Overcoming new brand challenge in Style

LIKE most entrepreneurs, Paulette Contessi saw a gap in the market and decided to fill it by launching her own small business.

With three successful businesses already under her belt, including beauty outlets and a construction recruitment company, Ms Contessi is no stranger to launching a new concept or facing the challenges that come with growing a small company.

Style Bar, based in the Carillion Arcade in Perth's CBD, is home to Ms Contessi's fourth business, an express-service blow-dry and makeup concept salon.

The business follows a European trend and is said to be the country's first 'express-service salon', where women can be pampered with a blow-dry or have their hair styled, without having to get their hair cut.

According to Ms Contessi, the concept is unique because hairdressing salons generally don't view styling, blow-drying or makeup as their core business and will only do it if a customer gets their hair cut at the same time.

She said there was significant demand in Perth from women wanting a quick and regular style and pamper, without having to pay exorbitant prices.

"We potentially compete with every other salon in the city, but where we differ is Style Bar specialises in high-fashion styling at a competitive price, performed by professional stylists and makeup artists doing their magic in just half an hour," Ms Contessi told WA Business News.

Ms Contessi said Perth was becoming an increasingly contemporary, chic city where demand for high-end fashion and style was increasing, particularly with workers in the CBD.

She said Style Bar had given her a strong foothold and advantage over newcomers to the niche sector, and was confident more women would welcome the new salon idea once brand recognition increased.

"We are obviously a very new brand, so the number one issue we face is getting our brand into the marketplace," Ms Contessi said.

"Not only is the store new, but Style Bar is also a new concept to retailing, so getting the brand message through is difficult.

"Competing for the luxury dollar-spend isn't an easy one. We have a fantastic price point and the store itself is extremely cutting edge in retail design, but attracting consumers who are willing to spend on non-essential luxury items in this difficult economic state will prove to be difficult but not insurmountable.

"Obviously during the business planning stages of this concept no-one foresaw the current market instability, but in any market situation, especially in the service industry, the number one competitive hurdle is pricing.

"Businesses get desperate to pay rent and wages and start dropping their prices. The second factor is the clients themselves; the first thing people drop is luxury spending.

"The impact is obvious but one that all businesses have to face. You just need to be a little bit more innovative in your approach.

"But if I've learned anything from being a business owner three times over, it's that Perth consumers are constantly on the lookout for new and exciting services. The market is more than ready for this concept and I think it has the potential to be a major trendsetter."

As the owner of CBD beauty salon MetroSpa and Nedlands-based hair and beauty salon The Parlour Haute Salon, Ms Contessi is well aware of the importance of brand recognition.

With only five employees at Style Bar and the one salon so far, word-of-mouth has been the main marketing tool.

"Initially we engaged an advertising agency to help build the look of the brand and then did a launch roll-out, including bus backs, advertising presence in glossy mags and fashion focused media," Ms Contessi said.

"Our next program is direct marketing; walk-past traffic isn't enough, especially where the salon is located in the Carillon City Mall where the traffic isn't as high as my other salon in Plaza Arcade, so we need to search out our consumers in the towers on the terrace."

Ms Contessi said while the brand name Style Bar was becoming known in Perth, the business was set to implement a direct selling strategy of its services in the form of value-add, followed by radio advertising campaigns.

"We are also building a database through our walk-in traffic and website and special offers are frequently emailed out," she said.