Slowdown is just another word at JazzUp, an upcoming mid-segment salon chain. Its outlet in Bandra gets about 30 customers on weekdays and 50 on weekends, with each spending about Rs 700 for a haircut and Rs 5,000 and upwards on facial treatments.
Delhi-based Nail Spa, which is into treatment of nails, hands and feet, gets 12-15 customers, including teenagers, who don’t mind blowing up Rs 8,000 just to get artwork done on their nails.
“I usually go for my hydra-facials. I like the feel and won’t stop even if they charge me a few hundred more as long as I look good,” says Priyambada Sarangi, 58, with a knowing smile.
“It is a recession-proof business,” says Konark Hari Gaur, founder of JazzUp. “People might stop straightening their hair or colouring but will definitely go for new haircuts and styling. Facials have now become routine not only for women but men also.” Gaur, an “engineer-turned-hair-dresser,” uses a computer to show customers how a hairstyle they have chosen will look on them.
Beating the slowdown, several mid-market salon chains are mulling expansion across the country. Chennai-based CavinKare is planning 350 outlets with its Green Trends and Limelite formats by 2015.
In expansion mode
JazzUp, backed by angel funds Fulcrum and 360 Degrees, plans to double its count to six by the year-end. It is also planning 300 franchise outlets over the next four years.
FMCG firms, such as HUL and Godrej, are also betting big on the salon space. HUL is already in business with its ‘Lakme’ salons and Godrej is planning to enter the segment by acquiring Adhuna Akhtar’s salon chain, b:blunt.
International brands, such as Paris-based Dessange, Jean Claude Biguine (JCB) and South African nail spa Bio Sculpture, are also joining local mom-and-pop entrepreneurs and branded salons in tapping the Rs 7,000-crore Indian beauty and wellness market, which is set to more than double in size to Rs 15,000 crore by 2015.
Dessange plans to open 20-25 outlets in the next four years, while JCB will open 20 by the end of FY14.
Looking good
Gaurav Marya, founder of Franchise India, says the need to look more presentable, both among men and women, is benefiting the industry. Changing work culture, brand awareness, lifestyles and media penetration are helping it clock stronger growth every year. “We will see more brands entering the space and the industry will get more organised now,” he adds.
“Consumers are looking for the best, especially when it comes to health and beauty,” says R. Gopalakrishnan, Business Head, Trend In Vogue (TIV), CavinKare’s wellness arm. “We launched the concept of family salons. Our beauty products come in pre-packed pouches, ensuring hygiene and correct quantity.”
Consumers are also upgrading from normal waxing to chocolate wax to pain-free peel-off wax. It’s not just about any haircut anymore, but hair treatment, styling, colouring and maintaining a particular cut, says Gaur.