7 growth factors in Beauty & Wellness space
Beauty & Wellness is a part of the Indian lifestyle since ancient times. Gradually, with the progress of time, wellness as a concept has evolved in a multi-dimensional definition. Primarily, influenced by the changes in society and in an individual’s lifestyle, the Indian Beauty and wellness industry has emerged as a sector with high growth potential and scope. Market experts are optimistic that this growth will increase in the years to come.
While addressing the audience at The Entrepreneurship Summit 2014, organised by Franchise India Holdings Ltd on 11th – 12th October, 2014 at Pragati Maidan in New Delhi, market experts have shared their views and areas which have immense potential and scope for growth.
Chackochen Mathai, GM- Business Development, Trends in Vogue Pvt Ltd, a Cavinkare Group Company shared some points during the panel discussion which would indeed help the small and big players in the industry to embrace new ways to improve their business growth.The growth deriving factors in Beauty and Wellness Industry:
Location: It plays the most pivotal role in the success of a spa or salon. “We identify locations which are very comforting for the people coming into the salon. The location should be of utmost importance because it’s the place where people come and spend. Also, there is a huge skill gap in the market and there is a huge opportunity in the training industry as well,” Mathai noted.
Purchasing power of the consumers: It’s the purchasing power of the people, which is contributing in the growth of the industry. “People like to spend on themselves these days. For instance – in my salon, one has to spend about Rs 1,500 on a particular haircut. But in my other salons in the South region, the regular spend is Rs 80-100. So, that’s the size of spending from a regular 80 bucks. In the South, we spend almost Rs 80-100 on a haircut. But I can see that things are changing rapidly and people believe in spending more,” added Mathai.
Democratic age: “A lot of aged people are now getting more concerned about their looks and they are willing to spend on themselves. Therefore, we see a huge opportunity here. Opportunities are growing due to the increase in urban population. The amount of men willing to spend on their looks is also growing rapidly. 40 per cent of the consumers in my salon are men and they are spending more,” noted Mathai.
Role of franchising: According to Mathai, Franchising is another contributing factor in the Beauty & Wellness industry. He said, “Join hands with some of the already existing brands and become a franchisee to make money. You may face difficulties like getting a skilled hair stylist, but with the availability of training institutes, that won’t be a big issue.”
Funding: Lots of banks are not interested in funding projects in the beauty and wellness space. But a lot of other banks like IDBI are willing and ready to fund such projects. Banks like IDBI fund franchise programmes. Therefore, there’s a scope for a lot of growth in this industry, shared Mathai.
Quality and hygiene: Apart from all the above mentioned points, growth in the wellness space is driven by the quality of services offered. A consumer would be keen to spend only if he gets a quality and hygienic ambiance. If you offer good and quality service, people would prefer to visit you again and again. It has a high margin business and you’ll reap more profit with the repeat visit of your customers.
Branding: “I am very amused to see that we have less of global brands and more of local brands and in the emerging brands, there are again Indian brands. People are now feeling so conscious about their looks that the beauty, health and wellness segment is growing at an astonishing pace,” added G Ramachandran, Director- Promoter, Gold’s Gym India.
