'Indian Salon Report 2013' is a pioneering effort on
the part of Franchise India Holdings Limited to bring to the forefront the changing
consumption patterns, leading to a paradigm shift in the beauty services landscape, and
a decade long journey of the Salon franchise business concept in India. The Indian Salon
industry stands at a staggering USD 2 billion mark and is expected to touch USD 3.5
billion by 2015.
Glancing at the high growth pattern, private equity investors are eyeing the salon business and this has proven to be the key funding source for the salon industry's growth. Today India comprises of 25 per cent organised salon market, which will increase its share to 30 per cent by 2015. The backbone of the organised salon industry is an aggressive expansion of franchisees across the nation. The Indian Salon franchise ecosystem today has a support of over 5000 franchisees. Franchise salons will stand to cover 25 per cent of the overall organised industry by 2015 and will grow to be more than USD 1 billion. The report also presents the legal aspect of salon franchise, in which the implications of various laws are majorly discussed.
An online survey was conducted to understand the salon franchisee profile. The survey result revealed that 56 per cent of the franchisee owners who take the lead of the salon franchising in India are in the age bracket of 25-35 years and reaping high returns. Forty-four per cent of the respondents reported that they are getting good returns and 30 per cent reported that the returns are excellent. Also, 60 per cent of the franchisees reported that they are interested in taking up an additional beauty salon franchise. In this report, Franchise India also tracked the beauty services consumption pattern through an elaborate survey of the urban working population. The report reveals that 38 per cent of women visit the salon twice a month and 61 per cent men visit it once a month. The major services which women opt are hygiene, skin care and haircare, while men prefer haircut and haircare.
Overall, the report aims to incorporate trends in the industry as well as bring forward a study of the overall consumption, as these are factors governing growth and change around the business format of the salon industry.