These ongoing product development activities are expected to result in the launch of a plethora of devices, with a strong related promotion. As this occurs, the sale of home-use devices will rise by 38.3% per year on average; from an estimated $33.4 million in 2006 to $771.7 million in 2011, according to industry research firm Medical Insight. The most sustained growth will occur when Palomar and Syneron enter the market with strong marketing support from Gillette and Procter & Gamble, respectively. It should be noted, however, that these estimates reflect the total retail dollars spent on home use aesthetic devices and not necessarily the revenues earned by manufacturers. Because retail markups can be as much as 50% or more, device sales revenues represent total dollars spent on each device which will be divided between device developers and their distribution partners.
Radiancy’s products accounted for 67.4% of all retail dollars spent on advanced home – use devices in 2006, according to Medical Insight. By 2011 Palomar and Syneron are expected to stake out more significant positions, as are other manufacturers, as shown in Fig. 25.1.
Over and above the sales of devices, consumers will also purchase disposable tips and cartridges, as they currently do for razors, since most, although not all the home-use devices will include a disposable component. This is the case, for example, with Radiancy’s No! No! As this occurs, sales of its disposables will rise by more than 31% per year from about $10 million in 2006 to $48 million in 2011, according to Medical Insight.