The aesthetic business may look very lucrative and glamorous at the face of it. But one needs to tread with caution when it comes to dealing with someone's looks. So what is the best way to approach an aesthetic business?
Looking good and youthful being important as well as affordable these days, various cosmetic treatments are making their way into the consumer market. This has opened up a world full of opportunity for investors and practitioners alike.
The aesthetic business may look very lucrative and glamorous at the face of it. But one needs to tread with caution when it comes to dealing with someone's looks. The thin line between a satisfactory smile from a customer and a heartbreaking cry is so fragile that if not taken care of, may wreak havoc for the business. So what is the best way to approach an aesthetic business?
An impressive personality does not only help to create a good impression, but it boosts self confidence to a great extent. Today, people don't hesitate from getting a hair transplant done. A laser hair removal or a liposuction to get rid of the extra flab is becoming more common. A recent report by the National Skill Development Corporation (NSDC) states that the beauty and wellness sector is growing at a compound annual growth rate (CAGR) of more than 20 per cent and will need 14.27 million skilled workforces by 2022.
Sanket shah, CEO, Advance Hair Studio: “It matter how a person looks and the overall personality, and a person who start losing hair starts depreciating themselves. It doesn't matter how successful a person is, today if a person doesn't look good, he/she doesn't feel good.” Evidently, the cosmetology industry has been boosted by rising demands for cosmetic procedures within the urban population.
Being a sector which is dominated solely by doctors and standalone clinics, currently the sector is highly unorganized and requires more investment and a standardized format incubated in a professional manner.
Sanjeev Mahajan, CEO, Enhance Clinics: “One of the major growth drivers of the cosmetic industry in India is its affordability and the consumer awareness is going high. The cost of cosmetic procedure globally quadruples the cost in India, which is making it accessible to more people.” He further adds, “There is a need for standardization in the services being offered; the bigger reason is that there should be a process for quality accreditation which cannot be implicated by individual doctors.”
The aesthetics segment attracts the interest of two categories of investors. The first category includes cosmetologists and trichologists who have the knowledge about the technicalities of the service. And the other may comprise of investors who know how to run a service centre. The practitioner may or may not have the money. The investor may have the money but not the knowledge. A clear stairway to success is to tie up with a big brand and grow through franchising.
Opportunities for Franchisees
There is evidently a huge gap in the market which can be filled only if serious players come together to make quality treatments available to the people. The need of the hour is get together doctors and practitioners with a common mission to make the aesthetic industry grow. Many aesthetic brands have started treading the much tried and tested route for growth and expansion that is none other than franchising.
Dr. Apoorva Shah, Founder, Richfeel explains: “Richfeel offers a very unique expansion model i.e. the FOCO model. In this model the franchisee just has to invest and we will manage the entire operations on behalf of them, this means a fixed return of income with no space required, no operating cost and no burden of paying salaries / rentals. This is one of the best opportunities for investors looking to cash in on this industry, which is still at a very nascent stage and is bound to grow exponentially in the next few years. Mahajan: “We partner with people who are cosmetic surgeons that are limited by the capital and we become the expansion route for them through marketing, operations etc. We also partner with likeminded people who are smart businessmen and provide them intellectual capital, standardization, and a highly profitable growth structure.”
Once considered to be a luxury, looking good and presentable has become an essential. Services like liposuction, hair grafting, laser hair removal, botox treatments which was confined to celebrities are penetrating deeper into the consumer market. With rising disposable income and increasing awareness this sector holds much potential for times to come.
HOW TO START
Learning the Terminologies: Proper knowledge about medical terminologies, legal requirements, healthcare registration, staff training, the patient pathway, plus a host of other protocols to ensure you provide treatments in a safe and controlled environment are must for a start up cosmetic business.
Equipment: It is pertinent to get world class equipment for the lab.
Location: The location has to be determined after a thorough study of the demographic and typographic of the target customer.
Trained professionals: Having well qualified medical practitioners and assisting staff on board is a mandate.
Publicity: If you want to generate sales, you have to be seen. Various ATL, BTL and social media marketing will ensure improved visibility and connecting with the consumer base.
Area: Approximately1500-2000 sq ft