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Interview 2016-05-17

We offer 85% ROI to franchisee and 15% to franchisor: ABC Clinic CEO

Indian Aesthetic market looks positive and booming to startup entrepreneurs and is expected to see double growth by 2020.

We offer 85% ROI to franchisee and 15% to franchisor: ABC Clinic CEO

As international aesthetic business is growing with the cutting edge technologies being used global players, India is adopting the same advance techniques. With the rising awareness of the cosmetic treatments in the country, the demand of aesthetical services has increased manifolds. Beauty salon customers are migrating from product based solution to clinical procedures where they get best treatments offered by renowned dermatologists.

Offering the same is an upcoming franchise brand- Advanced Beauty and Cosmetic Clinic (ABC clinic). The brand has kept its focus intact to the consumers, who are well aware of the consequences of the delay in taking action towards chronic issues like hair loss, fat reduction etc.

At present, the brand has three company owned outlets and has plans to open three franchise clinics by the end of next month. To understand more about the franchising plans of ABC Clinic, Wellness India spoke to Thirumal Raj, Founder and CEO, ABC Clinic. Here is the edited excerpt:

Franchise model

We partner with people who have passion for aesthetical practices, with a strong vision to grow with the brand. The market size and demand is growing day-by-day. Thus, we chose franchise model to expand our footprints in diverse locations and cities. The model will help us grow fast and touch local customer base. The resident franchise partner will understand the local customer and will help in providing the best services in the city.

Promotion activity

We have initiated 365 days marketing campaigns and have been experiencing good conversion so far. We use all sort of marketing Communications to reach our customers. We have tied up with national Print media for daily advertisements and have our own in-house Social Media Expert for online marketing. We also promote our TV Commercials on leading channels.

Revenue model

It will be 85 per cent to Franchise and 15 per cent to Franchisor. We partner with people who have the passion towards aesthetic business with a strong vision to grow with the brand.

Combating challenges

The cosmetic industry is continuously evolving and keeping pace with the international market is a bit challenging for us. We are introducing new services and upgrading latest technologies so that we serve the best to our customers.

Global tie-up plans

We are in discussion with international Aesthetic Experts to join us on-board and will be sharing the final decision shortly.

Ongoing trend

The demand for various slimming therapies is increasing and we have launched non-invasive and non surgical advanced cryolipolysis treatment for our customers. The treatment is extremely popular and customers are benefitting from it.

What’s new

We are planning to introduce more non invasive, non surgical treatments, which will be an alternative to all surgical cosmetic treatments.

Geographic presence

We are planning a PAN India expansion. Internationally, we plan to expand in the Middle East region.

Expansion plans

We plan to expand our current market presence with 20 more clinics, before 2017 end.

Industry growth

Aesthetic market looks very positive and a booming for entrepreneurs. It would double by 2020.Today, every individual is concerned about their appearance. I can define the aesthetic market in two different categories- first is the customers look for Hair Loss Treatments, Skin Rejuvenation Treatments and Weight Loss treatments while the second include customers who look for various surgical procedures for their facial and body corrections.

In India, the beauty and wellness market is growing. As per the global study, 1 out of 4 men within the age bracket of 30 suffer from baldness. The youth is aware of various treatments available in the market and knows well that delay in any treatment may result in further hair loss. The cosmetic treatments are the ultimate solution for the hair loss.

Non surgical procedures to reduce weight are extremely popular in India. The customers from the beauty salons are migrating from Product based solutions to Clinical solutions. Each customer is treated by Dermatologist. The doctor analyzes the skin and recommends treatments as per the requirements.

Franchise facts:

Model: Master and Client

Monthly Revenue: Around Rs20 lakh

ROI: Within 2 Years

Investment: Rs60 Lakh

Existing outlets: 3 & 3

Area: 1500 sq ft

Breakeven: Rs 7 to Rs 8 Lakh

Target Cities: Pan India and global arena

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