NEW YORK — Aveda Concept Salon and Spa owners just got a little richer. And if they happen to have their own Web sites, they’ve pretty much hit the jackpot.
In a move that benefits its 2,500 Concept Salon and Spa partners in two key ways — through cash and customer referrals — Aveda has, at long last, entered the e-commerce arena. Through a new program called E-Salon, it intends to share the spoils of pent-up consumer demand and protect its brand image at the same time.
“The volume of calls we get each month from consumers wanting to buy our products online is just enormous,” said Mark O’Berski, Aveda’s vice president of consumer marketing and media planning. “And our salons have been wanting to sell Aveda online, too.
“But we wanted to wait to do it in a way that could involve our network — just like every other major project we’ve undertaken,” O’Berski added. “The Aveda retail stores were designed from the very beginning to be a concierge network — a way to refer customers to salons. And the E-Salon program will also do that.”
E-Salon, which is currently in the rollout phase, is confined to Aveda Concept salons, which are distinguished by selling only Aveda products.
Here’s how it works: For Concept salons with their own Web sites, customers can purchase products through a link from the salon site to Aveda.com. Each of those sales will generate a 25 percent commission for that Concept salon. For Concept salons without their own Web sites, customers can flag that particular salon when purchasing products at Aveda.com. Each of those sales will generate a 15 percent commission for that Concept salon.
Customers not affiliated with any Concept salon — a huge chunk of Aveda’s business — will be referred to up to three in their area, according to zip code. “We feel the referrals are the strongest part of this program,” said O’Berski. “From doing research, we learned that among our online registered users of Aveda.com, about 67 percent have never been to a Concept salon.”
To expedite participation in the E-Salon program, Aveda will provide the technical support. “We give them the creative piece and the technical piece to link to Aveda.com to purchase the products,” said O’Berski.
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Aveda also handles the entire backend. “We do everything,” said O’Berski. “The pick-and-pack, the credit card clearance, shipping, order-tracking, customer service, program management. The salon has to do nothing. All they have to do is be part of the Concept salon network. Or if they want to earn the 25 percent commission, they have to download a button.”
Although Aveda products have long been available via the Internet, none of those sales were authorized. “We have this little problem called diversion,” said O’Berski, tongue firmly in cheek. “We know there are places to buy our products online, but the customer just isn’t getting the full Aveda experience that way.”
While Aveda describes the E-Salon setup as beneficial to both sides, O’Berski admitted the commission structure is fairly generous. “When you factor in the cost of doing business — the rent, staff, equipment, etc., — we know 25 percent is probably a very good margin for most salons. In fact, it’s on the high side,” he said. “And that’s a very big incentive for a salon to join this program.”
New York salon owner Scott Buchanan, who operates four Scott J. salons and spas (three Aveda Concept, one Aveda Lifestyle), eagerly hopped on-board, incorporating the program link on his Web site virtually as soon as he heard about it. “I think it’s fantastic,” he said. “My client is already an Aveda user, and this will only enhance those sales. And the fact that I don’t have to even think about shipping is brilliant. As an owner, I get all of the rewards with none of the hassles.”
“We feel this is a winning partnership all the way around,” said O’Berski. “The consumer wins, because they get the quality and the convenience of buying the products they’ve always wanted to buy online. The salons win because of the financial benefit and the referrals. And Aveda wins, because we can grow and protect the brand we’ve all worked so hard to establish.”