Beauty Salon Business Plans
India’s retail beauty and cosmetics industry, currently estimated at $950 million, is estimated to almost treble to $2.68 billion by 2020. The annual growth rate of the Indian beauty and cosmetic market is expected to remain in the range of 15-20 percent in the coming years which is, as a matter of fact, double the growth of this sector in the US and European markets. Every business enthusiast today is aware of the fact that the Indian personal care has never seen such histograms before!
“It’s been a very wholesome time for the industry and this time has really come from the fact that the consumer has dramatically changed. Today, consumer wants a little drama around whatever he is looking to take as a service”, said Ms. Ritu Marya, Editor in Chief, Franchise India Media at the Indian Salon and Wellness Congress 2017. This means that the consumers have started to prefer ‘organised’ over the ‘un-organised’ in the salon sector as well. The industry which was lately an unorganised bunch of barber shops and beauty parlours is today shifting to a completely organised lattice of online platforms, global franchisees and professional training centres.
With so much to do in the industry, entrepreneurs and franchisees are going overdrive to grab the benefits of the changes in the consumer behaviour which are both quantitative and qualitative.
Here are some ideas on how to create an effective business plan for salon:
Going to salon is no more an activity exclusive to Women. Increased incomes, changing mindsets and corporate needs have made men more conscious of their looks and thus the unisex salons have gained popularity. Only in just last 5 years, the men grooming industry has seen an astounding growth of 42%! The study further showed that this growth is faster than the total growth in personal care and beauty industry in India. Now, the needle in the overall parameter still remains tilted towards women. But quite interestingly, men falling in the 18-25 age groups spend more money on personal care and grooming than women in India. So, if you do not plan to miss an important chunk of the revenue.... Go Unisex.
There are many reasons why franchising can be a great option to start with. It’s cost-effective, safe and proven. If you are clear about your goals, franchising can be the right kind of vehicle for achieving your financial goals. The reason is that all the foundational work of brand building has been already done. All you need to do is business! On the other hand if you have already built a salon brand and wish to expand your business, being a franchiser is one of the best things you can do.
This is something suggested for almost any kind of business. Building your online presence can be one of the best things you do in the business building process. This can be done in many ways. To start with, make sure that your salon’s name and details are there in the Google search directory with brand’s name, images, contact details, location and customers’ testimonials. (You don’t need a website for this!) E-mail marketing too is an effective way of claiming your online territory. Then of course you can have a website or a mobile app to further attract customers and keep them interested. You can also run online feedback surveys and contests and manage the individual customer need by analyzing their online behaviour.
One of the latest technologies in the social media promotion and marketing arena is the use of geo-location software to connect consumers to the business they patronise. Global Positioning Software (GPS) is the most popular choice among all these technologies. These software help a smart phone to identify where the player is located then give them a way to ‘check in’ to a certain location to earn points. For the salon, these programs offer you a chance to reward and celebrate loyal customers and attract new ones. These programs help optimize the services you offer in-store and online.
Salon market is rapidly rising and still has a huge growth potential. With a well planned strategy and efforts, this potential can be harnessed into profits and reputed brand name.