Beauty services Mar, 23 2012

Salon biz gets along well with franchising

Over the last few years the organised salon industry has grown at 30 percent, against the average growth of salon industry of 25 per cent. Acknowledging this growth here we present the latest trends and opportunities in the industry. Read on to explore

By Neha Gohil
Feature Writer
Salon biz gets along well with franchising

Considering the potential and need for organised salon services in India, Franchise India Holdings Limited took an initiative, and organised Indian Salon Congress 2012 for the first time. The two day conference was a platform for industry veterans to interact and highlight the best practices and to boost innovation to capture consumer interest that will assist to grow the beauty services sector.

Escalation factors

Presently, the Indian beauty products and services industry is hooked at Rs 13,200 crore. The salon industry presently is largely unorganised, and is expected to grow at an average rate of 30 per cent over the next decade. However, the entry of international players along with national and international cosmetic companies is influencing the essential growth of organised salon industry.

Many brands have sustained themselves and have grown high in the industry, like: VLCC, Shahnaz Husain, Jawed Habib and many more. On the brands growth Shahnaz Husain Chairperson and Managing Director, Shahnaz Husain Group of Companies says: “The Shahnaz Husain Group’s commitment to research and development, as well as the launch of highly innovative formulations from time to time, are some of the reasons why the brand has developed so strongly. Today, the brand is ideally positioned in the market, having established phenomenal goodwill. By assuming total responsibility of research and the development of products, the Shahnaz Husain Group provides a pillar of support to the franchisee.”

Capturing market

According to the Salon Congress report, the next chain of salons will gradually but certainly capture the market share of the typical neighborhood mom and pop beauty parlor. The time is critical for salon entrepreneurs to rethink their business strategy, which would now be the difference between their growth and survival. It is time for aspirants to trade smaller tasks for bigger accomplishments and overlay your way to become the next salon business firm.

Why Franchising?

Franchise salons will stand to cover 25 per cent of the overall organised industry by 2020, and grow to be a Rs 4,500 crore industry according to Indian Salon Report 2012.

Explaining the franchise journey Anurag Kedia, Director Projects, The Four Fountain Spa shares: “Since the time we launched our first spa, we have had an active interest from potential franchisees. In the beginning we were a little skeptical about whether franchisees would be able to maintain the right brand standards. However, we realised that the profile of franchisees who were expressing interest was extremely good and we could trust them not to cut corners.”

The mesmerising part of the show was on insights into the personal care market and trends for 2012; building extensive consumer base and map consumption trends; business strategies to incorporate multiple services like: hair, nail, skin and day spa and many more.

Prominent players

Some of the prominent brands which were present at the Salon show were Jawed Habib Hair Xpreso; Schwarzkopf Professional; Serena Spa; Naturals Beauty Salon India Pvt. Ltd; VLCC Health Care and CEO, VLCC Intl; Nirvana Wellness Corporation LLP.

Answering Ifs and Buts of beauty industry

Providing all the salon business aspirants Franchise India understands your queries and to answer these ‘Indian Salon Report 2012’ a unique research-led report is  prepared andwas unveiled in the Indian Salon Congress 2012. The report highlighted opportunities, with specific focus on how the environment is positively balanced; how to grow the Salon brand; increase profits and win long-term market share in the world’s fastest – growing and most lucrative market-place.

It revealed that 2012 stands as a year that will lead change through the beauty services business. The growth of the organised section is catapulting the industry towards a greater standard shift.

On the whole, the report aims to incorporate trends in the industry, as well as brings forward a study of the overall consumption, as these are factors governing growth and change around the business format of the salon industry.

Related: Spearheading glamorous biz of beauty

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