Introducing the industry’s 1st app controlled, digital hair color studio for salons and stylists
Introduction: CLICS is revolutionizing the $10 billion professional salon hair color market with the first Digital Hair Color Studio and pay-after-dispense “color as-a-service.” CLICS’ breakthrough platform service solves the top four salon hair color issues: cost, waste, inventory management and ecological damage. CLICS’ groundbreaking offering is the result of an ambitious goal launched in 2016 to innovate across seven distinct technical disciplines.
Salon Pain: United States hair salons generated more than $45 billion in service revenue in 2019. Coloring is their anchor service. There are four significant issues with hair color that undermine the financial health of salons, impact service quality, making hair color inventory management utterly painful and pollute our environment. CLICS solves all these problems! Cost and Waste: The average salon in CLICS’ target market buys $30,000 to $100,000 per year in hair color. Hair color tube packaging causes waste of up to 30% that represents 20% to 40% of a typical salon’s profits! CLICS’ patented technology eliminates waste, making salons more profitable. Inventory Management: Salons buy between 400 and 800 tubes of color per month. This requires continuous ordering as well as an ongoing outlay of cash. Salons have $5,000 to $20,000 tied up in hair color inventory. Service Quality: Market research indicates that stylists cannot find the tones they need as much as 44% of the time. This creates service quality issues because stylists must use substitute tones. Salons lose 21% of their clients each year. Hair color service quality is estimated to cause half of the losses. Mixing tubes of different tones limits creativity and consistency because hair color comes in premixed tubes of approximately one hundred tones. Mixing multiple tubes is unpredictable and can cause varying results. The limitation in color choice undermines the stylist’s creative abilities, which are an important part of their identity. CLICS solves this problem as well, offering stylists an unlimited palette of colors they can create. Ecology: Each year millions of pounds of wasted color are entering our water systems and more than a billion unrecyclable tubes are going into landfills. CLICS’ system eliminates waste, saving our water systems, and CLICS canisters are made of recyclable aluminum!
CLICS’ Solution: The seven technical disciplines CLICS has innovated across include reactive hair color chemistry, color packaging, robotic dispensing, mobile applications, optical color sensors, and AI based color prediction, all integrated into a service platform. CLICS’ service eliminates hair color waste, completely automates inventory ordering and unlocks the hair color space, allowing stylists to create millions of unique tones using CLICS’ Digital Hair Color Studio mobile app.
Management Information: CLICS mobile app also delivers previously unavailable information, giving salons service quality information that they have never had for their anchor service.
Recurring Revenue: CLICS’ revenue comes from its industry first mixable line of MEA hair color. CLICS Colors™ line includes 23 tones, an oil-based lightener, 3 developers and 3 additives. All are packaged in uniquely barcoded pressurized canisters. CLICS service platform includes ACH payments, allowing CLICS to offer the first automated pay-after-dispense color-as-a-service. Salons go cash flow positive and CLICS benefits from streamlined remittance.
IP/Competition: CLICS has received two fundamental patents and has four more patents-pending, including big data AI based custom color formulation. CLICS issued patents cover key direct-to-bowl dispensing and CLICS’ “smart bowls” that use RFID tags, computerized dispensing and learning to eliminate waste. CLICS Colors formulas are trade secrets. CLICS’ competitors are traditional professional salon hair color manufacturers including L’Oréal, Paul Mitchell and others.
Suppliers: CLICS has organized strategic supply relationships including hair color manufacturing and shipping, dispenser manufacturing, telecommunications services and automated ACH based payment collections. All suppliers are in place and operational and two of the suppliers have become strategic investors in CLICS. CLICS has over $4 million in inventory ready for sale.
Launch, Sales and Profits: CLICS sells its high margin hair color direct to salons that buy $25,000 or more in color per year, making each salon highly profitable even as the salons save money. CLICS launched at the end of December 2019. Revenue increased 491% in Q2 and will increase 4,600% in Q3 2020 because CLICS closed a six-figure contract for a strategic pilot program with one of the largest beauty companies in the world. CLICS has developed more than $8 million in demand from tradeshow marketing and online reservations on CLICS.com.
For more information, please contact our Investor Relations Department at 833-692-5427.