“The Opportunities and Possibilities in Franchising are Endless”, Mahika Yadav
The beauty and wellness industry in India is booming, with a tremendous potential for growth in 2018. In fact, it is said to be growing twice as fast as markets in the United States and Europe. India is also the second largest consumer market in the world. According to a KPMG report, the size of India's beauty and wellness market is expected to touch Rs. 80,370 crore by 2017-2018. This includes the beauty products, beauty salon, and spa businesses.
Started in 1986, Madonna is one of the well-known names in the hair & beauty care sector in Delhi NCR. In an interview with Mahika Yadav, Director, Madonna, at the 7th Indian Salon & Wellness Congress 2018, where she unveils her future plans in scaling the brand.
What makes you different from your contenders?
Having been in the industry for over 32 years, our staff makes us different from the others. We have the most trained and talented stylists that deliver services that amazes a client almost every time. They have seen a lot of trends come and go and they incorporate each and every one of them to deliver the best services to the clients. If you’ve ever been to Madonna before, you’ve probably noticed a different vibe here. We certainly seem to smile a lot and you’ll notice stylists helping one another, so everyone can stay on schedule and deliver a better experience for our clients.
Where does your brand sit today in terms of growth?
We are expanding with caution, as there is a huge dilemma between high street and malls. Every decision has to be analyzed and accessed before coming to a conclusion. We consider geographic location and study residence colonies around before starting our venture.
What attracted you towards Franchising?
Franchising caught our attention when we felt the need to expand and connect with more people and incorporate their innovative ideas. Franchise opportunities involve a lot of work, but joining forces with different people who bring a lot of more ideas& most importantly, something different that adds to the brand USP in total. It’s the next step to growth. Small & big businesses join together to create something dynamic.
How many franchise units you are planning to open in next 12 months?
We are currently testing the water when it comes to Franchising. We have just opened one currently and would like to use this model to expand to other areas of the country.
What is your business vision and how do you plan to achieve it in next five years?
In the coming years, we intend to consolidate our position back as one of the leading salons of Delhi & NCR by providing our clients with the best service in a pleasing ambiance we aim to be the first choice of discerning women and men in the NCR. Furthermore, we would like to expand beyond the capital and increase our number of outlets yet not comprising our quality of service.
What are the challenges faced in this venture?
The biggest challenge we face is finding the right kind of people and handling our staff.
We have to constantly train and upgrade our staff’s skills to be up to date. We often get applications from people with little training and experience in small salons. After sifting through, we select a few with potential and then begin the process of real training. We invest a lot of time; energy and money in our people to ensure our clients get the very best service. The other major problem with the industry is the poaching of staff by competitors. How is your brand scaling up the franchising business?
There are a lot of things you have to keep in mind before making the final decision on opening a franchise. We do aim to scale up our operations based on a franchise model but there a lot of aspects we have to look into. Two most important aspects to keep in mind is the catchment area and the cost of the rental. We do a thorough catchment analysis to understand the demographic. Also, rentals should be within our internal threshold percentage. If both are equal, only then we go ahead with the location.
Where the next opportunity lies and how are you planning to tap it?
The next big opportunity for any salon is an expansion, so to say. Through the franchise model, we look to tap in on the opportunities.
What are the opportunities one can get from the franchise route?
The franchising world like any their industry keeps evolving and undergoes changes from time to time. There are a lot of opportunities that one can tap in from franchising. One could obtain a master franchise of an already established brand or create one of its own. The opportunities and possibilities are endless. Franchising route gives a business the opportunity to expand and spread its business to different areas and regions. It’s not possible for one person to be everywhere and control everything by himself so that's where franchising comes in. Growth, expansion & franchising go hand in hand I believe.