Salons Expected to Resume Growth Trajectory Despite Emergence of At-Home Services
Salons Expected to Resume Growth Trajectory Despite Emergence of At-Home Services

Post the pandemic’s impact on daily life, 59 percent respondents are eager to resume spa and salon visits, while 79 percent men unhappy with self-cuts and are already back to salons for haircuts, says a study by Red Quanta. 

2020 may have been a blip for the Indian salon industry that came to a halt during the pandemic. While there has been a paradigm shift to a DIY model with the organized at-home beauty service segment, salons to retain a generous market share and amplified margins basis a multiple growth factors. 

The study highlights the dynamics in play, and why salons can expect to resume their growth trajectory from where they left off - in spite of the emergence of the at-home segment.
“Given the growing awareness for self-grooming and the increasing social media savvy consumer base demanding to meet benchmark beauty standards, the salon industry in India is seen as booming in the recent past. The introduction of more organized and widespread at-home services escalated during the lockdown paving the way for salons to upgrade to an experience-centric model which is likely to lead to even more pronounced gains,” said Pankaj Guglani, Managing Director at Red Quanta.

Below are some key findings from the report:
Increasing Purchasing Power of the Indian Consumer – 8 percent of the respondents reported an increase in household incomes since February 2020
Greater Inclination to Spend on Everyday Lifestyle – 76 percent people said they will spend more on leisurely activities than they did earlier once the vaccine is out
Men’s Growing Interest in Grooming – 29 percent of the male respondents said they are used to getting specialized grooming services 
Large number of young people in the country – 50 percent of the Indian population is below the age of 25; and 65 percent below 35
Consumer sentiments, international trends and the recovery shoots so far, all point at a prosperous path ahead. To say the least, the dopamine rush of walking into an oasis of elaborate shampoos and steamy chambers is not declining any time soon.
“In 2020, the pandemic brought forth an urgency amongst the professional beauty salons to comprehend the turn of events and evaluate the business model amidst the uncertainty. The phase-wise lifting of the lockdown allowed time for salons to get back on track and adjust to the new normal which came with its challenges of maintaining brand salience. Enrich which has a decade long track record of maintaining stringent and consistent quality measures and hygiene had an advantage. All these factors came together to provide a greater understanding of the nuances of the business – enhancing better operational and safety practices while balancing the creativity with popular services post the lockdown,” says Sachin Kamat, Director - Customer Engagement, Enrich.
“At Enrich, the at-home services segment offering, with dedicated therapists stationed out of its salons was introduced in 2016. As a specialist in the professional beauty services segment, we believe it is imperative to adhere to benchmark quality of service and replicate the same with our at-home service, while also making it feasible and convenient for the consumer. Although, the services rendered have seen widespread growth in the wake of the pandemic, its contribution to the overall business remains in single digits.
There is no denying the increasing awareness of the importance of self-grooming and the consumer’s demand to avail beauty and salon services has been at its peak. Catering to the excessively social media savvy generation, high-end salons are intently raising the bar for skincare and grooming services. There has also been a huge focus on men’s beauty services – a relatively new consumer base that is spending more than ever on personal grooming. There is also a renewed focus on technology and adoption to online and e-commerce, as well as beauty products retail. These insights have provided a lucrative opportunity for salons to upgrade to an experience-centric model which will eventually lead to even more pronounced gains,” he further adds.

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