Increase of disposable income
From last decade, salon industry has registered growth because of the beauty services consumption. These days, consumers are becoming more aspiration driven which has led to evolution of concept of grooming and beauty for both the male and female segment in order to enhance their appearances. The revenue is expected to rise because of increases in per capita disposable income and declining unemployment over the last five years. Even the consumers are ready to pay a premium amount to pamper themselves with these services. The rising affluence of the middle-class segment has upgraded their consumption lifestyle and increased their willingness to buy beauty products and services.
International players sell beauty products
As for the International players already present in India, there has been a slew of beauty products makers have lined up to cash in on a business boom in India. The market, which was earlier women centric, has started concentrating on male grooming and is coming up with a large numbers of unisex salons. And many of them are planning to expand through franchising. “Today, we are available in 22,000 shops in India; we sell products in three different categories. We have a retail category, and in the coming years, we are planning to be available at least 1 lakh shops. We sell beauty advisories, so these are BA outlets, and we sell it in salons only. At present, we are available in 14,000 salons, and in future, we are eyeing up at least 16,000 salons using our products, pointed a spokesperson of The Body Shop.
Home Beauty Service
Amazon has launched beauty services, which will let its users order and schedule home beauty services in selected pin codes in Bangalore. Amazon has curated beauticians (at least 3 years of experience) who have undergone quality checks, background verification and training, from third party service providers. The service is only available on an appointment basis for women users between 9 AM and 6 PM in Bangalore. As of now, services offer are manicure, pedicure, threading and waxing and can be paid online, but in future, it will start offering cash on delivery.
Investment is an important factor to consider, while opening a salon. “There are almost 16 beauty salon chains operating in India currently, almost all of them partner with people who can make minimum investments of Rs 20 Lakh or more and operate in the premium segment. On the other hand, salons even as small as 500 sq ft can become Glam Studios without any expenditure at all. The company not only brings about aesthetic changes to the salons but also trains staff and automates their entire processes, thus bringing about a radical change to their operations and management while increasing their visibility and customer base”, said Sadiya Naseem, Founder & CEO, Glam Studios.
Kid’s salon is growing immensely. Rashi Morbia Kumar, Founder, Dolled & Dapper, says: “Twice in a month we give kids which are not privileged and groom them for free. Further we want to start our own line of soft toys, apparel and some sort of merchandise for underprivileged kids. Education is must and it is not happening in the right direction, kids are not getting the right platform to learn and we can do it through Dolled & Dapper. Hence, we will launch our academy soon.”
Salons are launching their own Website, where they will showcase all their products, services and gift vouchers, among others. They have partnered with a couple of e-commerce players for online presence. Companies are eying to organize the budget salon industry by creating a tech- driven brand of affordable salons through aggregation, standardization and brand association. The salons are bookable for customers through Website and Apps.
“…We are tapping costumers from every angle. We are doing ATL and BTL activities, digital media. We’ve got followers on social media. We are doing B2B tie-ups, strategic alliances in terms of penetrating the brand in the market,” added Naseem.
Expansion in Non-Metro cities
Beauty salons have started expanding into tier-II and III cities. Operational costs for service providers are also low as compared to smaller towns. Additionally, service providers have started exploring new venues for rejuvenation like airports and hotels. “Kaya is spread across 27 cities with over 100 clinics in India, the tier II and III markets require significant investment and a long-term focus. Even in small towns, consumers have started spending on specialized products and services. We have 17 outlets in tier II cities and in addition to this an established e-commerce network,” shares Arvind R. P., Vice President and Head - Marketing and Product Retail, Kaya.