Johannesburg – Imbalie Beauty, a health and beauty franchisor company, is eyeing expansion into Africa as part of its strategy aimed at becoming the largest and most desirable beauty franchise on the continent, chief executive Esna Colyn said yesterday.
Imbalie, previously known as Skinwell, owns the Placecol skin care brand, a 34-year old skin care brand, and the Placecol Skin Care Clinic salon brand.
It also owns Dream Nails Beauty Salons and Perfect 10 Nail and Body Studios.
“We are busy with discussions on establishing a footprint in three countries on the African countries,” Colyn said.
Africa is poised for growth with an increasing pace of urbanisation and with average 7 percent economic growth rate projected over the next 20 years.
Colyn declined to divulge details of the African expansion. “I would like to close deals before revealing them,” she added.
Imbalie launched its upgraded Placecol skin care range for consumers younger than 40 years old last November at its Placecol skin care clinics.
It incurred a R820 000 in once-off marketing costs following the relaunch of the Placecol skin care range.
Its new beauty studio in Canal Walk, Cape Town, and another in Paarl Mall indicated the growth of the group, Colyn said.
The group is a franchisor focused on marketing and distributing its health and beauty brands to its 150 beauty salons, and large retailers, independent beauty salons and selected pharmacies.
Its acquisition of Prana Products, an importer and distributor of beauty brands, bodes well for its growth.
Prana started five years ago with the vision of creating an environment where potential business women are encouraged to reach their full potential in both a business and personal capacity.
Colyn is positive about franchising as a mechanism for fighting poverty and inequality.
“I am positive about franchising as a way of empowering women and creating much needed jobs in South Africa. It is one of the best concepts where people are truly empowered to create their own wealth,” said Colyn.
Imbalie’s shares on the JSE yesterday were unchanged at 12c, which valued the company at R41.5m.
Colyn said trade on the Altx-listed company was illiquid.
“We don’t always understand the ups and down of the share price,” Colyn said.
In the year to February, group revenue increased by 5 percent to R91.8m in the previous comparative year due to the groups exposure to a large retailer which encountered difficult trading conditions.
The group’s strategy over the short- to medium-term is to distribute all approved brands within salons to its franchisees in order to control and standardise the product offering to consumers.