Inside Aesthetics Ep 59 The Effects of COVID-19 on the Cosmetic Industry | Babak Moini
Episode 59 hosts Babak Moini (Co-founder of Laser Clinics Australia)
Babak has a unique perspective into the cosmetic industry of Australia and gives his take on the effect of the coronavirus pandemic on business.
We discuss the immediate fall out of the closure of clinics, strategies to improve cash flow and how cosmetic clinics may have to change their strategies. We also discuss the worse case scenario of liquidation and what this means.
0:00 Introduction 1:03 Meet Babak Moini 3:19 COVID Impact on Business and Economy 5:16 Industry Uncertainty and Consumer Behavior 9:44 Market Conditions Before COVID 11:56 Oversupply of Clinics and Competition 14:01 Falling Prices and Rising Costs 16:30 Financial Pressure on Clinic Owners 18:16 Predicting Business Closures After Lockdown 23:53 Negotiating Rent With Landlords 27:02 Cash Flow and Survival Strategy 30:22 Commercial Compromise and Lease Negotiations 33:44 Economic Uncertainty and Market Recovery 37:39 Short Term Demand Surge After Reopening 41:39 Reverse J Curve Demand Prediction 45:36 Pricing Strategy to Capture Market Share 48:05 Increasing Productivity and Efficiency 51:43 Staffing Adjustments After COVID 57:32 Employee Motivation and Workforce Changes 1:01:04 Government Support Programs Explained 1:03:30 JobKeeper and JobSeeker Overview 1:07:48 Cutting Costs to Stay Profitable 1:12:19 Avoiding Emotional Financial Decisions 1:16:00 Risks of Funding Business Personally 1:19:56 Understanding Business Liquidation 1:22:22 Difference Between Bankruptcy and Liquidation 1:25:07 Administration Versus Liquidation Explained 1:27:43 Resetting Business After Financial Failure 1:30:37 Selling Assets and Paying Creditors 1:33:59 Protecting Personal Finances 1:36:53 Customer Acquisition After Crisis 1:39:25 Lower Prices and Customer Service Strategy 1:42:10 Impact of Unemployment on Demand 1:44:30 Underemployment and Spending Power 1:48:40 Financial Strength Versus Service Quality 1:53:30 Emotional Decision Making in Business 1:55:45 Opportunities to Acquire Competitors 2:00:30 Industry Consolidation and Growth Potential 2:03:05 Final Advice for Business Survival