Beauty services Nov, 03 2009

Beautify benefits

Ever since the deluge of the cosmetic brands started to engulf the Indian market, the surge of cosmetic products is speeding up as the growth of cosmetic retail industry. Become the part of this growing industry by taking up the franchise route and reap t

By Ramanjit Kaur
Feature Writer
Beautify benefits

The large population, growing economy, up grading lifestyles and improving standards of beauty seekers has made India a favourite destination for international cosmetic brands. The Indian cosmetic market is of Rs 4,580-crore and is growing at an average rate of almost 20 per cent annually. According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), it is expected to grow by 36 per cent in the coming years. Therefore, to get benefited from this growing sector, franchising is an apt way. It is full of franchise opportunities and offers much leverage to aspiring entrepreneurs.

Rising demands for cosmetic products

Indian retail market for cosmetics is witnessing great demands for branded cosmetic products. There are many reasons behind this increased demand. The average Indian consumer is constantly bombarded with advertisements and information on new cosmetic products that persuades and creates a desire to purchase them. A boom in the Indian fashion industry has also played a key role in increasing awareness among people about their appearances and consequently contributed to an increase in the demand for cosmetic products. Therefore, to cater to the rising demands of the people, it is worth owning a beauty salons franchise outlet. As Shahnaz Husain, Managing Director, Shahnaz Husain Group says, “Franchising holds tremendous scope for growth in the cosmetic industry. Branding is important for the franchise business, especially for franchises of premium brands, with established brand loyalty and recognition.”

Key players of the sector

There are a number of players in the cosmetic industry such as Shahnaz Husain Group, Revlon, H2O, L’Occitane, Nature’s Essence, Lotus Herbals, VLCC cosmetic products and many more. These are a few well known names in the cosmetic industry, which are running their franchise retail outlets successfully. They do a lot of research and analysis to come up with such products that can retrieve the lost glory of their customers’ beauty.

So, if you are also interested in owning a cosmetic outlet, a franchise specialisation can raise your chances of success to a great extent. As Dipin Passi, Director, Lotus Herbals says, “New businesses often fail within its first year due to lack of planning, although it's exciting to commence a well planned and branded franchise that can turn out to be profitable in the long run.”

Benefits of franchise system

Taking up a franchise business outlet for cosmetic retailing can be a beneficial option. Franchisees enjoy several benefits of being associated with a well recognised and established brand. For instance, they are provided with all the necessary guidance and back-up that an entrepreneur requires during the initial stages of his business development. Moreover, cosmetic products are tried and tested; people know products by brand name. So, it is better to start a franchising business in cosmetic retailing then starting an independent business.

Furthermore, the herbal cosmetic products pose good franchising opportunity as the sector is having a worldwide demand. There are numbers of well established cosmetic brands known for manufacturing a range of herbal products such as Shahnaz Husain Group, Nature’s Essence, Lotus Herbals and many more. These domestic cosmetic brands usually look for qualified and reputable local partners to expand their business in other parts of a country. So, as a franchisee you can lend a helping hand to these big brands in terms of knowledge of the specific area and the emerging needs of the local customers.

Franchise cosmetic outlet is the most lucrative business option, so as a franchisee all you have to do is to make a good rapport in the eyes of the target customer and the success of the business will automatically be guaranteed.

Related: Beautifying all

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