Koko Face Yoga
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 6, 2019
Asking For:
$200,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Face Yoga offers a natural solution to achieve a more youthful appearance through facial exercises, claiming to make users look 10 years younger without surgery or injections.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Koko, the founder of Face Yoga, introduces herself to the Sharks as a 61-year-old, shocking them by revealing she is actually 40. Face Yoga is presented as a natural and non-invasive method to regain a youthful appearance without resorting to plastic surgery or injections. Koko, a Face Yoga expert, demonstrates a few exercises and emphasizes the ease of integrating them into daily routines.
The founder expresses a passion for entrepreneurship and describes how Face Yoga has been popular in Japan for over a decade. Koko already runs a cosmetics business in Japan, with an additional product targeting the senior market, focusing on eliminating aging body odor. Despite her current success in the cosmetics industry, Koko is determined to pursue her passion for Face Yoga in the American market.
The Product
Face Yoga offers a regimen of facial exercises designed to activate dormant facial muscles, providing a natural and non-invasive alternative to traditional anti-aging methods. The exercises aim to lift facial muscles, reduce wrinkles, and enhance overall facial appearance.
Koko demonstrates a few exercises during the pitch, encouraging Sharks to participate. The suggested time commitment is three to five minutes per day, with the flexibility to perform exercises while engaging in daily activities like driving or working on a computer. Koko also mentions offering personalized training seminars, charging $200 for a 1-hour session, where specific exercises are taught in detail.
The founder claims that the method has gained popularity in Japan, with over 800 Face Yoga instructors and a market worth tens of millions of dollars. Face Yoga’s potential market is positioned against the $14 billion global beauty market, including treatments like Botox, fillers, face lifts, and neck lifts. The founder envisions scaling the business by licensing the method to other instructors.
How It Went
The company’s position before Shark Tank
Face Yoga’s lifetime sales are reported at $17,000. Koko, however, cites her success in the cosmetics business in Japan, generating half a million dollars in annual sales. She sees Face Yoga as a complementary venture, catering to a different audience focused on natural and non-invasive beauty solutions. Koko’s revenue streams include the licensing of the Face Yoga method to other instructors, with plans to expand this aspect of the business.
The founder expresses confidence in the American market, comparing the success of Face Yoga in Japan to the potential in the larger U.S. market. While not explicitly discussed in the pitch, Koko’s financial stability appears to be supported by her cosmetics business, providing her the flexibility to explore new ventures.
The Negotiations:
Koko entered the Tank seeking $200,000 for a 20% equity stake in Face Yoga. The Sharks were entertained by Koko’s energetic pitch and participation in Face Yoga exercises. However, skepticism arose regarding the business’s scalability and market appeal in the U.S. Beauty industry expert Kevin O’Leary was the first to express concerns, ultimately leading to him being the first to bow out.
Other Sharks, including Rohan Oza, Mark Cuban, Lori Greiner, and Barbara Corcoran, followed suit, with each expressing admiration for Koko’s energy but stating that the business was not a fit for them. The Sharks questioned the time commitment required for Face Yoga exercises and compared it to quicker alternatives like fillers and Botox.
Despite Koko’s belief in the all-natural and affordable aspects of Face Yoga, the Sharks unanimously decided not to invest, citing concerns about the business’s scalability, market competitiveness, and its founder’s valuation of $1 million. Koko left the Tank gracefully, expressing gratitude and confidence in her venture’s success. The Sharks, while amused by Koko’s presentation, remained unconvinced about the viability of Face Yoga as a profitable investment.
