Make 100% returns with 0% risk in salon biz

With 40+ salons spanning nine states of India, the brand now has lined up a vigorous expansion strategy to take its salon count to 500 salons by 2018.

The beauty and grooming industry is all hale and hearty and credit for this goes to the rapidly growing middle class, disposable income and an increasing aspiration towards looking good among both men and women. Other major factor which is behind the growth of beauty and grooming market is the bride's market. It is rapidly beefing up revenues for beauty salons as brides-to-be are fervent to splurge extra bucks for their big day. As consumers' perception is profoundly changing in terms of shedding extra cash on rejuvenating salon services and to have that confident look, it has in some way doubled the industry's growth.

After analysing some surprising facts about the growth of beauty and salon industry, Naunihal Singh who is a post graduate in Marketing Management & Financial Control entered the market after acquiring 10+ years of experience while working with renowned beauty and cosmetic brands in the industry. He then, started his business venture by launching Strands Salon ‘N’ Spa way back in 2005. With 40+ salons under its brand's umbrella, Strands is further seeking to expand its foothold in North, East and West.

Currently, they have operational salons in Chandigarh, Punjab, Haryana, New Delhi, Himachal Pradesh, Jharkhand, Chhattisgarh, West Bengal and Kerala. They also have a registered office in London. Reckoned as one of the fastest growing chain in India, Strands also has a long term association with Wella Professionals, which is number one hair color brand and has done remarkable innovation in hair care category.

Strands is now looking ahead to redefine the salon industry by launching its new salon, Wella’s SP Niox in advanced hair care. Naunihal Singh is buoyant about the beauty salon business. In a candid chat with TFW Bureau, he says: “Strands aims to become the 1st choice of investors who are interested in taking up salon franchise.” His vision is to open 500 company partnership salons by 2018. Looking at the on-going market trends, he sees a pool of opportunity in this segment. He further plans to add 200 salons in its network by 2016. The brand has plans to enter Nagpur, Pune and Coimbatore soon.

Looking at the market demand, Strands is currently operating salons in various retail formats that serve to diverse set of consumers in a unique way. Under the umbrella of Strands Salons Pvt Ltd, the franchisee can take up franchise of four types of salon models depending upon the city and customer base.

Strands Salon ‘N’ Spa is currently running 12 Company-Owned Company-Operated (COCO), 24 Franchisee-Owned Company-Operated (FOCO) and four salons in partnership.

Offerings @ salon

For its target customers, the salon provides a vast range of skin, beauty, make-up, hair and spa treatments from stylists trained by experts from Wella Professionals and Strands Academy. The professional make-up artists and hair stylists are highly trained and ensure that clients receive the maximum benefit from treatments and products. The brand uses only professional products from well known brands like Wella, Krylon, Mac, Mud Make-up etc.

Franchising, the best bet!

“For spreading reach across untapped geographies, franchising is ultimately regarded as the most proven business model which allows brands to extend their retail footprint,” believes Singh. Realising the significance of the replicable business model, Strands too hopped on this successful model to widen its presence. To its stakeholders and partners in business, the brand offers extensive training and support for running the store operations successfully. In fact, every item is carefully selected to minimise set-up cost yet offer clients the highest standard of presentation. Strands is seeking franchisees who have the willingness and ability to make reasonable investments.

Appreciation and motivation for its partners

Every year, Strands accolades the best of talent by organising a special show to reward its best performing employees and partners in business. Strands' franchisee Ashima Arora who runs brand's salon in Dwarka, was earlier working with American Express. She is currently managing five franchise outlets of Strands.

On sharing the success story of one of its employees, Naunihal says: “At Strands, we ensure to recognise the talent of our employees from lower to higher level of hierarchy and reward them on the basis of their overall performance. He candidly adds: “At Strands, one of the employees who was earlier a Pedicurist has reached to a position of a Business Development Manager owing to his good networking skills and highest level of customer service which thereby generated revenues for the company and enhanced the customer footfall at the outlet.”

By offering the franchisees a reliable yet zero financial stress, Strands ensure that investment they are making in their business is secured totally. Strands offer its franchisees two types of business models for expansion.

Strands Academy: Supplying skilled manpower

The only challenge that beauty and grooming sector is undergoing is the need for a skilled manpower. To fulfill the industry's need and providing employment opportunities to aspiring candidates who wish to flourish in this sector, Strands Academy was set up in collaboration with Wella Professionals International School Programme which provides highest standards of education in all aspects of beauty and hair therapies and offer intense practical training programmes. Getting qualified staff is the biggest challenge in this industry so the brand focusses on adding Strands academies in the next one year. The brand will be opening academies across Chandigarh, Panipat, Kolkata and Raipur to offer employment opportunity to the like minded individuals.

Beauty and salon business is the hottest industry to invest into, as one can make quick revenues by offering quality beauty services coupled with association with the best franchisor. Strands believes in opening cluster salons and looks ahead to team up with prospective franchisees and master franchisees. Also, Strands is keen to partner with the existing salons. Naunihal believes that there is less competition in small markets so after exploring metros for expansion, tier II, III and IV markets will be targeted for expansion.

So, what are you thinking? Grab this money-spinning business opportunity to generate 100 per cent returns, without any risk and feel free as there is no headache of paying any franchise and royalty fee.

Requisite to associate with Strands Franchisee-owned Company-operated (FOCO)

= 0% franchisee fee.

= 0% royalty.

= Fixed monthly management fee.

= Company partnership model.

= Return and investment best in the industry.

= Investment in salon will vary from Rs 35-50 lakh.

= SSPL will own Marketing, Human Resource, Finance, Purchase and logistics.

Franchisee-owned Franchisee-operated (FOFO)

= Upfront Franchise Fee.

= Rs 7-15 lakh.

= Party will invest required money in renovating place in fitting & fixture and also in furniture & equipments.

= Royalty

a) 11% of gross profit in first year.

b) 12% of gross profit in second year.

= Return and investment best in the industry.

= Investment in salon will vary from Rs 35-50 lakh.

Google Survey: "Strands Salon & Spa is among top ten salons chains in India."

Source: KPMG Wellness Sector report "The size of India's beauty and wellness market would nearly double to Rs 80,370 crore by 2017/18 from Rs 41,224 crore in 2012/13.”

-Increasing monthly spends as both men and women are splurging more on beauty and salon services.

-A great opportunity for existing salon owners to tie up with strands salon & multiply their revenue.

-Beauty & salon industry is offering recession free opportunity to franchisees.

-To aspiring franc-hisees, strands salon 'n' spa offers risk free model of franchising via foco model.

-FOCO model does not involve any franchise and royalty fee, which is regarded as safest business model for making quick bucks.