)
Sydney-based tattoo removal group Think Again Laser is rolling out a $44 million expansion that will take its fast-growing business concept to the US market across 50 states over the next five years.
The company, which is backed by Clutch Capital, is aiming to add another 70 clinics to its existing network which currently comprises seven company-owned clinics in Australia and a clinic in New Zealand.
The US expansion is part of a broader plan for the company become one of the world’s largest tattoo removal companies, and it comes on the heels of Think Again Laser signing of intercontinental agreements with treatment technology providers – opening the door to potentially entering the European and Asian markets.
Founded in 2014 by Mike and Chloe Anderson, Think Again Laser has become Australia’s second-largest dedicated tattoo removal chain behind Removery, a US-based group that is also backed by private equity.
Think Again Laser currently performs more than 40,000 treatments annually with the company revealing that its business is growing at 30 per cent year-on-year as it capitalises on a trend among Millennials and Gen Z “where once-permanent tattoos are increasingly viewed as disposable”.
Mike Anderson, the CEO of Think Again Laser, says the growth in the tattoo-removal market has primed the business to expand into the North American market which he says is currently underserviced.
“The American market is an incredibly lucrative business; consumers there pay double the price of what it costs in Australia for a removal,” says Anderson, winner of the 2023 Sydney Young Entrepreneur of the Year Award -Specialist Services.
“In addition, there is low competition as the regulatory environment in the United States makes it very hard for a business to get established.”
Anderson says the expansion of the business will leverage rapid growth in demand for tattoo removal services globally.
Think Again Laser cites research that shows the global tattoo market will more than double in size over the next decade from US$2.22 billion in 2024 to US$4.83 billion by 2032, at an annual rate of 10 per cent.
In comparison, the international tattoo removal market is set to grow at almost twice that pace by 19 per cent a year to reach US$4 billion over the same period.
Typically, laser treatment costs between $1,000 and $3,000, or 10 times the cost of getting inked. Think Again Laser uses medical technology that can break down tattoo ink to a microscopic level so it can be excreted by the body.
“We know that at any given time there are around 30 per cent of people who are living with a tattoo they regret and want removed,” says Anderson.
“These days consumers are more aware that there is the option for removal down the track, so we also provide a consulting service to advise on the best tattoo images and ink to select if they may want to remove them at a later time.
“The main reason our clients come in for a removal is that they feel the tattoo doesn’t represent who they are anymore.
“Tattoo trends are changing at an increasingly rapid rate and now a number of people are getting tattoos removed from their face and neck because they’ve changed roles or met a partner with a more conservative family.”
Think Again Laser also adds social enterprise to its company profile after launching charitable initiatives across Australasia to provide free tattoo removal for breast cancer patients in remission following radiation treatment. This is essential where radiologists apply permanent tattoo markers to guide equipment during each treatment.
A second program provides for the free removal of hate tattoos featuring racist or extremist symbols and slogans, which offers a pathway for participants to rid themselves of the last vestige of an ideology they no longer identify with.
Both of these charitable initiatives will be offered in the US market.
Anderson says the company’s analysis of population data shows the US market has around 25 per cent of the coverage of tattoo removal services that are available in Australia.
While the US market will be the prime expansion area for Thinks Again Laser over the next five years, the company also plans to open eight new clinics in Australia.
In the US, Anderson says the company has already mapped out locations for its first seven clinics which includes a debut in California, initially at Beverly Hills, Calabasas, Orange County and San Diego, followed by Texas in Austin, Dallas and Houston.
“We are looking at areas with high population densities that are underserviced for the type of offering we provide,” says Anderson.
“Despite the scale of the planned expansion program, the sites will remain corporate-owned, rather than franchised, with the support of our investment partner.
“We do offer a joint-venture model which means the person running the clinic will have a share in the business. This has helped us attract quality partners who stay long-term and who can grow with us.”
Think Again Laser currently uses the joint-venture model in New Zealand where local entrepreneur Atlanta Zambucka has a 20 per cent interest in operations there.
“We also want to retain a lean operating model and have no plans to open a head office with executive staff at this stage,” says Anderson.
“With rates of breast cancer that exceed those of Australia, we also expect our charitable radiation tattoo removal program to be well received in the US.”
Think Again Laser’s growth plans were first laid out in 2020 when Clutch Capital secured a 50 per cent stake in the company. That investment led the company to grow from just two clinics to eight in the past three years.
)
