An Optimistic approach of Indian professional
salon industry towards smaller cities
"Going beyond Haircuts"


By

S.Rajesh
Outlet Manager
Trends Invogue Pvt Ltd.
A Cavinkare Group of Company
Green Trends Hair & Style Salon
 


The hairdressing and beauty industries in India are characterized by a substantial number of small and medium-sized owner-operated businesses, with a growing number of franchises emerging. Most businesses are Indian owned, but there is also a small amount of international ownership.  India's Rs 5,070 crore beauty care market is growing at 25% annually. The beauty services business accounts for about 90% of the pie. Over the last few years the organized salon industry has grown at 30 percent, against the average growth of salon industry of 25 per cent. Salons provide both employment and tax revenues and contribute substantially to the economic Vitality and social well-being of a community.

Transition of Salons

The hair industry started in barber shops and beauty parlors, but the rise of unisex salon chains is changing all that. Before it was a basic hygiene service but now witnessing towards fashionable service like fashion hair cut and coloring. In recent times Indian hair dressing sector has been a great evolution in the fashion industry. The reason behind this transition is comparing to women, equally men are going beyond normal haircut. The industry has changed. If you want to be a successful salon professional in 2012 you have to be intimately familiar and fully understand the top 5 trends that will have a profound impact on the salon industry in 2012, 2013 and beyond. The Spa & Salon industry is witnessing a large customer base with long latency period. Salons are reporting various trends developing as their clients make changes in their spending habits and personality. The beauty salon has become almost an iconic figure in the Indian culture.

Workforce Resources

The world of beauty, with its dynamic and challenging markets, calls for intuition, creativity, flexibility and passion – and so the primary objective of our training programs is to develop talents. Companies that prosper have the capacity to effectively solve problems, rapidly adapt to new situations, readily identify new opportunities and quickly capitalize on them. This capacity can be measured by the range of talent, experience, knowledge, insight, and imagination available in their workforces. The report notes that hairdressers need a qualification to practice in the vocation and, therefore, those who do not have a qualification or the qualification they hold is at a lower level than that which is necessary, is then most likely to be apprentices8.  To ensure tight control over quality, the companies have set up an in-house training academy. The training covers every aspect of beauty care, as well as soft skills.

Competitive Edge

According to the 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. Many brands have sustained themselves and have grown high in the industry, like: VLCC, Shahnaz Husain, Jawed Habib, Naturals unisex salon Green Trends,Uni spa N salon and Colour Lounge  However, the entry of international players along with national and international cosmetic companies is influencing the essential growth of organized salon industry.

Diversified Expansion

Companies diversify either by acquiring already existing businesses or by expanding their own businesses into new markets and new areas of production or service. As a diversification process Salon industry also come up with franchise option, due to higher capital cost, lack of people and expansion barriers companies decided to franchising their business. In recent years service sector has come up with the franchise model business, the salon industry increasing the business opportunity by learning a lesson from the service industry. Franchising is relatively flexible format, which provide an adequate return.

"Diversity within the system will help the system grow stronger, as diverse perspectives breed new and fresh ideas that will propel the growth"

Franchised salons, which are commonly found in such high-traffic areas as strip malls, may be started up by a single entrepreneur or by a group. The franchisee pays the franchise holder an up-front fee, typically between 30 lacks to 50 lacks and continues to pay a 10% to 15% royalty on sales. In turn, the franchise holder pays for advertising costs and avails other resources to the franchise unit.

Considering the potential and need for organized salon services in India, Franchise India Holdings Limited took an initiative, and organized 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. Some of the prominent players in the industry are Jawed Habib Hair xpresp, Schwarzkopf Professional, Serena Spa Natural Beauty Salon India Pvt Ltd, VLCC health care, Nirvana Wellness corporation LLP and Green Trends hair & style salon

Layout design

One of the most exciting parts of launching a new hair salon is designing its interior and exterior. The hair business is all about image and the image your salon projects will not only determine your clientele, but the amount of money you can charge for your services. Planning is an important part of starting your own hair salon. Before you open your doors, you have to plan how your salon will look, starting with the floor plan. A good floor plan allows you to model and decorate your salon just the way you want while maximizing space for your equipment and clientele. Designing a good floor plan isn't easy, and it may take several attempts before you can create the final plan.

The color and décor of your hair salon can have a major influence on your clientele and whether they want to come back. In addition to making the salon feel inviting, designing and painting the space to suit the style and tempo of the salon is essential. Color is one of the most important choices for a hair salon to create a mood for the business. This transition helps salon to concentrate on the layout design and looks good at all levels.

Location

Location is critical to the success of your business. You need a location that is strategically situated on one of the busiest streets in your area, if not in a mall. Some salons employing well-known hair stylists (e.g. "stylists to the stars") can put their business anywhere and clients will still flock to them. If you don't have a well-established reputation in the business and a long list of loyal clientele, find a high-profile location with an easy access from all parts of town.

Career Growth

Careers in the hair, beauty and wellness industry offer a broad scope of work environments that extend beyond salons. Career growth in the hair, beauty and wellness industry is expected to outpace job growth in many other industries. According to the National Accrediting Commission of Cosmetology Arts and Sciences, employment of cosmetologists and skin care specialists is projected to grow between 10 and 20 percent through 2010. Demand for nail techs is projected to grow between 21 and 35 percent.

Keys to Success

The keys to success in the salon business are:

  • Location: providing an easily accessible location for customers.
  • Environment: providing an environment conducive to giving relaxing and professional service.
  • Convenience: offering clients a wide range of services in one setting, and extended business hours.
  • Reputation: reputation of the owner and other "beauticians" as providing superior personal service

Conclusion

"There is a lack of recognition of the significant contribution that the hairdressing and beauty industries bring to the Indian economy." we want to impart knowledge, training and work together and

Build the awareness. The idea is to work together to make the industry better for all of us and get the best results. The best way to lobby the government is to come together and voice our opinions."

References
Websites
http://www.franchiseindia.com
http://www.ehow.com
http://www.referenceforbusiness.com/industries/Service/Beauty-Shops.html#ixzz1rNvEYDLb
www.workforce.com
http://www.thefranchisemall.com
www.loreal.com
www.enotes.com
http://www.ehow.com

Magazines & article

Image & Business of Beauty
Economic Times
Salon International October November 2009
Business Today
 


S.Rajesh
Outlet Manager
Trends Invogue Pvt Ltd.
A Cavinkare Group of Company
Green Trends Hair & Style Salon
 

Source: E-mail May 12, 2012

 

         

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