Christine, a college going girl spends almost 2 thousand every forth nightly on salon and spa services. The grooming industry is getting a makeover and it’s no surprise that in years to come it’s only going to expand and flourish. The Beauty Business in India is growing phenomenally with the cosmetics market growing at 15-20% annually, twice as fast as that of the United States and European markets.
Almost 5 years ago, it was only the creme da la creme and those belonging to the glamour industry going to the salons, which were also few in numbers. Presently there are multiple brands of salons mushrooming at a fast pace with big global salon chains like Tony & Guy, Jean Claude Biguine, Metodo Rossano Ferretti, Warren Tricomi and other renowned names entering the potential Indian market offering multiple choices to the growing clientele. Looks the largest unisex salon chain in started in the year 1989 and has expanded rapidly over the last few years. Sanjay Dutta, CEO-Looks Salon says “Over the years, we have grown through leaps and bounds and presently stand tall with 73 unisex salons across Delhi, NCR and North & Central India.”
What’s driving growth in the salon industry
1) Growing purchasing power of the Indian middle class: The beauty consumption in increasing exceptionally in India. With growth in disposable income & awareness, people are becoming experimental and demanding in nature. They are eager to revive and experiment with their looks in renowned beauty salon chains that offer great service, high-quality products and guarantee customer satisfaction. “Indian population is increasingly becoming aware and looks oriented. This change has led to the foray of many foreign cosmetic brands in the Indian domestic market.” Informs, Arpit Jain, Founder, Auraine Botanicals.
2) Increase spending on lifestyle needs: With increasing disposable income, people have started appreciating finer things in life. They are ready to spend money to avail better service, quality of products and hospitable staff. And with expansion of renowned salon chains in every nook and corner, they find it all the more convenient. A typical example would be of Manisha Gupta, a 32 year old Human Resource Manager by profession. She switched from traditional run of the mill lady’s salon to a niche upscale salon. “ I wanted quality service and thus tried one of these salons,” she says.
3) Largest youth population: India has more than 50% of its population below the age of 25 and more than 65% below the age of 35. The young population loves to try something new and throngs salons to try looks that are fashionable, stylish and in vogue.
4) Urban Population: More and more people are flocking urban locations in search of job, better lifestyle and living conditions. With exposure to better living conditions people are becoming self-conscious, aspirational and demanding in nature. Holding on to this growing trend, people have started finding employment in the salon industry which provides them lucrative business prospects.
5) Increasing awareness of grooming among men: Compared to women, men have evolved from basic grooming needs and have become more conscious and demanding in nature. Due to influx of variety of products, men have started experimenting with their looks and switched from local barber shop to suave and upscale salons. "Over the years, men have begun to accept that basic skin care and even make-up is a daily routine to keep the skin healthy and flawless. Competition among the workforce too has upscaled the drive to look youthful and has led to increased demand for products specific to men,” says Shikhee Agrawal, Head Training, Body Shop. Interestingly, men are even replacing women in some beauty product endorsements. For instance, Maybelline's Big Shot mascara campaign, released earlier this year, featured a male model with an eye make-up, thick eyelashes and well-groomed stubble.
6) Availability of world class product brands: Today’s consumer has multiple product options especially with increase of online retail market which has brought multiple brand for the consumer to choose from. “Overall, there is an immense economic optimism championed by a young Indian population that is aware, well-travelled and more exposed and connected than ever before. This growth can also be attributed to the increased initiatives by both domestic and international beauty players who are ensuring that country is aligned to the global products and services offered. These are exciting times to be in India and Shiseido’s Za has entered the market just when it is about to explode,” said Benjamin Suzuki, Managing Director, Shiseido India. Due to coming up of big international brands, salon chains are also finding avenues to purchase these brand and provide best quality products to the customers.