the UK business around, which turned out to be a problematic task. But why? The company is still incredibly successful outside of the UK, so why did it not work as well here? I can only reflect on the 7 months I spent with the company, at which points, perhaps, the business was too far gone to rectify. It did, however, prompt inspiration as to what needs to be considered before attempting to set up an aesthetic business in the UK or, in the case of Centros Unico, moving an existing business abroad.

Research, research, research

It quickly became clear that Centros Unico had failed to fully understand the UK market as a whole. The business model had not been modified to reflect the change in environment; it was the same model used in Spain during its downturn. Being predominantly based in London, I notice differences in the type of clients I see from one part of the city to the next, let alone differences between clients from the north of the UK and the south. It is therefore reasonable to expect that clients' needs and expectations will vary from country to country too. This means that business strategies need to be adapted accordingly, which is where research comes in.

» It is reasonable to expect that clients' needs and expectations will vary from country to country. This means that business strategies need to be adapted accordingly «

A good place to start is learning from already established and successful businesses: look to your competition. It is also important to explore multiple location options and investigate local and country-wide regulations. Then, use these findings as a basis for your own business plan, or use them to modify your initial ideas.

Location

Selecting the correct location is obviously important. In Spain, Centros Unico's decision to set up their clinics in shopping malls was a success, so when it came to establishing themselves in the UK, they chose similar locations. Perhaps Spanish clients do not feel particularly selfconscious walking from the clinic into throngs of people following an obvious procedure. I cannot speak for all British people, but as a nation we are often known for our reserved nature. We may not necessarily want a close friend to know we have had a treatment, let alone a whole shopping mall.

In light of this, your location needs to be accessible yet private, positioned in a high traffic area to maintain a steady flow of interest, but far enough away from your biggest competitors that you don't lose clients to them. You should also explore different parts of different cities, as there may be certain areas renowned for a similar businesses. Just as Hatton Garden in London is renowned for its high-end jewellers and Fleet Street for its newspapers, Harley Street is a popular area among doctors, dentists and aesthetic clinics. Some clients want the prestige that comes with locations like this, and may not consider price a factor in the choice of clinic, demonstrating that you also need to have an understanding of the type of client you want to attract too.

Competition

Researching your competitors is paramount to success, and secret shops are a great way to do this. They offer an invaluable opportunity to see how others operate, and how that operation compares with what you have planned, or what you are used to. This should include all areas of performance, from the way your enquiry is handled, the consultation process, pricing, treatment and product offerings, along with how all of this is marketed. Capitalising on your findings will help you to adapt your ideas for how you want your clinic to run. It also allows you to see how to improve and offer clients a different experience. What are these places doing well? What are they not doing so well? How can you incorporate the good and eliminate the bad?

When Centros Unico first came to the UK in 2012, their pricing was, and remained, competitive. However, being the cheapest option doesn't always make you the most popular. For too long Centros Unico's marketing wasn't up to scratch, meaning it did not matter what the service was like inside or how great value their treatments were, because other establishments had better strategies to attract new clients.

Marketing

Initially, all marketing for Centros Unico was very similar to what was used in Spain to attract Spanish clients: the same name, same colour schemes, same imagery and same clinic set up were used across all marketing materials. But everything that had been developed and meant so much in Spain meant nothing in England. Even the website was directly translated from its Spanish counterpart. It appeared that the website content did not translate particularly well to the UK market, resulting in lower and lower interest from new clients. If a business does not attract new clients, it will never grow, demonstrating the importance of relevant, targeted and effective marketing.

Nowadays, as more and more potential clients live so much of their lives online, businesses also need to have a strong online presence. This should be in the form of a fully functioning website, along with a few different social media channels, which will assist in generating interest in your business. Most people will research their desired treatment online before making an enquiry face-to-face. If your website isn't engaging, easy to navigate and digestible, people will look elsewhere without giving your business a second thought. If things like search engine optimisation and pay-per-click marketing are not your forte, then consider employing someone knowledgeable in these areas who can help spread awareness of your business, enabling as much exposure as possible.

Regulating your activity

Along with the ongoing boom in the industry comes tighter rules and regulations for practising, and these will vary from country to country.

Local licences

Once you have decided on your location, you will need to carry out research into the requirements of your local authority with regard to their practice guidelines. Different councils request different treatments to be registered as ‘special treatments’, so this could affect what treatments you end up offering to your clients.

Some local authorities will only want you to employ staff qualified to a certain level, while others want every staff member to have their own individual licence before they can start treating. These requirements will therefore influence who you end up hiring.

Setting up local licences will incur costs, and further costs are required to renew them annually. These costs should be budgeted for, otherwise unexpected fees or a costly fine may come your way.

Internal regulation

It is imperative that you consider risk assessments, fire safety, hazards, and general health and safety on the premises, and obtain adequate insurance, before hiring staff. Insurance will vary depending on the types of treatments you will be offering and who you will be employing to do them.

The UK is stricter on who can perform which treatments than many other European countries. As I discovered when working for Centros Unico, the rights of employees also vary across countries too. Treating practitioners should have an absolute minimum of NVQ Level 3 in Beauty Therapy or equivalent with facial and body electrical included in this qualification, which means they will be able to perform some, but not all, aesthetic treatments. However, these regulations are updated frequently, so it is important to keep abreast of what is going on in the industry, even after you have opened.

Conclusion

As this article has demonstrated, there is much to consider when opening up an aesthetic clinic in the UK, or when moving an existing business over here.

The most important thing to stress is the value of carrying out extensive research and reacting to your findings. This is important when starting any business, but is especially important if you do not know the country you will be working in, or are new to the business as a whole.

What complicated Centros Unico's UK expansion was the presumption that because a business model worked well in one country, it would translate the same in other countries. Unfortunately, this proved not to be the case. There is space for more aesthetic practices in the UK, but in order to succeed, companies need to spend time developing their brand, which understands and appeals to the needs of the British client base and effectively markets itself to this group.