The GFC came with mixed blessings for Australian makeup retailer, Gorgeous cosmetics. Not only did it put on hold the opening of up to eight new stores the brand had planned, it also resulted in the relocation of the company’s Oxford St, Sydney store to new flagship premises. The Oxford St store, the largest in the six store Gorgeous chain, spans 105sqm, and is used not just as a retail outlet, but also a makeup studio with eight workstations. Georgeous Cosmetics was developed by hairdresser a
r and makeup artist, David McConnell, in the late 1990s, after the successful launch of six high pigment lipsticks. The first store opened in Prahan in Melbourne in 2000.
“A lot of cosmetics brands go directly into selling to department stores, but I did it in reverse and opened a retail store with the idea of selling the range,” McConnell says of Gorgeous’ first steps into retail.
A move into training others in makeup artistry followed the store, and within six months McConnell was filling classes of 10 and 12 people.
“The little store had too many things happening. During the day it was retail, but then I had boxes everywhere to send goods to salons and the training business was really taking off.
So in 2002 I made a decision to follow the path of training and wholesale and closed the retail store.”
“The idea behind the Oxford St store was to give back to Gorgeous’ clients. “We really do care about our clients. We don’t want them to feel silly or uncomfortable.”
Three years on, and with training campus’ in Melbourne, Sydney, and Brisbane, McConnell decided it was time to try retail again, reopening in Chapel St, Melbourne. In 2010, the Gorgeous Cosmetics Academy is Australia’s largest, with around 1000 students a year, and growth in the last 12 months of 15 per cent.
“We saw no drop in business in the GFC. In fact, we grew in all aspects. There were probably only a few months where people were really nervous, but it didn’t affect us.” Oxford St flagship Despite remaining buoyant, Gorgeous was forced to put on hold around eight new stores which had been scheduled to open, as a result of the banks’ stricter lending criteria.
The idea behind the Oxford St store was to give back to Gorgeous’ clients. “We really do care about our clients. We don’t want them to feel silly or uncomfortable,” said McConnell.
“We’re different to a lot of brands where you might see a client sitting right in the front window. We felt our clients deserved to have privacy, and it’s not about putting them on show to make a store look busy – its about giving them the service they need,” he said of the basis of the store.
Spend on new store fitouts is around double of that of competitors, according to McConnell. “We want to get the look and feel of the brand right, and make to store really unique. We don’t worry about what the competition is doing. In fact we totally ignore what they are doing.”
And with so many cashed up rivals in the competitive world of cosmetics, store fitouts that pop are incredibly important. “We make a big investment, but at the end of the day, cosmetics is a multi-billion dollar industry. We compete with all the L’Oreal and Estee Lauder brands that control the floor in department stores and advertising, so you really have to create something that’s beautiful.”
The ideal size for a non-flagship Gorgeous Cosmetics store is between 55sqm and 60sqm. Anything larger and the cosy, personalised feeling is lost.
“Our Oxford St flagship is unusually large, but it needed to be because we do a lot of commercial work there. It’s a good size store to use with the intent of something different to a retail environment, although it is very difficult to get it right with a store of that size when you are selling lipsticks.” The store was designed by Greg Natali of Greg Natali Designs. Natali is also responsible for the design of Gorgeous’ Doncaster store.
“I went to Greg with the idea that we needed to have a look that was uniquely us and people would walk by and say ‘that’s Gorgeous Cosmetics,” said McConnell.
“Because makeup is an international market, it was extremely important for the growth of our business not to be confused with Mac or The Makeup Store.”
On the growth front, McConnell is hoping to have a further 10 stores in operation in the next two years, although there are just three in the pipeline for the coming 12 months.
“A lot comes down to the international markets and trade shows we’ll be doing next year, but we’re planning one in Chermside, in Brisbane, and we have one earmarked in Sydney, at Chatswood Chase.
“We’re looking at Perth as well. There’s a great market over there and we have a huge following that come into our Melbourne shop from Western Australia.”
This feature first appeared in Inside Retailing Magazine. Click here to subscribe.