- Investment sought:
- Equity offered:
Beauty that delivers
MILK Beauty is redefining how and when people experience beauty treatments — taking it from the high street to wherever they are.
From massages, to manicures, pedicures, waxing, facials and tanning services, we’re there in customers’ homes, their offices, hotels and events anywhere across London, every day until late.
We’re built on a reputation as the ‘perfect house guest’ through a one-of-a-kind operating model.
With every trained therapist graduating from our in-house MILK Training Academy, we’re ensuring our service standards are consistently high. Thanks to our three hubs across London, therapists arrive swiftly, and treatments are delivered personally and professionally.
“The really attractive aspect of this treatment was the easy click-and-book facility, and having someone coming to me and fitting in with my schedule. Thumbs up.”
Beauty is a lifestyle service
Just like dry cleaning, shoe repairs or taking a taxi — beauty is another essential lifestyle service for busy women.
Hassle-free, great service quality, MILK Beauty is there to flex to today’s lifestyle demands.
Traditionally, booking beauty services at a salon meant leaving work early or at a set moment for a time-consuming commute, or if you’re a parent, finding someone to look after your children. In short — the fixed beauty salon just doesn't fit into urban consumers’ demanding lives.
Click, book, we deliver
MILK Beauty offers high-quality beauty services to people’s door wherever they are and at a time that’s most convenient to them.
Treatments take place in the comfort of a client's home, the office or a hotel, or wherever needed — eliminating the need for a busy commute or expensive childcare.
Our services are booked and paid for online. In a few clicks, and in just an hour, a therapist can be with the client.
Beauty on everyone’s terms
The positive impact of MILK Beauty is already being felt. We’re at the sweet spot between having gained fantastic reviews from everyone from the Telegraph to Tatler and a loyal customer base. We’re now ready to take it to the next level – offering more, deepening relationships and growing with purpose.
Substantial accomplishments to date
The gold standard of service excellence
Our commitment to high standards has built us an enviable client list. From royalty and pop stars, to FTSE 100 CEOs and multinationals, we’ve consistently grown our reputation.
We have been named as Tatler's Best Mobile Massage Service of 2015 and featured in Time Out's Best Nail Services.
Our accomplishments, so far —
• Consistent quarterly revenue growth*
• 2015 YTD average quarterly revenue growth of 43%*
• Developed an engaged customer list. Our email open rates are 63.2% above the industry average
• Client retention rates are 57 %, significantly higher than industry average of 40%
• Our average feedback during 2015 was 4.8 out of 5 from all our clients
• We’ve established the industry-leading MILK Training Academy
• A top-tier management team and an operational framework to enable rapid growth
We’re ready to grow
Throughout 2015, we’ve built, practised and refined what we do. We’ve proven we can consistently deliver exceptional services. In 2016 and beyond, we’ll be growing our model to scale — reaching more people and building the brand to new strengths.
Here’s how MILK Beauty will grow -
We have outstanding client retention
Our average client retention is 57%, compared to the 40% industry average. This ratio allows us to grow our customer volumes quicker than industry-average competitors.
We’re geared for operational efficiency
Over 2016, we will be developing our operations, focussing on smoothing efficiency at scale.
Our first step will be to grow client density near our hubs. In Q1, 2016 we’ll have four hubs in each corner of London. Our therapists start and end their days at these hubs, where they pick up equipment and then travel to clients within the locality of these hubs.
We’re streamlining processes
The MILK Training curriculum will arm our therapists with the skills to further client trust and entice our clients to try more of our services — this should lead to an increase in visit durations and product purchases.
We’re optimising our own technology
Our new booking system, developed in-house, will be launched by Christmas 2015. We own our technology platform, so it’s ours to refine and perfect. We’ll be testing and learning how to ‘nudge’ our consumer behaviour through data and CRM practices. We’ll also focus on making visits more streamlined — allocating therapists to client locations using our smart technology.
Use of proceeds
“We are passionate about MILK and have loved growing the business. We are now inviting you to be part of the next stage in our exciting journey.”
Lucy Patterson, Managing Director and Founder of MILK Beauty.
The blueprint for growth
We’ve already drawn up a ‘Best in Sector’ template for delivering excellent client service. It’s now time to fundraise to kick start our next growth phase, to scale.
Our actions for 2016 —
• Scale a targeted customer-acquisition campaign
An accelerated marketing campaign will drive trials in places closest to our hubs. This will enable us to reach scale efficiently and quickly.
• Build on our operating model
We want to invest in our operational framework to be even more efficient. We’re going to optimise the margin by extending our client visit durations and opportunities for up- and cross-selling.
We also want to enrich the mix of freelance and employed therapists to reduce our drive times to our clients’ treatment locations.
Taking it to the next level
We’ll build more awareness of the MILK Beauty brand across London through continued excellent press coverage, a key influencer campaign, and tactical brand partnerships.
The power of three
MILK Beauty's services are currently delivered to three client types —
1. Private clients
Our private clients enjoy MILK's services in their home — it’s the most discreet and convenient way to experience our services.
With a diverse demographic, we’re the high-quality option coupled with an affordable and accessible pricing set up.
Private clients’ personal preferences
Late evening – appointments up until 11pm at night are particularly popular with professionals working long hours who enjoy the time-saving and commute-free, after-work service.
Early evening — appointments from 5-8pm are popular for groups booking indulgent treatments for a ‘Girls night in’ experience or fast services to get ready for a night out.
Daytime — appointments are frequently booked by mums at home, as it allows them to easily enjoy their beauty treatments without paying for costly childcare, or arranging cover.
2. Corporate clients
British women spend more annually on beauty services than dry cleaning or their daily coffees. We know that beauty services are increasingly seen as an essential in-office lifestyle service, alongside dry cleaning and the in-house branded coffee shop.
Through our commitment to professional high standards and the very best in client care we’ve won regular corporate accounts. These clients choose MILK Beauty as their in-office beauty service provider.
3. Event clients
We're seen at the very best events across London. Product launches, press days, retail events and parties are all about creating a sense of theatre and fun. Our pop-up and event services create are a readymade sociable atmosphere for our clients, where we’re removing the organisational hassle.
Characteristics of target market
Beauty is a beast
• The UK beauty industry valued at £15bn, and employs around 1 million people
• It’s growing. Fast. The UK beauty and personal care is set to grow 18% between 2012 and 2017 and named as a key consumer growth sector by Mintel
• It’s a fragmented market and there are only a handful of large players in the UK. Of 55,000 salons, 94% are single owner managed. These market characteristics present a huge opportunity for disruption
• High street beauty salons are suffering from online shopping growth. Footfall fell 5.3% y-o-y in February 2013/14 — highlighting a shift in consumer behaviour in favour of ordering online using home delivery services.
Our path to our market is set
We’re on a mission is to be the No. 1 mobile beauty brand in London. Building on the trust that MILK Beauty has already delivered, we’re positioning ourselves as the go-to mobile beauty treatments for busy London women.
Our message is clear— MILK Beauty is expert, convenient and affordable. How we deliver is by being the perfect house guest — professional, friendly, and trustworthy.
To reach more of our vast market we need investment to —
• Raise further awareness of MILK Beauty
• Drive trial, focussed in the locality of our hubs
• Build brand loyalty of new and existing customers
We’ve created London-wide strategies for our three client types.
Private client growth —
• Increase PR and social media activity to amplify noise around MILK
• Use PR and social media to unite overlapping brand activities
• Deepen relationships with key journalists
• Recruit key ambassadors to further reach and reinforce key messages
• Research and leverage brand partnerships
• Retain No. 1 Google search ranking for keywords
• ‘Out-care’ the competition
We’ll drive penetration in local areas through flyering, referral campaigns, pop-up events, and so building deeper relationships with local key influencers and community networks.
Corporate client growth —
• Build relationships with key decision makers
• Meet their needs through a blend of off-the-shelf and bespoke services
• Align with their Employee Value Proposition
Event client growth —
• Foster and nurture existing relationships
• Continue to build awareness of our high quality event services through social media promotion and marketing to existing private client base
• Building marketing takeaway collateral at events
We have seen competitors enter the mobile beauty market and fail to gain traction.
We believe MILK Beauty outperforms our competitors through our understanding of what customers value and how to deliver it.
Above all else, we strive to be the perfect house guest, delivering a fantastic beauty service while putting our customers at ease in their own home.
How we do this is through —
• A respected training curriculum that focuses on service as much as technical skills
• A consistently high-quality delivery through a carefully selected MILK Academy team
• A glut of well-earned reviews in the press
• A focus on an efficient operational structure to drive margin growth
• A top-tier management team
MILK Beauty has a top-tier management team backed by an existing investor group who, as experienced CEOs and CFOs, have held leadership roles in top-tier multinationals including Sainsbury’s, Carlsberg, Diageo, EA Games and Spencer Stuart. This is alongside guiding several innovative small start-ups.
We’re passionate about MILK and have loved growing the business this far. We’re now inviting you to be part of the next stage in our exciting journey.
“I’m investing in MILK again through the Seedrs fundraising platform because I believe this is a great sector, and a great team to invest in. The people at MILK have the commitment to top quality treatments and training, the right infrastructure and the passion to become a lead player in the really fast growing world of mobile beauty.”
Benet Slay, Director and Investor in MILK Beauty