According to a report published by KPMG, India’s salon industry reached to Rs. 80,370 cr in 2017-18 and according to the average growth per year, it would reach to Rs. 95,640 cr in 2018-19.
New technologies are finding their places in the beauty and spa industry day in and day out to make the lives of customers easy and also to stretch the arms of the business as far as possible.
The Indian wellness industry is expected to grow at a compounded annual growth rate (CAGR) of 12 percent for the next five years to achieve a Rs 1, 50,000crore-turnover by 2019-20.
In a recent interaction with Franchise India, Aditya Arya, Co-founder, Yes Madam, sheds some light in the flourishing opportunities in the Indian beauty industry, while sharing his brand’s franchising goals.
Opportunities in the Beauty sector
Aditya says, “Since grooming is no longer a luxury but a necessity, people from across age groups and gender want to look good. Salon at Home concept works perfectly for those women who have professional commitments and also for new mothers who can’t leave their little ones at home for long. It gives us a humongous opportunity to serve the sector with quality; that too in affordable prices.”
Changes Going on in the Beauty Services Business
He explains, “With the rising influence of various segments, a revolution in smartphones, peer influence and social media pressure, the salon industry in India has grown about 94% from 2012 to 2017.
According to a report published by KPMG, India’s salon industry reached to Rs. 80,370 cr in 2017-18, and according to the average growth per year, it would reach to Rs. 95,640 cr in 2018-19. It is becoming a big market for many players and India has seen a lot of changes in the market. Due to the time constraints of people and change in lifestyle, Salon at Home service is making a mark in the country.
India has seen a rise in the disposable incomes of the people, which means a good return on investment for the players. People are more conscious about their hair and skin due to a deteriorating environment condition. On the other hand, they are overburdened with the work in their life, which makes it hard for them to visit a salon. So, Salon at Home service can bridge the gap between these problems by providing the salon treatments at the time they want and at the place they want.
You don't have to slog yourself all the way to the local parlor and wait for your turn patiently. Just tap for an at-home salon service and get pampered in the comfort of your home.”
How Franchising Works in this Business
As a salon is a risk-free and recession-free sector, given the rising demand for beauty grooming services, it is an attractive investment opportunity. People have to just invest 10-11 lakhs to have Yes Madam’s franchisee. They will get a payback of their investment within almost two years. As the concept is new, we are not charging any royalty for the franchise.
The company has already started its first franchise in Lucknow and received 100 orders in the first month while providing the GMV of 1.1lakhs.
Investment Range: 10-11 lakhs
Franchise Fee: 3 lakhs included in investment range
First franchise opened: Lucknow
100 Franchises by 2020
20 franchises, 10 cities by end of 2019